COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2416H.01I Bill No.:HB 1185 Subject:Retirement Systems and Benefits - General; Retirement - State; State Employees;
Employees - Employers
Type:Original Date:March 27, 2023Bill Summary:This proposal modifies provisions relating to Missouri Department of
Transportation and Highway Patrol Employees' Retirement System and
Missouri State Employees' Retirement System.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 2416H.01I
Bill No. HB 1185
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2024FY 2025FY 2026Total 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 2024FY 2025FY 2026Local Government$0$0$0 L.R. No. 2416H.01I
Bill No. HB 1185
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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 that its provisions may create a “substantial
proposed change” in future plan benefits as defined in section 105.660 (10). It is impossible to
accurately determine the fiscal impact of this legislation without an actuarial cost statement
prepared in accordance with section 105.665.
Pursuant to section 105.670, an actuarial cost statement must be filed with the Chief Clerk of the
House of Representatives, the Secretary of the Senate, and the Joint Committee on Public
Employee Retirement as public information for at least five legislative days prior to final
passage.
Current Status of MOSERS:
As of June 30, 2022 Funded Ratio 57.7%
Market Value of Assets: $8,248,414,597
Actuarial Value of Assets: $8,894,328,756
Liabilities: $15,408,995,032
Unfunded Actuarial Accrued Liability (UAAL) $6,514,666,276
Covered Payroll as of June 30, 2022: $2,004,688,456
Recommended Contribution Rate for FY 2022: 23.51% of payroll. Employees hired for the first
time on or after January 1, 2011 contribute 4% of compensation to MOSERS. Estimated
employer contribution is approximately $471.3 million.
Current Status of Judicial Retirement System as of June 30, 2022:
As of June 30, 2022
Funded Ratio
Market Value of Assets: $190,449,086 30.2%
Actuarial Value of Assets: $203,997,065 32.4%
Liabilities: $630,043,013
Covered Payroll as of June 30, 2021: $63,317,888
Recommended Contribution for FY22: 61.94% of payroll. Estimated dollar amount of
contribution is $39.2 million. Employees hired for the first time on or after January 1, 2011
contribute 4% of compensation to the retirement system. L.R. No. 2416H.01I
Bill No. HB 1185
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Current Status of MPERS
As of June 30, 2022 Funded Ratio 66.33%
Market Value of Assets: $3,067,193,086
Actuarial Value of Assets: $2,925,561,398
Liabilities: $4,410,685,047
Unfunded Actuarial Accrued Liabilities (UAAL) $1,485,123,649
Active Employee Payroll as of June 30, 2022: $367,493,332
Recommended Contribution Rate for FY 2022: 58% of payroll. Estimated employer contribution
is approximately $212.7 million. Employees hired for the first time on or after January 1, 2011
contribute 4% of compensation to MPERS.
Officials from Missouri State Employee's Retirement System (MOSERS) state the proposed
legislation will provide clarification relative to several statutory provisions related to the
retirement systems, Missouri State Employees’ Retirement System (MOSERS) and the Missouri
Department of Transportation and Patrol Employees’ Retirement System (MPERS). Most of
these changes are minor modifications and clarifications of the retirement plans that are
administrative in nature and intended to clarify and/or eliminate inconsistencies in the law.
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). The proposed legislation either corrects errors (e.g.,
missing subsections, incorrect cross-references, delete obsolete sections, etc.) or clarifies 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. L.R. No. 2416H.01I
Bill No. HB 1185
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Oversight notes that the above mentioned agencies have stated the proposal would not have a
direct fiscal impact on their respective organizations. Oversight does not have any information
to the contrary. Therefore, Oversight will reflect a zero impact on the fiscal note.
FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026$0$0$0FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026$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 DirectorMarch 27, 2023March 27, 2023