Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
Public Employees Retirement System
FUND(S):
2510
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
This Bill provides that civilian employees working for the State Police and not covered under the State Police Plan A nor Plan B will receive a $1,200 annual salary increase effective 7/1/2007 if they have completed at least 3 years of service.
The increase represents a salary increase of about 3.5% on the average for PERS state members. This increase is less than the salary scale assumption under PERS for such members. As such, the bill is not expected to impact the Actuarial Accrued Liabilities of 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 |
N/A |
N/A |
Explanation of above Actuarial estimates:
The salary increase contained in the Bill for PERS members working as civilian employees for the State Police is within the assumed salary scale and therefore is not expected to have an impact on either the Normal Cost nor Actuarial Accrued Liabilities of PERS.
Analysis of Impact on Public Pension Policy:
Only impact would be if the salary increase contained in this Bill were passed in addition to other salary increase legislation impacting the same PERS members.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This Bill provides that civilian employees working for the State Police and not covered under the State Police Plan A nor Plan B will receive a $1,200 annual salary increase effective 7/1/2007 if they have completed at least 3 years of service.
The increase represents a salary increase of about 3.5% on the average for PERS state members. This increase is less than the salary scale assumption under PERS for such members. As such, the bill is not expected to impact the Actuarial Accrued Liabilities of PERS.
This note does not factor in the cost of the salary increase itself on the State budget.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2007
Increase/Decrease
(use"-") |
2008
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 note only shows the impact on PERS pension costs and does not reflect the costs associated with the salary increase contained in the Bill.
Memorandum
Only impact would be if the salary increase contained in this Bill were passed in addition to other salary increase legislation impacting the same PERS members.
Person submitting Fiscal Note: Harry W. Mandel, MAAA, MSPA, Board Actuary
Email Address: HMandel@wvadmin.gov