Actuarial Fiscal Note
Date Requested:February 12, 2018 Time Requested:08:38 AM |
Agency: |
Consolidated Public Retirement Board |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2436 |
Introduced |
HB4449 |
|
CBD Subject: |
State Personnel |
---|
|
Retirement Systems Impacted by Legislation:
PERS 2501, TRS 2600, JRS 2140, TDC 2190, DSRS 2150, EMSRS 2615, MPFRS 2390, SPTA 2392, SPTB 2393
FUND(S):
General Fund
Sources of Revenue:
local governments, county school boards, state police, judiciary
Legislation creates:
PERS, TRS, TDC, SPTA, SPTB, JRS, DSRS, EMSRS, MPFRS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The bill as introduced provides that if a participating public employer fails to make an employee or employer contribution for 60 days after it is due, the state auditor, county commission, or sheriff may withhold that payment from any amounts due the employer and remit it to the CPRB. In addition, if the employer knowingly and willfully fails to make the contribution, the responsible public official shall be guilty of misdemeanor larceny (felony larceny if the amount is $1000 or more) and, if convicted, fined not more than $2,500 and/or imprisoned not more than 1 year (not more than 10 years if felony larceny).
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 12 employers are delinquent on contributions in any given month, with some delinquent on a year or more of contributions, and can be anywhere from a couple of months to over a year late.
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 |
9999 |
N/A |
Explanation of above Actuarial estimates:
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 12 employers are delinquent on contributions in any given month, with some delinquent on a year or more of contributions, and can be anywhere from a couple of months to over a year late.
Analysis of Impact on Public Pension Policy:
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 12 employers are delinquent on contributions in any given month, with some delinquent on a year or more of contributions, and can be anywhere from a couple of months to over a year late.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 12 employers are delinquent on contributions in any given month, with some delinquent on a year or more of contributions, and can be anywhere from a couple of months to over a year late.
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):
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 12 employers are delinquent on contributions in any given month, with some delinquent on a year or more of contributions, and can be anywhere from a couple of months to over a year late.
Memorandum
It is not expected that any penalties imposed by the passage of this legislation would make a measurable difference to the funded status of any of the plans administered by CPRB, nor to any present or future liabilities of the plans, and so would not change any associated costs. However, the bill would likely decrease the number of employers who do not make contributions in a timely fashion. Around 12 employers are delinquent on contributions in any given month, with some delinquent on a year or more of contributions, and can be anywhere from a couple of months to over a year late.
Person submitting Fiscal Note: Melody Bailey, Actuarial Analyst, WV CPRB
Email Address: melody.j.bailey@wv.gov