COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1148-01
Bill No.: SB 257
Subject: Conservation Department; Retirement-State; Retirement Systems and Benefits-General
Type: Original
Date: February 12, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Various State Funds | $0 | ($919,320) | ($942,303) |
| Total Estimated
Net Effect on All State Funds |
$0 | ($919,320) | ($942,303) |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
The Joint Committee on Public Employee Retirement assumes this legislation is a "substantial proposed change" in future plan benefits as defined in Section 105.660(5), and that an actuarial cost statement must be provided prior to action on the bill by either legislative body or committee thereof.
The Office of Administration assumes the Missouri State Employees' Retirement System will determine any possible cost of this proposal through an actuarial cost statement.
The Missouri State Employees' Retirement System (MOSERS) assumes the proposal will provide uniformed conservation agents (both active and terminated-vested employees), retirees, and survivors with an additional 33.3% retirement benefit in the Missouri State Employees' Plan (MSEP), the "closed" plan. The benefit multiplier would increase from 1.6% to 2.13% of average compensation times the years of credited service for these members. Based on an actuarial analysis obtained by MOSERS, the proposal would increase the state's contribution rate for the general employee plan from 11.59% to 11.64%. Based on a projected June 30, 2002 payroll of $1,838,639,000, the annual increase in contributions to MOSERS would approximate $919,320. Additionally, MOSERS officials note their concern that the proposal could result in equal protection lawsuits, which have resulted in significant costs to MOSERS and the state in the past.
Officials with the Department of Conservation (MDC) were unsure whether the increased contributions to be required as a result of this proposal would be paid by all MOSERS contributors, or if the costs would be borne by MDC alone. Based on the response from MOSERS, Oversight assumes the increased contributions will be made by all MOSERS contributors, and has shown the fiscal impact as such.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| VARIOUS STATE FUNDS | |||
| Costs-Increased contributions to
MOSERS |
$0 |
($919,320) |
($942,303) |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This act provides uniformed conservation agents and retirees with the additional 33.3 percent benefit, identical to uniformed members of the Highway Patrol and Water Patrol, if they remain in the current plan at date of retirement. Members opting into the new Year 2000 Plan, as passed in SB 308 (1999), or who become members after July 1, 2000, are not eligible for the additional 33.3 percent benefit.
The act is identical to SB 863 (2000).
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 Conservation
Jeanne Jarrett, CPA
Director
February 12, 2001