FISCAL NOTE
FUND(S):
PERS 2510
Sources of Revenue:
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.
The bill eliminates legislators first serving after 2016 from elibibility to participate in PERS. The bill has no impact on the current Normal Cost nor Actuarial Accrued Liabilities of PERS.
Starting in 2017, the bill will reduce new legislators benefit costs by 14% of payroll.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2014
Increase/Decrease
(use"-") |
2015
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):
There is no increase in either the Normal Cost nor the Actuarial Accrued Liabilities for PERS and the change does not impact benefits for current members.
For new legislators starting in 2017, they will not be eligible for PERS participation and will therefore have a reduced benefit cost, currentlly 14% of payroll.
Memorandum
Eliminates new legislators from PERS participation eliminating state provided retirement benefits.
The Bill language is inconsistent in whether the change is effective for 2016 or after 2016.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov