HCS SB 371 -- PUBLIC RETIREMENT SYSTEMS

SPONSOR:  Scott (O'Toole)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Miscellaneous Bills and Resolutions by a vote of 9 to 0.

This substitute clarifies and makes minor modifications to the
Missouri State Employees' Plan (MSEP), the Missouri State
Employees' Retirement Plan 2000 (MSEP 2000), the Administrative
Law Judges and Legal Advisors' Plan (ALJLAP), the Judicial Plan,
and the Highway and Transportation Employees' and Highway Patrol
Retirement System (HTEHPRS).

MSEP and MSEP 2000

The amount paid to an ex-spouse will be based on a percentage of
the monthly annuity rather than a specific dollar amount.  The
percentage would apply to any lump sum distribution or
cost-of-living adjustments.  Legislators and statewide elected
officials will have the same death-in-service benefits and be
allowed to elect from the same menu of retirement options
available to general employee members of the plan.  The annuity
starting date is clarified.

MSEP

The division of benefits order will be based on the value of the
MSEP benefit, but any increases after retirement will be based
on the plan elected at retirement.  Language regarding military
service credit is clarified and reflects current federal law
requirements for military service credit.  Legislators and
statewide elected officials will have the same death-in-service
benefits and be allowed to elect from the same menu of
retirement options available to general employee members of the
plan.  The annuity starting date is clarified.

Members of the Board of Trustees are allowed to continue serving
until they resign or are replaced by new appointees.
Definitions of disability and other rules established by the
board may be included in contracts between the board and other
entities.  Unused sick leave is changed from 21 days to 168
hours for purposes of crediting service.

The substitute allows for complete transferability of service
between the Missouri State Employees' Retirement System (MOSERS)
and HTEHPRS.  Refunds for purchased service will be issued in
the event a member or beneficiary receives less than the amount
paid to the system in connection with a purchase.

MSEP 2000

Pay is redefined to include any nonrecurring single sum
payment.  Members retiring under the Rule of 80 are eligible to
retain any optional life insurance held immediately prior to
retirement.  Eligibility will cease at the earliest age for
Social Security eligibility.

The designation of agent language is expanded to include the
ALJLAP and Judicial Plan.  The designation is effective only
upon the disability or incapacity of the benefit recipient as
determined by the person's physician.

JUDICIAL PLAN

Any judge who has creditable service under Chapters 104 and 476,
RSMo, may make a one-time election upon application to receive
all retirement benefits for that service under either Chapter
104 or 476.  The contribution rate used for calculating purchase
of military service for a judge will be the computed rate on the
date of employment.

OTHER PROVISIONS

The substitute creates a deferred retirement option that
provides an annuity that may be distributed in a single lump sum
or in 3 annual payments for members of MOSERS and HTEHPRS in
both the closed plan and the Year 2000 Plan.  Elected officials
and members of the General Assembly are not eligible.  Employees
who have reached normal retirement age and continue to work for
at least 2 more years may select a retroactive starting date,
which would be the later of the date when a normal retirement
benefit would have been payable if the member had retired or 5
years before the annuity starting date.  The annuity would be
the amount that would have been payable had the member actually
retired on the retroactive starting date.  The lump sum amount
would be 90% of the annuity.

The substitute also creates a defined contribution plan for
state colleges and universities for teaching personnel,
instructors, assistant professors, associate professors,
professors, and academic administrators holding faculty rank.
MOSERS is required to establish the plan, select a third party
administrator, select investment products, and establish
contribution rates.

FISCAL NOTE:  Costs to Various State Agencies of Less Than
$100,000 in FY 2002, FY 2003, and FY 2004.  Total cost does not
include potential unknown savings to the state from creation of
a defined-benefit retirement plan for new academic hires at
regional universities and colleges.

PROPONENTS:  Supporters say that the bill corrects technical
errors in the law, makes uniform certain provisions, and
eliminates obsolete language.

Testifying for the bill were Senator Scott; Missouri State
Employees' Retirement System; and Highway and Transportation
Employees' and Highway Patrol Retirement System.

OPPONENTS:  There was no opposition voiced to the committee.

Donna Schlosser, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:47 am