HCS HB 443 -- PUBLIC SCHOOL RETIREMENT SYSTEM OF MISSOURI

SPONSOR:  Smith, 118 (Sander)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Retirement by a vote of 9 to 0.

This substitute changes the laws regarding the Public School
Retirement System of Missouri (PSRS).  In its main provisions,
the substitute:

(1)  Changes the name of the Nonteacher School Employee
Retirement System (NTRS) to the Public Education Employee
Retirement System;

(2)  Excludes from the definition of "salary" employer-paid
premiums for medical insurance for a spouse and children and
employer contributions to deferred compensation plans;

(3)  Requires the cost of the remaining credit not paid by the
member purchasing prior service credit by June 30 of each year to
be recalculated each July 1 in lieu of charging interest.
Members filing purchase applications prior to January 1, 2006,
can elect to continue having the cost of their purchases based on
the calculation in effect prior to January 1, 2006;

(4)  Allows members who have prior nonfederal public employment
or who, while being at least age 18, were employed in a position
covered by Social Security and who worked at least 20 hours a
week on a regular basis to purchase equivalent creditable
service;

(5)  Adds a term-certain retirement option that upon a member's
death prior to receiving all guaranteed monthly payments that if
the total of all guaranteed payments to the retired individual
and their beneficiary are less than the member's accumulated
contributions, the difference will be paid to the beneficiary in
a lump sum;

(6)  Provides for the order of distribution on any benefits
payable upon the death of a member or the death of a deceased
member's beneficiary;

(7)  Specifies that if a member of PSRS has received disability
retirement, they are not eligible to elect a distribution under
the partial lump sum option plan.  This provision is already in
the NTRS;

(8)  Allows a member's beneficiary, in lieu of receiving any
benefit from the retirement system, to elect that the benefits be
payable to the deceased member's children;

(9)  Repeals Section 169.555, RSMo, dealing with contribution
rates.  This section is similar to Sections 169.030 and 169.620
and is being removed to prevent confusion; and

(10)  Allows the NTRS to establish a qualified governmental
excess benefit arrangement plan (QGEBA).

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the bill clarifies and makes
necessary changes to the laws regarding the retirement system.
The name change for the nonteacher system is a great idea.

Testifying for the bill were Representative Sander; Missouri
School Boards Association; Public School Retirement System of
Missouri; Missouri Retired Teachers Association; Missouri State
Teachers Association; Missouri School Administrators Coalition;
Martha Geel; Shari Lawson; Susan Lidholm; and Missouri Community
College Association.

OPPONENTS:  There was no opposition voiced to the committee.

Marc Webb, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:19 pm