Actuarial Fiscal Note
Date Requested:March 07, 2025
Time Requested:06:45 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3632 |
Introduced |
SB716 |
|
|---|
| CBD Subject: |
Retirement; State Personnel |
|---|
|
Retirement Systems Impacted by Legislation:
MPFRS 2390
FUND(S):
Special Fund
Sources of Revenue:
Creates New Expense
Legislation creates:
MPFRS
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
SB 716 clarifies that if the required contribution amount owed to transfer from the Public Employees Retirement System (PERS) to Municipal Police and Firefighters
Retirement System (MPFRS) is not paid back timely (June 30, 2027, as required in
statute), then the PERS service transferred to MPFRS plus any MPFRS service
accrued will be transferred back to PERS. For contributions made directly to
MPFRS, the PERS employee contribution and interest will be computed and
transferred to PERS, and any excess contributions made to MPFRS will remain in
MPFRS until termination of employment, at which time the excess employee
retirement contributions can be refunded.
The updates to the West Virginia Statute from SB 716 are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for 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 |
2032 |
N/A |
Explanation of above Actuarial estimates:
The updates to the West Virginia Statute from SB 716 are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for MPFRS.
Analysis of Impact on Public Pension Policy:
The updates to the West Virginia Statute from SB 716 are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for MPFRS.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
MPFRS consists of municipality governments and does not cover any state employees. For fiscal 2026, funding for MPFRS is through member contributions of 8.50% of payroll and employer contributions of 8.50% of payroll. MPFRS does not impact the costs or revenues of state government.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
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):
MPFRS consists of municipality governments and does not cover any state employees. For fiscal 2026, funding for MPFRS is through member contributions of 8.50% of payroll and employer contributions of 8.50% of payroll. MPFRS does 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 July 1, 2024 funding valuation report for MPFRS, expected to be published on March 31, 2025.
In particular, future actuarial measurements may differ significantly from the current measurements shown in this actuarial/fiscal note due to plan experience differing from that anticipated by the economic and demographic assumptions, changes expected as part of the natural operation of the methodology used for these measurements, and changes in plan provisions, applicable law, and regulations.
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