Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
EMSRS
FUND(S):
EMSRS
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 clean up language for plan administration.
The bill does not modify the benefits generally payable under the Plan. There is no change in the Normal Cost nor the Actuarial Accrued Liabilities of the Plan due to the Bill.
The Bill changes should help minimize the possibility of future litigation in the administration of the Plan.
Certain PEIA provisions could result in PEIA related costs.
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:
The bill’s provisions are administrative in nature as follows:
1. PERS contribution transfer provisions for EMSRS rehires.
2. Clarifies employer error correction policies and procedures.
3. Clarifies the maximum employer contribution rate of 10.5% set by Board.
4. Requires PEIA to clarify insurance provisions for age 50-55 retirees.
The provisions as outlined do not impact the benefits under the Retirement Plan taken into account in the actuarial valuation process. The bill will not impact the Normal Cost nor Actuarial Accrued Liabilities of the Plan.
Analysis of Impact on Public Pension Policy:
Clean up provisions are required to assure uniform future administration of certain technical plan provisions. These changes will also minimize the possibility of future litigation.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
EMSRS is a local government plan and will not impact State Government.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2010
Increase/Decrease
(use"-") |
2011
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):
EMSRS is a local government plan and will not impact State Government.
Memorandum
EMSRS is a local government plan and will not impact State Government.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov