Actuarial Fiscal Note
Date Requested:January 23, 2023 Time Requested:04:23 PM |
Agency: |
Consolidated Public Retirement Board |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3065 |
Introduced |
HB2917 |
|
CBD Subject: |
Health |
---|
|
Retirement Systems Impacted by Legislation:
PERS 2501
FUND(S):
Special Fund
Sources of Revenue:
Creates New Expense
Legislation creates:
PERS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The purpose of HB 2917 is to allow retirants to render post-retirement employment with the Department of Health and Human Resources (DHHR) as child protective services workers and/or adult protective services workers, without suspending that retirant’s retirement annuity.
Currently, there is a severe shortage of child protective services (CPS) workers and adult protective services (APS) workers throughout the state of West Virginia. In fact, based on current data from the DHHR, there are 153 CPS positions and 28 APS positions that need to be filled.
Executive Order No. 8-22 is similar to this Bill and was signed by the Governor of West Virginia on December 14, 2022.
Costs for “double dipping” benefits of this nature are recognized through earlier retirement usage. Such usage is studied as part of the PERS Experience Studies completed every 5 years. Based on the initial response of qualified retirees that may return as a CPS or APS worker, the CPRB Board Actuary does not expect this Bill to change the current retirement experience in PERS.
HB 2917 is not expected to materially change the unfunded actuarial accrued liability (UAAL) or the annual employer contribution requirement for PERS.
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 |
2035 |
N/A |
Explanation of above Actuarial estimates:
Costs for “double dipping” benefits of this nature are recognized through earlier retirement usage. Such usage is studied as part of the PERS Experience Studies completed every 5 years. Based on the initial response of qualified retirees that may return as a CPS or APS worker, the CPRB Board Actuary does not expect this Bill to change the current retirement experience in PERS.
HB 2917 is not expected to materially change the unfunded actuarial accrued liability (UAAL) or the annual employer contribution requirement for PERS.
Analysis of Impact on Public Pension Policy:
Costs for “double dipping” benefits of this nature are recognized through earlier retirement usage. Such usage is studied as part of the PERS Experience Studies completed every 5 years. Based on the initial response of qualified retirees that may return as a CPS or APS worker, the CPRB Board Actuary does not expect this Bill to change the current retirement experience in PERS.
HB 2917 is not expected to materially change the unfunded actuarial accrued liability (UAAL) or the annual employer contribution requirement for PERS.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of HB 2917 is to allow retirants to render post-retirement employment with the Department of Health and Human Resources (DHHR) as child protective services workers and/or adult protective services workers, without suspending that retirant’s retirement annuity.
Currently, there is a severe shortage of child protective services (CPS) workers and adult protective services (APS) workers throughout the state of West Virginia. In fact, based on current data from the DHHR, there are 153 CPS positions and 28 APS positions that need to be filled.
Executive Order No. 8-22 is similar to this Bill and was signed by the Governor of West Virginia on December 14, 2022.
Costs for “double dipping” benefits of this nature are recognized through earlier retirement usage. Such usage is studied as part of the PERS Experience Studies completed every 5 years. Based on the initial response of qualified retirees that may return as a CPS or APS worker, the CPRB Board Actuary does not expect this Bill to change the current retirement experience in PERS.
HB 2917 is not expected to materially change the unfunded actuarial accrued liability (UAAL) or the annual employer contribution requirement for PERS.
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):
Costs for “double dipping” benefits of this nature are recognized through earlier retirement usage. Such usage is studied as part of the PERS Experience Studies completed every 5 years. Based on the initial response of qualified retirees that may return as a CPS or APS worker, the CPRB Board Actuary does not expect this Bill to change the current retirement experience in PERS.
HB 2917 is not expected to materially change the unfunded actuarial accrued liability (UAAL) or the annual employer contribution requirement for PERS.
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 July 1, 2022, funding valuation report for PERS, expected to be published on March 31, 2023.
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