| Date Requested:January 31, 2012 Time Requested:12:58 PM |
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| Retirement Systems Impacted by Legislation: State Police Plan A and B |
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|---|---|---|---|
| FUND(S) Plan A 2161; Plan B 2162 |
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Sources of Revenue You must select Revenue Source(s)! | |||
| General Fund | |||
Does the proposed legislation create:
Neither Program nor Fund You must make a selection(s)! | |||
| The Bill raises the limit on monthly supplemental payments for overtime from $236 to $400.
The Bill does not directly impact the benefits in State Police Plan A or Plan B, and therefore has no direct actuarial cost impact on either plan. The amount of the increase is expected to result in additional overtime earning being within our Salary Scale expectation for both plans. No additional actuarial losses are expected. This Actuarial Note covers pension costs only and does not address costs due to additional pay. Such costs should be requested from the State Police. |
| 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 |
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| The bill does not increase benefits in either Plan A nor Plan B. There is therefore no impact on the Normal Cost nor the Actuarial Accrued Liabilities.
The annual maximum increase would be within salary scale projections for each plan. This Actuarial Note does not address “payroll costs”. |
Analysis of Impact on Public Pension Policy |
| None. |
Explain in a clear and concise manner what effect this measure will have on costs and revenues of state government.
| The Bill raises the limit on monthly supplemental payments for overtime from $236 to $400.
The Bill does not directly impact the benefits in State Police Plan A or Plan B, and therefore has no direct actuarial cost impact on either plan. The amount of the increase is expected to result in additional overtime earning being within our Salary Scale expectation for both plans. No additional actuarial losses are expected. This Actuarial Note covers pension costs only and does not address costs due to additional pay. Such costs should be requested from the State Police. |
| 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 | ||
|---|---|---|---|
| 2012 Increase/Decrease (use"-") |
2013 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 | |||
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3. Explanation of above estimates (including long-range effect):
The bill does not increase benefits in either Plan A nor Plan B. There is therefore no impact on the Normal Cost nor the Actuarial Accrued Liabilities.
The annual maximum increase would be within salary scale projections for each plan. This Actuarial Note does not address “payroll costs”. |
| None. |
| Person Submitting Fiscal Note |
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| Harry W. Mandel, Board Actuary, MAAA, MSPA, EA |
| harry.w.mandel@wv.gov |