Actuarial Fiscal Note
Date Requested:March 19, 2021
Time Requested:01:29 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3095 |
Introduced |
SB482 |
|
|---|
| CBD Subject: |
Retirement |
|---|
|
Retirement Systems Impacted by Legislation:
TRS 2600
FUND(S):
Special Fund
Sources of Revenue:
Creates New Expense
Legislation creates:
TRS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
SB 482 modifies 18-7A-17(d) of the West Virginia Statute by stating that this subsection shall only apply to any TRS member serving as an officer with a statewide professional teaching association who was an officer on or before January 1, 2021.
Under current West Virginia law, TRS members would not be considered absent from service as a teacher or nonteacher while serving as an officer with a statewide professional teaching association, or who has serviced in that capacity, and no retirant, who served in that capacity while a member, shall be considered to have been absent from service as a teacher by reason of that service: provided, that the period of service credit granted for that service shall not exceed 10 years and provided that a member or retirant who is serving or has served as an officer of a statewide professional teaching association shall make deposits to TRS, for the time of any absence, in an amount double the amount which he or she would have contributed in his or her regular assignment for a like period of time.
Effectively, SB 482 would provide that TRS members would be considered absent from service as a teacher or nonteacher while serving as an officer with a statewide professional teaching association, provided they become an officer for the first time after January 1, 2021.
SB 482 would only impact a small percent of the TRS participants; therefore, we do not expect the bill to have a material impact on the TRS Unfunded Actuarial Accrued Liability or the TRS annual employer contribution amount.
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:
SB 482 would only impact a small percent of the TRS participants; therefore, we do not expect the bill to have a material impact on the TRS Unfunded Actuarial Accrued Liability or the TRS annual employer contribution amount.
Analysis of Impact on Public Pension Policy:
SB 482 would only impact a small percent of the TRS participants; therefore, we do not expect the bill to have a material impact on the TRS Unfunded Actuarial Accrued Liability or the TRS annual employer contribution amount.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
SB 482 modifies 18-7A-17(d) of the West Virginia Statute by stating that this subsection shall only apply to any TRS member serving as an officer with a statewide professional teaching association who was an officer on or before January 1, 2021.
Under current West Virginia law, TRS members would not be considered absent from service as a teacher or nonteacher while serving as an officer with a statewide professional teaching association, or who has serviced in that capacity, and no retirant, who served in that capacity while a member, shall be considered to have been absent from service as a teacher by reason of that service: provided, that the period of service credit granted for that service shall not exceed 10 years and provided that a member or retirant who is serving or has served as an officer of a statewide professional teaching association shall make deposits to TRS, for the time of any absence, in an amount double the amount which he or she would have contributed in his or her regular assignment for a like period of time.
Effectively, SB 482 would provide that TRS members would be considered absent from service as a teacher or nonteacher while serving as an officer with a statewide professional teaching association, provided they become an officer for the first time after January 1, 2021.
SB 482 would only impact a small percent of the TRS participants; therefore, we do not expect the bill to have a material impact on the TRS Unfunded Actuarial Accrued Liability or the TRS annual employer contribution amount.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
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):
SB 482 would only impact a small percent of the TRS participants; therefore, we do not expect the bill to have a material impact on the TRS Unfunded Actuarial Accrued Liability or the TRS annual employer contribution amount.
Memorandum
This Actuarial/Fiscal Note is being submitted by the Consolidated Public Retirement Board. It has been reviewed by the CPRB Actuary. Both the Board and the CPRB Actuary are available upon request for questions.
Person submitting Fiscal Note: Kenneth M. Woodson Jr.
Email Address: kenneth.m.woodson@wv.gov