FISCAL NOTE
FUND(S):
Voluntary Employee Retirement Accounts Plan Administration Account
Sources of Revenue:
Other Fund Unclaimed Property Trust
Legislation creates:
A New Program,A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Startup funds for the West Virginia Voluntary Employee Retirement Accounts Program will initally come from the Unclaimed Property Trust Fund. The bill specifies any funds appropriated by the Legislature to fund the program must be reimbursed by the program once the program begins receiving funds from fees it charges and collects from account owners in the plan.
The state's Unclaimed Property Trust Fund will be subject to transferring one million dollars to the Voluntary Employee Retirement Accounts Plan Administration Account on or before July 1, 2011. The bill allows for partial tranfers to occur with the total amount of $1.0 million being transferred by July 1, 2011. The Unclaimed Property Administrator indicates the Unclaimed Property Trust Fund will have sufficient funds to make this transfer on or before July 1, 2011.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2010
Increase/Decrease
(use"-") |
2011
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
180,000 |
175,000 |
| Personal Services |
0 |
40,000 |
75,000 |
| Current Expenses |
0 |
140,000 |
100,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
1,000,000 |
200,000 |
Explanation of above estimates (including long-range effect):
The bill allows for $1.0 million be transferred from the Unclaimed Property Trust fund to the Voluntary Employee Retirement Accounts Plan Administration Account to fund the first 5 years of operation. At the conclusion of the startup funds being expended, the plan will continue solely from charges and fees from participant accounts. No additional funding from the State of WV will be used to operate the program. In the first year of operations, it is anticipated an employee to run the program will not be in place on July 1st of 2011. In addition once the program is fully operational, the program will most likely require the services of two full-time employees. Therefore the increase in personal services from the first year and the anticipated personal service costs on an ongoing annual basis. Current Expenses and other expenditure lines will also fluctuate through the 1st five years with a likelihood of having a total budget of $100,000 for consultants, current expense, and other expenditures on an ongoing basis. The total cost generated from fees and other charges on an annual basis is anticipated to be $175,000 per year.
Memorandum
Restating, once the program is operational, this program would be run solely from private funds generated by the participants of the program. No additional state funds are expected to be used in operating the program.
Person submitting Fiscal Note: Blair Taylor
Email Address: blair.taylor@wvsto.com