Fiscal/Actuarial Note
Date Requested:January 28, 2014
Time Requested:01:41 PM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
2014R1938 Introduced HB4365
CBD Subject: TEACHERS' RETIREMENT SYSTEM MODIFICATIONS
Retirement Systems Impacted by Legislation:
Teachers Retirement System
FUND(S)
TRS 2601
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 provides technical clean up and clarifications impacting CPRB administration of the Plan. The primary provisions clarify certain definitions. The bill eliminates the Teachers Employer Contribution Collection Account (TECCA Account) which acts as a preliminary holding account for current TRS employer and School Aid Formula contributions. Amounts in the TECCA account may only be transferred once each month to the Investment Management Board for deposit into the TRS Trust Fund for investment.
    
    There is no increase in benefits to any members of TRS. There is no change in either the Normal Cost nor the Actuarial Accrued Liabilities.
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
    Changes are procedural in nature. There are no changes in either the Normal Cost nor the Actuarial Accrued Liabilities. The elimination of the TECCA account does not impact Plan funding directly.
Analysis of Impact on Public Pension Policy
    The elimination of the TECCA holding account requirement should improve the flow of employer contributions being deposited with the Investment Management Board in the TRS Trust Fund.
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 provides technical clean up and clarifications impacting CPRB administration of the Plan. The primary provisions clarify certain definitions. The bill eliminates the Teachers Employer Contribution Collection Account (TECCA Account) which acts as a preliminary holding account for current TRS employer and School Aid Formula contributions. Amounts in the TECCA account may only be transferred once each month to the Investment Management Board for deposit into the TRS Trust Fund for investment.
    
    There is no increase in benefits to any members of TRS. There is no change in either the Normal Cost nor the Actuarial Accrued Liabilities.

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
2014
Increase/Decrease
(use"-")
2015
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):
    Changes are procedural in nature. There are no changes in either the Normal Cost nor the Actuarial Accrued Liabilities. The elimination of the TECCA account does not impact Plan funding directly.


Memorandum
    The elimination of the TECCA holding account requirement should improve the flow of employer contributions being deposited with the Investment Management Board in the TRS Trust Fund.
Person Submitting Fiscal Note
Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email
harry.w.mandel@wv.gov