Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

Actuarial Note Regarding Pension Legislation This Actuarial Note ONLY APPLIES to provisions of the Bill impacting the benefits and funding of the Public Employees Retirement System (PERS). PERS benefits are impacted by: 1. Withdrawal of Workers Compensation from PERS. Active members included in the withdrawal from PERS may not have fully funded benefits which would require remaining PERS employers to make up for those benefits. Only members of PERS who retire from workers compensation or change employment to the newly created Mutual are included in the member group. The actuarial analysis indicates that on a termination of employment basis, the benefit provided under PERS for service through December 31, 2005 are approximately 100% funded. No additional liability will be created for benefits earned prior to December 31, 2005. 2. PERS members who are employed by Workers Compensation on December 31, 2005 and either retiree on that date or move to the newly created Mutual, shall receive an additional benefit credit for their prior PERS service while with Workers Compensation or their affiliated previous entities. The additional service credit shall equal 6 months of service for each year of eligible service to a maximum of 5 years of additional service credits. The actuarial value of the additional service shall be payable as an additional contribution to PERS. For members expected to be eligible for the benefit, the additional actuarial past service liability totals $10,662,000. Workers Compensation employees who transfer to other PERS covered employment on or before December 31, 2005 will effectively transfer their full actuarial liabilities to their new employer. This is consistent with normal voluntary changes in employment. These costs do not include any actuarial liabilities for employees who transfer to the Mutual, receive the additional service credits, and then terminate employment and return to PERS covered employment.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2005 Increase/Decrease (use"-")	2006 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	0	0
Personal Services	0	20,000	0
Current Expenses	0	0	0
Repairs and Alterations	0	0	0
Assets	0	0	0
Other	0	10,662,000	0
2. Estimated Total Revenues	0	0	0

Explanation of above estimates (including long-range effect):

Memorandum

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