FISCAL NOTE
FUND(S):
PERS 2510; TRS 2601
Sources of Revenue:
Other Fund State & 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 provides a one time 3% lifetime benefit increase on July 1, 2013 for retirees and beneficiaries under PERS and TRS. To be eligible, the retiree must be 60 or older with at least 5 years of retirement but not be age 77 and older with 12 or more years of retirement.
For PERS, the UAAL increases by $16,488,000 with a 6 year amortization requirement of $3,388,000 per year through FY 2019.
For TRS, the UAAL increases by $31,000,000 with a 6 year amortization requirement of $6,370,000 per year through FY 2019
The retiree improvement is allowable under 2005 Pension Reform.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2013
Increase/Decrease
(use"-") |
2014
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
9,758,000 |
9,758,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
9,758,000 |
9,758,000 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Retirees and beneficiaries who meet the age 70 and 5 year requirement and were not in the 2006 retiree increase, receive a 3% increase in their monthly benefit starting July 1, 2013.
The UAAL amount was calculated through actuarial software by CPRB actuarial staff.
Memorandum
Provides a retiree increase to a limited number of PERS and TRS retirees. The amount is allowable under 2005 Pension Reform limitations and therefore is within current legislative policy limitations.
Person submitting Fiscal Note: Harry W. Mandel, MAAA, MSPA, EA, Board Actuary
Email Address: harry.w.mandel@wv.gov