FISCAL NOTE
FUND(S):
All
Sources of Revenue:
General Fund,Other Fund Local Governments
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This Actuarial Note refers to the Strike and Insert Amendment, Senate Pensions on March 5, 2012.
The Bill provides for certain Associations representing West Virginia retirees to be able to have the CPRB complete a blind mailing for the Associations. Mailing costs are to be billed to the Associations. Such mailings are assumed to include solicitations for membership and enrollment forms that include withholding authorizations. Mailings are unrestricted and could also include solicitations for insurance products or other “goods and services”.
Since mailings would be completed to addressees from the various retirement systems for which the CPRB is plan administrator, increased internal administrative costs are expected to be incurred. These could include the following:
1. Legal charges for the preparation of legal disclosure inserts so that recipient retirees would be informed that the solicitation mailing is being provided under WV State statutes as a service to the Associations and not sanctioned by the CPRB. Litigation fees.
2. Processing of additional enrollments resulting from the mailings including both membership and dues withholding additions or changes.
3. Programmer time if “new” Associations take advantage of the provisions of the Bill to establish new membership groups and withholding amounts.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2012
Increase/Decrease
(use"-") |
2013
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
5,000 |
5,000 |
5,000 |
| Personal Services |
5,000 |
5,000 |
5,000 |
| 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):
This Actuarial Note refers to the Strike and Insert Amendment, Senate Pensions on March 5, 2012.
As detailed above, an increase in administrative costs is expected to be incurred as a result of the blind mailings. These costs are in addition to the actual mailing costs to be paid by the Associations requesting a mailing.
The exact costs cannot be determined without knowing the number of mailings to be requested and the effectiveness of the solicitation in gaining new membership.
Based on a review of the administrative requirements and costs, it is estimated that costs will average in a range of $0 to $20,000 each year. The average of $5,000 has been applied as the increase in administrative costs averaged over the years.
Memorandum
This Actuarial Note refers to the Strike and Insert Amendment, Senate Pensions on March 5, 2012.
The Bill provides for Associations representing West Virginia retirees to have the CPRB complete blind mass mailings to CPRB retirees. These mass mailings are expected to include solicitations for membership in the Associations and forms for the collections of dues through retiree payroll deductions and transmission of total dues by the CPRB to the Associations. There are no restrictions on the contents of the mailings that the Associations can process through the CPRB retiree base, and solicitations could include any Associations sponsored products (such as insurance products).
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov