HCS SCS SB 563 -- PUBLIC EMPLOYEE RETIREMENT SYSTEMS

SPONSOR:  Smith (Leara)

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 public employee
retirement systems.

POLICE RETIREMENT SYSTEM OF ST. LOUIS

The substitute:

(1)  Eliminates the medical board of physicians that arranges for
required disability-related medical examinations and replaces it
with a medical director who must appoint doctors to investigate
the physical and mental conditions of applicants for disability
retirement.  The medical director must report in writing to the
board of trustees of the system on the doctor's conclusions and
recommendations in connection with an application for disability
retirement;

(2)  Allows members who have completed at least 10 years of
creditable service and who become permanently unable to perform
the duties of a police officer as the result of an injury or
illness not exclusively caused or induced by his or her official
duties or by his or her negligence to retire upon certification
of the medical director and approval by the board of trustees;

(3)  Allows members who are permanently disabled exclusively as a
result of an accident occurring within the actual performance of
duty at some definite time and place to retire upon certification
by the medical director and the approval of the board of
trustees.  These members must apply for disability within five
years of the accident, unless the accident was reported within
five years and the member was examined by a health care provider
supplied by the board of police commissioners within 30 days of
the accident;

(4)  Requires a member who retires because of disability and is
younger than 60 years of age to submit to a medical examination
yearly for the first five years following his or her retirement
and at least once every three years thereafter.  If the retiree
refuses to submit to a medical examination, his or her disability
pension may be discontinued.  If the retiree continues to refuse
for one year, his or her pension may be revoked; and

(5)  Specifies that if the medical director certifies to the
board of trustees that a member who retires because of disability
is able to perform the duties of a police officer and the board
agrees, the disability pension will end.  If the officer returns
to active service, the period of time during which the officer
received a disability pension will not be included in his or her
time of service.

PUBLIC SCHOOL RETIREMENT SYSTEMS

The substitute:

(1)  Allows the boards of the Public School Retirement System of
Missouri and the Public Employee Retirement System of Missouri to
establish and 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, upon the death of a member, 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)  Prohibits the employees of any additional nonprofit
educational association or organization from becoming a member of
the retirement systems beginning July 1, 2010; and

(6)  Allows the retirement systems, to the extent determined
appropriate by the board of trustees, to indemnify and protect
any trustee or employee of the systems 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.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say that the bill will make the system
more efficient when determining whether a member is eligible for
disability benefits.

Testifying for the bill were Senator Smith; and Police Retirement
System of St. Louis.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am