Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
Deputy Sheriff Retirement System
FUND(S):
DSRS 2150
Sources of Revenue:
Other Fund Local governments
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).
The bill provides for a late charge for any required fee deposits. The bill does not impact benefits payable from the plan. The late fees are at the actuarial interest rate and are intended to replace lost interest on investment of the deposits.
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:
There is no impact on the Normal Cost nor Actuarial Accrued Liabilities of the Plan.
Late fees are expected to replace lost interest earnings and will prevent increased contributions due to such losses in future years.
Late fees are estimated at $500 to $1,000 annually. The estimate is based on limited data.
Analysis of Impact on Public Pension Policy:
The late fee structure insures that fee deposits to DSRS are made on a timely basis. It also provides a framework within which CPRB may monitor and potentially audit required fee deposit amounts. Since this is a multiple local employer plan, it is important for all employers to be making the required fee deposits on a fair and timely basis.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
DSRS is a local government plan and does not impact costs nor revenues of state government.
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):
Local government plan. State assumes no costs nor liabilities for the plan.
Memorandum
None.
Person submitting Fiscal Note: Harry W. Mandel, MAAA, MSPA, Board Actuary
Email Address: HMandel@wvadmin.gov