Fiscal Note
SB0042 - Retirement Eligibility Modifications
State Impact:
Enactment of this bill will cause retirement contribution rates to decrease 0.92 percentage points for all current employees covered by the contributory and noncontributory retirement plans. Additionally, this bill will decrease by 1.32 percentage points the contribution rates for employees covered by the Public Safety Contributory system and by 1.44 percentage points for employees covered by the Public Safety Noncontributory system. Enactment of the bill will also decrease rates for the Firefighters Retirement System by 0.76 percentage points. Such rate reductions will result in a savings of approximately $30 million distributed among all state agencies and higher education.
Funding Source | FY 2010 Approp. | FY 2011 Approp. | FY 2012 Approp. | FY 2010 Revenue | FY 2011 Revenue | FY 2012 Revenue |
General Fund | $0 | ($4,153,700) | ($4,153,700) | $0 | $0 | $0 |
General Fund Restricted | $0 | ($507,500) | ($507,500) | $0 | $0 | $0 |
Education Fund | $0 | ($21,880,100) | ($21,880,100) | $0 | $0 | $0 |
Transportation Fund | $0 | ($587,200) | ($587,200) | $0 | $0 | $0 |
Transportation Fund Restricted | $0 | ($93,700) | ($93,700) | $0 | $0 | $0 |
Federal Funds | $0 | ($1,550,000) | ($1,550,000) | $0 | $0 | $0 |
Dedicated Credits | $0 | ($870,000) | ($870,000) | $0 | $0 | $0 |
Trust Funds | $0 | ($168,000) | ($168,000) | $0 | $0 | $0 |
Transfers | $0 | ($302,400) | ($302,400) | $0 | $0 | $0 |
Total | $0 | ($30,112,600) | ($30,112,600) | $0 | $0 | $0 |
Individual, Business and/or Local Impact:
Enactment of this bill likely will not result in direct, measurable costs and/or benefits for businesses. Enactment of this bill will affect local governments, whose retirement rates would decrease by 0.80 percentage points for the contributory and con-contributory retirement systems. Additionally, local governments will experience decreased contribution rates for Firefighters Retirement System between 0.69 and 0.76 percentage points. Public Safety Contributory and Noncontributory systems would experience decreased rates between 1.35 and 1.62 percentage points. Individuals may be impacted due to the proposed change in statute.
2/1/2010, 4:19:02 PM, Lead Analyst: Schoenfeld, J.D./Attny: CJD | Office of the Legislative Fiscal Analyst |