Actuarial Fiscal Note
Date Requested:January 23, 2019
Time Requested:01:29 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1517 |
Introduced |
SB26 |
|
|---|
| CBD Subject: |
Education (K12), Retirement |
|---|
|
Retirement Systems Impacted by Legislation:
TRS 2600 and TDC 2190
FUND(S):
General Fund
Sources of Revenue:
Legislation creates:
TRS and TDC
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
SB 26 modifies the definition of a Nonteaching member of the Teachers’ Retirement System (TRS) to include educational services cooperatives. The bill also modifies the definition of a Teacher member of TRS to include employees of an educational services cooperative who are performing services of an educational nature.
Moreover, SB 26 updates the Teachers’ Defined Contribution Retirement System (TDC) Member definition to include educational services cooperatives.
This bill makes no changes to benefits provided to active members or retirees of the Teachers’ Retirement System (TRS), and as such does not change the costs associated with the system. In addition, SB 26 does not impact the cost associated with TDC. As written, the bill clarifies that employees of education services cooperatives are permitted to participate in TRS and persons employed for instructional services by educational services cooperatives are permitted to participate in TDC, as is current practice.
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:
This bill makes no change, but only clarifies current practice, and therefore SB 26 does not impact the cost associated with TRS or the cost associated with TDC.
Analysis of Impact on Public Pension Policy:
This bill makes no change, but only clarifies current practice, and therefore SB 26 does not impact the cost associated with TRS or the cost associated with TDC.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
SB 26 modifies the definition of a Nonteaching member of the Teachers’ Retirement System (TRS) to include educational services cooperatives. The bill also modifies the definition of a Teacher member of TRS to include employees of an educational services cooperative who are performing services of an educational nature.
Moreover, SB 26 updates the Teachers’ Defined Contribution Retirement System (TDC) Member definition to include educational services cooperatives.
This bill makes no changes to benefits provided to active members or retirees of the Teachers’ Retirement System (TRS), and as such does not change the costs associated with the system. In addition, SB 26 does not impact the cost associated with TDC. As written, the bill clarifies that employees of education services cooperatives are permitted to participate in TRS and persons employed for instructional services by educational services cooperatives are permitted to participate in TDC, as is current practice.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
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):
This bill makes no change, but only clarifies current practice, and therefore SB 26 does not impact the cost associated with TRS or the cost associated with TDC.
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., Board Actuary, CPRB
Email Address: kenneth.m.woodson@wv.gov