Actuarial Fiscal Note
Date Requested:March 02, 2021 Time Requested:11:38 AM |
Agency: |
Consolidated Public Retirement Board |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3115 |
Introduced |
HB2855 |
|
CBD Subject: |
Retirement |
---|
|
Retirement Systems Impacted by Legislation:
NRPORS 2397
FUND(S):
Special Fund
Sources of Revenue:
Creates New Expense
Legislation creates:
NRPORS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
HB 2855 provides technical updates to the NRPORS West Virginia Statute Chapter 20 Article 18.
The technical updates to the NRPORS West Virginia Statute Chapter 20 Article 18 include the following:
• Defining “Beneficiary” and updating the “Credited service” definition in §20-18-2.
• Revise §20-18-8(d) by changing the contribution rate from 8 ½ %
to 9 ½ %
• Adding section §20-18-20(e) “In the event a member dies from any cause other than those specified in section twenty-five of this article and does not have ten or more years of credited service, the member’s accumulated contributions may be paid to a named beneficiary or beneficiaries. If no beneficiary is named, then the accumulated contributions shall be paid to the estate of the deceased member.”.
• Revise §20-18-23(c) by removing the language, “in force at the time of retirement”.
• Update §20-18-27(b) by clarifying the reference to the “Awards and benefits to surviving spouses” in sections §20-18-25 and §20-18-26.
• Adding section §20-18-37 “Severability”
The technical updates to West Virginia Statute Chapter 20 Article 18 are not expected to change how the CPRB administers NRPORS, therefore, we do not expect these updates to impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements of NRPORS.
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 |
2051 |
N/A |
Explanation of above Actuarial estimates:
The technical updates to West Virginia Statute Chapter 20 Article 18 are not expected to change how the CPRB administers NRPORS, therefore, we do not expect these updates to impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements of NRPORS.
Analysis of Impact on Public Pension Policy:
The technical updates to West Virginia Statute Chapter 20 Article 18 are not expected to change how the CPRB administers NRPORS, therefore, we do not expect these updates to impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements of NRPORS.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
HB 2855 provides technical updates to the NRPORS West Virginia Statute Chapter 20 Article 18.
The technical updates to the NRPORS West Virginia Statute Chapter 20 Article 18 include the following:
• Defining “Beneficiary” and updating the “Credited service” definition in §20-18-2.
• Revise §20-18-8(d) by changing the contribution rate from 8 ½ %
to 9 ½ %
• Adding section §20-18-20(e) “In the event a member dies from any cause other than those specified in section twenty-five of this article and does not have ten or more years of credited service, the member’s accumulated contributions may be paid to a named beneficiary or beneficiaries. If no beneficiary is named, then the accumulated contributions shall be paid to the estate of the deceased member.”.
• Revise §20-18-23(c) by removing the language, “in force at the time of retirement”.
• Update §20-18-27(b) by clarifying the reference to the “Awards and benefits to surviving spouses” in sections §20-18-25 and §20-18-26.
• Adding section §20-18-37 “Severability”
The technical updates to West Virginia Statute Chapter 20 Article 18 are not expected to change how the CPRB administers NRPORS, therefore, we do not expect these updates to impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements of NRPORS.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2021 Increase/Decrease (use"-") |
2022 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 technical updates to West Virginia Statute Chapter 20 Article 18 are not expected to change how the CPRB administers NRPORS, therefore, we do not expect these updates to impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements of NRPORS.
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.
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