Fiscal/Actuarial Note
Date Requested:April 02, 2013
Time Requested:01:59 PM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
2013R Introduced SB507
CBD Subject: SB507
Retirement Systems Impacted by Legislation:
PERS and State Police Plan B
FUND(S)
PERS 2510 and Plan B 2162
Sources of Revenue
You must select Revenue Source(s)!
General Fund,Other Fund State & Local Govts
Does the proposed legislation create:
You must make a selection(s)!
Neither Program nor Fund

    This bill eliminates the requirement that CPRB adopt a legislative rule when setting the employer contribution rate for the Public Employees Retirement System and State Police Plan B. Such rates shall be set upon adoption of the rate by the Board.
    
    The bill further provides clarification of the member contribution rate for State Police Plan B based on funding percentage as reported in latest actuarial valuatiion for Plan B.
    
    The bill does not increase any benefits otherwise provided under either plan. There is no increase in either Normal Cost nor Actuarial Accrued Liability.
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 does not change benefits provided under either CPRB administered plan. There is no increase in either Normal Cost nor Actuarial Accrued Liabilities for PERS or State Police Plan B.
    
    The bill does not change the basis for determining the employer contribution rate for PERS and State Police Plan B as set by the CPRB Board upon recommendation of the Board Actuary.
Analysis of Impact on Public Pension Policy
    The bill eliminates duplication of clerical and rule making efforts in setting the employer contribution rate for PERS and State Police Plan B.
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 eliminates the requirement that CPRB adopt a legislative rule when setting the employer contribution rate for the Public Employees Retirement System and State Police Plan B. Such rates shall be set upon adoption of the rate by the Board.
    
    The bill further provides clarification of the member contribution rate for State Police Plan B based on funding percentage as reported in latest actuarial valuatiion for Plan B.
    
    The bill does not increase any benefits otherwise provided under either plan. There is no increase in either Normal Cost nor Actuarial Accrued Liability.

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 does not change benefits provided under either CPRB administered plan. There is no increase in either Normal Cost nor Actuarial Accrued Liabilities for PERS or State Police Plan B.
    
    The bill does not change the basis for determining the employer contribution rate for PERS and State Police Plan B as set by the CPRB Board upon recommendation of the Board Actuary.


Memorandum
    The bill eliminates duplication of clerical and rule making efforts in setting the employer contribution rate for PERS and State Police Plan B.
Person Submitting Fiscal Note
Harry W. Mandel, MAAA, MSPA, EA, Board Actuary
Email
harry.w.mandel@wv.gov