FISCAL NOTE
Date Requested: January 17, 2018
Time Requested: 10:35 AM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1846 |
Comm. Sub. |
HB2887 |
|
|---|
| CBD Subject: |
Education (Higher), Retirement |
|---|
|
FUND(S):
TRS 2600
Sources of Revenue:
General Fund,Other Fund Higher Education
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The estimated Increase in UAAL of $2,015,000 would increase the required contribution by $230,000 in FY2019, and in all fiscal years through the remaining amortization period, which is expected to be June 30, 2034.
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 |
230,000 |
230,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
230,000 |
230,000 |
| 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):
The estimated Increase in UAAL of $2,015,000 would increase the required contribution by $230,000 in FY2019, and in all fiscal years through the remaining amortization period, which is expected to be June 30, 2034.
Memorandum
There are costs associated with the offering and acceptance of a severance plan by a member over the age of 65 who is eligible for immediate retirement. Those costs are currently borne by the Institute offering the severance plan. If the bill were to pass, any additional cost to the plan would be an actuarial loss resulting in a slightly increased contribution to be borne by all employers participating in the plan.
This Actuarial/Fiscal Note is being submitted by the Consolidated Public Retirement Board. It has been reviewed by a qualified actuary, who is available upon request for questions.
Person submitting Fiscal Note: Melody Bailey, Actuarial Analyst, WV CPRB
Email Address: melody.j.bailey@wv.gov