Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
Teachers' Retirement System
FUND(S):
TRS 2601
Sources of Revenue:
General Fund,Other Fund Add'l 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 legislation will increase the liabilities and costs of the Teachers' Retirement System, as it provides for certain monetary incentive payments that are to be recognized as compensation for pension purposes of teachers who receive them.
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 |
$998,000.00 |
0.06 % |
Normal Cost of System |
N/A |
($483,000.00) |
-0.03 % |
Past Service Liabilities |
$16,900,000.00 |
$1,481,000.00 |
0.09 % |
Fiscal Year Past Service Amortization Period Ends |
N/A |
2034 |
N/A |
Explanation of above Actuarial estimates:
Tha change actually creates a decrease in normal cost (as a percentage of payroll) but increases accrued liabilities because of the manner in which the cost method allocates costs over participants' careers. On the basis of information supplied to us, we have assumed that approximately 12.28% of active teachers would be eligible for the high pverty/high-minority payments and 3.55% would be eligible for those payments plus those for teachers covering areas of demonstrated statewide shortage. All other data, assumptions and methods are those used in the July 1, 2009 actuarial valuation of the Teachers' Retirement System.
Analysis of Impact on Public Pension Policy:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
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):
Memorandum
Person submitting Fiscal Note: David L Driscoll, FSA of Buck Consultants, LLC
Email Address: erica.m.mani@wv.gov