CCS SS SCS HCS HB 416, 474, 544, 587 -- RETIREMENT SYSTEMS

This bill makes several changes in retirement system law.

MISSOURI STATE EMPLOYEES' RETIREMENT SYSTEM (MOSERS)

By revising current law pertaining to retirement benefits for
members of MOSERS, this bill:

(1)�Allows a terminated vested member to make a one time
election for the system to pay the present value of a deferred
annuity, if the amount of the member's creditable service is
less than 10 years and the member is not within 5 years of
eligibility for receiving an annuity.  Upon subsequent
employment of one year in a position covered by MOSERS, the
employee can elect to purchase creditable service equal to the
amount surrendered due to the previous election to receive a
payment of a deferred annuity;

(2)�Automatically reverts a member's retirement benefits to an
amount equal to the member's normal annuity, regardless of when
the member submits a written application to have the benefits
adjusted, should the member, having chosen a joint and survivor
option, be predeceased by his or her spouse;

(3) Increases, as of May 1, 1996, the amount of life insurance a
MOSERS member may retain upon retirement from $10,000 to $60,000;

(4) Establishes the procedures by which any full-time employee
of Harris-Stowe State College who has worked there since 1978
and since been a member of MOSERS may purchase creditable
service toward retirement for service rendered to Harris-Stowe
prior to 1978 as a member of a public school retirement system;

(5)�Removes language guaranteeing that a member who is under a
long-term disability program provided by the federal government
will continue to accrue normal annuity benefits; and

(6) Makes technical changes pertaining to retirement of MOSERS
members by removing from the statutes outdated tax exemptions
for judges, administrative law judges, and legal advisors;
redundant references to retirement eligibility that are
elsewhere in the statutes; and outdated language regarding
creditable prior service.

JUDGES, ADMINISTRATIVE LAW JUDGES, AND LEGAL ADVISORS

The surviving spouse of a judge who dies or died on or after
January 1, 1994, while receiving long-term disability benefits
is granted 50% of the retirement compensation to which the judge
would have been entitled.  If the judge had not served the 12
years required to qualify for full retirement benefits, the
benefits for the surviving spouse will be calculated as though
the judge had qualified for full benefits.

Judges, administrative law judges, and legal advisors who
qualify for disability benefits will continue to accrue
creditable service until such employees reach normal retirement
age or are no longer disabled.  Administrative law judges and
legal advisors no longer need to have completed 5 years of
service to qualify for disability benefits.

Qualifying judges, administrative law judges, and legal advisors
who retire are granted a death benefit of $5,000.

Retirement allowances and benefits for judges, administrative
law judges, and legal advisors are considered marital property
and can be divided in the event of a divorce.

HIGHWAYS AND TRANSPORTATION EMPLOYEES' AND HIGHWAY PATROL
RETIREMENT SYSTEM

By revising statutes pertaining to disability payments for
members of the Highways and Transportation Employees' and
Highway Patrol Retirement System, this bill:

(1) Increases the disability benefits of any member found to be
wholly incapable of performing work for the department from 1.5
to 1.6% of the member's average compensation multiplied by the
number of years of creditable service;

(2) Raises the initial compensation that a member will receive
in disability benefits if injured in the line of duty from 50%
to 70% of the compensation that the employee was earning at the
time of the injury.  However, the sum of the disability benefits
such a member receives from both the system and social security
cannot exceed 90% of the monthly compensation the member had
been receiving at the time of the injury.  The member must
submit to the board medical certification estimating the
duration of the disability and proof of application for social
security benefits;

(3) Allows the board to provide for long-term disability
benefits for disabled employees whose disability is expected to
last for over a year.  The board will establish the eligibility
requirements, benefit period, amount of benefits, and rules and
procedures of administration.  The board will also determine a
definition of disability;

(4) Terminates benefits for members who retain or regain their
earning capacity, as determined by the board of trustees.  This
replaces current law requiring that a member cannot receive
benefits if he or she retains or regains 50% of his or her
earning capacity;

(5) Permits a member receiving disability benefits to receive
cost-of-living benefits;

(6) Requires the State Highways and Transportation Commission to
contribute the same amount provided for all state employees for
medical insurance to any member receiving disability benefits
for injuries occurring in the line of duty;

(7) Establishes that any member receiving certain disability
benefits will continue to accrue normal annuity benefits based
on the member's rate of pay prior to the disability.  The
disabled member will be eligible to retire upon reaching normal
retirement age, and will receive either the normal annuity or
the minimum annuity required by law, whichever is greater;

(8) Allows any member receiving disability benefits on August
28, 1995, or any member who has applied for benefits before this
date, to receive disability benefits as provided by these
revisions upon their effective date or as provided by law prior
to the effective date until the member again becomes an
employee; and

(9) Qualifies a member receiving certain disability benefits for
the death benefit plan for state employees who die prior to
retirement having earned at least 3 years of creditable service.

LOCAL GOVERNMENT EMPLOYEES' RETIREMENT SYSTEM

This bill allows political subdivisions that are part of the
Missouri Local Government Employees' Retirement System (LAGERS)
to offer two additional retirement benefit programs to
employees.  Each program allows a retired employee to receive an
allowance for life equal to 1.6% of the employee's final average
salary multiplied by his or her number of years of credited
service; one of the programs provides an additional allowance
for those retiring before the age of 65 that will terminate once
the retired employee turns 65.

The board of directors of a county sheltered workshop will be
considered a political subdivision for the purposes of
establishing a retirement program for the workshop employees.
The board will follow the retirement guidelines for LAGERS in
implementing this program.

MISCELLANEOUS

This bill repeals a provision of current law that prohibits
members of any of the state's public school retirement systems
from purchasing equivalent credit for service performed as part
of another of the state's public school retirement systems after
August 28, 1994.  This provision has an emergency clause.

The Department of Social Services will no longer reimburse
cities or counties for their contributions to the Prosecuting
Attorneys and Circuit Attorneys' Retirement System.

Service credit may be transferred from certain retirement
systems of the state to a state retirement system for
prosecuting and circuit attorneys.  In addition, a prosecuting
attorney or a circuit attorney will be allowed reduced service
credit for certain work performed prior to the establishment of
the retirement system as an assistant prosecuting attorney or an
assistant circuit attorney.

Any fire protection district approving a tax levy rate for a
pension program will deposit all revenue collected, plus
interest, in a district retirement fund.

The board of trustees of police and firefighters' pension
systems will comply with the prudent investor standard when
investing the assets of the pension program.

Any retirement system of the state or a political subdivision is
authorized to appoint an attorney or a law firm to be a legal
advisor and represent the system in legal proceedings.

State retirement systems will develop a procurement action plan
for the use of minority and women money managers, brokers, and
investment counselors.

HCS HB 416, 474, 544, 587 -- RETIREMENT SYSTEMS (Hagan-Harrell)

This substitute makes several changes in state retirement system
law.  By revising current law pertaining to retirement benefits
for members of MOSERS, this substitute:

(1)�Allows a terminated vested member to make a one time
election for the system to pay the present value of a deferred
annuity, if the amount of the member's creditable service is
less than 10 years and the member is not within 5 years of
eligibility for receiving an annuity.  Upon subsequent
employment of one year in a position covered by MOSERS, the
employee can elect to purchase creditable service equal to the
amount surrendered due to the previous election to receive a
payment of a deferred annuity;

(2)�Automatically reverts a member's retirement benefits to an
amount equal to the member's normal annuity should the member,
having chosen a joint and survivor option, be predeceased by his
or her spouse.  The reversion will be effective the first of the
month following the death of the spouse regardless of when the
member submits a written application to have the benefits
adjusted;

(3)�Removes language guaranteeing that a member who is under a
long-term disability program provided by the federal government
will continue to accrue normal annuity benefits;

(4)�Establishes that judges, administrative law judges, and
legal advisors who qualify for disability benefits will continue
to accrue creditable service until such employees reach normal
retirement age or are no longer disabled.  Administrative law
judges and legal advisors no longer need to have completed 5
years of service to qualify for employment benefits; and

(5)�Grants qualifying judges, administrative law judges, and
legal advisors who retire a death benefit of $5,000 as
compensation for duties performed as special consultants to
MOSERS.

Technical changes are made pertaining to retirement of MOSERS
members by removing from the statutes outdated tax exemptions
for judges, administrative law judges, and legal advisors;
redundant references to retirement eligibility that are
elsewhere in the statutes; and outdated language regarding
creditable prior service.  This substitute also explicitly
states that any member may retire with a normal annuity upon
obtaining normal retirement age.

By revising statutes pertaining to disability payments for
members of the Highways and Transportation Employees and Highway
Patrol Retirement System, this substitute:

(1) Increases the disability benefits of any member found to be
wholly incapable of performing work for the department from 1.5
to 1.6% of the member's average compensation multiplied by the
number of years of creditable service;

(2) Raises the initial compensation that a member will receive
in disability benefits if injured in the line of duty from 50%
to 70% of the compensation that the employee was earning at the
time of the injury.  However, the sum of the disability benefits
such a member receives from both the system and social security
cannot exceed the monthly compensation the member had been
receiving at the time of the injury.  The member must submit to
the board medical certification estimating the duration of the
disability and proof of application for social security benefits;

(3) Allows the board to provide for long-term disability
benefits for disabled employees whose disability is expected to
last for over a year.  The board will establish the eligibility
requirements, benefit period, amount of benefits, and rules and
procedures of administration.  The board will also determine a
definition of disability;

(4) Terminates benefits for members who retain or regain their
earning capacity, as determined by the board of trustees.  This
replaces current law requiring that a member cannot receive
benefits if he or she retains or regains 50% of his or her
earning capacity;

(5) Permits a member receiving disability benefits to receive
cost-of-living benefits;

(6) Requires the State Highways and Transportation Commission to
contribute the same amount provided for all state employees for
medical insurance to any member receiving disability benefits;

(7) Establishes that any member receiving disability benefits
will continue to accrue normal annuity benefits based on the
member's rate of pay prior to the disability.  The disabled
member will be eligible to retire upon reaching normal
retirement age, and will receive either the normal annuity or
the minimum annuity required by law, whichever is greater;

(8) Allows any member receiving disability benefits on August
28, 1995, or any member who has applied for benefits before this
date, to receive disability benefits as provided by these
revisions upon their effective date or as provided by law prior
to the effective date until the member again becomes an employee;

(9) Qualifies a member receiving disability benefits for the
death benefit plan for state employees who die prior to
retirement having earned between 3 and 10 years of creditable
service.

The surviving spouse of a judge who dies or died on or after
January 1, 1994, while receiving long term disability benefits
is granted 50% of the retirement compensation the judge would
have been entitled to had that judge served the 12 years
required for a judge to receive full retirement benefits.

The procedures are established by which any full-time employee
of Harris-Stowe State College, who has worked there since 1978
and since been a member of MOSERS, may purchase creditable
service toward retirement for service rendered to Harris-Stowe
prior to 1978 as a member of a public school retirement system.

A MOSERS member who retires may retain the amount of life
insurance that the member had purchased and was in effect at the
time of retirement.  This replaces current law limiting the
value of the life insurance to $10,000.

This bill repeals a provision of current law that prohibits
members of any of the state's public school retirement systems
from purchasing equivalent credit from another of the state's
retirement systems after August 28, 1994.

State retirement systems will develop a procurement action plan
for the use of minority and women money managers, brokers, and
investment counselors.

FISCAL NOTE:  Cost to State Highway Fund of $5,160 in FY 96,
$13,251 in FY 97, and $19,876 in FY 98.  Cost to Missouri
Highway Transportation Department & Missouri State Highway
Patrol Retirement Fund of $67,610 in FY 96, $168,755 in FY 97,
$263,258 in FY 98.  Net Cost to General Revenue Fund of
$1,218,600 to $1,318,600 in FY 96, $1,462,320 to $1,562,320 in
FY 97, and $1,462,320 to $1,562,320 in FY 98.

HCS HB 416, 474, 544, 587 -- RETIREMENT SYSTEMS

SPONSOR:  Hagan-Harrell

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Retirement by a vote of 7 to 0.

This substitute makes several changes in state retirement system
law.  By revising current law pertaining to retirement benefits
for members of MOSERS, this substitute:

(1)�Allows a terminated vested member to make a one time
election for the system to pay the present value of a deferred
annuity, if the amount of the member's creditable service is
less than 10 years and the member is not within 5 years of
eligibility for receiving an annuity.  Upon subsequent
employment of one year in a position covered by MOSERS, the
employee can elect to purchase creditable service equal to the
amount surrendered due to the previous election to receive a
payment of a deferred annuity;

(2)�Automatically reverts a member's retirement benefits to an
amount equal to the member's normal annuity should the member,
having chosen a joint and survivor option, be predeceased by his
or her spouse.  The reversion will be effective the first of the
month following the death of the spouse regardless of when the
member submits a written application to have the benefits
adjusted;

(3)�Removes language guaranteeing that a member who is under a
long-term disability program provided by the federal government
will continue to accrue normal annuity benefits;

(4)�Establishes that judges, administrative law judges, and
legal advisors who qualify for disability benefits will continue
to accrue creditable service until such employees reach normal
retirement age or are no longer disabled.  Administrative law
judges and legal advisors no longer need to have completed 5
years of service to qualify for employment benefits; and

(5)�Grants qualifying judges, administrative law judges, and
legal advisors who retire a death benefit of $5,000 as
compensation for duties performed as special consultants to
MOSERS.

Technical changes are made pertaining to retirement of MOSERS
members by removing from the statutes outdated tax exemptions
for judges, administrative law judges, and legal advisors;
redundant references to retirement eligibility that are
elsewhere in the statutes; outdated language regarding
creditable prior service.  This substitute also explicitly
states that any member may retire with a normal annuity upon
obtaining normal retirement age.

By revising statutes pertaining to disability payments for
members of the Highways and Transportation Employees and Highway
Patrol Retirement System, this substitute:

(1) Increases the disability benefits of any member found to be
wholly incapable of performing work for the department from 1.5
to 1.6% of the member's average compensation multiplied by the
number of years of creditable service;

(2) Raises the initial compensation that a member will receive
in disability benefits if injured in the line of duty from 50%
to 70% of the compensation that the employee was earning at the
time of the injury.  However, the sum of the disability benefits
such a member receives from both the system and social security
cannot exceed the monthly compensation the member had been
receiving at the time of the injury.  The member must submit to
the board medical certification estimating the duration of the
disability and proof of application for social security benefits;

(3) Allows the board to provide for long-term disability
benefits for disabled employees whose disability is expected to
last for over a year.  The board will establish the eligibility
requirements, benefit period, amount of benefits, and rules and
procedures of administration.  The board will also determine a
definition of disability;

(4) Terminates benefits for members who retain or regain their
earning capacity, as determined by the board of trustees.  This
replaces current law requiring that a member cannot receive
benefits if he or she retains or regains 50% of his or her
earning capacity;

(5) Permits a member receiving disability benefits to receive
cost-of-living benefits;

(6) Requires the State Highways and Transportation Commission to
contribute the same amount provided for all state employees for
medical insurance to any member receiving disability benefits;

(7) Establishes that any member receiving disability benefits
will continue to accrue normal annuity benefits based on the
member's rate of pay prior to the disability.  The disabled
member will be eligible to retire upon reaching normal
retirement age, and will receive either the normal annuity or
the minimum annuity required by law, whichever is greater;

(8) Allows any member receiving disability benefits on August
28, 1995, or any member who has applied for benefits before this
date, to receive disability benefits as provided by these
revisions upon their effective date or as provided by law prior
to the effective date until the member again becomes an employee;

(9) Qualifies a member receiving disability benefits for the
death benefit plan for state employees who die prior to
retirement having earned between 3 and 10 years of creditable
service.

The surviving spouse of a judge who dies or died on or after
January 1, 1994, while receiving long term disability benefits
is granted 50% of the retirement compensation the judge would
have been entitled to had that judge served the 12 years
required for a judge to receive full retirement benefits.

The procedures are established by which any full-time employee
of Harris-Stowe State College, who has worked there since 1978
and since been a member of MOSERS, may purchase creditable
service toward retirement for service rendered to Harris-Stowe
prior to 1978 as a member of a public school retirement system.

A MOSERS member who retires may retain the amount of life
insurance that the member had purchased and was in effect at the
time of retirement.  This replaces current law limiting the
value of the life insurance to $10,000.

FISCAL NOTE:  Not available at time of this printing.

PROPONENTS:  Supporters say that Highway Patrol officers who are
injured in the line of duty currently receive cumulative
disability benefits that are significantly below the income they
had been receiving prior to the injury.  In addition, they face
a raise in medical payments.  This substitute should provide
such officers with the same level of income and security they
had been earning.  The revisions regarding the benefits for a
surviving spouse of a deceased judge on disability address a
rare situation but simply provide such surviving spouses with
the benefits received by surviving spouses of deceased judges.
Some language changes have been made to qualify MOSERS for a
national award honoring excellent retirement systems.  The bulk
of the substitute makes the statutes consistent with changes
that have been made in the last couple of years.

Testifying for the bill were Representatives Crump, Skaggs,
Hagan-Harrell, Bartelsmeyer, and Marshall (133); MOSERS; Highway
Employee and Highway Patrol Retirement System; Missouri State
Troopers Association; Superintendent of the Missouri Highway
Patrol; and Corporals Bob Hayes and Clyde Townsend of the
Missouri Highway Patrol.

OPPONENTS:  There was no opposition voiced to the committee.

Brian Cook, Research Analyst

HB 416 -- Highway Employee Disability Payments

Co-Sponsors:  Crump and Copeland, et al.

By revising law pertaining to disability payments for members of
the Highways and Transportation Employees and Highway Patrol
Retirement System, this bill:

(1) Establishes that any member who receives disability benefits
will have this time credited as years and months of service at
the same rate as active employees for the purpose of calculating
the member's retirement annuity;

(2) Raises the initial compensation that a member will receive
in disability benefits if injured in the line of duty from 50%
to 70% of the compensation that the employee was earning at the
time of the injury.  In order to be eligible for disability
benefits, the member must provide an affidavit from a physician
that the disability is expected to continue for at least a year;

(3) States that a member's disability benefits will not be
decreased if the member also receives social security benefits;

(4) Allows disability benefits to be reduced if a member retains
or regains sufficient earning capacity, as determined by the
board of trustees.  This replaces current law requiring that a
member cannot receive benefits if he or she retains or regains
50% of his or her earning capacity;

(5) Permits a member receiving disability benefits to receive
cost-of-living benefits;

(6) Requires the State Highways and Transportation Commission to
contribute the same amount provided for all state employees for
medical insurance to any member receiving disability benefits;

(7) Terminates all disability benefits if a member receives any
retirement annuity; and

(8) Allows any member receiving disability benefits on August
28, 1995, or any member who has applied for benefits before this
date, to receive disability benefits as provided by this section
upon its effective date or as provided by law prior to the
effective date.  No member may receive benefits under more than
one disability plan at the same time.