Fiscal/Actuarial Note
Retirement Systems Impacted by Legislation:
Teachers' Retirement System
TRS 2601
Sources of Revenue
You must select Revenue Source(s)!
General Fund,Other Fund Add'l local govts
Does the proposed legislation create:
You must make a selection(s)!
Neither Program nor Fund

    The legislation will increase the liabilities and costs of the Teachers' Retirement System, as it provides for certain monetary incentive payments that are to be recognized as compensation for pension purposes of teachers who receive them.
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 $998,000.00 0.06 %
Normal Cost of System N/A ($483,000.00) -0.03 %
Past Service Liabilities $16,900,000.00 $1,481,000.00 0.09 %
Fiscal Year Past Service
Amortization Period Ends
N/A 2034 N/A
Explanation of above estimates
    Tha change actually creates a decrease in normal cost (as a percentage of payroll) but increases accrued liabilities because of the manner in which the cost method allocates costs over participants' careers. On the basis of information supplied to us, we have assumed that approximately 12.28% of active teachers would be eligible for the high pverty/high-minority payments and 3.55% would be eligible for those payments plus those for teachers covering areas of demonstrated statewide shortage. All other data, assumptions and methods are those used in the July 1, 2009 actuarial valuation of the Teachers' Retirement System.
Analysis of Impact on Public Pension Policy
Fiscal Note Summary

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


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
Fiscal Year
(Upon Full
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
3. Explanation of above estimates (including long-range effect):

Person Submitting Fiscal Note
David L Driscoll, FSA of Buck Consultants, LLC