Fiscal Note
SB0043S03 - Post-retirement Employment Amendments
State Impact:
Enactment of this bill will increase retirement contribution rates by 0.23 percentage points for employees covered by the Public Safety Contributory system and by 0.27 percentage points for employees covered by the Public Safety Noncontributory system. It will also increase the Firefighters Retirement System by 1.37 percentage points and the Judges Retirement system by 1.45 percentage points. This will require an appropriation of approximately $609,000 distributed among state agencies.
The immediate increases in contribution rates come from removing maximum allowances. Over time there will be a net savings to the retirement system for individuals that work longer. Savings to the state may be as high as $10.5 million depending on retirement patterns.
| Funding Source | FY 2010 Approp. | FY 2011 Approp. | FY 2012 Approp. | FY 2010 Revenue | FY 2011 Revenue | FY 2012 Revenue |
| General Fund | $0 | $515,800 | $515,800 | $0 | $0 | $0 |
| General Fund Restricted | $0 | $17,100 | $17,100 | $0 | $0 | $0 |
| Federal Funds | $0 | $58,500 | $58,500 | $0 | $0 | $0 |
| Dedicated Credits | $0 | $17,600 | $17,600 | $0 | $0 | $0 |
| Total | $0 | $609,000 | $609,000 | $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. Local governments will experience increased contribution rates for Firefighters Retirement System between 0.64 and 1.37 percentage points. Public Safety Contributory and Noncontributory systems would experience increased rates between 0.15 and 0.60 percentage points. Individuals may be impacted due to the proposed change in statute.
| 2/26/2010, 10:32:44 AM, Lead Analyst: Schoenfeld, J.D./Attny: CJD | Office of the Legislative Fiscal Analyst |