Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
PERS and TRS
FUND(S):
PERS 2510 and TRS 2601
Sources of Revenue:
General Fund,Other Fund Includes local government
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 a clarification of disability eligibility rules to exclude disabilities caused by vicious habits, intermperence or willful misconduct. Provides consistency with other CPRB plans disability provisions.
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:
The changes in the bill provide a clarification of disability eligibility in PERS and TRS. The changes do not impact either the Normal Cost nor the Accrued Actuarial Liabilities for either plan.
Analysis of Impact on Public Pension Policy:
The bill provides clarification language for disability administration by the CPRB. The change is intended to limit exposure to future litigation due to disability denial due to causes stated in the bill.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This Bill provides for a clarification of disability eligibility rules to exclude disabilities caused by vicious habits, intermperence or willful misconduct. Provides consistency with other CPRB plans disability provisions.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2010
Increase/Decrease
(use"-") |
2011
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):
The changes in the bill provide a clarification of disability eligibility in PERS and TRS. The changes do not impact either the Normal Cost nor the Accrued Actuarial Liabilities for either plan.
Memorandum
The bill provides clarification language for disability administration by the CPRB. The change is intended to limit exposure to future litigation due to disability denial due to causes stated in the bill.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov