Actuarial Fiscal Note
Date Requested:February 04, 2019
Time Requested:02:20 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2850 |
Introduced |
HB2739 |
|
|---|
| CBD Subject: |
Crime |
|---|
|
Retirement Systems Impacted by Legislation:
PERS 2501; TRS 2600; State Police Plan A 2392; State Police Plan B 2393; JRS 2140; DSRS 2150; EMSRS 2615; MPFRS 2390
FUND(S):
General Fund
Sources of Revenue:
Legislation creates:
All defined benefit plans administered by the CPRB
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The bill as introduced provides that if a participating public employer fails to make an employee or employer contribution for 60 days after it is due, the state auditor, county commission, or sheriff may withhold that payment from any amounts due the employer and remit it to the CPRB. In addition, if the person responsible for ensuring payment of the required employee or employer contributions knowingly and willfully fails to make the contributions to the retirement plan for a period of 60 days after the payment is due is guilty of misdemeanor and upon conviction thereof, shall be fined not less than $100 nor more than $500 or shall be confined in jail for not more than six months, or both fined and confined.
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 6 employers are delinquent on contributions in any given month, with delinquencies ranging from a few months to over a year late.
Fiscal Detail of Actuarial Impact
Impact on current benefit costs, prior service benefit costs and ongoing contribution requirements following full implementation.
| Impact On |
Following Full Implementation |
| Increase in Unfunded Actuarial Accrued Liability |
Initial Impact on Annual Contribution Requirement of System(s) |
Contribution Increase as a Percentage of Annual Payroll |
| Total Annual Costs |
$0.00 |
$0.00 |
0.00 % |
| Normal Cost of System |
N/A |
$0.00 |
0.00 % |
| Past Service Liabilities |
$0.00 |
$0.00 |
0.00 % |
Fiscal Year Past Service
Amortization Period Ends |
N/A |
- |
N/A |
Explanation of above Actuarial estimates:
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 6 employers are delinquent on contributions in any given month, with delinquencies ranging from a few months to over a year late.
Analysis of Impact on Public Pension Policy:
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 6 employers are delinquent on contributions in any given month, with delinquencies ranging from a few months to over a year late.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 6 employers are delinquent on contributions in any given month, with delinquencies ranging from a few months to over a year late.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above Fiscal Note estimates (include possible long-range effect):
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 6 employers are delinquent on contributions in any given month, with delinquencies ranging from a few months to over a year late.
Memorandum
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 6 employers are delinquent on contributions in any given month, with delinquencies ranging from a few months to over a year late.
This Actuarial/Fiscal Note is being submitted by the Consolidated Public Retirement Board. It has been reviewed by the CPRB Actuary. Both the Board and the CPRB Actuary are available upon request for questions.
Person submitting Fiscal Note: Kenneth M. Woodson Jr., Board Actuary, CPRB
Email Address: kenneth.m.woodson@wv.gov