SB 0442 - Fiscal Note

Fiscal Note - SB 0442 - Regulatory Law Judges of the Public Service Commission receive the same retirement as ALJs

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1950-01

BILL NO.: SB 442

SUBJECT: Retirement: Administrative Law Judges

TYPE: Original

DATE: March 23, 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 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), RSMo. Therefore, an actuarial cost statement must be provided prior to final action on this legislation by either legislative body or committee thereof.

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

Officials of the Missouri State Employees' Retirement System (MOSERS) assume that the proposal would make attorneys appointed by the Public Service Commission (PSC) who currently participate in the general employee plan under MOSERS eligible to participate in the administrative law judges' and legal advisors' retirement system (ALJLAS) administered by MOSERS. The general employee plan offers a 1.6% benefit formula while the ALJLAS offers a benefit formula of 50% of the member's compensation provided the member has twelve years of creditable service. As a member of the ALJLAS, the state's contribution rate of 20.10% would apply to the current salary of a PSC attorney, versus the current contribution rate of 11.91% for the general employee plan. Since it is unknown how many employees would be eligible to join and transfer prior service to the ALJLAS, the total cost of the proposal is unknown, although MOSERS officials assume the increase in the state's contribution would be less than $100,000 annually.

Officials of the Department of Economic Development - Public Service Commission (PSC) noted no costs to the Public Service Commission funds.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUNDS
	(Less than	(Less than	(Less than
Costs - increased contributions to MOSERS	$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 regulatory law judges in the Public Service Commission (PSC) to receive the same retirement benefits as Administrative Law Judges in the Division of Workers' Compensation. This provision does not apply to the general counsel of the PSC or any of his or her staff. This legislation also allows such regulatory law judges to receive creditable service from the Missouri State Retirement System (MOSERS) for service as a regulatory law judge prior to the effective date of this act.

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

Department of Economic Development - Public Service Commission

Jeanne Jarrett, CPA

Director

March 23, 1999