FISCAL NOTE
FUND(S):
2510
Sources of Revenue:
General Fund,Other Fund State and local govts
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This Bill as drafted violates WV Statutes under 2005 Pension Reform Legislation. Section 5-10-22h prohibits benefit increases to active members while PERS funded percentage is under 85%. As of the latest July 1, 2010 Actuarial Valuation for PERS, the funded percentage is currently 74.6%. Based on the funded percentage, the additional benefits provided to active members under this bill are currently prohibited.
See the Pension Committee chairman for details.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2011
Increase/Decrease
(use"-") |
2012
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
999,999 |
999,999 |
| 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 as drafted would provided free PERS service credits for up to five years of service in the Peace Corp. This additional benefit to active members is prohibited under current Pension Reform restrictions.
Memorandum
Although the Peace Corp might be considered public service, it is not of the same nature as military service whose members risk their lives for the safety and freedom of our country during their tour of duty.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov