Actuarial Fiscal Note
Date Requested:March 08, 2023
Time Requested:09:02 AM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2804 |
Comm. Sub2 |
HB3135 |
|
|---|
| CBD Subject: |
Salaries |
|---|
|
Retirement Systems Impacted by Legislation:
PERS 2501
FUND(S):
Special Fund
Sources of Revenue:
Creates New Expense
Legislation creates:
PERS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The Engrossed Committee Substitute for HB 3135 increases compensation for the Governor, Attorney General, Auditor, Secretary of State, Commissioner of Agriculture, and State Treasurer.
More specific, beginning in the calendar year 2025, the bill would increase the salary of the Governor from $150,000 to $180,000 and the bill would increase the salary of
the Attorney General, Auditor, Secretary of State, Commissioner of Agriculture, and State Treasurer from $95,000 to $115,000.
Due to the limited number of PERS members impacted by the bill, the Engrossed Committee Substitute for HB 3135 does not materially change the unfunded actuarial accrued liability (UAAL) or the annual contribution requirement for PERS.
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 |
2035 |
N/A |
Explanation of above Actuarial estimates:
Beginning in the calendar year 2025, the bill would increase the salary of the Governor from $150,000 to $180,000 and the bill would increase the salary of
the Attorney General, Auditor, Secretary of State, Commissioner of Agriculture, and State Treasurer from $95,000 to $115,000.
Due to the limited number of PERS members impacted by the bill, the Engrossed Committee Substitute for HB 3135 does not materially change the unfunded actuarial accrued liability (UAAL) or the annual contribution requirement for PERS.
Analysis of Impact on Public Pension Policy:
Beginning in the calendar year 2025, the bill would increase the salary of the Governor from $150,000 to $180,000 and the bill would increase the salary of the
Attorney General, Auditor, Secretary of State, Commissioner of Agriculture, and
State Treasurer from $95,000 to $115,000.
Due to the limited number of PERS members impacted by the bill, the Engrossed Committee Substitute for HB 3135 does not materially change the unfunded actuarial accrued liability (UAAL) or the annual contribution requirement for PERS.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The Engrossed Committee Substitute for HB 3135 increases compensation for the Governor, Attorney General, Auditor, Secretary of State, Commissioner of Agriculture, and State Treasurer.
More specific, beginning in the calendar year 2025, the bill would increase the salary of the Governor from $150,000 to $180,000 and the bill would increase the salary of
the Attorney General, Auditor, Secretary of State, Commissioner of Agriculture, and State Treasurer from $95,000 to $115,000.
Due to the limited number of PERS members impacted by the bill, the Engrossed Committee Substitute for HB 3135 does not materially change the unfunded actuarial accrued liability (UAAL) or the annual contribution requirement for PERS.
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):
Beginning in the calendar year 2025, the bill would increase the salary of the Governor from $150,000 to $180,000 and the bill would increase the salary of
the Attorney General, Auditor, Secretary of State, Commissioner of Agriculture, and State Treasurer from $95,000 to $115,000.
Due to the limited number of PERS members impacted by the bill, the Engrossed Committee Substitute for HB 3135 does not materially change the unfunded actuarial accrued liability (UAAL) or the annual contribution requirement for PERS.
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 PERS, 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