HCS HB 1306 -- MISSOURI STATE EMPLOYEES' RETIREMENT SYSTEM
(Smith, 118)

COMMITTEE OF ORIGIN:  Retirement

This substitute changes the laws regarding the Missouri State
Employees' Retirement System (MOSERS).  The substitute:

(1)  Adds language allowing retirement boards to promulgate rules
to accommodate changes in the state's payroll system as it
relates to the final average compensation for the retirement
benefit calculation (Sections 104.010.7 and 104.1003(16), RSMo);

(2)  Changes the required hours for an employee to be eligible
for benefits from 1,000 hours to 1,040 hours (Sections
104.010.1(20) and 104.1003(13));

(3)  Changes the definition of "employee" so that after
August 28, 2006, part-time employees of the General Assembly
working less than 1,040 hours per year will not be considered
employees as it relates to retirement benefits (Sections
104.010.1(20)(b) and 104.1003(13));

(4)  Removes cash-out provisions for active employees (Section
104.335);

(5)  Removes language that allows members to purchase contract
service (Section 104.344);

(6)  Revises the provision allowing a survivor of a deceased
member to receive or transfer creditable prior service for
determining survivor benefits (Sections 104.378 and
104.1021(13));

(7)  Clarifies that members on long-term disability are to be
treated like active employees as it relates to retirement
benefits (Sections 104.410 and 104.1042);

(8)  Requires members on disability to pay their life insurance
premium unless approved for a waiver (Sections 104.410 and
104.1042);

(9)  Requires that no error in benefit calculation be corrected
unless it is discovered within 10 years of the date benefits
began (Section 104.490);

(10)  Adds language that all retirees of the plans administered
by MOSERS and MPERS, excluding uniformed members of the highway
patrol, who become reemployed into a benefit-eligible position
will terminate their retirement benefits while so employed.  Upon
re-retirement, after completing at least one year of service, an
additional annuity will be calculated based on the position held
while reemployed.  The retirement system that paid the original
annuity will be responsible for paying the additional annuity
(Section 104.603);

(11)  Requires that members purchasing creditable service must
apply and complete the purchase prior to applying for retirement
benefits (Section 104.606);

(12)  Creates an excess benefit plan allowing MOSERS to pay
benefits presently subject to Internal Revenue Code 415
limitations (Section 104.607);

(13)  Extends the final beneficiary payment provisions to judges
and members of the Administrative Law Judges and Legal Advisors'
Retirement Plan (ALJLAP) (Section 104.620);

(14)  Adds safe harbor provisions for the MOSERS board as it
relates to education and advice given to members for retirement
planning (Sections 104.1012 and 104.1205.2);

(15)  Changes the vesting requirement for service purchase
transfers for legislators from two to three full biennial
assemblies (Section 104.1021(11));

(16)  Clarifies that MOSERS can make beneficiary payments to the
natural parent or the legal guardian of a minor child until age
18; thereafter, the benefit may be paid to the child until age 21
(Section 104.1030);

(17)  Allows judges and administrative law judges to vote and be
a candidate for an elected position on the MOSERS board (Section
104.450); and

(18)  Clarifies that retirees, under the new plan, can retain
optional life insurance coverage until age 62 (Section 104.1072).

FISCAL NOTE:  No impact on state funds in FY 2007, FY 2008, and
FY 2009.

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:42 am