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 0467 - Revisions to the County Employee Retirement System
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2041-03
BILL NO.: Perfected SS for SCS for SB 467
SUBJECT: County Employees' Retirement Fund
TYPE: Original
DATE: March 30, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
|
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
The following assumptions were provided by agencies for the prior version of this proposal. Oversight assumes the changes made in this proposal would not affect those assumptions.
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 Local Government Employees' Retirement System assume the proposal would have no fiscal impact to their system.
Officials of the County Employees' Retirement Fund (CERF) obtained an actuarial analysis of the proposal. CERF's actuaries calculated the fund's unfunded actuarial accrued liability (UAAL) under two different cost methods, both of which reflected a reduction in the UAAL as a result of the proposal. The actuaries noted that this occurs because the proposed plan actually generates lower benefits for those who retire later, while it would result in greater benefits for most employees who retire in the near-term. As a result of the reduction in the UAAL, the required contributions calculated by the actuaries also would decrease. However, the actuaries note that contributions to CERF by counties are fixed and are dependent on the collection of certain county taxes, penalties and fees. Consequently, the calculated required contribution does not in actuality represent contributions to CERF by counties. Officials assume that the contributions made to CERF from current funding sources would be sufficient to meet the benefit obligations.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| 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 make numerous revisions to benefits provided by the County Employees' Retirement Fund, including normal annuities, cost-of-living increases, creditable prior service and survivor options.
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
Local Government Employees' Retirement System
County Employees' Retirement Fund
Jeanne Jarrett, CPA
Director
March 30, 1999