SS SCS HS HB 1455 -- PUBLIC RETIREMENT SYSTEMS

This bill makes changes to several public retirement system
plans.

COUNTY EMPLOYEES RETIREMENT FUND

Except in charter counties, a contribution of 4% of compensation
is required for employees hired on or after February 25, 2002.
The contribution must be made out of county funds or, upon the
individual election of the county, the county may require a
portion of the contribution to be made by the employee.

ST. LOUIS POLICE

Several provisions are modified to comply with Internal Revenue
Code changes.

ST. LOUIS FIREFIGHTERS

The bill allows members of St. Louis Firefighters' Retirement
System at age 62 with five to 20 years of service to apply for a
service retirement allowance benefit.  The benefit will be 2%
times years of service times the average final compensation.  The
member must be repaid the total amount of the member's
contribution, without interest.  The benefit is to be paid in
lieu of the refund of accumulated contributions.  Survivor
benefits will be 50% of the member benefit or a refund of
accumulated contributions.  Members will also receive a
cost-of-living allowance of 5% per year for a maximum of five
years.

The bill allows a minimum benefit of $525 per month to a
surviving spouse of a St. Louis firefighter if the surviving
spouse is receiving less than that amount currently.  The bill
also allows retired firefighters to receive a minimum retirement
benefit of $625.  The duty-related death benefits for widows is
increased from 50% of average final compensation to 70% of the
highest step in the range of salaries for the next title or rank.

Outdated language regarding the distribution of the cost-of-
living adjustment under the St. Louis Firefighters' Retirement
Plan is removed.

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 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.  Determining whether a position is benefit
eligible would be made by the agency instead of being tracked by
MOSERS.  Retirees who return to work in a benefit eligible
position would be allowed to receive credited service;

(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);

(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; and

(9)  Allows retirees who choose the deferred retirement option
(DROP) to elect to take any portion of the eligible service in
12-month increments.  Under current law, a retired employee must
elect to take the entire amount of eligible service.

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;

(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;

(3)  Changes the qualification for members of the General
Assembly to receive benefits from two to three full biennial
assemblies; and

(4)  Allows for the designation of an agent, limited to a
relative or spouse, for retired members who become incapacitated
where there has not been designation of durable power of
attorney.

MOSERS/JUDGES/PROSECUTORS/ADMINISTRATIVE LAW JUDGES

The amount of service that may be transferred is changed from
five to eight years.

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.

All public pension plans are required to prepare an actuarial
valuation every two years that complies with governmental
accounting standards, board recommended standards, and guidelines
for public sector pension plans.

Members of the Board of Probation and Parole are allowed use and
accrual of unused sick leave.

The bill contains an emergency clause and will be effective on
the date of its approval or July 1, 2002, whichever occurs later.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:01 am