FISCAL NOTE
Date Requested: February 12, 2016
Time Requested: 12:00 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2655 |
Introduced |
HB4519 |
|
|---|
| CBD Subject: |
Retirement |
|---|
|
FUND(S):
MPFRS amd PERS
Sources of Revenue:
Other Fund 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 provides for a window of time during which transfers will be allowed from PERS employers into the Municipal Police and Fire Fighters Retirement System hired on or after July 1, 2015 (Tier 2) and participating in PERS to join the MPFRS. The PERS employers must elect to join the MPFRS plan during the transfer window for Tier 2 Police and Firefighters employees only.
For any service credited under PERS from July 1, 2015 to the transfer date will be credited under MPFRS. Assets held by PERS for transferring members shall be transferred to MPFRS. Transferring members must also make up member contributions of 4.0% of payroll for the transferring service from PERS within the window.
MPFRS has a member contribution rate of 8.5% of pay and an employer contribution rate of 8.5% of pay. The transfers shall be subject to these rates and are subject to any future contibution rate changes as may be authorized by the CPRB Board as required to fund the MPFRS.
Based on the limited membership and past service, it is expected that the current contributiion rates are sufficient to fund MPFRS. The employer contribution rate of 8.5% is less than the current PERS contibution rate of 13.5% (reducing to 12.0% effective July 1, 2016).
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 |
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):
This bill provides for a transfer window between PERS and MPFRS for Tier 2 PERS qualifying employees whose employer elects the transfer for its Tier 2 Police and Firefighters. The transfer is for participation only and does not provide for an increase in the current benefit formulas.
Costs are administrative in nature and the level of costs will be dependent on the number of members electing to complete the transfer.
Memorandum
The bill allows certain PERS employers to provide Municipal Police and Firefigters Retirement System benefits to their quallifying Police and Firefighter employees.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov