HCS HB 2104 -- PUBLIC EMPLOYEE RETIREMENT SYSTEMS

SPONSOR:  Wallace (Viebrock)

COMMITTEE ACTION:  Voted "do pass by consent" by the Special
Committee on Retirement by a vote of 7 to 0.

This substitute changes the laws regarding various public
employee retirement systems.

MISSOURI LOCAL GOVERNMENT EMPLOYEES' RETIREMENT SYSTEM

The substitute allows political subdivisions to elect to cover
emergency police dispatchers and jailors as policemen members and
emergency fire dispatchers and emergency medical service
personnel as firemen members for retirement benefit purposes
under the Missouri Local Government Employees' Retirement System.

POLICE AND FIREMEN'S PENSION SYSTEM INVESTMENTS

Currently, investments made by boards of trustees of police and
firemen's retirement systems are subject to all terms,
conditions, limitations, and restrictions imposed upon life
insurance or casualty companies in making their investments.  The
substitute removes those terms, conditions, limitations, and
restrictions and requires the boards to invest the funds of the
system as permitted in Sections 105.687 - 105.690, RSMo,
regarding the duties of investment fiduciaries.

PUBLIC SCHOOL RETIREMENT SYSTEM OF MISSOURI AND PUBLIC EDUCATION
EMPLOYEE RETIREMENT SYSTEM

The substitute:

(1)  Allows the board of the retirement systems to maintain an
investment fund account to combine moneys from both systems for
investment purposes only.  The funds of each system will be
accounted for separately and for all other reporting purposes;

(2)  Allows a member when purchasing prior service credit who has
not paid the entire cost of the service by September 30 to have
the purchase price recalculated as of October 1 of the same year
instead of charging interest.  Currently, if a member has not
paid for the service by June 30, the purchase price will be
recalculated as of July 1;

(3)  Allows the retirement systems to prohibit or impose
requirements for purchasing service if necessary to comply with
federal law;

(4)  Specifies that benefits will be paid in the order of the
surviving spouse, surviving children equally, surviving parents
equally, or to the estate of the last person receiving benefits
if a member chooses a guaranteed payment option and no designated
beneficiary is living upon the death of the member;

(5)  Allows the retirement systems, to the extent determined
appropriate by the board of trustees, to indemnify and protect
any trustee or employee against liability claims.  No employee or
trustee will be entitled to indemnification for his or her gross
negligence or willful misconduct or unless written notice is
given to the board within 15 days of receiving a service of
process;

(6)  Prohibits any additional nonprofit educational association
or organization from becoming a member of the retirement systems
beginning July 1, 2009; and

(7)  Allows a member who elected a joint and survivor option at
retirement and whose marriage to the nominated beneficiary is
dissolved and the dissolution decree provides for sole retention
by the retiree of all rights to the retirement allowance to
revert the allowance to an unreduced retirement payment option.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that the bill will allow the Public
School Retirement System of Missouri to purchase liability
insurance for its board members and employees to indemnify them
against liability claims and will keep the retirement system
within the scope of current federal Internal Revenue Service
guidelines.

Testifying for the bill were Representative Viebrock; Public
School Retirement System of Missouri; and Public Education
Employee Retirement System of Missouri.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm