Actuarial Fiscal Note


Retirement Systems Impacted by Legislation:

All CPRB administered retirement sytems

FUND(S):

PERS 2510, TRS 2601, Plan A 2161, Plan B 2162, JRS 2140, DSRS 2150 and TDC

Sources of Revenue:

General Fund,Other Fund varies by system

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 is a clarification bill for existing practices in the administration of less than honorable service situations under all plans. Retirement benefits will not be impacted by the changes.



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


Explanation of above Actuarial estimates:


    There is no impact on the Normal Cost nor Actuarial Accrued Liabilities for any Plan covered under the Bill. Bill provides definition clarifications for less than honorable service statutes currently being administered by CPRB.

Analysis of Impact on Public Pension Policy:


    Changes should limit possibility of future litigation due to clarifications in definitions.



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    This bill is a clarification bill for existing practices in the administration of less than honorable service situations under all plans. Retirement benefits will not be impacted by the changes.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2008
Increase/Decrease
(use"-")
2009
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):


    There is no impact on the Normal Cost nor Actuarial Accrued Liabilities for any Plan covered under the Bill. Bill provides definition clarifications for less than honorable service statutes currently being administered by CPRB.



Memorandum


    Changes should limit possibility of future litigation due to clarifications in definitions.



    Person submitting Fiscal Note: Harry W. Mandel, MAAA, MSPA, EA, Board Actuary
    Email Address: Harry.W.Mandel@wv.gov