| Date Requested:February 08, 2012 Time Requested:02:23 PM |
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| Retirement Systems Impacted by Legislation: PERS |
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| FUND(S) PERS 2510 |
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Sources of Revenue You must select Revenue Source(s)! | |||
| General Fund,Other Fund Local Governments | |||
Does the proposed legislation create:
Neither Program nor Fund You must make a selection(s)! | |||
| 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 |
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| 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. |
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. |
| 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 | |||
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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. |
| 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 |
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| Harry W. Mandel, Board Actuary, MAAA, MSPA, EA |
| harry.w.mandel@wv.gov |