EMPLOYEE BENEFITS BUDGET REQUEST 2023 Sarah H. Steelman, Commissioner Office of Administration TABLE OF CONTENTS EMPLOYEE BENEFITS FY 2023 Budget Submission Overview 1 Voluntary Life Insurance Core‐‐Voluntary Life Insurance 90 FY23 Flexibility Request 2 Cafeteria Plan Social Security‐OASDHI Core‐‐Cafeteria Pan Contingency 95 Core‐‐Transfer 3 Core‐‐Highway Patrol Transfer 14 HR Contingency Core‐‐Contributions 19 Core‐‐HR Contingency 100 Retirement‐MOSERS Workers' Compensation Core‐‐Transfer 24 Core‐‐Payments 105 NDI‐‐MOSERS Rate Increase Transfer 38 Core‐‐Workers’ Compensation Transfer 110 Core‐‐Contributions 41 Core‐‐Workers’ Compensation/SIF Tax 118 NDI‐‐MOSERS Rate Increase Contribution 46 Core‐‐Teacher Retirement Contributions 49 Supplemental New Decision Item Budget Reserve Fund Trf Shortfall MCHCP 123 Unemployment Compensation Budget Reserve Fund Trf Shortfall MOSERS 125 Core‐‐Payments 54 Budget Reserve Fund Trf Shortfall OASDHI 127 Core‐‐Highway Patrol Payments 62 Healthcare‐MCHCP Core‐‐Transfer 67 Core‐‐Contributions 79 Deduction Error Refunds Core‐‐Deductions Withheld in Error 85 EMPLOYEE BENEFITS OVERVIEW Appropriations for State employee benefits such as social security, retirement, and health insurance are appropriated centrally to the Office of Administration in House Bill 5, and are administered by the Division of Accounting. Each pay cycle, the employer share of benefits are transferred from the various state funds from which salaries of state employees are paid and deposited into specific contributions funds from which payments are made to the appropriate entity. Therefore, most benefit distributions are comprised of two requests: an appropriated transfer from the personal service fund and then an appropriated payment from the applicable contributions fund. Other employee benefits paid by the Office of Administration are the State’s reimbursement to the Division of Employment Security for unemployment costs and payment of workers’ compensation expenses incurred as a result of a work related injury or illness. Administrative appropriations that help manage employee benefits, but do not result in a cost to the State, are for employee-authorized deductions for voluntary life insurance, refunds of deductions withheld in error, a contingency for HR payroll processing time constraint issues and adequate up-front reimbursement of cafeteria plan medical costs, as required by the IRS. 1 FY 2023 Comprehensive List of Flexibility Requests DEPARTMENT: Office of Administration - Employee Benefits FLEXIBILITY FY 22 APPROP FY 22 FY 23 HB Approp APPROP NAME FUND FUND TYPE FLEX TYPE AMT TAFP Requested 5% Flexibility between Federal & Other OASDHI TRF GR/FED/OTHER $182,692,000 5% 10% 5.450 Various Various Funds, and 25% FLEX to 5.265 5% Flexibility between Federal & Other RETIREMENT SYSTEM TRF GR/FED/OTHER $505,342,703 5% 10% 5.465 Various Various Funds, and 25% FLEX to 5.265 5% Flexibility between Federal & Other UNEMPLOYMENT BENEFITS GR/FED/OTHER $4,835,534 5% 10% 5.480 Various Various Funds 5% Flexibility between Federal & Other MCHCP TRF GR/FED/OTHER $507,691,340 5% 10% 5.490 Various Various Funds, and 25% FLEX to 5.265 5% Flexibility between Federal & Other WORKERS' COMP TRF FED/OTHER $8,965,942 5% 10% 5.525 Various Various Funds 2 CORE DECISION ITEM Department Office of Administration Budget Unit 32202 Division Employee Benefits Core OASDHI Contributions Transfer HB Section 5.450 1. CORE FINANCIAL SUMMARY FY 2023 Budget Request FY 2023 Governor's Recommendation GR Federal Other Total GR Federal Other Total PS 0 0 0 0 PS 0 0 0 0 EE 0 0 0 0 EE 0 0 0 0 PSD 0 0 0 0 PSD 0 0 0 0 TRF 85,217,000 37,226,000 52,262,000 174,705,000 TRF 0 0 0 0 Total 85,217,000 37,226,000 52,262,000 174,705,000 Total 0 0 0 0 FTE 0.00 0.00 0.00 0.00 FTE 0.00 0.00 0.00 0.00 Est. Fringe 0 0 0 0 Est. Fringe 0 0 0 0 Note: Fringes budgeted in House Bill 5 except for certain fringes budgeted Note: Fringes budgeted in House Bill 5 except for certain fringes budgeted directly to MoDOT, Highway Patrol, and Conservation. directly to MoDOT, Highway Patrol, and Conservation. Other Funds: Various -- any funds from which Personal Service is paid. Other Funds: 2.CORE DESCRIPTION Core funding for the transfer of the state’s share of federal Old Age, Survivors, Disability, and Health Insurance (OASDHI) contributions from the various state  funds from which salaries of state employees are paid (excluding the Highway Patrol). The OASDHI wage base is tied to inflation and may increase each calendar year. The tax payable by each employer and employee istypically 6.2% of the wage  base. The Medicare tax of 1.45% applies to all taxable wages earned and is paid by both the employee and the employer. There is no wage base for the  Medicare taxhowever, beginning Jan 1, 2013, wages in excess of $200,000 for individuals or $250,000 for married filing jointly require anadditional 0.9%  withholding. 3. PROGRAM LISTING (list programs included in this core funding) N/A 3 CORE DECISION ITEM Department Office of Administration Budget Unit 32202 Division Employee Benefits Core OASDHI Contributions Transfer HB Section 5.450 4. FINANCIAL HISTORY FY 2019 FY 2020 FY 2021 FY 2022 Actual Actual Actual Current Yr. Actual Expenditures(All Funds) Appropriation (All Funds) 156,147,497 168,218,883 190,805,000 182,692,000 154,000,000 152,911,577 Less Reverted (All Funds) 0 0 0 0 Less Restricted (All Funds)* 0 0 0 0 152,000,000 Budget Authority (All Funds) 156,147,497 168,218,883 190,805,000 182,692,000 150,000,000 148,047,951 148,000,000 Actual Expenditures(All Funds) 143,775,600 148,047,951 152,911,577 N/A Unexpended (All Funds) 12,371,897 20,170,932 37,893,423 N/A 146,000,000 144,000,000 Unexpended, by Fund: 143,775,600 142,000,000 General Revenue 2,285,179 5,018,436 9,889,477 N/A Federal 5,727,338 9,126,124 15,095,676 N/A 140,000,000 Other 4,359,380 6,026,372 12,908,270 N/A 138,000,000 FY 2019 FY 2020 FY 2021 Reverted includes the statutory three percent reserve (when applicable). Restricted includes any Governor's expenditure restriction which remained at the end of the fiscal year (when applicable). NOTES: 4 CORE RECONCILIATION DETAIL OPERATING OASDHI CONTRIBUTIONS-TRANSFER 5.CORE RECONCILIATION DETAIL Budget Class FTE GR Federal Other Total Explanation TAFP AFTER VETOES TRF 0.00 85,217,000 45,213,000 52,262,000 182,692,000 Total 0.00 85,217,000 45,213,000 52,262,000 182,692,000 DEPARTMENT CORE ADJUSTMENTS 1x Expenditures 514 T292 TRF 0.00 0 (7,987,000) 0 (7,987,000) Reduction of 1X federal funding included in the FY22 OASDHI Contributions Transfer NDI. NET DEPARTMENT CHANGES 0.00 0 (7,987,000) 0 (7,987,000) DEPARTMENT CORE REQUEST TRF 0.00 85,217,000 37,226,000 52,262,000 174,705,000 Total 0.00 85,217,000 37,226,000 52,262,000 174,705,000 GOVERNOR'S RECOMMENDED CORE TRF 0.00 85,217,000 37,226,000 52,262,000 174,705,000 Total 0.00 85,217,000 37,226,000 52,262,000 174,705,000 5 DECISION ITEM SUMMARY Budget Unit Decision Item FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 FY 2023 ************* ************* Budget Object Summary ACTUAL ACTUAL BUDGET BUDGET DEPT REQ DEPT REQ SECURED SECURED Fund DOLLAR FTE DOLLAR FTE DOLLAR FTE COLUMN COLUMN OASDHI CONTRIBUTIONS-TRANSFER CORE FUND TRANSFERS GENERAL REVENUE 71,448,523 0.00 85,217,000 0.00 85,217,000 0.00 0 0.00 VOCATIONAL REHABILITATION 2,157,170 0.00 2,597,292 0.00 2,597,292 0.00 0 0.00 DEPT ELEM-SEC EDUCATION 569,183 0.00 774,632 0.00 774,632 0.00 0 0.00 MO OFFICE OF PROS SERV FED 20,071 0.00 21,603 0.00 21,603 0.00 0 0.00 STATE AUDITOR 65,580 0.00 67,531 0.00 67,531 0.00 0 0.00 HUMAN RIGHTS COMMISSION - FED 35,126 0.00 54,345 0.00 54,345 0.00 0 0.00 DEPT OF LABOR RELATIONS ADMIN 324,500 0.00 546,167 0.00 546,167 0.00 0 0.00 DED-ED PRO-CDBG-ADMINISTRATION 58,604 0.00 82,514 0.00 82,514 0.00 0 0.00 MULTIMODAL OPERATIONS FEDERAL 21,048 0.00 25,402 0.00 25,402 0.00 0 0.00 DEPARTMENT OF CORRECTIONS 104,133 0.00 199,212 0.00 199,212 0.00 0 0.00 DEPT OF REVENUE 7,934 0.00 21,862 0.00 21,862 0.00 0 0.00 AGRICULTURE-FEDERAL AND OTHER 132,316 0.00 247,117 0.00 247,117 0.00 0 0.00 OA-FEDERAL AND OTHER 9,847 0.00 10,100 0.00 10,100 0.00 0 0.00 ATTORNEY GENERAL 157,259 0.00 243,249 0.00 243,249 0.00 0 0.00 JUDICIARY - FEDERAL 151,182 0.00 530,478 0.00 530,478 0.00 0 0.00 DED COUNCIL ARTS FEDERAL OTHER 7,708 0.00 28,025 0.00 28,025 0.00 0 0.00 DEPT NATURAL RESOURCES 1,033,063 0.00 1,297,380 0.00 1,297,380 0.00 0 0.00 DHSS-FEDERAL AND OTHER FUNDS 3,264,996 0.00 3,754,430 0.00 3,754,430 0.00 0 0.00 STATE EMERGENCY MANAGEMENT 118,426 0.00 141,083 0.00 141,083 0.00 0 0.00 VICTIMS OF CRIME 33,889 0.00 29,996 0.00 29,996 0.00 0 0.00 DEPT MENTAL HEALTH 4,199,558 0.00 5,580,924 0.00 5,580,924 0.00 0 0.00 DEPT OF TRANSPORT HWY SAFETY 21,026 0.00 40,357 0.00 40,357 0.00 0 0.00 DEPT PUBLIC SAFETY 270,713 0.00 544,374 0.00 544,374 0.00 0 0.00 DIV JOB DEVELOPMENT & TRAINING 837,630 0.00 1,366,353 0.00 1,366,353 0.00 0 0.00 ELECTION ADMIN IMPROVEMENT 16,385 0.00 22,006 0.00 22,006 0.00 0 0.00 OA INFORMATION TECH FED& OTHER 650,681 0.00 1,258,156 0.00 1,258,156 0.00 0 0.00 CHILD CARE AND DEVELOPMENT FED 0 0.00 226,580 0.00 226,580 0.00 0 0.00 CORONAVIRUS EMERGENCY SUPP 718 0.00 51,011 0.00 51,011 0.00 0 0.00 DIV OF LABOR STANDARDS FEDERAL 55,550 0.00 77,838 0.00 77,838 0.00 0 0.00 ASSISTIVE TECHNOLOGY FEDERAL 11,859 0.00 16,374 0.00 16,374 0.00 0 0.00 ADJUTANT GENERAL-FEDERAL 858,707 0.00 1,145,331 0.00 1,145,331 0.00 0 0.00 LABOR & IND REL-CRIME VICT-FED 0 0.00 4,667 0.00 4,667 0.00 0 0.00 DPS-FED-HOMELAND SECURITY 37,271 0.00 94,755 0.00 94,755 0.00 0 0.00 9/23/21 10:28 im_disummary 6 DECISION ITEM SUMMARY Budget Unit Decision Item FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 FY 2023 ************* ************* Budget Object Summary ACTUAL ACTUAL BUDGET BUDGET DEPT REQ DEPT REQ SECURED SECURED Fund DOLLAR FTE DOLLAR FTE DOLLAR FTE COLUMN COLUMN OASDHI CONTRIBUTIONS-TRANSFER CORE FUND TRANSFERS SEC OF STATE-FEDERAL FUNDS 13,675 0.00 20,132 0.00 20,132 0.00 0 0.00 COMMUNITY SERV COMM-FED/OTHER 17,959 0.00 19,717 0.00 19,717 0.00 0 0.00 TEMP ASSIST NEEDY FAM FEDERAL 3,293,596 0.00 2,076,335 0.00 2,076,335 0.00 0 0.00 DEPT OF SOC SERV FEDERAL & OTH 7,306,352 0.00 9,353,059 0.00 9,353,059 0.00 0 0.00 MISSOURI DISASTER 43,633 0.00 26,716 0.00 26,716 0.00 0 0.00 JUSTICE ASSISTANCE GRANT PROGR 16,305 0.00 31,619 0.00 31,619 0.00 0 0.00 UNEMPLOYMENT COMP ADMIN 1,077,327 0.00 1,837,123 0.00 1,837,123 0.00 0 0.00 SEMA FEDERAL STIMULUS 14,869,528 0.00 7,987,000 0.00 0 0.00 0 0.00 DMH FEDERAL STIMULUS 20,798 0.00 5,886 0.00 5,886 0.00 0 0.00 DHSS FEDERAL STIMULUS 88,601 0.00 945,776 0.00 945,776 0.00 0 0.00 DOLIR FEDERAL STIMULUS 174,417 0.00 1,808,492 0.00 1,808,492 0.00 0 0.00 DHSS FEDERAL STIMULUS 2021 0 0.00 1 0.00 1 0.00 0 0.00 PHARMACY REBATES 31,508 0.00 34,250 0.00 34,250 0.00 0 0.00 THIRD PARTY LIABILITY COLLECT 87,391 0.00 102,833 0.00 102,833 0.00 0 0.00 FEDERAL REIMBURSMENT ALLOWANCE 6,531 0.00 8,285 0.00 8,285 0.00 0 0.00 PHARMACY REIMBURSEMENT ALLOWAN 0 0.00 2,166 0.00 2,166 0.00 0 0.00 STATE TREASURER'S GEN OPERATIO 121,440 0.00 149,807 0.00 149,807 0.00 0 0.00 CHILD SUPPORT ENFORCEMENT FUND 198,537 0.00 241,136 0.00 241,136 0.00 0 0.00 POST-CLOSURE 0 0.00 8 0.00 8 0.00 0 0.00 MO HEALTHNET FRAUD PROSECUTION 0 0.00 4,082 0.00 4,082 0.00 0 0.00 ELEVATOR SAFETY 28,008 0.00 34,682 0.00 34,682 0.00 0 0.00 MO ARTS COUNCIL TRUST 23,869 0.00 74,669 0.00 74,669 0.00 0 0.00 COMM FOR DEAF-CERT OF INTERPRE 31 0.00 416 0.00 416 0.00 0 0.00 SEC OF ST TECHNOLOGY TRUST 17,742 0.00 30,668 0.00 30,668 0.00 0 0.00 MO AIR EMISSION REDUCTION 58,102 0.00 78,904 0.00 78,904 0.00 0 0.00 VW ENV TRUST FUND 7,944 0.00 8,631 0.00 8,631 0.00 0 0.00 MO NAT'L GUARD TRAINING SITE 1,142 0.00 1,697 0.00 1,697 0.00 0 0.00 STATEWIDE COURT AUTOMATION 94,255 0.00 133,171 0.00 133,171 0.00 0 0.00 NURSING FAC QUALITY OF CARE 54,856 0.00 106,577 0.00 106,577 0.00 0 0.00 DIVISION OF TOURISM SUPPL REV 88,711 0.00 124,065 0.00 124,065 0.00 0 0.00 HEALTH INITIATIVES 199,614 0.00 234,036 0.00 234,036 0.00 0 0.00 HEALTH ACCESS INCENTIVE 5,338 0.00 6,239 0.00 6,239 0.00 0 0.00 GAMING COMMISSION FUND 746,158 0.00 1,213,220 0.00 1,213,220 0.00 0 0.00 9/23/21 10:28 im_disummary 7 DECISION ITEM SUMMARY Budget Unit Decision Item FY 2021 FY 2021 FY 2022 FY 2022 FY 2023 FY 2023 ************* ************* Budget Object Summary ACTUAL ACTUAL BUDGET BUDGET DEPT REQ DEPT REQ SECURED SECURED Fund DOLLAR FTE DOLLAR FTE DOLLAR FTE COLUMN COLUMN OASDHI CONTRIBUTIONS-TRANSFER CORE FUND TRANSFERS MENTAL HEALTH EARNINGS FUND 4,645 0.00 7,244 0.00 7,244 0.00 0 0.00 ANIMAL HEALTH LABORATORY FEES 1,665 0.00 10,630 0.00 10,630 0.00 0 0.00 MAMMOGRAPHY 2,968 0.00 5,355 0.00 5,355 0.00 0 0.00 ANIMAL CARE RESERVE 13,639 0.00 39,678 0.00 39,678 0.00 0 0.00 HIGHWAY PATROL INSPECTION 0 0.00 10,349 0.00 10,349 0.00 0 0.00 MO PUBLIC HEALTH SERVICES 87,774 0.00 220,476 0.00 220,476 0.00 0 0.00 LIVESTOCK BRANDS 0 0.00 9 0.00 9 0.00 0 0.00 VETERANS' COMMISSION CI TRUST 122,861 0.00 388,242 0.00 388,242 0.00 0 0.00 STATE ROAD 16,132,994 0.00 21,075,449 0.00 21,075,449 0.00 0 0.00 MISSOURI STATE WATER PATROL 55,311 0.00 153,832 0.00 153,832 0.00 0 0.00 INMATE CANTEEN FUND 240,559 0.00 172,179 0.00 172,179 0.00 0 0.00 COMMODITY COUNCIL MERCHANISING 2,925 0.00 5,207 0.00 5,207 0.00 0 0.00 FEDERAL SURPLUS PROPERTY 46,108 0.00 69,727 0.00 69,727 0.00 0 0.00 SP ANIMAL FAC LOAN PROGRAM 6,642 0.00 9,653 0.00 9,653 0.00 0 0.00 STATE FAIR FEE 45,367 0.00 122,418 0.00 122,418 0.00 0 0.00 STATE PARKS EARNINGS 92,035 0.00 103,765 0.00 103,765 0.00 0 0.00 DHEWD OUT-OF-STATE PROGRM FUND 482 0.00 3,162 0.00 3,162 0.00 0 0.00 GROUND EMERGENCY MED TRANSPORT 3,442 0.00 3,658 0.00 3,658 0.00 0 0.00 NATURAL RESOURCES REVOLVING SE 4,245 0.00 4,849 0.00 4,849 0.00 0 0.00 AGRI LAND SURVEY REVOLVING SER 10,686 0.00 14,187 0.00 14,187 0.00 0 0.00 HISTORIC PRESERVATION REVOLV 14,760 0.00 16,707 0.00 16,707 0.00 0 0.00 MO VETERANS HOMES 2,236,571 0.00 4,747,349 0.00 4,747,349 0.00 0 0.00 INDUSTRIAL HEMP FUND 6,881 0.00 19,695 0.00 19,695 0.00 0 0.00 DNR COST ALLOCATION 454,164 0.00 632,823 0.00 632,823 0.00 0 0.00 STATE FACILITY MAINT & OPERAT 1,412,975 0.00 1,625,687 0.00 1,625,687 0.00 0 0.00 DCI ADMINISTRATIVE 11,265 0.00 20,430 0.00 20,430 0.00 0 0.00 OA REVOLVING ADMINISTRATIVE TR 223,343 0.00 303,756 0.00 303,756 0.00 0 0.00 WORKING CAPITAL REVOLVING 422,247 0.00 639,452 0.00 639,452 0.00 0 0.00 CENTRAL CHECK MAIL SERV REVOLV 895 0.00 1,023 0.00 1,023 0.00 0 0.00 INMATE 3,285 0.00 9,638 0.00 9,638 0.00 0 0.00 OIL AND GAS RESOURCES FUND 0 0.00 7,025 0.00 7,025 0.00 0 0.00 DIV ALCOHOL & TOBACCO CTRL 122,862 0.00 158,651 0.00 158,651 0.00 0 0.00 DOSS ADMINISTRATIVE TRUST 1 0.00 341 0.00 341 0.00 0 0.00 9/23/21 10:28 im_disummary 8