Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
Public Employees Retirement System
FUND(S):
2510
Sources of Revenue:
General Fund,Other Fund State and Local Govts
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 for clarifications of administrative provisions. It does not increase the Normal Cost nor the Actuarial Accrued Liabilities of the Plan for current members.
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 provides administrative clarifications only including:
1. Excludes lump sum compensation payments from contributions to PERS and from determining FAP.
2. Clarifies termination withdrawal and repayment provisions.
3. For new hires July 1, 2011 and after, requires at least 5 years of contributory service for vested retirement benefits.
4. Clean up of certain disability benefit administration provisions.
5. Clean up for corrections to certain contribution/benefit under payments and overpayments.
The is no change in the Normal Cost nor Actuarial Accrued Liabilities due to these changes.
Analysis of Impact on Public Pension Policy:
CPRB administrative clarifications that do not increase any members benefit entitlements.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The bill provides for clarifications of administrative provisions. It does not increase the Normal Cost nor the Actuarial Accrued Liabilities of the Plan for current members.
Fiscal Note Detail
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 |
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):
The Bill provides administrative clarifications only including:
1. Excludes lump sum compensation payments from contributions to PERS and from determining FAP.
2. Clarifies termination withdrawal and repayment provisions.
3. For new hires July 1, 2011 and after, requires at least 5 years of contributory service for vested retirement benefits.
4. Clean up of certain disability benefit administration provisions.
5. Clean up for corrections to certain contribution/benefit under payments and overpayments.
The is no change in the Normal Cost nor Actuarial Accrued Liabilities due to these changes.
Memorandum
CPRB administrative clarifications that do not increase any members benefit entitlements.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov