HB 548 -- St. Louis City Police Retirement System

Co-Sponsors:  O'Toole, Gambaro

This bill revises the St. Louis City Police Deferred Retirement
Option Plan (DROP).  The bill:

(1)  Reduces the number of years a member's average final
compensation is based on from 3 years to one year.  Final
compensation is also further defined based on creditable service
earned before, during, and after DROP participation.  Voluntary
contributions are excluded from accumulated contributions;

(2)  Allows the Board of Trustees to appoint an attorney to
serve as legal advisor and represent the system in all legal
proceedings;

(3)  Requires that past mandatory contributions be deposited in
members' DROP accounts.  Compensation earned during DROP
participation will not be used to calculate retirement
benefits.  Service retirement allowances are frozen at the date
the member enters DROP;

(4)  Allows members participating in a DROP to make voluntary
contributions of 7% of their salary to the DROP account;

(5)  Allows a member who ceases participation in DROP to return
to active participation in the system at the end of the five--
year DROP period or when they elect to return to active
participation, whichever is earlier, but not later than October
1, 2001.  Also, allows a member participating in DROP to re--
enter the system and to resume making mandatory contributions as
of the day participation in the DROP ends or October 1, 2001,
whichever is later;

(6)  Requires mandatory contributions, other than those
deposited in the member's DROP account, to be paid to the member
within 60 days of the actual retirement.  If a member dies prior
to retirement, the member's mandatory contributions must be paid
to the member's surviving spouse;

(7)  Allows a member, receiving accidental disability, to
receive the portion of the DROP account attributable to
mandatory or voluntary contribution.  The contributions will be
distributed in a lump sum or equal monthly installments over a
ten-year period;

(8)  Allows the board to establish procedures for the investment
of member's DROP accounts.  At the date investment options are
made available, the value of each member's DROP account must be
transferred to the DROP investment option selected by the member
or the investment option designated by the board.  The board is
released from liability for changes to the member's account;

(9)  Requires a member participating in DROP on August 12, 1999,
who returns to active participation in the system and retires
before earning at least 2 years of service, to receive an
allowance of the member's benefit as of the date the member
entered DROP and an additional benefit based on the service
earned after returning to active participation.  If a member has
at least 2 years of service after returning, total years of
service must be taken into account when determining the benefit;

(10)  Increases compensation for special advisors and surviving
spouses of special advisors from $10 to $20 per month times the
number of years the retired member is past age 60;

(11)  Requires a deduction from a member's salary of 7% to be
contributed into the member's account for members who have
returned to active participation in the system after
participation in DROP;

(12)  Exempts benefits from the Police Relief Association from
Missouri income taxes; and

(13)  Changes several sections to clarify a retired member as a
member who has terminated employment and retired in relation to
participation to DROP.

Missouri House of Representatives
Last Updated September 13, 2001 at 2:02 pm