HCS SCS SB 411 -- PUBLIC EMPLOYEE RETIREMENT SYSTEMS

(Vetoed by the Governor)

This bill changes the laws regarding certain public employee
retirement systems.

MISSOURI DEVELOPMENT FINANCE BOARD EMPLOYEES

The bill allows an employee of the Missouri Development Finance
Board who is hired on or after August 28, 2009, and is paid a
salary or wage by the board in a position normally requiring the
performance of duties of not less than 1,040 hours per year to be
a state employee and to be eligible for retirement benefits in
the Year 2000 Plan of the Missouri State Employees' Retirement
System (MOSERS).

An employee of the board prior to August 28, 2009, may elect no
later than December 31, 2009, to purchase prior credited service
and transfer his or her individual account balance under the
board-sponsored retirement plan to MOSERS up to the amount
necessary to fund the benefit attributable to the credited
service.  The board must pay any additional contributions
necessary for purchasing the service.

PUBLIC SCHOOL RETIREMENT SYSTEMS

The bill changes the laws regarding the Public School Retirement
System of Missouri and the Public Education Employee Retirement
System of Missouri.  In its main provisions, the bill:

(1)  Allows the boards of the retirement systems to establish and
maintain an investment fund account to combine moneys from both
systems for investment purposes only.  The funds of each system
must 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 a purchase or
impose additional requirements for making a purchase if necessary
to comply with federal law;

(4)  Specifies that, upon the death of a member who has chosen a
guaranteed payment option and no designated beneficiary is living
or the member's financial institution cannot accept the payment,
any remaining 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;

(5)  Prohibits, beginning July 1, 2010, employees of any
additional nonprofit educational association or organization from
becoming members of the retirement systems;

(6)  Allows the retirement systems, to the extent determined
appropriate by the boards of trustees, to indemnify and protect
any trustee or employee of the systems against liability claims
arising out of his or her official capacity.  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 appropriate board within 15 days of receiving a
service of process of a proceeding;

(7)  Requires all suits or proceedings directly or indirectly
brought against the boards, members or employees of the boards,
or the systems themselves to be brought in Cole County; and

(8)  Allows funds belonging to the retirement systems and certain
benefits to be subject to execution, garnishment, attachment, or
any other process in a proceeding instituted for spousal
maintenance or child support.

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