HCS HB 265 -- PUBLIC SCHOOL RETIREMENT SYSTEMS (Franz)

COMMITTEE OF ORIGIN:  Committee on Retirement

This substitute changes the laws regarding the Public School
Retirement System of Missouri and the Public Employee Retirement
System of Missouri.  In its main provisions, the substitute:

(1)  Allows the board of the retirement systems to establish and
maintain an investment fund account to combine moneys from both
systems for investment purposes only.  The funds of each system
will be accounted for separately and for all other reporting
purposes;

(2)  Allows a member when purchasing prior service credit who has
not paid the entire cost of the service by September 30 to have
the purchase price recalculated as of October 1 of the same year
instead of charging interest.  Currently, if a member has not
paid for the service by June 30, the purchase price will be
recalculated as of July 1;

(3)  Allows the retirement systems to prohibit or impose
requirements for purchasing service if necessary to comply with
federal law;

(4)  Specifies that, upon the death of a member, benefits will be
paid in the order of the surviving spouse, surviving children
equally, surviving parents equally, or to the estate of the last
person receiving benefits if a member chooses a guaranteed
payment option and no designated beneficiary is living upon the
death of the member;

(5)  Prohibits the employees of any additional nonprofit
educational association or organization from becoming a member of
the retirement systems beginning July 1, 2010; and

(6)  Allows the retirement systems, to the extent determined
appropriate by the board of trustees, to indemnify and protect
any trustee or employee of the systems against liability claims.
No employee or trustee will be entitled to indemnification for
his or her gross negligence or willful misconduct or unless
written notice is given to the board within 15 days of receiving
a service of process.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:24 am