Actuarial Fiscal Note
Retirement Systems Impacted by Legislation:
State Police Plan A and B
FUND(S):
Plan A 2161; Plan B 2162
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).
The Bill raises the limit on monthly supplemental payments for overtime from $236 to $400.
The Bill does not directly impact the benefits in State Police Plan A or Plan B, and therefore has no direct actuarial cost impact on either plan.
The amount of the increase is expected to result in additional overtime earning being within our Salary Scale expectation for both plans. No additional actuarial losses are expected.
This Actuarial Note covers pension costs only and does not address costs due to additional pay. Such costs should be requested from the State Police.
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 does not increase benefits in either Plan A nor Plan B. There is therefore no impact on the Normal Cost nor the Actuarial Accrued Liabilities.
The annual maximum increase would be within salary scale projections for each plan.
This Actuarial Note does not address “payroll costs”.
Analysis of Impact on Public Pension Policy:
None.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The Bill raises the limit on monthly supplemental payments for overtime from $236 to $400.
The Bill does not directly impact the benefits in State Police Plan A or Plan B, and therefore has no direct actuarial cost impact on either plan.
The amount of the increase is expected to result in additional overtime earning being within our Salary Scale expectation for both plans. No additional actuarial losses are expected.
This Actuarial Note covers pension costs only and does not address costs due to additional pay. Such costs should be requested from the State Police.
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):
The bill does not increase benefits in either Plan A nor Plan B. There is therefore no impact on the Normal Cost nor the Actuarial Accrued Liabilities.
The annual maximum increase would be within salary scale projections for each plan.
This Actuarial Note does not address “payroll costs”.
Memorandum
None.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov