Fiscal/Actuarial Note
Date Requested:April 02, 2013
Time Requested:01:17 PM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
2013R2576 Comm. Sub. SB469
CBD Subject: CLARIFY SERVICE CREDITS
Retirement Systems Impacted by Legislation:
Public Employees Retirement System
FUND(S)
PERS 2510
Sources of Revenue
You must select Revenue Source(s)!
Other Fund State & Local Govts
Does the proposed legislation create:
You must make a selection(s)!
Neither Program nor Fund

    The bill clarifies provisions regarding retroactive service purchases in PERS. Clarifies initial purchase must commence withing 24 months of becoming a PERS member or within 24 months of commencing contributions. Provides a window through 12/31/2013 for retroactive service purchases for all current members.
    
    There is no increase in Normal Cost nor Actuarial Accrued Liabilities attributable to the provisions of the bill at this time.
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
    The bill primarily provides clean up and clarifications to retroactive service purchases. The window is relatively short and is not expected to generate adverse experience. There is therefore no increase in Normal Cost nor Actuarial Accrued Liabilities attributable to the provisions of the bill at this time.
Analysis of Impact on Public Pension Policy
    This bill primarily provides clean up and clarification provisions.
Fiscal Note Summary

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

    The bill clarifies provisions regarding retroactive service purchases in PERS. Clarifies initial purchase must commence withing 24 months of becoming a PERS member or within 24 months of commencing contributions. Provides a window through 12/31/2013 for retroactive service purchases for all current members.
    
    There is no increase in Normal Cost nor Actuarial Accrued Liabilities attributable to the provisions of the bill at this time.

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
2013
Increase/Decrease
(use"-")
2014
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):
    The bill primarily provides clean up and clarifications to retroactive service purchases. The window is relatively short and is not expected to generate adverse experience. There is therefore no increase in Normal Cost nor Actuarial Accrued Liabilities attributable to the provisions of the bill at this time.


Memorandum
    This bill primarily provides clean up and clarification provisions.
Person Submitting Fiscal Note
Harry W. Mandel, MAAA, MSPA, EA, Board Actuary
Email
harry.w.mandel@wv.gov