COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3559H.01I Bill No.:HB 1473 Subject:Retirement Systems and Benefits - General; Retirement - Local Government;
Employees - Employers; Labor and Management; Telecommunications;
Emergencies
Type:Original Date:January 10, 2022Bill Summary:This proposal modifies provisions relating to eligibility for participation in
LAGERS.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 3559H.01I
Bill No. HB 1473
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0 or (Unknown)$0 or (Unknown)$0 or (Unknown) L.R. No. 3559H.01I
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FISCAL ANALYSIS
ASSUMPTION
Section 70.631 Public Safety Personnel
Officials from the Joint Committee on Public Employee Retirement (JCPER) assume the
proposal has no direct fiscal impact to the Joint Committee on Public Employee Retirement. The
JCPER’s review of this legislation indicates it would not create a “substantial proposed change”
in future plan benefits as defined in Section 105.660(10).
Current Status of the LAGERS as of February 28, 2021 (most recent actuarial valuation):
Number of participating employers as of February 28, 2021: 801
Active Members:
General: 25,974
Police: 6,591
Fire: 2,715
Public Safety: 100
Total Actives: 35,380
Inactive Members: 16,413
Total membership: 51,793
Funded Ratio
Market Value of Assets: $9,246,453,190 100.7%
Actuarial Value of Assets: $8,777,019,738 95.6%
Liabilities:
Officials from the Local Government Employees Retirement System (LAGERS) assume this
proposal will have no fiscal impact on their organization.
Oversight notes this proposal removes language that limits the provisions in section 70.631 to
specific local political subdivisions.
Oversight notes the minimum retirement age for general employees is 60 years of age.
Oversight assumes this proposal lowers the minimum retirement age to 55 years of age for L.R. No. 3559H.01I
Bill No. HB 1473
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certain employees defined as public safety personnel. Oversight assumes there could be an
increase in employer contributions for local political subdivisions for employees they elect to
cover under the retirement system as public safety personnel who retire at the age of 55 instead
of 60.
Oversight notes each individual employer electing to add certain employees as public safety
personnel would have an actuarial cost statement done to determine if the change would require
an increase in the employers’ contribution rate.
Oversight notes the limitation on increases in employer contribution rates does not appear to
apply to any contribution increase resulting from this proposal. Additionally, Oversight notes the
board can set different rates of contributions employers having policeman members or having
fireman members (70.730.4, RSMo). Oversight is uncertain if “public safety personnel” would
qualify as policeman members or fireman members which would allow for a different
contribution rate than general employees.
Oversight will show a range of $0 (no local political subdivisions elect to cover additional
employees as public safety personnel) to an unknown cost to local political subdivisions if an
increase in employer contributions were needed. Oversight assumes this proposal is discretionary
and would have no fiscal impact without action by the governing body.
FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025LOCAL POLITICAL
SUBDIVISIONS
Cost – potential increase in employer
contribution rates for employers who
elect to cover certain positions as public
safety personnel - §70.631
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET LOCAL
POLITICAL SUBDIVISIONS
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown) L.R. No. 3559H.01I
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FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Currently, political subdivisions located in third class counties and Cape Girardeau County may,
by majority vote of the governing body, elect to cover certain employee classes as public safety
personnel members in the Local Government Employees' Retirement System (LAGERS). This
bill allows political subdivisions located in any county to cover such employee classes.
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
Local Government Employees Retirement System
Joint Committee on Public Employee Retirement
Julie MorffRoss StropeDirectorAssistant DirectorJanuary 10, 2022January 10, 2022