Fiscal/Actuarial Note
Date Requested:January 31, 2012
Time Requested:12:58 PM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
2012R1605 Introduced HB4281
CBD Subject: SUPPLEMENTAL PAY
Retirement Systems Impacted by Legislation:
State Police Plan A and B
FUND(S)
Plan A 2161; Plan B 2162
Sources of Revenue
You must select Revenue Source(s)!
General Fund
Does the proposed legislation create:
You must make a selection(s)!
Neither Program nor Fund

    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
    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.
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 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.

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
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
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”.


Memorandum
    None.
Person Submitting Fiscal Note
Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email
harry.w.mandel@wv.gov