Actuarial Fiscal Note
Date Requested:January 30, 2023
Time Requested:03:26 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3161 |
Introduced |
SB453 |
|
|---|
| CBD Subject: |
Retirement |
|---|
|
Retirement Systems Impacted by Legislation:
TRS 2600
FUND(S):
Special Fund
Sources of Revenue:
Creates New Expense
Legislation creates:
TRS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The purpose of SB 453 is to ensure the retirement contributions, and delinquency charges if applicable, of charter school employees are paid upon school closure or by a successor.
More specific, the bill updates the Charter School Statute, West Virginia Statute §18-5G as follows:
• Clarifies that provisions of 5-10D-11 and 5-10D-13 regarding successor liability and collection of delinquent contributions apply.
• Amends 18-5G-10(i)(2) to include any required payments to retirement systems on behalf of employees.
The updates to West Virginia Statute from SB 453 are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for TRS.
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 |
2034 |
N/A |
Explanation of above Actuarial estimates:
The updates to West Virginia Statute from SB 453 are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for TRS.
Analysis of Impact on Public Pension Policy:
The updates to West Virginia Statute from SB 453 are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for TRS.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of SB 453 is to ensure the retirement contributions, and delinquency charges if applicable, of charter school employees are paid upon school closure or by a successor.
More specific, the bill updates the Charter School Statute, West Virginia Statute §18-5G as follows:
• Clarifies that provisions of 5-10D-11 and 5-10D-13 regarding successor liability and collection of delinquent contributions apply.
• Amends 18-5G-10(i)(2) to include any required payments to retirement systems on behalf of employees.
The updates to West Virginia Statute from SB 453 are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for TRS.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
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 West Virginia Statute from SB 453 are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for TRS.
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, 2022 funding valuation report for TRS, expected to be published on March 31, 2023.
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