Date Requested: February 23, 2015
Time Requested: 02:15 PM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
3152 Introduced SB551
CBD Subject: Retirement


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.


    This Bill as drafted violates WV Statutes under 2005 Pension Reform Legislation. Section 5-10-22h (c) prohibits increases to active members when PERS Actuarial Accrued Liabilities are less than 85% funded as determined in the last actuarial valuation for PERS. The funded percentage of the Actuarial Accrued Liabilities for PERS is 83.1% funded as of the latest actuarial valuation date of July 1, 2014. See the Pension Committee chairman for details.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 999,999,999 999,999,999 999,999,999
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 provides additional military service credits for certain West Virginia National Guard members based on both hours servced and years of National Guard service at retirement. This provides an increase in National Guard service military retirement benefits under PERS provided free to the member.
    
    This active benefit improvement is not currently allowed under 2005 Pension Reform



Memorandum


    This Bill as drafted violates WV Statutes under 2005 Pension Reform Legislation. Section 5-10-22h (c ) which prohibits increases to active members as provided under the Bill since the Actuarial Accrued Liabilities are less than 85.0% funded. The percentage funded is currently 83.1%. The Bill as drafted violates this limitation. See the Pension Committee chairman.
    
    To be considered, the bill requires amendment to the 2005 Pension Reform statutes to allow the benefits provided under the bill. Such a change could impact the State‚Äôs credit rating and should not be approved without careful annalyis.



    Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
    Email Address: harry.w.mandel@wv.gov