|Date Requested:February 13, 2012
Time Requested:11:57 AM
|Retirement Systems Impacted by Legislation:
Deputy Sheriffs Retirement System
Sources of Revenue
You must select Revenue Source(s)!
|Other Fund Local Governments|
Does the proposed legislation create:Neither Program nor Fund
You must make a selection(s)!
| The Bill provides a one time increase in monthly pension benefits to certain retirees and beneficiaries effective July 1, 2012. Members retired for 5 or more years will receive a 4% increase. Members retired for at least 3 but less than 5 years receive a 2% increase. Those retired less than 3 years do not get an increase.
There are 240 (out of 272) retirees expected to receive an increase under the Bill.
The benefit increases the Actuarial Accrued Liability by about $1,910,000. This increases the DSRS required contribution by $142,000, increasing annually at 0.34% of payroll.
The DSRS current contribution rate of 13% of payroll is sufficient to fund the increased minimum Actuarial Required Contribution.
|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||$1,910,000.00||$142,000.00||0.34 %|
|Normal Cost of System||N/A||$0.00||0.00 %|
|Past Service Liabilities||$1,910,000.00||$142,000.00||0.34 %|
|Fiscal Year Past Service
Amortization Period Ends
Explanation of above estimates
| The increase in the UAAL was calculated as of July 1, 2011 from the 2011 Actuarial Valuation data applying ProVal. Calculations included only those who will meet the length of retirement specifications on July 1, 2012.
Amortization is completed as a level percentage of expected payroll annually through FY2029.
Analysis of Impact on Public Pension Policy
| The DSRS does not contain any “automatic retiree increases”. Since inception, the DSRS has not granted any retiree increases.
The funded position of DSRS would be impacted through a reduction of the DSRS funded percentage from 76.0% to 75.9%.
The current contribution rate of 13% of payroll is sufficinet to cover funding for the benefit increase under the ARC based on July 1, 2011 Actuarial Valuation results.
Explain in a clear and concise manner what effect this measure will have on costs and revenues of state government.
|No impact on State Government. DSRS is a statewide local government cost sharing plan. There are no State employees covered in this plan.|
|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|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations|
|2. Estimated Total Revenues|
3. Explanation of above estimates (including long-range effect):DSRS is a statewide local government cost sharing plan. There are no State employees covered in this plan.
|DSRS is a statewide local government cost sharing plan. There are no State employees covered in this plan.|
|Person Submitting Fiscal Note|
|Harry W. Mandel, Board Actuary, MAAA, MSPA, EA|