Date Requested:March 18, 2005
Time Requested:03:06 PM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
2005R1231 Intro SB591
CBD Subject: Teachers Retirement System
FUND(S)
TRS fund 2601
Sources of Revenue
General Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

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

    Actuarial Note Regarding Pension Legislation
    
    The Bill clarifies several definitions applied in the administration of TRS. Clarifications generally reflect current administration and are not changes to TRS benefits. They are intended to reduce future disputes regarding the meanings of those provisions. These clarifications include:
    
    1. Certain terminal benefits to named beneficiaries of retirees who have a remaining Member contribution balance at death with no other survivor benefits shall include interest.
    2. Clarifies maximum loans.
    3. Limits military service credits as applicable to only one benefit system.
    4. Clarifications to loan repayments.
    
    The modifications do not impact either the Normal Cost nor the Actuarial Accrued Liabilities of TRS. The modifications do not change the contribution requirements for TRS. The Bill is intended to maintain current costs for TRS, and failure to pass could increase future TRS costs due to administrative disputes.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
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
3. Explanation of above estimates (including long-range effect):
    Although the Bill does not impact the actuarial valuation results for TRS, the changes are necessary to control the actual experience costs of TRS.
    
    The intent of the Bill is to prevent liability increases in TRS due to adverse interpretations of TRS provisions relative to historical administration of the Plan.


Memorandum
Person submitting Fiscal Note:
Amy Langenbrunner
Email Address:
ALangenbrunner@wvadmin.gov
    The Bill is necessary to maintain the administrative integrity of the TRS system. Failure to pass could increase the costs of the system.