FISCAL NOTE
Date Requested: February 03, 2016
Time Requested: 09:16 AM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2240 |
Introduced |
HB4348 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
PERS
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 provides for a 5% salary reductions for various state officers, appointed positions and members of Boards and Commissions. The salary reduction amounts are not analyzed in this actuarial note.
PERS is a final average pay plan and for most members receiving the pay cut, the 5% reduction does not impact their retirement benefit average pay currently earned.
Due to the relatilve small number of individuals receiving the pay reduction and the final average pay formula in PERS, there is only a minor impact on the PERS plan.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-5,000 |
-10,000 |
| 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):
Due to the limited number of members impacted by the salary reduction, the impact of this change is not significant relative to total PERS costs.
Memorandum
Based on the individuals impacted by the salary reduction, this change in a targeted impact change and not a meaningful payroll change.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov