SB 0140 - Fiscal Note

Fiscal Note - SB 0140 - Increases retirement compensation to judges retired prior to August 28, 1995

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0526-01

BILL NO.: SB 140

SUBJECT: Judicial Retirement

TYPE: Original

DATE: January 11, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	($194,677)	($233,612)	($233,612)
Total Estimated Net Effect on All State Funds	($194,677)	($233,612)	($233,612)

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 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Joint Committee on Public Employee Retirement have reviewed this proposal and have determined that it represents a "substantial proposed change" in future plan benefits as defined in section 105.660(5). Therefore, an actuarial cost statement must be provided prior to final action by either legislative body or committee thereof.

Officials of the Office of Administration assume that costs would be determined through an actuarial valuation by the Missouri State Employees' Retirement System.

Missouri State Employees' Retirement System (MOSERS) officials obtained an actuarial valuation of the provisions in this proposal. Officials assume that the proposal would allow a retired judge to receive additional cost-of-living adjustments (COLAs) based upon the difference between the judge's current benefit amount and the amount the judge would have received had he or she been eligible to accrue COLAs from the earliest date of retirement eligibility. Based upon a covered payroll as of June 30, 1998 of $32,446,141 and an increase in the required contribution of .72%, the increase in annual contributions to the judicial retirement plan administered by MOSERS would approximate $233,612. There are no retroactive payments included in this cost.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUND
Costs-increased contributions to MOSERS	($194,677)	($233,612)	($233,612)
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 judge to receive additional cost-of-living adjustments (COLAs) based upon the difference between the judge's current benefit amount and the amount the judge would have received had he or she been eligible to accrue COLAs from the earliest date of retirement eligibility.

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

Missouri State Employees' Retirement System

Jeanne Jarrett, CPA

Director

January 11, 1999