| Date Requested:February 13, 2013 Time Requested:07:04 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)! | |||
| Other Fund State and Local Gov'ts | |||
Does the proposed legislation create:
Neither Program nor Fund You must make a selection(s)! | |||
| This Bill as drafted violates WV Statutes under 2005 Pension Reform Legislation. Section 5-10-22h( c ) prohibits increases to active members whenever the PERS funding ratio is less than 85.0% funded. The current funded percentage is 77.6%. See the Pension Committee chairman for details.
The Bill provides for additional military service credits for active PERS members and is therefore in violation of the Statutes. |
| 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 | $999,999.00 | $999,999.00 | 99.99 % |
| Normal Cost of System | N/A | $999,999.00 | 99.99 % |
| Past Service Liabilities | $999,999.00 | $999,999.00 | 99.99 % |
| Fiscal Year Past Service Amortization Period Ends |
N/A | FY2023 | N/A |
Explanation of above estimates |
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| The Bill provides additional military service credits to certain active members which will increase both the Normal Cost and Actuarial Accrued Liabilities under PERS. The actual costs have not been determined since the benefit improvement would violate 2005 Pension Reform limitations under Section 5-10-22h(c).
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Analysis of Impact on Public Pension Policy |
| The bill provides limited additional military service credits by re-defining “armed conflicts” applied in current military service calculations.
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Explain in a clear and concise manner what effect this measure will have on costs and revenues of state government.
| This Bill as drafted violates WV Statutes under 2005 Pension Reform Legislation. Section 5-10-22h( c ) prohibits increases to active members whenever the PERS funding ratio is less than 85.0% funded. The current funded percentage is 77.6%. See the Pension Committee chairman for details.
The Bill provides for additional military service credits for active PERS members and is therefore in violation of the Statutes. |
| 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 | ||
|---|---|---|---|
| 2013 Increase/Decrease (use"-") |
2014 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) | |
| 1. Estmated Total Cost | 999999 | 999999 | |
| Personal Services | |||
| Current Expenses | |||
| Repairs and Alterations | |||
| Assets | |||
| Other | |||
| 2. Estimated Total Revenues | |||
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3. Explanation of above estimates (including long-range effect):
The Bill provides additional military service credits to certain active members which will increase both the Normal Cost and Actuarial Accrued Liabilities under PERS. The actual costs have not been determined since the benefit improvement would violate 2005 Pension Reform limitations under Section 5-10-22h(c).
|
| The bill provides limited additional military service credits by re-defining “armed conflicts” applied in current military service calculations.
These additional service credits for active Members are in violation of 2005 Pension Reform provisions. |
| Person Submitting Fiscal Note |
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| Harry W. Mandel, MAAA, MSPA, EA, Board Actuary |
| harry.w.mandel@wv.gov |