Fiscal/Actuarial Note
Date Requested:February 22, 2011
Time Requested:11:29 AM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
Introduced SB222
CBD Subject: MUNICIPAL POLICE OFFICERS & FIREFIGHTERS
Retirement Systems Impacted by Legislation:
Municipal Police and Fire Retirement System
FUND(S)
MPFRS
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 bill provides for the allowance of Roth IRA rollovers directly from the retirement system. The change is administrative in nature and does not change either the Normal Cost nor the Actuarial Accrued Liabilities of MPFRS.
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 modifies the distribution provisions of the System to allow direct rollover into Roth IRS’s. Provision is necessary for IRC compliance.
    
    There is no cost impact for this change.
Analysis of Impact on Public Pension Policy
    CPRB recommended administrative changes for continued qualification compliance.
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 the allowance of Roth IRA rollovers directly from the retirement system. The change is administrative in nature and does not change either the Normal Cost nor the Actuarial Accrued Liabilities of MPFRS.

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 modifies the distribution provisions of the System to allow direct rollover into Roth IRS’s. Provision is necessary for IRC compliance.
    
    There is no cost impact for this change.


Memorandum
    CPRB recommended administrative changes for continued qualification compliance.
Person Submitting Fiscal Note
Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email
harry.w.mandel@wv.gov