Actuarial Fiscal Note
Date Requested:February 01, 2020
Time Requested:01:08 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2465 |
Introduced |
SB607 |
|
|---|
| CBD Subject: |
Public Safety |
|---|
|
Retirement Systems Impacted by Legislation:
Plan A 2392 and DSRS 2150
FUND(S):
Special Fund
Sources of Revenue:
Creates New Expense
Legislation creates:
Plan A and DSRS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
SB 607 requires law-enforcement officers to submit motor vehicle crash reports to the owners and/or drivers of the vehicles involved in a crash. The bill requires the law-enforcement officer, within 24 hours of a motor vehicle crash, to share the owner/operator and insurance information for all the involved parties with all the other involved parties and/or their insurance agents.
The West Virginia Department of Public Safety Death, Disability and Retirement Fund (State Police Plan A) receives approximately $87,000 per year from West Virginia crash report fees. SB 607 would eliminate these fees, however, this bill does not change the overall annual employer funding requirement for Plan A. Therefore, the $87,000 reduction in funding from the loss of crash report fees would be an increase of $87,000 in the annual State contribution to Plan A.
The West Virginia Deputy Sheriffs Retirement System (DSRS) receives approximately $147,000 per year from West Virginia traffic accident report fees and incident reports fees. SB 607 would eliminate these fees, however, this bill does not change the overall annual employer funding requirement for DSRS. Therefore, the $147,000 reduction in funding from the loss of these fees would be an increase of $147,000 in the annual employer contribution to DSRS.
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 |
$234,000.00 |
0.40 % |
| 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:
The West Virginia Department of Public Safety Death, Disability and Retirement Fund (State Police Plan A) receives approximately $87,000 per year from West Virginia crash report fees. SB 607 would eliminate these fees, however, this bill does not change the overall annual employer funding requirement for Plan A. Therefore, the $87,000 reduction in funding from the loss of crash report fees would be an increase of $87,000 in the annual required State contribution to Plan A.
The West Virginia Deputy Sheriffs Retirement System (DSRS) receives approximately $147,000 per year from West Virginia traffic accident report fees and incident reports fees. SB 607 would eliminate these fees, however, this bill does not change the overall annual employer funding requirement for DSRS. Therefore, the $147,000 reduction in funding from the loss of these fees would be an increase of $147,000 in the annual required employer contribution to DSRS.
Analysis of Impact on Public Pension Policy:
The West Virginia Department of Public Safety Death, Disability and Retirement Fund (State Police Plan A) receives approximately $87,000 per year from West Virginia crash report fees. SB 607 would eliminate these fees, however, this bill does not change the overall annual employer funding requirement for Plan A. Therefore, the $87,000 reduction in funding from the loss of crash report fees would be an increase of $87,000 in the annual State contribution to Plan A.
The West Virginia Deputy Sheriffs Retirement System (DSRS) receives approximately $147,000 per year from West Virginia traffic accident report fees and incident reports fees. SB 607 would eliminate these fees, however, this bill does not change the overall annual employer funding requirement for DSRS. Therefore, the $147,000 reduction in funding from the loss of these fees would be an increase of $147,000 in the annual employer contribution to DSRS.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The Deputy Sheriffs Retirement System is not a liability of the State, and as such the cost to the system due to the proposed legislation would not affect the State’s costs.
The West Virginia Department of Public Safety Death, Disability and Retirement Fund (State Police Plan A) receives approximately $87,000 per year from West Virginia crash report fees. SB 607 would eliminate these fees, however, this bill does not change the overall annual employer funding requirement for Plan A. Therefore, the $87,000 reduction in funding from the loss of crash report fees would be an increase of $87,000 in the annual State contribution to Plan A.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
87,000 |
87,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
87,000 |
87,000 |
| 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):
The Deputy Sheriffs Retirement System is not a liability of the State, and as such the increased cost to the system due to the proposed legislation would not affect the State’s costs.
The West Virginia Department of Public Safety Death, Disability and Retirement Fund (State Police Plan A) receives approximately $87,000 per year from West Virginia crash report fees. SB 607 would eliminate these fees, however, this bill does not change the overall annual employer funding requirement for Plan A. Therefore, the $87,000 reduction in funding from the loss of crash report fees would be an increase of $87,000 in the annual State contribution to Plan A.
Memorandum
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