Actuarial Fiscal Note
Date Requested:February 06, 2018
Time Requested:03:06 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2414 |
Introduced |
SB494 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
Retirement Systems Impacted by Legislation:
TRS
FUND(S):
TRS 2600
Sources of Revenue:
General Fund
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).
As introduced, the bill removes the provision that allows officers of a statewide professional teaching association to make contributions to the Teachers Retirement System (TRS) for up to ten years and not be considered absent from service as a teacher/nonteacher in the plan. Because the number of individuals affected is minimal, there are no measurable changes to plan costs as a result of the bill’s provisions.
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 |
2034 |
N/A |
Explanation of above Actuarial estimates:
Because the number of individuals affected is minimal, there are no measurable changes to plan costs as a result of the bill’s provisions.
Analysis of Impact on Public Pension Policy:
Current law allows officers of statewide professional teaching associations to make contributions in an amount that is double their regular contribution in order to not be considered absent from service in TRS for a period of up to ten years. This bill eliminates that provision, and so those members who serve as officers will not have the ability to continue to contribute and accumulate service in TRS if they are absent from teaching/nonteaching service while serving in the association.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
As introduced, the bill removes the provision that allows officers of a statewide professional teaching association to make contributions to the Teachers Retirement System (TRS) for up to ten years and not be considered absent from service as a teacher/nonteacher in the plan. Because the number of individuals affected is minimal, there are no measurable changes to plan costs as a result of the bill’s provisions.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
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):
Because the number of individuals affected is minimal, there are no measurable changes to plan costs as a result of the bill’s provisions.
Memorandum
Current law allows officers of statewide professional teaching associations to make contributions in an amount that is double their regular contribution in order to not be considered absent from service in TRS for a period of up to ten years. This bill eliminates that provision, and so those members who serve as officers will not have the ability to continue to contribute and accumulate service in TRS if they are absent from teaching/nonteaching service while serving in the association.
Person submitting Fiscal Note: Melody Bailey, Actuarial Analyst, WV CPRB
Email Address: melody.j.bailey@wv.gov