Actuarial Fiscal Note
Date Requested:February 06, 2024
Time Requested:09:20 AM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3411 |
Introduced |
SB605 |
|
|---|
| CBD Subject: |
Retirement |
|---|
|
Retirement Systems Impacted by Legislation:
PERS 2501; TRS 2600; TDC 2190; State Police Plan A 2392; State Police Plan B 2393; JRS 2140; DSRS 2150; EMSRS 2615; MPFRS 2390; NRPORS 2397
FUND(S):
Special Fund
Sources of Revenue:
Legislation creates:
PERS, TRS, TDC, State Police Plan A, State Police Plan B, JRS, DSRS, EMSRS, MPFRS, and NRPORS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The purpose of SB 605 is to require participating public employers in any retirement plan administered by the Consolidated Public Retirement Board to remit retirement contributions and fees by electronic funds transfer beginning July 1, 2024. Failure to comply will result in a $300 surcharge for each paper check submission. The Executive Director of the Board or his or her designee may waive the surcharge on an emergency basis or for an extenuating circumstance.
The updates to the West Virginia Statute from SB 605 for PERS, TRS, TDC, State Police Plan A, State Police Plan B, JRS, DSRS, EMSRS, MPFRS, and NRPORS are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.
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:
The updates to the West Virginia Statute from SB 605 for PERS, TRS, TDC, State Police Plan A, State Police Plan B, JRS, DSRS, EMSRS, MPFRS, and NRPORS are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.
Analysis of Impact on Public Pension Policy:
The updates to the West Virginia Statute from SB 605 for PERS, TRS, TDC, State Police Plan A, State Police Plan B, JRS, DSRS, EMSRS, MPFRS, and NRPORS are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of SB 605 is to require participating public employers in any retirement plan administered by the Consolidated Public Retirement Board to remit retirement contributions and fees by electronic funds transfer beginning July 1, 2024. Failure to comply will result in a $300 surcharge for each paper check submission. The Executive Director of the Board or his or her designee may waive the surcharge on an emergency basis or for an extenuating circumstance.
The updates to the West Virginia Statute from SB 605 for the State Plans PERS, TRS, TDC, State Police Plan A, State Police Plan B, JRS, and NRPORS are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.
DSRS and EMSRS consists of county governments and MPFRS consists of local municipalities, therefore, these plans do not impact the costs or revenues of state government.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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):
The updates to the West Virginia Statute from SB 605 for the State Plans PERS, TRS, TDC, State Police Plan A, State Police Plan B, JRS, and NRPORS are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.
DSRS and EMSRS consists of county governments and MPFRS consists of local municipalities, therefore, these plans do not impact the costs or revenues of state government.
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.
For the appropriate actuarial disclosures, see the corresponding July 1, 2023 funding valuation reports for PERS, TRS, State Police Plan A, State Police Plan B, JRS, DSRS, EMSRS, MPFRS, and NRPORS, expected to be published in March 2024.
In particular, future actuarial measurements may differ significantly from the current measurements shown in this actuarial/fiscal note due to plan experience differing from that anticipated by the economic and demographic assumptions, changes expected as part of the natural operation of the methodology used for these measurements, and changes in plan provisions, applicable law, and regulations.
Kenneth Woodson Jr., the CPRB Board Actuary, is a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries. He meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained in this Actuarial/Fiscal Note.
Person submitting Fiscal Note: Kenneth M. Woodson Jr.
Email Address: kenneth.m.woodson@wv.gov