Actuarial Fiscal Note
Date Requested:March 02, 2017 Time Requested:09:31 AM |
Agency: |
Consolidated Public Retirement Board |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1756 |
Amendment |
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.
The House Education committee amendment of 2/29/2017 primarily changes some of the provisions related to the posting and filling of positions, and allows a one-time financial incentive for recruiting of professional personnel to areas of critical need. Such one-time payments are not pensionable, and so have no effect no on the retirement 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 Actuarial 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
• Allowing for a one-time financial incentive for purposes of recruiting professional personnel to areas of critical need.
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.
The House Education committee amendment of 2/29/2017 primarily changes some of the provisions related to the posting and filling of positions, and allows a one-time financial incentive for recruiting of professional personnel to areas of critical need. Such one-time payments are not pensionable, and so have no effect no on the retirement plan.
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 Fiscal Note estimates (include possible 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.
The House Education committee amendment of 2/29/2017 primarily changes some of the provisions related to the posting and filling of positions, and allows a one-time financial incentive for recruiting of professional personnel to areas of critical need. Such one-time payments are not pensionable, and so have no effect no on the retirement 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