FISCAL NOTE
FUND(S):
New
Sources of Revenue:
Other Fund Local Governments
Legislation creates:
A New Program,A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The bill as drafted does not impact the costs nor revenues of State Government.
CPRB costs are funded by an annual deduction for each participating member from the MPFRS trust fund. With adequate participation under MPFRS, a new administrative employee will be required. Expense funding is provided through the percent of payroll contribution rate.
The MPOB created under the bill will have its expenses paid from fire tax premiums currently allocated to the municipal police and fire plans through administration by the State Treasurer’s Office (STO). The STO will transfer all administrative responsibilities and fire tax premium amounts to the MPOB. The MPOB’s expenses will increase the costs to local governments only to the extent that MPOB expenses exceed those of the cost reduction to the STO. The CPRB is not responsible for the activities of the MPOB and therefore cannot provide a cost estimate for the operations of the MPOB.
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):
The bill does not provide for any additional fire tax premiums, nor the reallocation of fire tax premium amounts currently being provided. On this basis, there is no increase in costs to State Government.
MPFRS expenses for administration by the CPRB are deducted from the Plan’s trust fund on a per member basis annually. Actuarial contribution rates to fund MPFRS benefits include the amounts necessary to cover the expense charges from CPRB and therefore are a local government expense.
Memorandum
The impact on local governments for the MPOB is dependent on the cost incurred by the Board for its operations. Significant costs for mandated actuarial services are required, but replace costs for actuarial services now covered under services provided by the STO.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov