Actuarial Fiscal Note
Date Requested:January 30, 2023
Time Requested:03:27 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3164 |
Introduced |
SB451 |
|
|---|
| CBD Subject: |
Retirement |
|---|
|
Retirement Systems Impacted by Legislation:
TRS 2600; TDC 2190
FUND(S):
Special Fund
Sources of Revenue:
Creates New Expense
Legislation creates:
TRS and TDC
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The purpose of SB 451 is to update "electing charter schools" in the Teachers Retirement System (TRS) and Teachers’ Defined Contribution Retirement System (TDC); define "medical examination"; clarify employers are to notify CPRB if a TRS retirant is re-employed in a permanent position; only allow PERS Tier 2 members hired for the first time on or after July 1, 2023 to transfer their PERS service to TRS Tier 2.
More specific, the bill updates the Teachers Retirement System (TRS), West Virginia Statute §18-7A as follows:
• Adds a definition of “electing charter school”, amends the definitions of “employer”, “public schools” and “teacher member” in 18-7A-3
• Amends 18-7A-13a(f) to clarify language and adds language for a retiree who returns to work in a “regularly employed for full-time service”
• Amends 18-7A-15 to include “electing charter school” and tie delinquency provision to WV Code 5-10D-13
• Amends 18-7A-17(e) to only allow PERS Tier 2 members hired for the first time on or after July 1, 2023 to transfer their PERS service to TRS Tier 2.
The bill updates the Teachers Defined Contribution Retirement System (TDC), West Virginia Statute §18-7B as follows:
• Adds definition of “electing charter school”, amends the definitions of “member” and “employer” to include “electing charter school” and amends the definition of “public schools” in 18-7B-2.
• Amends 18-7B-17 by adding “electing charter school”.
The updates to West Virginia Statute from SB 451 for TRS and TDC are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for TRS.
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 451 for TRS and TDC are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for TRS.
Analysis of Impact on Public Pension Policy:
The updates to West Virginia Statute from SB 451 for TRS and TDC are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for TRS.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of SB 451 is to update "electing charter schools" in the Teachers Retirement System (TRS) and Teachers’ Defined Contribution Retirement System (TDC); define "medical examination"; clarify employers are to notify CPRB if a TRS retirant is re-employed in a permanent position; only allow PERS Tier 2 members hired for the first time on or after July 1, 2023 to transfer their PERS service to TRS Tier 2.
More specific, the bill updates the Teachers Retirement System (TRS), West Virginia Statute §18-7A as follows:
• Adds a definition of “electing charter school”, amends the definitions of “employer”, “public schools” and “teacher member” in 18-7A-3
• Amends 18-7A-13a(f) to clarify language and adds language for a retiree who returns to work in a “regularly employed for full-time service”
• Amends 18-7A-15 to include “electing charter school” and tie delinquency provision to WV Code 5-10D-13
• Amends 18-7A-17(e) to only allow PERS Tier 2 members hired for the first time on or after July 1, 2023 to transfer their PERS service to TRS Tier 2.
The bill updates the Teachers Defined Contribution Retirement System (TDC), West Virginia Statute §18-7B as follows:
• Adds definition of “electing charter school”, amends the definitions of “member” and “employer” to include “electing charter school” and amends the definition of “public schools” in 18-7B-2.
• Amends 18-7B-17 by adding “electing charter school”.
The updates to West Virginia Statute from SB 451 for TRS and TDC are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for TRS.
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 451 for TRS and TDC are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for TRS.
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 report for TRS, 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