Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
PERS
FUND(S):
PERS 2510
Sources of Revenue:
Other Fund State and Local Govts
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).
The bill eliminates legislators first serving after 2016 from elibibility to participate in PERS. The bill has no impact on the current Normal Cost nor Actuarial Accrued Liabilities of PERS.
Starting in 2017, the bill will reduce new legislators benefit costs by 14% of payroll.
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:
There is no increase in either the Normal Cost nor the Actuarial Accrued Liabilities for PERS and the change does not impact benefits for current members.
For new legislators starting in 2017, they will not be eligible for PERS participation and will therefore have a reduced benefit cost, currentlly 14% of payroll.
Analysis of Impact on Public Pension Policy:
Eliminates new legislators from PERS participation eliminating state provided retirement benefits.
The Bill language is inconsistent in whether the change is effective for 2016 or after 2016.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The bill eliminates legislators first serving after 2016 from elibibility to participate in PERS. The bill has no impact on the current Normal Cost nor Actuarial Accrued Liabilities of PERS.
Starting in 2017, the bill will reduce new legislators benefit costs by 14% of payroll.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2014
Increase/Decrease
(use"-") |
2015
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):
There is no increase in either the Normal Cost nor the Actuarial Accrued Liabilities for PERS and the change does not impact benefits for current members.
For new legislators starting in 2017, they will not be eligible for PERS participation and will therefore have a reduced benefit cost, currentlly 14% of payroll.
Memorandum
Eliminates new legislators from PERS participation eliminating state provided retirement benefits.
The Bill language is inconsistent in whether the change is effective for 2016 or after 2016.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov