COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 4240-01

BILL NO.: SB 922

SUBJECT: Firemen's Retirement System of St. Louis

TYPE: Original

DATE: February 18, 2000




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None $0 $0 $0
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None $0 $0 $0
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
City of St. Louis $0 ($600,000) ($600,000)

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 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 provided prior to final action on this legislation by either legislative body or committee thereof.



Officials of the Office of Administration assume fiscal impact would be determined by the Firemen's Retirement System of St. Louis.



Officials of the Firemen's Retirement System of St. Louis obtained an actuarial analysis which indicates that the cost of raising the minimum benefit for retirees and widows to 100% and 75% of the federal poverty level, respectively, would increase the system's unfunded accrued actuarial liabilities and increase the contributions by the City of St. Louis by $600,000 annually.





FISCAL IMPACT - State Government
FY 2001

(10 Mo.)

FY 2002 FY 2003
$0 $0 $0





FISCAL IMPACT - Local Government
FY 2001

(10 Mo.)

FY 2002 FY 2003
CITY OF ST. LOUIS



Costs - increased contributions to Firemen's Retirement System

$0 ($600,000) ($600,000)



FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.















DESCRIPTION



The proposal would change the minimum benefit for retirees and widows under the Firemen's Retirement System of St. Louis to 100% and 75% of the federal poverty level, respectively.



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

Firemen's Retirement System of St. Louis









Jeanne Jarrett, CPA

Director

February 18, 2000