HB 1823 -- State Retirement Systems

Co-Sponsors:  Franklin, Hagan-Harrell, O'Toole, Skaggs

This bill makes several changes to state retirement systems.

HIGHWAY AND TRANSPORTATION EMPLOYEES' AND HIGHWAY PATROL
RETIREMENT SYSTEM (HTEHPRS)

The bill:

(1)  Allows service credit to be given to an employee who has
taken leave under the provisions of the Family and Medical Leave
Act;

(2)  Allows the HTEHPRS board to contract for disability
benefits;

(3)  Makes survivor benefits uniform with the Year 2000 Plan;

(4)  Allows the collection of child support or spousal
maintenance; and

(5)  Clarifies that HTEHPRS may provide medical benefits for
members of the closed plan and the Year 2000 Plan.  HTEHPRS is
allowed to contract with other organizations for benefits and may
require reimbursement of any medical claims paid by the medical
plan for which there is third-party liability.

MISSOURI STATE EMPLOYEES' RETIREMENT SYSTEM (MOSERS)

The bill:

(1)  Requires an employee who has forfeited creditable service to
work continuously for one year before the forfeited credited
service is restored.  Currently, credit is restored after one day
of employment;

(2)  Allows service credit to be given to an employee who has
taken leave under the provisions of the Family and Medical Leave
Act;

(3)  Requires benefit payments to be suspended for retirees
returning to work as soon as the individual is hired in a
position requiring at least 1,000 hours a year rather than after
1,000 hours of work have been rendered within a year.  In
addition, retirees who return to work would not be allowed to
receive creditable service for such employment or life insurance,
except for any retiree life insurance that may be in effect.
Current retirees who are working for the state are allowed to
continue to receive benefits;

(4)  Clarifies that a member who is eligible for normal
retirement, terminates employment, and retires within 60 days of
such termination is eligible for $5,000 of life insurance
coverage;

(5)  Allows a beneficiary to assign life insurance proceeds;

(6)  Clarifies the process and amount of sick leave that is
reported to the retirement system;

(7)  Adds language regarding rollover distributions.  (This
language is necessary because of provisions signed into federal
law as part of the Economic Growth and Tax Reconciliation Act of
2001); and

(8)  Allows the designation of beneficiaries for final payment of
a retirement benefit.  The bill also allows the retirement
system, in the event of a member's death, to refund to the
survivor the difference between any purchase of service less any
retirement benefit received, unless a survivor benefit is
payable.

MISSOURI STATE EMPLOYEES' RETIREMENT SYSTEM (CLOSED PLAN ONLY)

The bill:

(1)  Removes the cash-out provision for employees who terminate
employment on or after September 1, 2002;

(2)  Requires members who wish to purchase service credit for
non-federal public employment in the State of Missouri to
purchase all years of service, up to a maximum of four years;

(3)  Clarifies that a member who has reached eligibility for a
normal retirement annuity must terminate employment prior to
receiving a benefit; and

(4)  Clarifies language pertaining to the certification of
contribution rates and the method of computing such level
percentage of payroll.

MISSOURI STATE EMPLOYEES' RETIREMENT SYSTEM (YEAR 2000 PLAN ONLY)

The bill:

(1)  Defines the responsibilities, obligations, and liabilities
of any insurer or service organization employed by the MOSERS
board to administer disability benefits and stipulates an appeals
procedure for denial of benefits; and

(2)  Clarifies that an employee cannot receive creditable service
in the closed plan for any period in which the member
participates in the defined contribution plan established for
colleges and universities.

OTHER

The bill clarifies that any judge who is a commissioner or deputy
commissioner of a circuit court who had creditable service in the
MOSERS and the Judicial Plan may elect to consolidate all of that
service in either plan or draw separate retirement benefits from
each plan.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:02 am