Actuarial Fiscal Note

Date Requested:February 06, 2018
Time Requested:03:06 PM
Agency: Consolidated Public Retirement Board
CBD Number: Version: Bill Number: Resolution Number:
2414 Introduced SB494
CBD Subject: Education (K12)

Retirement Systems Impacted by Legislation:

TRS

FUND(S):

TRS 2600

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Actuarial Note Summary


Impact this measure will have on the liabilities and contributions associated with the retirement system(s).


    As introduced, the bill removes the provision that allows officers of a statewide professional teaching association to make contributions to the Teachers Retirement System (TRS) for up to ten years and not be considered absent from service as a teacher/nonteacher in the plan. Because the number of individuals affected is minimal, there are no measurable changes to plan costs as a result of the bill’s provisions.



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 2034 N/A


Explanation of above estimates:


    Because the number of individuals affected is minimal, there are no measurable changes to plan costs as a result of the bill’s provisions.

Analysis of Impact on Public Pension Policy:


    Current law allows officers of statewide professional teaching associations to make contributions in an amount that is double their regular contribution in order to not be considered absent from service in TRS for a period of up to ten years. This bill eliminates that provision, and so those members who serve as officers will not have the ability to continue to contribute and accumulate service in TRS if they are absent from teaching/nonteaching service while serving in the association.



Fiscal Note Summary


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


    As introduced, the bill removes the provision that allows officers of a statewide professional teaching association to make contributions to the Teachers Retirement System (TRS) for up to ten years and not be considered absent from service as a teacher/nonteacher in the plan. Because the number of individuals affected is minimal, there are no measurable changes to plan costs as a result of the bill’s provisions.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
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):


    Because the number of individuals affected is minimal, there are no measurable changes to plan costs as a result of the bill’s provisions.



Memorandum


    Current law allows officers of statewide professional teaching associations to make contributions in an amount that is double their regular contribution in order to not be considered absent from service in TRS for a period of up to ten years. This bill eliminates that provision, and so those members who serve as officers will not have the ability to continue to contribute and accumulate service in TRS if they are absent from teaching/nonteaching service while serving in the association.



    Person submitting Fiscal Note: Melody Bailey, Actuarial Analyst, WV CPRB
    Email Address: melody.j.bailey@wv.gov