SCS HB 1229 -- DEFERRED COMPENSATION

Currently the state pays either $25 per month or another amount
determined by appropriations to active deferred compensation
accounts of state employees making continuous deferrals of at
least $25 per month and who have been employed by the state for
at least 12 consecutive months.  This bill provides that an
amount not to exceed $75 per month be deposited for each
qualified participant making continuous qualifying deferrals, as
long as funds to be credited to each qualified participant's
account do not exceed an amount appropriated by the General
Assembly.

This bill has an emergency clause and becomes effective upon
passage and approval or July 1, 1998, whichever occurs later.

HB 1229 -- DEFERRED COMPENSATION  (Copeland)

Currently the state pays either $25 per month or another amount
determined by appropriations to active deferred compensation
accounts of state employees making continuous deferrals of at
least $25 per month and who have been employed by the state for
at least 12 consecutive months.  This bill provides that an
amount equal to the amount of each qualified participant's state
deferred compensation contribution be deposited for each
qualified participant, as long as funds to be credited to each
qualified participant's account do not exceed an amount
appropriated by the General Assembly.

This bill has an emergency clause and becomes effective upon
passage and approval or July 1, 1998, whichever occurs later.

FISCAL NOTE:  Cost to All State Funds of $43,000,000 to
$373,162,000 in FY 1999, $43,000,000 to $382,491,000 in FY 2000,
and $43,000,000 to $392,053,000 in FY 2001 (subject to
appropriations).

HB 1229 -- DEFERRED COMPENSATION

SPONSOR:  Copeland

COMMITTEE ACTION:  Voted "do pass" by the Committee on Budget by
a vote of 20 to 12.

Currently the state pays either $25 per month or another amount
determined by appropriations to active deferred compensation
accounts of state employees making continuous deferrals of at
least $25 per month and who have been employed by the state for
at least 12 consecutive months.  This bill provides that an
amount equal to the amount of each qualified participant's state
deferred compensation contribution be deposited for each
qualified participant, as long as funds to be credited to each
qualified participant's account do not exceed an amount
appropriated by the General Assembly.

This bill has an emergency clause and becomes effective upon
passage and approval or July 1, 1998, whichever occurs later.

FISCAL NOTE:  Cost to All State Funds Subject to Appropriations
of $43,000,000 to $373,162,000 in FY 1999, $43,000,000 to
$382,491,000 in FY 2000, and $43,000,000 to $392,053,000 in FY
2001.

PROPONENTS:  Supporters say that this bill allows the amount of
the deferred compensation state match yearly to be set by
appropriation.  By removing the $25 minimum qualifying amount,
certain state employees unable to afford the minimum amount
would be able to participate in the program.

Testifying for the bill were Representative Copeland; Missouri
Highway and Transportation Association; and Public Employees
Benefit Service Corporation (PEBSCO).

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

HB 1229 -- Deferred Compensation

Sponsor:  Copeland

Currently the state pays either $25 per month or another amount
determined by appropriations to active deferred compensation
accounts of state employees making continuous deferrals of at
least $25 per month and who have been employed by the state for
at least 12 consecutive months.  This bill raises that amount to
an amount equal to the amount of each qualified participant's
state deferred compensation contribution, as long as funds to be
credited to each qualified participant's account do not exceed
the amount appropriated by the General Assembly for each
qualified participant's monthly maximum contribution.

The bill becomes effective upon passage and approval or July 1,
1998, whichever occurs later.