Fiscal/Actuarial Note
Date Requested:February 17, 2009
Time Requested:02:52 PM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
2009R1999 Introduced SB244
CBD Subject: DOUBLE DIPPING REGULATED
Retirement Systems Impacted by Legislation:
Public Employees Retirement System
FUND(S)
PERS 2510
Sources of Revenue
You must select Revenue Source(s)!
General Fund
Does the proposed legislation create:
You must make a selection(s)!
Neither Program nor Fund

    This bill provides for changes in provisions regarding appointed and elected officials being able to retire under PERS and then return to active employment through re-appointment or re-election without ceasing their PERS retirement benefits.
    
    The Bill adds elected officials to appointed officials restrictions. It additionally extends the re-employment period from 6 to 12 months.
    
    There are no changes in actual benefits to be paid to members due to the Bill. As a result, there is no immediate cost impact to the actuarial valuations for PERS.
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 estimates
    This Bill is intended to close a loop-hole to prevent double dipping by certain appointed or elected officials of receiving both PERS retirement benefits and an active salary by returning to work shortly after retirement.
    
    The actuarial valuation is not impacted by this change. The Bill will therefore not have a direct impact on the actuarial Normal Cost nor Actuarial Accrued Liabilities of the plan.
Analysis of Impact on Public Pension Policy
    The Bill is intended to restrict double dipping through retirement under PERS with nearly immediate rehire through appointment or election. The bill specifies elected officials are to be included in the restriction. The restriction period is also extended to 12 months.
Fiscal Note Summary

Explain in a clear and concise manner what effect this measure will have on costs and revenues of state government.

    This bill provides for changes in provisions regarding appointed and elected officials being able to retire under PERS and then return to active employment through re-appointment or re-election without ceasing their PERS retirement benefits.
    
    The Bill adds elected officials to appointed officials restrictions. It additionally extends the re-employment period from 6 to 12 months.
    
    There are no changes in actual benefits to be paid to members due to the Bill. As a result, there is no immediate cost impact to the actuarial valuations for PERS.

Fiscal Note Detail
Show over-all effect in Item 1 and 2 and, in Item 3, give an explanation of Breakdown by fiscal year, including long-range effect.
Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services
Current Expenses
Repairs and Alterations
Assets
Other
2. Estimated Total Revenues
3. Explanation of above estimates (including long-range effect):
    This Bill is intended to close a loop-hole to prevent double dipping by certain appointed or elected officials of receiving both PERS retirement benefits and an active salary by returning to work shortly after retirement.
    
    The actuarial valuation is not impacted by this change. The Bill will therefore not have a direct impact on the actuarial Normal Cost nor Actuarial Accrued Liabilities of the plan.


Memorandum
    The Bill is intended to restrict double dipping through retirement under PERS with nearly immediate rehire through appointment or election. The bill specifies elected officials are to be included in the restriction. The restriction period is also extended to 12 months.
Person Submitting Fiscal Note
Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email
harry.w.mandel@wv.gov