FISCAL NOTE
Date Requested: February 01, 2022
Time Requested: 01:59 PM |
| Agency: |
Municipal Pensions Oversight Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2079 |
Introduced |
SB532 |
|
|---|
| CBD Subject: |
Retirement |
|---|
|
FUND(S):
WV MUNICIPAL PENSIONS SECURITY FUND
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The completion of the Deferred Retirement Option Plan (DROP) retrospective study every five years instead of every year will reduce the cost paid annually to the Municipal Pension's Oversight Board's actuary, Bolton Partners. The savings will be realized as an increase in the amount of allocation awarded to each municipal pension fund, as expenses incurred by the MPOB are deducted from the tax premiums collected.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
-7,500 |
-11,500 |
-54,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
-7,500 |
-11,500 |
-54,000 |
| 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):
Currently, the MPOB pays Bolton Partners each year for a retrospective study of all plans participating in the Deferred Retirement Option Plan (DROP) program. The current cost is $5,000 a year. The MPOB expects more municipal pensions to join DROP each year, therefore the cost of the study will increase each year. It is estimated that switching to a five year reporting period will save the MPOB $54,000 in the first cycle and savings will continue, and likely increase, for the foreseeable future.
Memorandum
N/A
Person submitting Fiscal Note: Michelle Painter
Email Address: michelle.t.painter@wv.gov