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 0748 - Modifies MOSERS survivor options provisions
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 3173-02
BILL NO. SCS for SB 748
SUBJECT: Retirement: State
TYPE: Original
DATE: April 1, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 General Revenue
($1,359,657)
($1,631,588)
($1,631,588)
Total Estimated
($1,359,657)
($1,631,588)
($1,631,588)
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 4 pages.
FISCAL ANALYSIS
ASSUMPTION
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 filed prior to final action by either legislative body or committee thereof.
Officials of the Office of Administration assume fiscal impact will be determined by the Missouri State Employees' Retirement System.
Missouri State Employees' Retirement System (MOSERS) officials obtained an actuarial cost analysis for the provisions included in this proposal. Officials indicate that the proposal would grant an unreduced joint & 50% survivor benefit, with accompanying lump sum payments where applicable, to the following groups:
The actuarial cost analysis indicated that adoption of the proposal would increase the System's unfunded actuarial accrued liability by $32,604,066 (including retroactive lump sum payments of approximately $10.6 million). The state's contribution rate would increase from 12.58% to 12.70% in order to fund this cost. Annual costs to the state would therefore be approximately $1,631,588, based on a covered payroll as of June 30, 1997 of $1,359,656,666.
Officials of the Highway and Transportation Employees' and Highway Patrol Retirement System assume if any members meet the criteria for the 50% survivor benefit the proposal could have very limited fiscal impact on their System. No costs are reflected, as it is assumed that there would be no impact on contributions to the System.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| GENERAL REVENUE | |||
| Costs-increased contributions to MOSERS | ($1,359,657) | ($1,631,588) | ($1,631,588) |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (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
This act would allow certain members and survivors of deceased members of the Missouri State Employees' Retirement System (MOSERS) the same retirement options as those of members and survivors addressed in HB 356, passed in the 1997 regular legislative session. The members and survivors addressed in this act were not included in HB 356.
A member who terminated employment on or after October 1, 1984, and who retired and became
a special consultant without any annuity in pay status on September 1, 1997, is eligible for
additional compensation, and the amount depends on which annuity the member selected at
retirement.
Also, any vested member, administrative law judge, legal advisor or judge who received benefits
before August 28, 1997, shall, upon application, receive a one-time payment equal to the
difference of what he or she received and the amount of benefits he or she would have received if
the original benefit payment had been calculated pursuant to the law as in effect August 28, 1997
(from HB 356).
The surviving spouse of a member who terminated employment on or after October 1, 1984 and
retired prior to September 1, 1997, shall, upon application, receive a one-time payment calculated
the same as above. Also provided to members of the Highway and Transportation Employees' and Highway Patrol Retirement System, if the member had retired with a normal annuity, the surviving spouse shall, upon application, receive a monthly benefit equal to 50% of the member's monthly annuity, with benefit increases between the member's death and the date of application. Additionally, the surviving spouse is eligible to receive a one-time payment, if necessary, equal DESCRIPTION (continued)
to the amount the spouse would have received if the benefit had begun the month after the member's death.
If the member, whose employment terminated on or after October 1, 1997, died before retirement, the surviving spouse shall, upon application, receive a one-time payment equal to the difference of what he or she received and the amount of benefits he or she would have received if the original benefit payment had been calculated pursuant to the law as in effect August 28, 1997 (from HB 356).
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
Highway and Transportation Employees' and Highway Patrol Retirement System
Jeanne Jarrett, CPA
Director
April 1, 1998