COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1209-01

Bill No.: SB 274

Subject: Boards, Commissions, Counties, Councils; Counties; County Government; County Officials; Retirement-Local Government; Retirement System and Benefits-General

Type: Original

Date: February 2, 2001




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None $0 $0 $0
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None $0 $0 $0
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials with the County Employees Retirement Fund (CERF) assume the proposal will have no fiscal impact to their system.



Officials with the Missouri Local Government Employees Retirement System assume the proposal will not have any fiscal affect on their system.



The Joint Committee on Public Employee Retirement indicates that the legislation proposed is not a "substantial proposed change" in future plan benefits, and that no actuarial cost statement is required. The Office of Administration assumes there would be no fiscal impact due to the proposal, but note that CERF would determine any possible cost.



Oversight notes that the legislation states "a county shall be entitled to make matching contributions to defined contribution accounts", but no requirement is created. Therefore, no fiscal impact is assumed.



FISCAL IMPACT - State Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0



FISCAL IMPACT - Local Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$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 allows counties to make matching contributions to the County Employees' Retirement Fund for members employed by such county. Currently, only the Board may make matching contributions.



This act also allows proceeds from a forfeiture acquired from a county's matching contribution to continue to be used toward that county's matching contributions. A forfeiture is the portion of a





DESCRIPTION (continued)



member's contribution account that is forfeited when a member of the County Employees' Retirement Fund has less than five years of creditable service and leaves employment.



This act has an effective date of January 1, 2002. 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



County Employees Retirement Fund

Missouri Local Government Employees Retirement System

Office of Administration

Joint Committee on Public Employee Retirement









Jeanne Jarrett, CPA

Director

February 2, 2001