HB 597 -- STATE EMPLOYEE DEFERRED COMPENSATION PROGRAM

SPONSOR:  Bruns

COMMITTEE ACTION:  Voted "do pass" by the Committee on Retirement
by a vote of 9 to 0.

Beginning September 1, 2009, this bill makes enrollment in the
state deferred compensation program automatic for each eligible
new employee hired, except an employee of a state college or
university.  Contributions to the program will be effective on or
after the first day of the month following the date of hire, and
the contributions must be at least $25 per month.  An employee
may change his or her contribution amount or opt out of the
program at any time.  The contribution rate for employees
automatically enrolled will automatically adjust based on any
increases in the state matching contribution, currently $35 per
month.

A member's surviving spouse will automatically be designated as
the primary beneficiary, unless the surviving spouse consented in
writing to allow the participating member to designate someone
else as the beneficiary.  The automatic beneficiary designation
does not apply to designations made prior to September 1, 2009.

The State Treasurer may credit funds for qualified participants
through a local payroll system.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $0 in
FY 2010, $114,000 in FY 2011, and $408,000 in FY 2012.  Estimated
Cost on Other State Funds of $0 in FY 2010, $76,000 in FY 2011,
and $272,000 in FY 2012.

PROPONENTS:  Supporters say that the bill will require new
members of the system to opt out of the deferred compensation
program instead of opting into the program.  This will make
employees more aware of this benefit and hopefully will get more
to participate.

Testifying for the bill were Representative Bruns; and Missouri
State Employees' Retirement System.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am