Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
Teachers Retirement System
FUND(S):
2610
Sources of Revenue:
General Fund
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).
This bill clarifies that the total years of service (except years of service withdrawn and not repaid) shall be used to determine eligibility to retire whether or not the member chooses to purchase the 25% TDC service. The bill also extends the deadline for CPRB's receipt of transfer forms to May 20, 2008, and those members whose forms came to CPRB in the extended period shall be transferred August 1, 2008. The bill contains a technical clarification to specify that the 1 1/2% must be paid no later than June 30, 2009. If the member intends to retire during calendar year 2008 of an intent to retire. The QDRO section was clarified concerning the repayment of the 1 1/2% contribution in order to receive full service credit.
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 |
$999,999.00 |
$999,999.00 |
0.00 % |
| Normal Cost of System |
N/A |
$0.00 |
0.00 % |
| Past Service Liabilities |
$999,999.00 |
$999,999.00 |
0.00 % |
Fiscal Year Past Service
Amortization Period Ends |
N/A |
n/a |
N/A |
Explanation of above Actuarial estimates:
All changes are clarifications and administrative procedures and except for the eligibility revision which allows a limited number of members to retire earlier based on total years of service. As of September 1, 2008, there are only twelve TDC members who may have transferred who would be eligible. In succeeding years, there will be some additional members who will qualify.
Until we determine who are the individuals in the extended deadline group permitted to transfer, actual costs can not be determined but it is expected to be de minimus in the overall transfer to TRS costs.
Analysis of Impact on Public Pension Policy:
Clarification should reduce the possibility of future litigation.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill clarifies that the total years of service (except years of service withdrawn and not repaid) shall be used to determine eligibility to retire whether or not the member chooses to purchase the 25% TDC service. The bill also extends the deadline for CPRB's receipt of transfer forms to May 20, 2008, and those members whose forms came to CPRB in the extended period shall be transferred August 1, 2008. The bill contains a technical clarification to specify that the 1 1/2% must be paid no later than June 30, 2009. If the member intends to retire during calendar year 2008 of an intent to retire. The QDRO section was clarified concerning the repayment of the 1 1/2% contribution in order to receive full service credit.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
999,999 |
999,999 |
999,999 |
| 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):
All changes are clarifications and administrative procedures and except for the eligibility revision which allows a limited number of members to retire earlier based on total years of service. As of September 1, 2008, there are only twelve TDC members who may have transferred who would be eligible. In succeeding years, there will be some additional members who will qualify.
Until we determine who are the individuals in the extended deadline group permitted to transfer, actual costs can not be determined but it is expected to be de minimus in the overall transfer to TRS costs.
Memorandum
Clarification should reduce the possibility of future litigation.
Person submitting Fiscal Note: Anne Werum Lambright
Email Address: Anne.W.Lambright@wv.gov