Read 1st time February 24, 2000, and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
AN ACT
To amend chapter 104, RSMo, relating to the transportation department employees' and highway patrol retirement system, by adding thereto one new section relating to a deferred retirement option program, with an effective date.
Section A. Chapter 104, RSMo, is amended by adding thereto one new section, to be known as section 104.253, to read as follows:
104.253. 1. As used in this section, the following terms mean:
(1) "Board", the highway and transportation employees' and highway patrol retirement system board of trustees as created pursuant to sections 104.010 to 104.270;
(2) "Eligible member", a member who has attained normal retirement eligibility as defined in section 104.010 or 104.1003;
(3) "Member", a person eligible to receive a normal annuity electing to participate in a deferred retirement option program adopted by the board pursuant to this section; and
(4) "Program", the deferred retirement option program established pursuant to this section.
2. The board may develop and establish a deferred retirement option program in which members eligible to receive a normal annuity may participate. The program shall be designed to allow eligible members to elect retirement status and receive annuity payments while continually employed. The annuity payments shall be transferred from the retirement system fund to be held in individual accounts administered by the board. Any eligible member may elect prior to retirement to participate in the program. A member electing to participate in the program shall continue in active employment and shall not receive any direct retirement annuity payments during the time of participation in the program. During participation in the program, the member shall not accrue additional creditable service coincident with participation. The receipt of the retirement annuity shall be deferred for a period of no less than twelve months and no greater than sixty months from the date of election.
3. Upon application for participation in the program, the member shall elect whether to designate a beneficiary as provided in section 104.090 or 104.1027, whichever is applicable. The monthly annuity that the member would have received as a normal retirement annuity shall be directed monthly to the member's program account. The member's account shall be credited annually with six percent interest, beginning twelve months after the annuity starting date of participation in the program based on the average balance in the program account during the year.
4. In calculating the normal retirement annuity, the member's unused sick leave shall be credited as provided by section 104.601 or 104.1021, whichever is applicable. Vacation and sick leave accruals may continue at the same accrual rates during participation in the program.
5. In addition to the annuity payments in subsection 3 of this section, the member's program account shall be credited in the same manner with the cost-of-living adjustments payable pursuant to section 104.612 or 104.1045, whichever is applicable.
6. A member terminating employment after participation in the program may withdraw any amount in his or her program account in a lump sum or according to a deferred payment plan established by the board and at the member's option, or as a direct rollover as provided by regulations promulgated pursuant to the Internal Revenue Code of 1986, as amended.
7. If the member dies during the program period, the member shall be deemed to have retired on the date of death, and the survivor benefits shall be payable as provided at date of application. The program account balance shall be payable to the designated beneficiary in a lump sum or according to a deferred payment plan established at the member's option or as a direct rollover as provided by regulations promulgated pursuant to the Internal Revenue Code of 1986, as amended. If no beneficiary is designated, the account balance shall be paid to the member's estate.
8. In the event the member dies and the board finds that the death was a natural and proximate result of a personal injury or disease arising out of and in the course of the member's actual performance of duty as an employee, the retirement annuity payable shall be the greater of the benefit the member would have been entitled to on the date of election to participate in the program or as provided in section 104.420 or 104.1030, whichever is applicable.
9. In the event the member becomes disabled during participation in the program, the retirement annuity payable shall be the greater of the benefit the member would have been entitled to on the date of election to participate in the program or as provided by section 104.410 or 104.1042, whichever is applicable.
10. A member may choose to become reemployed at the end of the program participation period. As such time the retirement annuity shall cease and shall not be payable until the member again retires. The member shall be considered to be a new employee with no previous credited service upon subsequent retirement. When the member again elects retirement status, the member shall receive an additional annuity based only on the credited service and pay earned during reemployment and paid in accordance with the annuity option originally elected.
11. During participation in the program, members shall have all rights, privileges and benefits of an active employee, including the employer contribution for flexible benefits program, health care benefits program, deferred compensation program and any other program or programs offered active employees.
Section B. Section 104.253 shall become effective on July 1, 2001.
Missouri House of Representatives