Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
Municipal Police and Fire Retirement System
FUND(S):
MPFRS
Sources of Revenue:
Other Fund 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 bill provides for the allowance of Roth IRA rollovers directly from the retirement system. The change is administrative in nature and does not change either the Normal Cost nor the Actuarial Accrued Liabilities of MPFRS.
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 bill modifies the distribution provisions of the System to allow direct rollover into Roth IRS’s. Provision is necessary for IRC compliance.
There is no cost impact for this change.
Analysis of Impact on Public Pension Policy:
CPRB recommended administrative changes for continued qualification compliance.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The bill provides for the allowance of Roth IRA rollovers directly from the retirement system. The change is administrative in nature and does not change either the Normal Cost nor the Actuarial Accrued Liabilities of MPFRS.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2011
Increase/Decrease
(use"-") |
2012
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 bill modifies the distribution provisions of the System to allow direct rollover into Roth IRS’s. Provision is necessary for IRC compliance.
There is no cost impact for this change.
Memorandum
CPRB recommended administrative changes for continued qualification compliance.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov