Fiscal/Actuarial Note
Date Requested:February 08, 2012
Time Requested:02:23 PM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
2012R1954 Introduced SB545
CBD Subject: REEMPLOYMENT AFTER RETIREMENT FROM PERS
Retirement Systems Impacted by Legislation:
PERS
FUND(S)
PERS 2510
Sources of Revenue
You must select Revenue Source(s)!
General Fund,Other Fund Local Governments
Does the proposed legislation create:
You must make a selection(s)!
Neither Program nor Fund

    The Bill has no impact on retirement benefits payable to members of any retirement system administered by the CPRB. The Bill incurs additional administrative costs to the CPRB due to additional duties imposed on the CPRB.
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
    There are no changes in benefit entitlement for any plans administered by CPRB. Therefore, there is no change in NC or AAL for any plan due to the bill.
Analysis of Impact on Public Pension Policy
    The Bill adds administrative duties in respect to the identification and auditing the independent contractor relationship between publlic employers and independent contractor who employ retired former public employees.
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 has no impact on retirement benefits payable to members of any retirement system administered by the CPRB.
    
    The Bill incurs additional administrative costs to the CPRB due to additional administrative duties imposed on the CPRB.

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 100000 250000 262500
Personal Services 100000 250000 262500
Current Expenses
Repairs and Alterations
Assets
Other
2. Estimated Total Revenues
3. Explanation of above estimates (including long-range effect):
    There are no changes in benefit entitlement for any plans administered by CPRB. Therefore, there is no change in NC or AAL for any plan due to the bill.
    
    Costs cover additional staff positions and/or services required to complete the services required under the bill in respect to independent contractors. These include legal, investigative, auditing and clerical service functions.


Memorandum
    The Bill adds administrative duties in respect to the identification and auditing the independent contractor relationship between publlic employers and independent contractor who employ retired former public employees.
    
    The duties added are normally associated with Federal Internal Reveue Service audits.
Person Submitting Fiscal Note
Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email
harry.w.mandel@wv.gov