Actuarial Fiscal Note

Date Requested:February 02, 2023
Time Requested:05:31 PM

3175	Introduced	HB3235
Agency:	Consolidated Public Retirement Board
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:	Retirement

Retirement Systems Impacted by Legislation:

TRS 2600; TDC 2190; NRPORS 2397

FUND(S):

Special Fund

Sources of Revenue:

Creates New Expense

Legislation creates:

TRS, TDC, and NRPORS

Actuarial Note Summary

Impact this measure will have on the liabilities and contributions associated with the retirement system(s).

    HB 3235 adds the Natural Resources Police Officers Retirement System and public Charter Schools for federal pick-up contribution purposes.

    More specific, the bill:
    • Amends the definition of “member contributions”,§5-10C-3(5), to include Natural Resources Police Officers Retirement System (NRPORS).
    • Amends the definition of “participating public employer”,§5-10C-3(6), to include nonteachers and any public Charter School in the Teachers Retirement System (TRS) or the Teachers Defined Contribution Retirement Plan (TDC).
    • Amends the definition of “retirement system”, §5-10C-3(8), to include NRPORS.
    • Amends the definition of “teacher”, §5-10C-3(9), by adding “nonteacher”.
    • Amends §5-10C-4(a) to include “nonteachers”
    • Amends §5-10C-5, to add the code citation for NRPORS, WV Code 20-18-1.

    The updates to West Virginia Statute from HB 3235 for TRS, TDC, 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
Impact On	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 West Virginia Statute from HB 3235 for TRS, TDC, 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:

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	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):

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 reports for TRS and NRPORS, 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