Fiscal/Actuarial Note
Date Requested:January 24, 2011
Time Requested:05:03 PM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
2011R1921 Introduced HB2766
CBD Subject: DEPUTY SHERIFF RETIREMENT SYSTEM ACT
Retirement Systems Impacted by Legislation:
Deputy Sheriff Retirement System
FUND(S)
DSRS 2150
Sources of Revenue
You must select Revenue Source(s)!
Other Fund Local Govts
Does the proposed legislation create:
You must make a selection(s)!
Neither Program nor Fund

    The DSRS employer contribution rate is determined by the CPRB Board based on the annual actuarial valuation for the plan. The bill removes the 10.5% limit on the employer contribution rate to allow for proper funding of the plan.
    
    The bill does not increase any benefits payable under the Plan and therefore has no impact on either the Normal Cost nor the Actuarial Accrued Liabilities of the Plan.
    
    The bill could result in an increase in employer contributions above 10.5% of payroll if actuarially necessary and subject to Board action. Such increase would represent an increase in the funding incidence and not increased costs to DSRS. Each 1% of payroll currently represents about $411,000 in annual employer contributions.
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
    The bill does not provide for any additional benefits under the Plan. The Normal Cost and the Actuarial Accrued Liabilities are not impacted by the Bill.
Analysis of Impact on Public Pension Policy
    The change is required to assure the adequate long term funding for DSRS. Without the change, the Board does not have the ability to assure the proper long term funding of the Plan under the current funding policy for DSRS of level percentage of payroll amortization of the UAAL.
Fiscal Note Summary

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

    Local governmental plan has no impact on 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
2011
Increase/Decrease
(use"-")
2012
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):
    Local governmental plan has no impact on State Government.


Memorandum
    Local governmental plan has no impact on State Government.
Person Submitting Fiscal Note
Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email
Harry.W.Mandel@WV.gov