Actuarial Fiscal Note
Date Requested:February 06, 2023
Time Requested:09:28 AM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3179 |
Introduced |
HB3242 |
|
|---|
| CBD Subject: |
Retirement |
|---|
|
Retirement Systems Impacted by Legislation:
EMSRS 2615
FUND(S):
Other Fund
Sources of Revenue:
Local Governments Creates New Expense
Legislation creates:
EMSRS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The purpose of HB 3242 is to update definitions regarding county firefighters, medical examinations and 911 personnel, and to add a severability section to the Emergency Medical Services Retirement System (EMSRS) Statute, §16-5V.
More specific, the bill:
• Adds the definition of “county firefighter” to §16-5V-2.
• Adds the definition of “911 personnel” to §16-5V-2.
• Adds the definition of “medical examination” to §16-5V-2.
• Amends definitions in §16-5V-2 of “covered employment”, “member”, “participating public employer”, and “totally disabled”.
• Adds a new section, 16-5V-36, containing a severability clause consistent with the other public pension plans administered by the CPRB.
The updates to the EMSRS Statute from HB 3242 are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for EMSRS.
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 EMSRS Statute from HB 3242 are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for EMSRS.
Analysis of Impact on Public Pension Policy:
The updates to the EMSRS Statute from HB 3242 are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for EMSRS.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
EMSRS consists of local governments and does not cover any state employees. For fiscal 2024, funding for EMSRS is through member contributions of 8.50% of payroll and employer contributions of 9.50% of payroll.
EMSRS does not impact the costs or revenues of state government.
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):
EMSRS consists of local governments and does not cover any state employees. For fiscal 2024, funding for EMSRS is through member contributions of 8.50% of payroll and employer contributions of 9.50% of payroll.
EMSRS does 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, 2022 funding valuation report for EMSRS, 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