FISCAL NOTE

Date Requested: February 09, 2016
Time Requested: 04:21 PM
Agency: Legislative Auditor
CBD Number: Version: Bill Number: Resolution Number:
2679 Introduced HB 2514
CBD Subject:


FUND(S):



Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


The bill organizes all state actuary services under the Office of the Legislative Auditor. Currently, the State employs one actuary and 2 actuary analysts. In FY 2015 those employees received $288,461 in salary and benefits. Additionally, in FY 2015 the State contracted out at least $637,517 in actuarial services. So far in FY 2016 the State has contracted out approximately $420,983 for actuarial services. It is assumed that those actuarial employees currently employed by the State will be transferred to the Office of the Legislative Auditor. Additionally, the Office of the Legislative Auditor will employ an additional actuary for a total of 2 actuaries and 2 actuary analysts.



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 -406,797 -406,797
Personal Services 0 206,913 206,913
Current Expenses 0 -613,710 -613,710
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):


Currently, the State pays approximately $925,979 in actuarial services for 3 employees (1 actuary and 2 actuary analysts) and contractual arrangements with vendors. It is estimated that the Bureau of Actuarial Services would have 2 actuaries at a salary of $137,076 each and 2 actuary analysts at a salary of $46,396 each. Salary and benefits would total $495,375. Expenses for the employees are estimated to be $23,807. Total increased expenses to the Joint Committee on Government and Finance are estimated to be approximately $519,181, however, it is estimated that the expenses to the State would decrease by $406,797. Estimates are based on the fact that all actuarial services will be conducted by Office of the Legislative Auditor employees and would not have to be contracted out.



Memorandum


The actuary and actuary analyst salaries were based on the current salaries of the employees of the Consolidated Public Retirement Board. While expenses will increase to the Joint Committee on Government and Finance, expenses would decrease for the Consolidated Public Retirement Board and other agencies utilizing actuarial services. It is estimated that the expenses to the State would decrease by $406,797. Current expenses in the Fiscal Note Detail were calculated by taking the FY 2015 estimated costs for contracted actuarial services ($637,517) and subtracting the Office of the Legislative Auditor's estimated expenses for 4 employees ($23,807)



    Person submitting Fiscal Note: Denny Rhodes
    Email Address: denny.rhodes@wvlegislature.gov