Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
Teachers Retirement System
FUND(S):
TRS 2601
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
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 Detail of Actuarial Impact
Impact on current benefit costs, prior service benefit costs and ongoing contribution requirements following full implementation.
| 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 Actuarial 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
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
| 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 |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above Fiscal Note estimates (include possible 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 Address: harry.w.mandel@wv.gov