FISCAL NOTE



FUND(S):

2162

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.


The bill provides that members may donate leave to the Association President to use for Association business. All leave used by the president shall be subject to regular payroll deductions, including pension contribution amounts from the member and employer. As such, there is no impact on the retirement plan funding due to the provision. There is no actuarial impact on Plan B Normal Cost nor Unfunded Actuarial Accrued Liabilities due to the bill’s provisions. NOTE: This Actuarial Note impacts the Plan B costs only and does not comment on payroll costs possibly incurred by the State Police. A Fiscal Note should be requested from the State Police on this issue.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
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 estimates (including long-range effect):


Since the retirement system receives their regular member and employer contributions under the leave provisions, costs are not incurred by the Plan.



Memorandum


The bill allows the Association President to maintain full service credits and income while serving on association business through leave donations. The payroll implications of the leave donation costs should be referred to the State Police.



    Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
    Email Address: harry.w.mandel@wv.gov