FISCAL NOTE
Date Requested: May 30, 2017
Time Requested: 03:49 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4016 |
Comm. Sub. |
HB106 |
|
|---|
| CBD Subject: |
Governor -- Bills Requested By, Legislature, State Personnel |
|---|
|
FUND(S):
PERS 2501, TRS 2600, TDC 2192, SPTA 2392, SPTB 2393
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 as proposed would allow furlough of certain non-essential state employees in the event that the governor does not approve or the Legislature does not pass a budget prior to the start of a given Fiscal Year. For purposes of retirement, the bill outlines that the days, part of days, or weeks for which employees are furloughed will count as days employed or days worked for purposes of calculating retirement eligibility and state service time.
Note that it is the understanding of the CPRB that the intent of a forthcoming strike-and-insert amendment to the bill would provide that employer and employee contributions be made for the furlough period. Costs presented in the Actuarial/Fiscal Note assume that such contributions would be made to the plan.
While not a direct cost to the plans, the CPRB would incur significant administrative costs in implementing “furlough service” into our administrative procedures and pension administration computer system.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
151,522 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
151,522 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
If the bill were passed, the CPRB would incur significant administrative costs in implementing “furlough service” into our administrative procedures and pension administration computer system.
Memorandum
The bill in its current form does not address any employee or employer contributions to be made to the plans for periods of furlough. The CPRB’s understanding is that a forthcoming strike-and-insert amendment will provide for employee and employer contributions to be made to the plans, and so this Actuarial/Fiscal Note is provided assuming such contributions will be made on the basis of each member’s normal rate of pay and normal hours/days worked.
Person submitting Fiscal Note: Melody Bailey, Actuarial Analyst, WVCPRB
Email Address: melody.j.bailey@wv.gov