Missouri Senate Bill SB1401

Missouri 2024 Regular Session

• Introduced: 2/8/24
• Refer: 2/26/24

Caption

Provides that the Commissioner of Administration shall request a certain amount of the Missouri State Employees' Retirement System employer contribution rate for certain state colleges and universities

Impact

If enacted, SB1401 will repeal specific provisions under sections 104.436 and 104.1066 of the Revised Statutes of Missouri and implement new regulations that require regular actuarial valuations. The aim is to maintain level contribution amounts based on active member payroll, which helps in smoothing out financial demands on state budgets and educational institutions. This could have implications for how universities manage their budgets and resource allocation, potentially affecting their operational funding.

Summary

Senate Bill 1401 proposes significant changes to the employer contribution rate for certain higher education institutions in Missouri. The bill aims to amend existing statutes related to the Missouri State Employees' Retirement System (MOSERS), specifically addressing how contributions required from employers, particularly those from state colleges and universities, are calculated and certified. This change is intended to ensure a more stable financing pattern for the retirement system, limiting large fluctuations in contribution rates over time.

Sentiment

The sentiment surrounding SB1401 appears to largely favor the restructuring of the employee contribution system, with proponents arguing that it offers a more predictable financial outlook for both the state and the education sector. Supporters generally believe this measure will help stabilize funding for the retirement system and ensure that obligations to employees are met without sudden financial strains.

Contention

Despite the general positive sentiment towards the bill, there may still be points of contention regarding how these projections and contribution levels are determined, particularly in relation to the actuarial valuations and the assumptions made by officials. Questions could arise about the adequacy of contributions being set, especially if economic conditions change. Moreover, institutions that may face difficulties adjusting to the new funding formulas could express concerns over budget impacts and the sustainability of educational programs.