COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1245-01
Bill No.: SB 308
Subject: Counties, County Government; County Officials; Courts; Retirement-Local Government; Retirement Systems & Benefits-General
Type: Original
Date: February 5, 2001
FISCAL SUMMARY
FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
None | $0 | $0 | $0 |
Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
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
Officials with the County Employees Retirement Fund (CERF) assume the proposal would result in higher benefit costs for court officers and other employees compensated from county funds not covered under LAGERS. They estimate increased benefit costs of $175,000 in FY 2002, $182,000 in FY 2003, and $189,000 in FY 2004. Additionally, CERF assumes they will incur a one-time cost of approximately $20,000 in FY 2002 for additional staff time and expenses. Outside vendors and advisors will be used to identify the additional members, and to establish appropriate records and procedures to administer their benefits. CERF estimates 100 new members added to the system as a result of the proposal. Officials did not calculate the unfunded actuarial accrued liability (UAAL) for the plan as a result of the proposal.
Oversight assumes that the system's UAAL would increase under the proposal, but notes that the 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. Oversight assumes that the contributions made to CERF from current funding sources would not be sufficient to meet the benefit obligations.
The Joint Committee on Public Employee Retirement assumes this legislation is not a "substantial proposed change" in the plan as defined in Section 105.660(5), and that no actuarial cost statement is required.
The Office of Administration indicates that there may be a fiscal impact from this legislation, but recommends that the County Employees Retirement Fund determine any possible cost through an actuarial report.
The Office of State Courts Administrator, and Missouri Local Government Employees Retirement System assume the proposal would have no fiscal impact on their agencies.
FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
$0 | $0 | $0 |
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 expands coverage under the County Employees' Retirement Fund to include any circuit court appointed officer or employee who is compensated directly from county funds and who is not covered under the Local Government Employees' Retirement System (LAGERS).
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
County Employees Retirement Fund
Joint Committee on Public Employee Retirement
Office of Administration
Office of State Courts Administrator
Missouri Local Government Employees Retirement System
Jeanne Jarrett, CPA
Director
February 5, 2001