FISCAL NOTE
Date Requested: February 26, 2021
Time Requested: 12:29 PM |
| Agency: |
Municipal Pensions Oversight Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2953 |
Introduced |
HB2784 |
|
|---|
| CBD Subject: |
Municipalities |
|---|
|
FUND(S):
NA
Sources of Revenue:
Other Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This addition to §8-22-25 will not have a fiscal impact on the State.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
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 estimates (including long-range effect):
This addition to §8-22-25 will not have a fiscal impact on the State.
Memorandum
This proposed addition to §8-22-25 will not have a fiscal impact on the State.
However, there are some fiscal impacts to municipalities and their municipal policemen's pension and relief funds and firemen's pension and relief funds should a municipality elect to allow for fractional years of service to be used in the calculation of pensions. Bolton Partners, USA provided an analysis of HB2784. Their analysis states,
"Actuarial Standards of Practice No. 51 states that actuaries should provide commentary on risks when performing certain types of analyses. The overall risk to the plans would be relatively unchanged due to the proposed plan provision changes under HB2784 except that [municipal pension] liabilities would increase slightly and funded status would decrease slightly, resulting in larger contributions [from municipalities] for the plans."
The entire review by Bolton Partners, USA has been provided to Counsel for the House Pensions and Retirement Committee and the Senate Pensions Committee.
Person submitting Fiscal Note: Blair Taylor
Email Address: Blair.M.Taylor@wv.gov