Actuarial Fiscal Note

Date Requested:March 02, 2017
Time Requested:10:22 AM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
1756 Introduced HB2637
CBD Subject: Education (K12)

Retirement Systems Impacted by Legislation:

TRS

FUND(S):

TRS 2600

Sources of Revenue:

Other Fund N/A

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 changes proposed by HB2637, if enacted, would not cause any increase in the Unfunded Actuarial Accrued Liability or Normal Cost of TRS. There would be no impact on the contribution required to the plan.



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 FY2034 N/A


Explanation of above estimates:


    This Actuarial/Fiscal Note is being prepared on HB2637 as introduced. The provisions of the bill include:
    • Adding speech pathologists and school nurses to the definition of “teacher” and “substitute teacher” as it applies to critical need
    • Requiring a retired teacher to have been retired at least prior to 7/1 of the fiscal year in which they return as a critical needs substitute (current policy only requires 20 days)
    • Extends critical need provisions through 6/30/2020 (current sunset is 6/30/2017)
    • Miscellaneous changes to requirements of posting and filling critical needs substitute positions
    
    It is not expected that any of these changes would have any fiscal impact on TRS, and so there is no expected cost increase or savings attributable to the bill.
    

Analysis of Impact on Public Pension Policy:


    As far as concerns TRS, this bill is a continuation of current policy which allows very limited reemployment of retired teachers only in areas of critical need that might exist throughout the state.



Fiscal Note Summary


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


    The changes proposed by HB2637, if enacted, would not cause any increase in the Unfunded Actuarial Accrued Liability or Normal Cost of TRS. There would be no impact on the contribution required to the plan.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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 estimates (including long-range effect):


    The changes proposed by HB2637, if enacted, would not cause any increase in the Unfunded Actuarial Accrued Liability or Normal Cost of TRS. There would be no impact on the contribution required to the plan.



Memorandum


    As far as concerns TRS, this bill is a continuation of current policy which allows very limited reemployment of retired teachers only in areas of critical need that might exist throughout the state. As such, there are no anticipated costs to the plan.



    Person submitting Fiscal Note: Melody Bailey, Actuarial Analyst, WVCPRB
    Email Address: melody.j.bailey@wv.gov