SB 0142 - Fiscal Note

Fiscal Note - SB 0142 - Allows retired court commissioners to serve as senior commissioners

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0197-02

BILL NO.: Perfected SB 142

SUBJECT: Judicial Retirement

TYPE: Original

DATE: March 10, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	(Less than $100,000)	(Less than $100,000)	(Less than $100,000)
Total Estimated Net Effect on All State Funds	(Less than $100,000)	(Less than $100,000)	(Less than $100,000)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Joint Committee on Public Employee Retirement have reviewed this proposal and have determined that it does not represent a "substantial proposed change" in future plan benefits as defined in section 105.660(5), RSMo. Therefore, an actuarial cost statement is not required.

Officials of the Office of Administration assume that any fiscal impact would be determined by the Missouri State Employees' Retirement System.

Officials of the Office of the State Courts Administrator (CTS) assume the proposal would allow court commissioners who retire under the judicial retirement system to serve as "senior commissioners" and be paid on the same basis as senior judges. Officials note that depending upon the utilization of senior commissioners that would serve in addition to active judges (rather than as a replacement), there would be state fiscal impact. CTS is currently spending over $500,000 annually on senior judges. Officials would not expect the proposal to increase costs by $100,000 in any year.

Missouri State Employees' Retirement System (MOSERS) officials assume that the proposal would allow a retired commissioner to serve as a senior commissioner, and would enable such commissioner to receive one year of creditable service for every 235 days of service, up to a maximum of twelve years of total judicial service. Upon attainment of twelve years and after certification by the state courts administrator, MOSERS would recalculate the retirement benefit of the senior commissioner to reflect the attainment of 12 years of service. Currently, a retired judge may serve as a senior judge under the same provisions. Officials estimate the cost to implement the proposed legislation to be under $100,000 annually, based on anticipated increased contributions to the judicial retirement plan administered by MOSERS. The exact amount is unknown, as it would depend upon the number of individuals who would be eligible under the new provision.

Oversight notes that due to the current small number of retired commissioners (CTS officials indicate less than five), the fiscal impact from any pay for senior commissioners as well as any increase in contributions to the judicial retirement plan administered by MOSERS would likely be less than $100,000 annually.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUND
Costs-Office of State Courts Administrator
Personal Services	(Unknown)	(Unknown)	(Unknown)
Possible increased contributions to
MOSERS for judicial retirement plan	(Unknown)	(Unknown)	(Unknown)
ESTIMATED NET EFFECT ON	(Less than	(Less than	(Less than
GENERAL REVENUE FUND	$100,000)	$100,000)	$100,000)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(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 a retired commissioner to serve as a senior commissioner and would enable such commissioner to receive one year of creditable service for every 235 days of service, up to a maximum of twelve years of total judicial service. Upon attainment of twelve years and after certification by the state courts administrator, MOSERS would recalculate the retirement benefit of the senior commissioner to reflect the attainment of 12 years of service. Currently, a retired judge may serve as a senior judge under the same provisions.

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

Office of the State Courts Administrator

Missouri State Employees' Retirement System

Jeanne Jarrett, CPA

Director

March 10, 1999