Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
Deputy Sheriff Retirement System
FUND(S):
DSRS 2150
Sources of Revenue:
Other Fund Local Governments
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).
Bill allows new survivor options to be elected upon remarriage of retiree. If divorced, benefit may not be encumbered due to QDRO or other divorce property settlement.
All new options are calculated to be the actuarial equivalent of the member’s benefit in effect prospectively on the selection date.
Since all benefits are to be calculated as actuarial equivalent to existing benefits, there is no direct benefit cost for the bill. Some “adverse selection” considerations might have a minor impact on future benefits.
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 expands certain benefit rights to retirees, but does not impact the actuarial present value of the benefits being provided. Therefore, the bill is deemed not to increase benefit costs. Certain administrative changes will need to be implemented but are included in current CPRB administrative charges to the Plan.
Analysis of Impact on Public Pension Policy:
The bill expands retired member rights. Certain beneficiary benefits to prior spouses may be curtailed if not protected by a QDRS or other divorce property settlement.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
DSRS is a local governmental plan and does not impact State costs.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2012
Increase/Decrease
(use"-") |
2013
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):
DSRS is a local governmental plan and does not impact State costs.
Memorandum
DSRS is a local governmental plan and does not impact State costs.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov