Fiscal/Actuarial Note
Date Requested:February 14, 2012
Time Requested:02:25 PM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
Introduced SB470
CBD Subject: REQUIRING MEDICAL EXAMINATION
Retirement Systems Impacted by Legislation:
Teachers Retirement System
FUND(S)
TRS 2601
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

    This Bill provides that an application for disability retirement under TRS must include a statement of disability from the member’s own physician.
    
    The bill does not change the benefits that may become payable to the member. It is intended to match current administrative procedures being followed by the CPRB in the administration of TRS disability benefits.
    
    The bill could result in a reduction in future litigation costs.
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
    Since the Bill does not change any benefits payable to a disabled member. There is no change in either the Normal Cost nor the Actuarial Accrued Liabilities under TRS.
Analysis of Impact on Public Pension Policy
    Provides for a clarification in Statutes to match administrative proceedures.
Fiscal Note Summary

Explain in a clear and concise manner what effect this measure will have on costs and revenues of state government.

    This Bill provides that an application for disability retirement under TRS must include a statement of disability from the member’s own physician.
    
    The bill does not change the benefits that may become payable to the member. It is intended to match current administrative procedures being followed by the CPRB in the administration of TRS disability benefits.
    
    The bill could result in a reduction in future litigation costs.

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):
    Since the Bill does not change any benefits payable to a disabled member. There is no change in either the Normal Cost nor the Actuarial Accrued Liabilities under TRS.


Memorandum
    Provides for a clarification in Statutes to match administrative proceedures.
Person Submitting Fiscal Note
Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email
harry.w.mandel@wv.gov