Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
Public Employees Retirement System
FUND(S):
PERS 2510
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 provides for changes in provisions regarding appointed and elected officials being able to retire under PERS and then return to active employment through re-appointment or re-election without ceasing their PERS retirement benefits.
The Bill adds elected officials to appointed officials restrictions. It additionally extends the re-employment period from 6 to 12 months.
There are no changes in actual benefits to be paid to members due to the Bill. As a result, there is no immediate cost impact to the actuarial valuations for PERS.
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:
This Bill is intended to close a loop-hole to prevent double dipping by certain appointed or elected officials of receiving both PERS retirement benefits and an active salary by returning to work shortly after retirement.
The actuarial valuation is not impacted by this change. The Bill will therefore not have a direct impact on the actuarial Normal Cost nor Actuarial Accrued Liabilities of the plan.
Analysis of Impact on Public Pension Policy:
The Bill is intended to restrict double dipping through retirement under PERS with nearly immediate rehire through appointment or election. The bill specifies elected officials are to be included in the restriction. The restriction period is also extended to 12 months.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill provides for changes in provisions regarding appointed and elected officials being able to retire under PERS and then return to active employment through re-appointment or re-election without ceasing their PERS retirement benefits.
The Bill adds elected officials to appointed officials restrictions. It additionally extends the re-employment period from 6 to 12 months.
There are no changes in actual benefits to be paid to members due to the Bill. As a result, there is no immediate cost impact to the actuarial valuations for PERS.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2009
Increase/Decrease
(use"-") |
2010
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):
This Bill is intended to close a loop-hole to prevent double dipping by certain appointed or elected officials of receiving both PERS retirement benefits and an active salary by returning to work shortly after retirement.
The actuarial valuation is not impacted by this change. The Bill will therefore not have a direct impact on the actuarial Normal Cost nor Actuarial Accrued Liabilities of the plan.
Memorandum
The Bill is intended to restrict double dipping through retirement under PERS with nearly immediate rehire through appointment or election. The bill specifies elected officials are to be included in the restriction. The restriction period is also extended to 12 months.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov