Actuarial Fiscal Note


Retirement Systems Impacted by Legislation:

Teachers Retirement System

FUND(S):

TRS 2601

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).


    The bill primarily provides clarifications to plan provisions including:
    1. Changes in fund name
    2. Definition of employer error and correction procedures
    3. Correct certain references
    4. Eliminate $500 minimum for eligible rollovers
    5. Clarify when new loan can be issued following repayment of prior loan
    
    All changes are technical in nature and do not change actual retirement benefits payable to members. There are not changes in either the Normal Cost nor the Actuarial Accrued Liabilities of the Plan.



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:


    All changes are clarifications and administrative procedures and do not modify the benefits payable by the Plan.

Analysis of Impact on Public Pension Policy:


    Clarifications should reduce the possibility of future litigation.



Fiscal Note Summary


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


    The bill primarily provides clarifications to plan provisions including:
    1. Changes in fund name
    2. Definition of employer error and correction procedures
    3. Correct certain references
    4. Eliminate $500 minimum for eligible rollovers
    5. Clarify when new loan can be issued following repayment of prior loan
    
    All changes are technical in nature and do not change actual retirement benefits payable to members. There are not changes in either the Normal Cost nor the Actuarial Accrued Liabilities of the Plan.



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):


    All changes are clarifications and administrative procedures and do not modify the benefits payable by the Plan.



Memorandum


    Clarifications should reduce the possibility of future litigation.



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