COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4586H.01I Bill No.:HB 2234 Subject:Retirement Systems and Benefits - General; Retirement - State; State Employees;
Employees - Employers
Type:Original Date:January 25, 2022Bill Summary:This proposal modifies provisions relating to retirement systems.
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. 4586H.01I
Bill No. HB 2234
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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$0$0 L.R. No. 4586H.01I
Bill No. HB 2234
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Joint Committee on Public Employee Retirement (JCPER) state this
proposal has no direct fiscal impact to the Joint Committee on Public Employee Retirement. The
JCPER’s review of this legislation indicates it will not affect retirement plan benefits as defined
in Section 105.660(9).
Current Status of MOSERS:
As of June 30, 2021
Funded Ratio
Market Value of Assets: $9,519,930,080 63.0%
Actuarial Value of Assets: $8,909,251,051 58.9%
Liabilities: $15,110,646,537
Covered Payroll as of June 30, 2021: $1,961,975,052
Recommended Contribution for FY23: 26.33% of payroll. Estimated dollar amount of
contribution is $552.7 million. Employees hired for the first time on or after January 1, 2011
contribute 4% of compensation to the retirement system.
Current Status of Judicial Retirement System as of June 30, 2021:
As of June 30, 2021
Funded Ratio
Market Value of Assets: $211,081,342 33.7%
Actuarial Value of Assets: $194,988,153 31.1%
Liabilities: $626,284,219
Covered Payroll as of June 30, 2021: $63,031,506
Recommended Contribution for FY23: 60.17% of payroll. Estimated dollar amount of
contribution is $39.9 million. Employees hired for the first time on or after January 1, 2011
contribute 4% of compensation to the retirement system. L.R. No. 4586H.01I
Bill No. HB 2234
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Current Status of MPERS
As of June 30, 2021
Funded Ratio
Market Value of Assets: $3,003,925,228 72.9%
Actuarial Value of Assets: $2,711,272,503 65.8%
Liabilities: $4,117,753,237
Active Employee Payroll as of June 30, 2021: $355,194,571
Recommended Contribution for FY23: 58% of payroll. Estimated dollar amount of contribution
is $222,039,894. Employees hired for the first time on or after January 1, 2011 contribute 4% of
compensation to the retirement system.
Officials from Missouri State Employee's Retirement System (MOSERS) state there are a
couple of proposed provisions that relate solely to MOSERS. First, the amount of service credit
a member of the General Assembly or Statewide Elected Official can accrue while on long-term
disability will be limited. This modification is to reflect the application of term limits and could
result in a de minimis savings to the long-term disability plan. Second, the interest associated
with employee contributions within the Judicial 2011 plan is reduced from a fixed 4% to the 52-
week Treasury bill rate (currently, less than 1%). This modification mirrors changes made to the
General Employee plan under MOSERS in 2012 (SB 625). There is no fiscal impact from this
proposal.
Officials from MoDOT & Patrol Employees’ Retirement System (MPERS) state the
proposed bill, if enacted, is intended to cleanup a number of statutes related to the retirement
systems, MoDOT and Patrol Employees’ Retirement System (MPERS) and Missouri State
Employees’ Retirement System (MOSERS). In large part, the statutes either correct errors (e.g.,
missing subsections, incorrect cross-references, delete obsolete sections, etc.) or clarify vague or
unclear procedures, thereby improving the efficiency of the administration of benefits. There is
no fiscal impact from this proposal.
Officials from the Missouri Department of Transportation assume the proposal will have no
fiscal impact on their organization.
Oversight notes that the above mentioned agencies have stated the proposal would not have a
direct fiscal impact on their organization. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact on the fiscal note. L.R. No. 4586H.01I
Bill No. HB 2234
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FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
The proposed legislation appears to have no direct fiscal impact.
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
Missouri State Employee's Retirement System
MoDOT & Patrol Employees’ Retirement System
Missouri Department of Transportation
Julie MorffRoss StropeDirectorAssistant DirectorJanuary 25, 2022January 25, 2022