HB 1 -- Public Retirement Systems

Sponsor:  Viebrock

This bill changes the laws regarding public retirement systems.
In its main provisions, the bill:

(1)  Allows the State Auditor to audit any retirement system
established by the state or any political subdivision every three
years or more frequently as otherwise required by law (Sections
29.212, 56.809, 70.605, 104.190, 104.480, and 169.020, RSMo);

(2)  Requires any person who first becomes a state employee on or
after January 1, 2011, to be a member of the Missouri State
Employees' Retirement System (MOSERS) Year 2000 Plan.  To be
eligible for normal retirement under this plan, an employee must
be at least 67 years of age and have completed at least 10 years
of credited service or be at least 55 years of age with the sum
of the member's age and credited service equaling at least 90.  A
uniformed member of the State Highway Patrol who is subject to
the mandatory retirement provisions of Section 104.081 will be
required to be at least 60 years of age or at least 55 years of
age with 10 years of credited service.  Members of the General
Assembly must be at least 62 years of age and have completed at
least three full biennial assemblies or be at least 55 years of
age with the sum of the member's age and credited service
equaling at least 90.  Statewide elected officials must be at
least 62 years of age and have completed at least four years of
credited service or be at least 55 years of age with the sum of
the official's age and credited service equaling at least 90.  A
vested former member must be at least 67 years of age and have
completed at least 10 years of credited service.  An employee,
except for a uniformed member of the patrol, will be eligible for
early retirement at 62 years of age with at least 10 years of
credited service.  An employee must work for the state for 10
years in order to be vested in the system.  A member of this plan
must contribute 4% of his or her pay to the system.  A member
will not be able to purchase credit in the system for his or her
previous non-federal, full-time public employment or military
service or transfer credit from another public retirement system.
The employee contribution rate, the benefits under the Year 2000
Plan, and any other provision of the Year 2000 Plan may be
altered, amended, increased, decreased, or repealed, but the
change will only apply to service or interest credits after the
effective date of the change.  An employee under the plan will
not be eligible for the backdrop option (Section 104.1091);

(3)  Changes the laws regarding the Public School Retirement
System of Kansas City by:

(a)  Requiring that any formulas and tables in effect upon which
the computation of actuarial equivalent is based be maintained as
part of a written document and treated as part of the plan
document.  The formulas and tables may be changed if recommended
by the system's actuary and upon approval of the board of
trustees (Section 169.270);

(b)  Specifying that the system is intended to be a qualified
plan.  The board of trustees must interpret statutes governing
the system and administer it consistent with a qualified plan.
The system's assets must be held in trust for the exclusive
benefit of the members and their beneficiaries and for defraying
reasonable administrative costs.  No part of the system's assets
may be used for or diverted to any purpose other than for
benefits or purposes of the system (Section 169.280);

(c)  Specifying that if the system is completely terminated or
contributions to the system are discontinued, the rights of all
members to benefits accrued to date, to the extent funded, will
be fully vested and nonforfeitable (Section 169.301);

(d)  Prohibiting retired members of the system working as a
substitute, part-time, or temporary employee for an employer in
the system from earning more than 50% of the annual salary or
wages he or she was last paid by the employer prior to retirement
and receipt of a retirement allowance.  If a person exceeds the
hourly or compensation limits, his or her retirement allowance
will be suspended for the month in which the limit was exceeded
and any subsequent month in the school year the person receives
remuneration from any employer in the retirement system (Section
169.324); and

(e)  Allowing any member or beneficiary who is eligible to
receive a rollover distribution under federal law to elect to
have that distribution transferred directly to another eligible
retirement plan.  An eligible rollover distribution will include
a distribution to a nonspouse beneficiary that is treated as an
eligible rollover distribution, and these transfers must be made
in compliance with the Internal Revenue Code (Section 169.328);

(4)  Requires any person who first becomes a judge on or after
January 1, 2011, to be at least 67 years of age and have at least
12 years of service or be at least 62 years of age and have at
least 20 years of service before he or she is eligible for normal
retirement benefits under the Judicial Plan with MOSERS.  If a
judge retires at 67 years of age with less than 12 years of
service or at 62 years of age with less than 20 years of service,
his or her retirement compensation will be reduced
proportionately.  A judge in this plan will be required to
contribute 4% of his or her compensation to the system.  A judge
will not be able to purchase credit in the retirement plan for
his or her previous non-federal, full-time public employment or
military service.  A judge under this plan who continues to work
after his or her normal retirement date will not have
cost-of-living increases added to his or her retirement
compensation for the period of time between his or her
eligibility for retirement and the actual retirement date.  When
a retired judge under this plan dies, his or her beneficiary will
not receive an amount equal to 50% of the judge's retirement
compensation.  Instead, he or she will make a choice at
retirement regarding benefit payment options including the amount
received by the beneficiary.  The employee contribution rate, the
benefits under the plan, and any other provision of the plan may
be altered, amended, increased, decreased, or repealed, but the
change will only apply to service or interest credits after the
effective date of the change (Sections 476.521 and 476.529); and

(5)  Prohibits a retired judge who becomes employed on or after
January 1, 2011, as an employee eligible to participate in the
MOSERS Year 2000 Plan from receiving judicial retirement benefits
while employed.  Any judge who serves as a judge while receiving
judicial retirement is prohibited from receiving judicial
retirement while serving as a judge.  A judge who serves as a
senior judge or senior commissioner while receiving judicial
retirement will continue to receive judicial retirement and
additional credit and salary for the service (Section 476.527).

Missouri House of Representatives
95th General Assembly, 1st Special Session
Last Updated August 13, 2010 at 9:52 am