Missouri Senate Bill SB77

Missouri 2023 Regular Session

• Introduced: 1/4/23
• Refer: 1/12/23

Caption

Modifies the actuarial amortization and cost methods for the Missouri State Employees' Retirement System and the Missouri Department of Transportation and Highway Patrol Employees' Retirement System

Impact

The adjustments proposed in SB77 are expected to streamline the fiscal management of retirement systems, allowing for more predictable budgeting and appropriations. By implementing regular actuarial valuations and requiring certification of contribution rates before each general assembly session, the bill seeks to enhance the sustainability of these public retirement systems. This could lead to better secured funding for current and retired public employees, while also possibly reducing the financial uncertainty faced by the state in meeting these obligations.

Summary

Senate Bill 77 aims to modify the actuarial amortization and cost methods for the Missouri State Employees' Retirement System and the Missouri Department of Transportation and Highway Patrol Employees' Retirement System. The bill proposes the repeal of existing sections regarding the financing patterns and contribution rates. The new provisions would establish a more structured approach to calculating contribution amounts which are designed to stay level across generations of citizens, ensuring consistent contributions from active members' payroll.

Sentiment

The general sentiment surrounding SB77 appears to be cautiously optimistic. Proponents in the legislative assembly argue that the changes will modernize how funds are managed, making the retirement systems more robust. However, there is underlying concern about the implications for public employees depending on these retirement benefits. Critics worry that altering funding methods may lead to underfunding if not managed appropriately, affecting the long-term viability of benefits owed to public retirees.

Contention

A notable point of contention revolves around the balance between ensuring adequate funding for retirement benefits and the potential short-term impacts on state budget allocations. Some legislators express concerns that stringent contribution rate requirements may impose financial strains on other areas of the state's budget, while supporters argue that ensuring the financial longevity of retirement systems should take precedence.