Actuarial Fiscal Note
Date Requested:February 02, 2016
Time Requested:02:38 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1243 |
Introduced |
SB480 |
|
|---|
| CBD Subject: |
Retirement |
|---|
|
Retirement Systems Impacted by Legislation:
PERS
FUND(S):
PERS
Sources of Revenue:
General Fund,Other Fund State and Local Govts
Legislation creates:
Neither Program nor Fund
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The Bill extends military service purchase provisions under PERS for Tier 2 PERS members first hired on or after July 1, 2015. It specifically adds those members who do not have an honorable discharge as being eligible under a general discharge or a general discharge under honorable conditions. Those with a dishonorable discharge are not elibible.
The Bill provides that the purchase of service be paid by the member based on the actuarial reserve cost as defined in the Bill. The purchase cost paid by the member is assumed to fully fund the cost of the service purchase and does not result in an increase in the employer cost under 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 |
|
N/A |
Explanation of above Actuarial estimates:
The Bill provides that any military service purchase is at the actuarial cost defined in the Bill. There is no increase in the employer costs under PERS.
Analysis of Impact on Public Pension Policy:
The current provisions for the purchase of millitary service requires that a member recieved an Honorable Discharge from the military. The Bill extends the service eligible for purchase to include non-honorable service under a general discharge or a discharge under (less than) honorable conditions.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The Bill extends military service purchase provisions under PERS for Tier 2 PERS members first hired on or after July 1, 2015. It specifically adds those members who do not have an honorable discharge as being eligible under a general discharge or a general discharge under honorable conditions. Those with a dishonorable discharge are not elibible.
The Bill provides that the purchase of service be paid by the member based on the actuarial reserve cost as defined in the Bill. The purchase cost paid by the member is assumed to fully fund the cost of the service purchase and does not result in an increase in the employer cost under PERS.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
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 Bill provides that any military service purchase is at the actuarial cost defined in the Bill. There is no increase in the employer costs under PERS.
Memorandum
The current provisions for the purchase of millitary service requires that a member recieved an Honorable Discharge from the military. The Bill extends the service eligible for purchase to include non-honorable service under a general discharge or a discharge under (less than) honorable conditions.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov