HCS HB 1583 -- 2010 STATE EMPLOYEE RETIREMENT INCENTIVE PROGRAM

SPONSOR:  Viebrock (Jones, 117)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Retirement
by a vote of 11 to 0.

This substitute establishes the 2010 State Employee Retirement
Incentive Program which allows any employee who has not been a
retiree of the Missouri State Employees' Retirement System
(MOSERS), who is eligible to receive a normal or life annuity and
terminates employment on or after December 31, 2009, after
reaching normal eligibility and becomes a retiree within 60 days
of the termination whose annuity commences on or after January 1,
2010, but no later than September 1, 2010, to be eligible to
receive a years of service incentive benefit.

For eligible employees, with at least 10 years of creditable
service, the years of service incentive benefit will be an amount
equal to $1,000 for each year of creditable service up to a
maximum of 20 years of creditable service.  The state, through
the Office of Administration, will pay the benefit to the retiree
or the retiree's beneficiary in five equal installments beginning
in September of 2010 and each September thereafter until all five
equal installments have been paid.  An employee electing to take
this retirement incentive is prohibited from any future
employment with a state department.

The Office of Administration must submit an interim report to the
General Assembly by December 31, 2010, and an annual update for
four years thereafter regarding the number of program
participants, the cost of the program, the number of positions
not filled under the program, and the number of vacated positions
that have been filled.  MOSERS must submit a report to the
Commissioner of the Office of Administration by October 31, 2010,
regarding the number of state employees eligible to retire and
the actual number of retirements under this program.  The
commissioner must then report this information to the Governor
and General Assembly by January 31, 2011, along with a cost and
savings analysis, the payroll reduction amount, and the number of
positions that are core cut as a result of these retirements.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Income on General Revenue Fund of
$9,793,000 in FY 2011, FY 2012, and FY 2013.  Estimated Income on
Other State Funds of $9,793,000 in FY 2011, FY 2012, and FY 2013.

PROPONENTS:  Supporters say that the bill will allow eligible
state employees to retire and the state will not be required to
lay off workers.  This benefit will make it more affordable for
long-term employees to retire and will allow individuals seeking
employment an opportunity to fill these vacant positions due to
the number of retirements.

Testifying for the bill were Representative Jones (117); Brenda
Hodges; Terrie Woodsmall; Janey McCreary; Bob Hall; and Gary
Taggart.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:11 pm