COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1245-01

Bill No.: SB 308

Subject: Counties, County Government; County Officials; Courts; Retirement-Local Government; Retirement Systems & Benefits-General

Type: Original

Date: February 5, 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 would result in higher benefit costs for court officers and other employees compensated from county funds not covered under LAGERS. They estimate increased benefit costs of $175,000 in FY 2002, $182,000 in FY 2003, and $189,000 in FY 2004. Additionally, CERF assumes they will incur a one-time cost of approximately $20,000 in FY 2002 for additional staff time and expenses. Outside vendors and advisors will be used to identify the additional members, and to establish appropriate records and procedures to administer their benefits. CERF estimates 100 new members added to the system as a result of the proposal. Officials did not calculate the unfunded actuarial accrued liability (UAAL) for the plan as a result of the proposal.



Oversight assumes that the system's UAAL would increase under the proposal, but notes that the contributions to CERF by counties are fixed and are dependent on the collection of certain county taxes, penalties and fees. Consequently, the calculated required contribution does not in actuality represent contributions to CERF by counties. Oversight assumes that the contributions made to CERF from current funding sources would not be sufficient to meet the benefit obligations.



The Joint Committee on Public Employee Retirement assumes this legislation is not a "substantial proposed change" in the plan as defined in Section 105.660(5), and that no actuarial cost statement is required.



The Office of Administration indicates that there may be a fiscal impact from this legislation, but recommends that the County Employees Retirement Fund determine any possible cost through an actuarial report.



The Office of State Courts Administrator, and Missouri Local Government Employees Retirement System assume the proposal would have no fiscal impact on their agencies.



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 expands coverage under the County Employees' Retirement Fund to include any circuit court appointed officer or employee who is compensated directly from county funds and who is not covered under the Local Government Employees' Retirement System (LAGERS).

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

Joint Committee on Public Employee Retirement

Office of Administration

Office of State Courts Administrator

Missouri Local Government Employees Retirement System









Jeanne Jarrett, CPA

Director

February 5, 2001