Fiscal/Actuarial Note
Date Requested:February 02, 2011
Time Requested:11:23 AM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
2011R2230 Introduced HB2939
CBD Subject: CLARIFYING BENEFITS
Retirement Systems Impacted by Legislation:
Public Employees Retirement System
FUND(S)
2510
Sources of Revenue
You must select Revenue Source(s)!
General Fund,Other Fund State and Local Govts
Does the proposed legislation create:
You must make a selection(s)!
Neither Program nor Fund

    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.
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 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

Explain in a clear and concise manner what 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
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):
    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
harry.w.mandel@wv.gov