This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0841 - Modifies benefits for certain members of county employees' retirement systems
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 3603-04
BILL NO. Truly Agreed to and Finally Passed HCS for SB 841
SUBJECT: Retirement: Local Government
TYPE: Original
DATE: May 11, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds ESTIMATED NET EFFECT ON FEDERAL FUNDS Net Effect on All Federal Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 General Revenue
(Unknown)
(Unknown)
(Unknown)
Total Estimated
(Unknown)
(Unknown)
(Unknown)
FUND AFFECTED
FY 1999
FY 2000
FY 2001 None
$0
$0
$0
Total Estimated
$0
$0
$0
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
The Joint Committee on Public Employee Retirement has reviewed this proposal and has determined it does not represent a "substantial proposed change" in future plan benefits as defined in section 105.660(5), RSMo.
Officials of the Office of Administration assume that any fiscal impact would be determined by the County Employees' Retirement Fund and the Missouri State Employees' Retirement System.
County Employees' Retirement Fund officials assume that the proposal would have no fiscal impact on the Fund.
Officials of the Missouri State Employees' Retirement System (MOSERS) assume that the proposal would allow any state employee or official employed on August 28, 1998 who served as an elected county official to receive that prior creditable service at no cost to the employee or official, provided such service had not become vested in a county retirement plan. It would also enable a circuit clerk who retired on or after August 28, 1998 to receive additional compensation as an ex-officio recorder for benefit calculation purposes. Since MOSERS has no accurate means to determine the number of members who may be eligible to receive county service credit, it is difficult to estimate an accurate cost. However, officials believe that there are at a minimum 36 county circuit clerks who have prior creditable service totalling approximately 180 years. The actuarial value of such service cannot be determined since no salary history is available, but officials assume it is realistic that MOSERS' unfunded liability could increase substantially, possibly upwards of $1,000,000*, due to the prior creditable service that exists for these employees alone. It is possible that the state's contribution rate could increase in order to fund the increased liability. Therefore, unknown costs are reflected for fiscal note purposes.
*It should be noted that this estimate represents the total over a number of years, not an annual cost.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| GENERAL REVENUE FUND | |||
| Costs-increased contributions to MOSERS | (Unknown) | (Unknown) | (Unknown) |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (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 allow surviving spouses of members of the County Employees' Retirement Fund to receive a reduced benefit, commencing on the first day of any month following the date of the member's death and prior to the date that the member would have attained age 62.
The proposal would allow any state employee or official employed on August 28, 1998 who served as an elected county official to receive that prior creditable service at no cost to the employee or official, provided such service had not become vested in a county retirement plan. It would also enable a circuit clerk who retired on or after August 28, 1998 to receive additional compensation as an ex-officio recorder for benefit calculation purposes.
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
County Employees' Retirement Fund
Missouri State Employees' Retirement System
Jeanne Jarrett, CPA
Director
May 11, 1998