SB0761T-Truly Bill Summary (House)
HCS SB 761 -- KANSAS CITY TEACHERS RETIREMENT
This bill makes several changes to the Public School Retirement System of Kansas City. The
definition of normal retirement age currently provides for 80 credits (years of age plus years of
service); the bill lowers this figure to 75. Effective January 1, 1999, the employer and employee
contribution rises to 7.5%.
The current minimum disability retirement benefit is 25% of final average compensation; the bill
sets the minimum at the lesser of 25% or the service retirement allowance calculated as though
the member had earned creditable service until the age of 60. The bill also removes a prohibition
on the availability of retirement benefit options for disability retirees. Applications for disability
retirement can be made after a member ceases to be an active member if the disability began while
the member was active and if the application is made no more than 6 months after the disabled
member ceases employment. The bill clarifies that benefits for disability retirants earning more
than the difference between disability pay plus social security and the current rate of compensation
for the position the person held at retirement will be reduced for those who have not yet reached
normal retirement age. Disability retirants are permitted, as regular retirants currently are, to elect
optional allowances for beneficiaries.
The multiplier for retirement benefits is currently 1.34% of final average compensation, with a
maximum of 60%; the bill changes the multiplier for members retiring on or after June 30, 1999,
to 2%, retaining the 60% maximum. Currently the board of trustees determines each year if
benefits can be increased for retirants of at least age 65 who have been retired for 14 months. The
bill allows eligibility for increases to persons receiving benefits on the fourth January following the
commencement of their retirement benefits. The bill also clarifies that those former members
whose benefits will be transferred to the general reserve fund when they cannot be contacted to
receive their accumulated contributions are limited to unvested former members.
The bill also makes a technical change to the section that permits certain entities to seek a
declaratory judgment concerning the Hancock amendment to make it applicable to all new benefit
features under the chapter.
Missouri House of Representatives House Summary List