Actuarial Fiscal Note

Date Requested:March 07, 2025
Time Requested:10:15 AM

3633	Introduced	HB3180
Agency:	Consolidated Public Retirement Board
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:	Retirement; State Personnel

Retirement Systems Impacted by Legislation:

PERS 2501; TRS 2600; State Police Plan A 2392; State Police Plan B 2393; JRS 2140; DSRS 2150; EMSRS 2615; MPFRS 2390; NRPORS 2397; TDC 2190

FUND(S):

Special Fund

Sources of Revenue:

Creates New Expense

Legislation creates:

PERS, TRS, State Police Plan A, State Police Plan B, JRS, DSRS, EMSRS, MPFRS, NRPORS, and TDC

Actuarial Note Summary

Impact this measure will have on the liabilities and contributions associated with the retirement system(s).

    HB 3180 updates the West Virginia Statute for the ten pension plans administered by the Consolidated Public Retirement Board to remain in compliance with the Internal Revenue Code and SECURE 2.0 federal legislation.

    Specifically, the Bill updates and adds various definitions in each plan such as “required beginning date” for Required Minimum Distribution changes to be in compliance with SECURE 2.0 Section 107, “annual compensation” to be in compliance with 401(a)(17) of the Internal Revenue Code, and adding definition/section or subsection clarifying what constitutes a “bona fide retirement” or “bona fide termination of employment”; clarification regarding “pickup” (tax-deferred) contributions; updates the public safety officer tax exemption section for eligible health insurance section “form” to be evergreen, as well as SECURE 2.0 Section 328 updates; and minor technical clean-up provisions.

    The updates to West Virginia Statute from HB 3180 for PERS, TRS, State Police Plan A, State Police Plan B, JRS, DSRS, EMSRS, MPFRS, NRPORS, and TDC are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.

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
Impact On	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	0000	N/A

Explanation of above Actuarial estimates:

The updates to West Virginia Statute from HB 3180 for PERS, TRS, State Police Plan A, State Police Plan B, JRS, DSRS, EMSRS, MPFRS, NRPORS, and TDC are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.

Analysis of Impact on Public Pension Policy:

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    HB 3180 updates the West Virginia Statute for the ten pension plans administered by the Consolidated Public Retirement Board to remain in compliance with the Internal Revenue Code and SECURE 2.0 federal legislation.

    Specifically, the Bill updates and adds various definitions in each plan such as “required beginning date” for Required Minimum Distribution changes to be in compliance with SECURE 2.0 Section 107, “annual compensation” to be in compliance with 401(a)(17) of the Internal Revenue Code, and adding definition/section or subsection clarifying what constitutes a “bona fide retirement” or “bona fide termination of employment”; clarification regarding “pickup” (tax-deferred) contributions; updates the public safety officer tax exemption section for eligible health insurance section “form” to be evergreen, as well as SECURE 2.0 Section 328 updates; and minor technical clean-up provisions.

    The updates to West Virginia Statute from HB 3180 for PERS, TRS, State Police Plan A, State Police Plan B, JRS, NRPORS, and TDC are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these plans.

    The plans DSRS, EMSRS, and MPFRS consist of local governments and do not impact the costs or revenues of state government.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2025 Increase/Decrease (use"-")	2026 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 updates to West Virginia Statute from HB 3180 for PERS, TRS, State Police Plan A, State Police Plan B, JRS, NRPORS, and TDC are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for these State plans.

    The plans DSRS, EMSRS, and MPFRS consist of local governments and do not impact the costs or revenues of state government.

Memorandum

    This Actuarial/Fiscal Note is being submitted by the Consolidated Public Retirement Board. It has been reviewed by the CPRB Actuary. Both the Board and the CPRB Actuary are available upon request for questions.

    For the appropriate actuarial disclosures, see the corresponding July 1, 2024 funding valuation reports for PERS, TRS, State Police Plan A, ,State Police Plan B, JRS, DSRS, EMSRS, MPFRS, and NRPORS, expected to be published on March 31, 2025.

    Kenneth Woodson Jr., the CPRB Board Actuary, is a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries. He meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained in this Actuarial/Fiscal Note.

Person submitting Fiscal Note: Kenneth M. Woodson Jr.
Email Address: kenneth.m.woodson@wv.gov