Fiscal Note - SB 0389 - Disability Benefits in the Hwys. & Transportation Employees' & Highway Patrol Retirement System Disability Benefi
L.R. NO. 1510-03
BILL NO. Truly Agreed to and Finally Passed HCS for SB 389
SUBJECT: Retirement: Transportation and Highway Patrol
TYPE: Original
DATE: April 22, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
The Joint Committee on Public Employee Retirement (JCPER) has reviewed this
proposal and has determined that it does not represent a ''substantial
proposed change'' in future plan benefits, and accordingly, an actuarial
study is not needed under the provisions of section 105.660, subdivision (5).
Officials of the Office of Administration assume that any fiscal impact would
be determined by the Highways and Transportation Employees' and Highway
Patrol Retirement System.
Officials of the Highways and Transportation Employees' and Highway Patrol
Retirement System (HRS) assume that the provision that would prohibit members
from remaining on disability upon reaching normal retirement age would result
in cost savings of approximately $12,252 annually for each member affected.
This calculation is based on an average gross salary for Department of
Transportation and Highway Patrol employees of $2,554 per month, long-term
disability benefits of 60% of gross salary, work-related disability benefits
of 70% of gross salary, and average retirement benefits of 50% of gross
salary. Officials assume that each year two individuals on long-term
disability and one individual on work-related disability will qualify for
normal retirement and begin receiving normal retirement benefits. Cost
savings will result from the excess of disability benefits over retirement
benefits that would have been paid out by the system. Officials estimate the
savings at $10,210 for FY 1998, $24,504 for FY 1999 and $36,756 for FY 2000.
Officials of the Department of Transportation and the Department of Public
Safety - Missouri Highway Patrol concur with the assumptions of HRS
officials.
For fiscal note purposes, Oversight assumes that the cost savings to HRS
would not impact the contributions made by the Department of Transportation
and the Missouri Highway Patrol. Therefore, no fiscal impact to state funds
is reflected.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
The proposal would provide for members of the Highways and Transportation
Employees' and Highway Patrol Retirement System who retire while receiving
disability benefits to have retirement benefits calculated as though they had
continued in active service until their normal retirement age.
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
Joint Committee on Public Employee Retirement
Office of Administration
Highways and Transportation Employees' and Highway Patrol Retirement System
Department of Transportation
Department of Public Safety - Missouri Highway Patrol
This Fiscal Note is not an official copy and should not be quoted or cited.