Actuarial Fiscal Note
Date Requested:February 07, 2023
Time Requested:02:39 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2758 |
Comm. Sub. |
SB294 |
|
|---|
| CBD Subject: |
Salaries |
|---|
|
Retirement Systems Impacted by Legislation:
DSRS 2150
FUND(S):
Other Fund
Sources of Revenue:
Local Governments Creates New Expense
Legislation creates:
DSRS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The purpose of the Committee Substitute for SB 294 is to clarify the language in §7-14-17c regarding the DSRS annual monetary supplement. Currently, a DSRS member with at least one year of service receives a monetary supplement each year equal to $5 multiplied by their months of service and this monetary supplement is included in DSRS pensionable earnings. The Bill does not change the amount of the DSRS annual monetary supplement but clarifies that the annual monetary supplement is “the sum of $5 multiplied by each month of service.” Moreover, in §7-14-17c (d), the Bill clarifies that the annual monetary supplement is considered pensionable earnings regarding the DSRS plan.
The Bill does not materially change the Unfunded Actuarial Accrued Liability or the annual employer contribution requirement for DSRS.
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 |
2029 |
N/A |
Explanation of above Actuarial estimates:
The Bill does not materially change the Unfunded Actuarial Accrued Liability or the annual employer contribution requirement for DSRS.
Analysis of Impact on Public Pension Policy:
The Bill does not materially change the Unfunded Actuarial Accrued Liability or the annual employer contribution requirement for DSRS.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
DSRS consists of county governments and does not cover any state employees.
For fiscal 2024, funding for DSRS is through member contributions of 8.50% of payroll and employer contributions of 16.00% of payroll. DSRS does not impact the costs or revenues of state government.
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):
DSRS consists of county governments and does not cover any state employees.
For fiscal 2024, funding for DSRS is through member contributions of 8.50% of payroll and employer contributions of 16.00% of payroll. DSRS does 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 July 1, 2022, funding valuation report for DSRS, expected to be published on March 31, 2023.
In particular, future actuarial measurements may differ significantly from the current measurements shown in this actuarial/fiscal note due to plan experience differing from that anticipated by the economic and demographic assumptions, changes expected as part of the natural operation of the methodology used for these measurements, and changes in plan provisions, applicable law, and regulations.
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