SB 0802 - Fiscal Note

Fiscal Note - SB 0802 - Authorizes Flexible Benefit Plans for State Employees

L.R. NO.  3053-01
BILL NO.  Perfected SB 802
SUBJECT:  Benefits for public officers and employees
TYPE:     Original
DATE:     March 21, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

None

Total Estimated
Net Effect on All
State Funds                      $0              $0              $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

None

Total Estimated
Net Effect on All
Federal Funds                    $0              $0              $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

Local Government                 $0              $0              $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Missouri Department of Conservation assume that this
proposal is enabling legislation for which costs could not be determined
until more details were presented.

Officials of the Department of Highways and Transportation assumed that this
proposal would allow their department to continue their retirement, medical
and disability plans and that the total fringe benefit expenses would remain
the same.

Officials of the Office of Administration assume that this proposal is
enabling legislation and could be implemented using existing staff and
resources.

Oversight assumes that affected agencies would make requests through the
normal appropriations process when they know what benefits would be included
in the new plan.  Since this is enabling legislation, Oversight assumes that
the direct fiscal impact would be zero.


FISCAL IMPACT - State Government    FY 1997   FY 1998   FY 1999
                                   (10 Mo.)

                                          0         0         0


FISCAL IMPACT - Local Government    FY 1997   FY 1998   FY 1999
                                   (10 Mo.)

                                          0         0         0

DESCRIPTION

This proposal would requires the Commissioner of Administration to offer
state employees a selection of benefits from which to choose.  Employees
would be required to maintain a minimum level of health care and retirement
benefits.  If the cost of the benefits an employee chooses was greater than
the amount appropriated for the employee, the employee would be required to
pay the additional cost.  Benefits included in the plan would be medical,
life insurance, dental, vision, retirement, and savings.  The benefit plan
would take effect 30 days after submission, unless disapproved by the
legislature.

This proposal would also allow the Director of the Department of Social
Services to receive an annual salary in excess of sixty thousand dollars, as
appropriated.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Office of Administration
Department of Highways and Transportation
Missouri Department of Conservation