Actuarial Fiscal Note
Date Requested:January 24, 2023 Time Requested:08:29 PM |
Agency: |
Consolidated Public Retirement Board |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3160 |
Introduced |
SB458 |
|
CBD Subject: |
Retirement |
---|
|
Retirement Systems Impacted by Legislation:
PERS 2501; TRS 2600; State Police Plan A 2392; State Police Plan B 2393; JRS 2140; DSRS 2150; EMSRS 2615; MPFRS 2390; NRPORS 2397; TDC 2190
FUND(S):
Special Fund
Sources of Revenue:
Creates New Expense
Legislation creates:
PERS, TRS, State Police Plan A, State Police Plan B, JRS, DSRS, EMSRS, MPFRS, NRPORS, and TDC
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
SB 458 sets the delinquent interest rate on delinquent retirement contributions for all ten retirement plans administered by the CPRB.
SB 458 also specifies that employers participating in a retirement plan administered by the CPRB may not terminate participation in the retirement system without legislative action.
More specific, the bill:
* In section §5-10D-13 the delinquent interest rate on delinquent retirement contributions is defined as " the actuarial interest rate assumption as approved by the Consolidated Public Retirement Board for completing the actuarial valuation for the plan year immediately preceding the first day of the plan year in which the delinquency payment is made, compounded daily, and the minimum interest charge is $50."
* A new section, §5-10D-14, is added that reads "Once an employer has begun participating, whether by election or by operation of law, in any public retirement system administered pursuant to this article, it may not terminate its participation without affirmative legislative action."
The updates to West Virginia Statute from SB 458 for the ten retirement plans administered by the CPRB are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for the ten plans administered by the CPRB.
Fiscal Detail of Actuarial Impact
Impact on current benefit costs, prior service benefit costs and ongoing contribution requirements following full implementation.
Impact On |
Following Full Implementation |
Increase in Unfunded Actuarial Accrued Liability |
Initial Impact on Annual Contribution Requirement of System(s) |
Contribution Increase as a Percentage of Annual Payroll |
Total Annual Costs |
$0.00 |
$0.00 |
0.00 % |
Normal Cost of System |
N/A |
$0.00 |
0.00 % |
Past Service Liabilities |
$0.00 |
$0.00 |
0.00 % |
Fiscal Year Past Service Amortization Period Ends |
N/A |
|
N/A |
Explanation of above Actuarial estimates:
The updates to West Virginia Statute from SB 458 for the ten retirement plans administered by the CPRB are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for the ten plans administered by the CPRB.
Analysis of Impact on Public Pension Policy:
The updates to West Virginia Statute from SB 458 for the ten retirement plans administered by the CPRB are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for the ten plans administered by the CPRB.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
SB 458 sets the delinquent interest rate on delinquent retirement contributions for all ten retirement plans administered by the CPRB.
SB 458 also specifies that employers participating in a retirement plan administered by the CPRB may not terminate participation in the retirement system without legislative action.
More specific, the bill:
* In section §5-10D-13 the delinquent interest rate on delinquent retirement contributions is defined as " the actuarial interest rate assumption as approved by the Consolidated Public Retirement Board for completing the actuarial valuation for the plan year immediately preceding the first day of the plan year in which the delinquency payment is made, compounded daily, and the minimum interest charge is $50."
* A new section, §5-10D-14, is added that reads "Once an employer has begun participating, whether by election or by operation of law, in any public retirement system administered pursuant to this article, it may not terminate its participation without affirmative legislative action."
The updates to West Virginia Statute from SB 458 for the ten retirement plans administered by the CPRB are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for the ten plans administered by the CPRB.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2023 Increase/Decrease (use"-") |
2024 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 Fiscal Note estimates (include possible long-range effect):
The updates to West Virginia Statute from SB 458 for the West Virginia State Plans administered by the CPRB are not expected to materially impact the unfunded actuarial accrued liability (UAAL) or the contribution requirements for the West Virginia State plans administered by the CPRB.
Memorandum
This Actuarial/Fiscal Note is being submitted by the Consolidated Public Retirement Board. It has been reviewed by the CPRB Actuary. Both the Board and the CPRB Actuary are available upon request for questions.
For the appropriate actuarial disclosures, see the corresponding July 1, 2022 funding valuation reports, expected to be published on March 31, 2023.
Kenneth Woodson Jr., the CPRB Board Actuary, is a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries. He meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained in this Actuarial/Fiscal Note.
Person submitting Fiscal Note: Kenneth M. Woodson Jr.
Email Address: kenneth.m.woodson@wv.gov