COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3478-01
Bill No.: SB 1199
Subject: Law Enforcement Officers and Agencies; Retirement - General
Type: Original
Date: March 1, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | ($900,000) | ($900,000) | ($900,000) |
*The provisions affecting the St. Louis Police Retirement System would increase the Unfunded Actuarial Accrued Liability (UAAL) $7.5 million. Annual costs were estimated to be $900,000 annually or 1.2% of covered payroll.
ASSUMPTION
Officials with the Local Government Employees Retirement System, City of Kansas City and Police Retirement System of Kansas City assume no fiscal impact to their agency.
The Joint Committee on Public Employee Retirement indicated the above referenced legislation would indicate that such legislation is a "substantial proposed change" in future plan benefits as defined in Section 105.655(5). Therefore, an actuarial cost statement as defined in Section 105.665 must be provided prior to final action on this legislation by either legislative body or committee thereof.
Pursuant to Section105.670, this actuarial cost statement must be filed with 1) the Chief Clerk of the Missouri House of Representatives, 2) the Secretary of the Senate and 3) the Joint Committee on Public Employee Retirement as public information for at least five (5) legislative days before final passage of the bill.
An actuarial cost statement has not been provided by the affected system. Upon receipt of the statement, that information will be reflected in the JCPER Pension Impact Statement.
ASSUMPTION (continued)
Officials with the St. Louis Police Retirement System assume based on information received in 2003 the provisions affecting the St. Louis Police Retirement System would increase the unfunded Actuarial Accrued Liability (UAAL) $7.5 million. Annual costs were estimated to be $900,000 annually or 1.2% of covered payroll.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| Costs - City of St. Louis | ($900,000) | ($900,000) | ($900,000) |
*The provisions affecting the St. Louis Police Retirement System would increase the Unfunded Actuarial Accrued Liability (UAAL) $7.5 million. Annual costs were estimated to be $900,000 annually or 1.2% of covered payroll.
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This act increases the pay, for retired members of the police force employed as advisors to the board of trustees, from ten dollars to fifteen dollars, multiplied by the numbers of years the retired member is past the age of sixty.
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
Local Government Employee Retirement System
Kansas City Police Retirement System
St. Louis Police Department
City of Kansas City
St. Louis Police Retirement System
NOT RESPONDING
Columbia Police Department
Independence Police Department
Kansas City Police Department
Mickey Wilson, CPA
Director
March 1, 2004