Actuarial Fiscal Note
Date Requested:January 30, 2023
Time Requested:03:25 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3165 |
Introduced |
SB450 |
|
|---|
| CBD Subject: |
Retirement |
|---|
|
Retirement Systems Impacted by Legislation:
PERS 2501; TRS 2600; State Police Plan B 2393; DSRS 2150; EMSRS 2615; MPFRS 2390; NRPORS 2397
FUND(S):
Special Fund
Sources of Revenue:
Creates New Expense
Legislation creates:
PERS, TRS, State Police Plan B, DSRS, EMSRS, MPFRS, and NRPORS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
SB 450 defines “medical examination” for disability retirement purposes in a consistent manner across the retirement plans administered by the CPRB.
Over the past 3 to 4 years in has been difficult to find physicians (MDs or DOs) to complete the in-person independent medical exams (IME) as required in statute for someone who is applying for a disability retirement under the defined benefit plans administered by the CPRB. This bill would amend the statutes in the Public Employees Retirement System (PERS), Teachers’ Retirement System (TRS), State Police Plan B , Deputy Sheriff Retirement System (DSRS), Emergency Medical Services Retirement System (EMSRS), Municipal Police Officers and Firefighters Retirement System (MPFRS), and the Natural Resource Police Officers Retirement System (NRPORS) to also permit members applying for disability to have a telemedicine IME or record review by a physician.
The updates to West Virginia Statute from SB 450 for PERS, TRS, State Police Plan B, DSRS, EMSRS, MPFRS, and NRPORS are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.
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 |
|
N/A |
Explanation of above Actuarial estimates:
The updates to West Virginia Statute from SB 450 for PERS, TRS, State Police Plan B, DSRS, EMSRS, MPFRS, and NRPORS are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.
Analysis of Impact on Public Pension Policy:
The updates to West Virginia Statute from SB 450 for PERS, TRS, State Police Plan B, DSRS, EMSRS, MPFRS, and NRPORS are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
SB 450 defines “medical examination” for disability retirement purposes in a consistent manner across the retirement plans administered by the CPRB.
Over the past 3 to 4 years in has been difficult to find physicians (MDs or DOs) to complete the in-person independent medical exams (IME) as required in statute for someone who is applying for a disability retirement under the defined benefit plans administered by the CPRB. This bill would amend the statutes in the Public Employees Retirement System (PERS), Teachers’ Retirement System (TRS), State Police Plan B , Deputy Sheriff Retirement System (DSRS), Emergency Medical Services Retirement System (EMSRS), Municipal Police Officers and Firefighters Retirement System (MPFRS), and the Natural Resource Police Officers Retirement System (NRPORS) to also permit members applying for disability to have a telemedicine IME or record review by a physician.
The updates to West Virginia Statute from SB 450 for PERS, TRS, State Police Plan B, DSRS, EMSRS, MPFRS, and NRPORS are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
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 updates to West Virginia Statute from SB 450 for PERS, TRS, State Police Plan B and NRPORS are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these State plans.
The plans DSRS, EMSRS, and MPFRS consist of local governments and do not impact the costs or revenues of state government.
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.
For the appropriate actuarial disclosures, see the corresponding July 1, 2022 funding valuation reports for PERS, TRS, State Police Plan B, DSRS, EMSRS, MPFRS, and NRPORS, expected to be published on March 31, 2023.
Kenneth Woodson Jr., the CPRB Board Actuary, is a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries. He meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained in this Actuarial/Fiscal Note.
Person submitting Fiscal Note: Kenneth M. Woodson Jr.
Email Address: kenneth.m.woodson@wv.gov