COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4055-01
Bill No.: HB 1669
Subject: Veterans; Retirement Systems and Benefits - General
Type: Original
Date: February 13, 2008
Bill Summary: Requires that certain veterans who have been state employees for a specified period of time and who meet certain eligibility requirements be given two years of creditable service in MOSERS
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
|||
FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
General Revenue |
($998,664) |
($1,198,397) |
($1,198,397) |
|
|
|
|
Total Estimated Net Effect on General Revenue Fund* |
($998,664) |
($1,198,397) |
($1,198,397) |
* This proposal will increase the Missouri State Employees' Retirement System Unfunded Actuarial Accrued Liability (UAAL) by $14,000,000 and increase employer contributions by $1,997,329 annually (0.10%)
ESTIMATED NET EFFECT ON OTHER STATE FUNDS |
|||
FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Other Various Funds |
($665,777) |
($798,932) |
($798,932) |
|
|
|
|
Total Estimated Net Effect on Other State Funds* |
($665,777) |
($798,932) |
($798,932) |
* This proposal will increase the Missouri State Employees' Retirement System Unfunded Actuarial Accrued Liability (UAAL) by $14,000,000 and increase employer contributions by $1,997,329 annually (0.10%)
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
ESTIMATED NET EFFECT ON FEDERAL FUNDS |
|||
FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
|
|
|
|
|
|
|
|
Total Estimated Net Effect on All Federal Funds |
$0 |
$0 |
$0 |
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE) |
|||
FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
|
|
|
|
|
|
|
|
Total Estimated Net Effect on FTE |
0 |
0 |
0 |
☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).
☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).
ESTIMATED NET EFFECT ON LOCAL FUNDS |
|||
FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Local Government |
$0 |
$0 |
$0 |
FISCAL ANALYSIS
ASSUMPTION
The Joint Committee on Public Employee Retirement (JCPER) has reviewed this proposal and has determined an actuarial study is not needed under the provisions of section 105.660, subdivision (5).
Officials from the Missouri State Employees Retirement System (MOSERS) assume the primary effect of this proposal would be to allow all state employees who have been employed for ten or more years who have met the previously stated criteria to be given two years of creditable service in MOSERS. As proposed eligible members who have already purchased up to four years of military service may also receive two additional years of creditable service free of charge.
Officials from the MoDOT & Patrol Employees' Retirement System (MPERS) assume their agency is not named in the proposal; therefore, the proposal will have no fiscal impact on MPERS.
Officials from the Department of Labor and Industrial Relations assume an unknown fiscal impact on their agency.
Oversight assumes the fiscal impact stated by MOSERS will include any fiscal impact for the Department of Labor and Industrial Relations.
Officials from the Office of Administration assume the fiscal impact of this proposal will be provided by MOSERS and other retirement systems.
FISCAL IMPACT - State Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
GENERAL REVENUE |
|
|
|
|
|
|
|
Increase - Employeer Contributions |
($998,664) |
($1,198,697) |
($1,198,697) |
|
|
|
|
ESTIMATED NET EFFECT ON GENERAL REVENUE* |
($998,664) |
($1,198,697) |
($1,198,697) |
|
|
|
|
OTHER VARIOUS FUNDS |
|
|
|
|
|
|
|
Increase - Employeer Contributions |
($665,777) |
($798,932) |
($798,932) |
|
|
|
|
ESTIMATED NET EFFECT ON OTHER VARIOUS FUNDS* |
($665,777) |
($798,932) |
($798,932) |
|
|
|
|
* This proposal will increase the Missouri State Employees' Retirement System Unfunded Actuarial Accrued Liability (UAAL) by $14,000,000 and increase employer contributions by $1,997,329 annually (0.10%)
FISCAL IMPACT - Local Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
|
|
|
|
|
$0 |
$0 |
$0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
The proposed legislation requires that certain veterans who have been state employees for a specified period of time and who meet certain eligibility requirements be given two years of creditable service in MOSERS.
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
Missouri State Employees' Retirement System
MoDOT & Patrol Employees' Retirement System
Department of Labor and Industrial Relations
Office of Administration
Mickey Wilson, CPA
Director
February 13, 2008