HS HCS SB 371 -- PUBLIC RETIREMENT SYSTEMS

This bill clarifies and makes minor modifications to the
Missouri State Employees' Plan (MSEP), the Missouri State
Employees' 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 adjustment.  Legislators and statewide elected
officials will have the same death-in-service benefits and will
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

A 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 will 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 of the Missouri State
Employees' Retirement System (MOSERS) 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 bill allows for complete transferability of service between
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.

DEFERRED RETIREMENT OPTION PLAN (DROP)

The bill creates a deferred retirement option plan 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.

UNIVERSITY RETIREMENT PLAN

The bill 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.

OTHER PROVISIONS

The Missouri Highways and Transportation Commission is
authorized to provide liability insurance covering the operation
of all vehicles owned, leased, or used by HTEHPRS, when
requested by the system.  The commission may also, when
requested by the system, provide workers' compensation coverage
for the Executive Director and employees of the system.  The
system will reimburse the commission for all costs of coverage
provided by the commission.

Any person appointed or employed as a legal advisor prior to
August 28, 2001, who is receiving or is eligible to receive
state employee retirement benefits will, upon application, be
employed by MOSERS as a special consultant on retirement
problems, aging, and other state matters for the remainder of
that person's life.  The consultant will be available to give
opinions in writing or orally in response to requests of the
board or the Administrative Hearing Commission.  As compensation
and in lieu of receiving state employee retirement benefits,
each special consultant is eligible for all benefits payable
under the ALJLAP effective on the later of August 28, 1999, or
the date retirement benefits become payable.  No retroactive
benefits will be paid.

The bill also clarifies that for the purposes of HTEHPRS, MSEP,
and MSEP 2000, any reference to the term "spouse" recognizes
only a marriage between a man and a woman.

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