SCS/HB 385 - This act modifies the current Public School Retirement System pertaining to teachers and non-teachers.

TEACHER MEMBER MODIFICATIONS - An additional option is provided for teacher members who have thirty-one years or more of creditable service, regardless of age. Such persons may elect a retirement allowance of two and fifty-five hundredths percent of the members' final average salary for each year of membership service. Members retiring between July 1, 2001, and June 1, 2008, may elect this option.

The cost of living (COLA) increase for members retiring on or after July 1, 2001 will become effective the second January first, following the member's retirement.

Members who retire prior to July 1, 2001, receive an additional amount equal to three dollars times the member's number of years of creditable service.

This act authorizes the Public School Retirement System Board of Trustees to establish a benefit plan with benefits in excess of the federal maximum benefit amount established in 26 U.S.C. 415. The "secondary" plans may only be used to provide benefits in excess of the federal maximum benefit amounts. (Section 169.070)

This portion of the act has an emergency clause.

This portion of the act is similar to both SB 481(2001) and HB 385 (2001).

SURVIVING SPOUSE BENEFITS - This act extends to surviving spouses of members of the Public School Retirement System who remarried before August 28, 1995 any remaining benefits. The act prohibits retroactive benefits. (Section 169.075)

This portion of the act is similar to HB 386 (2001).

PUBLIC SCHOOL RETIREMENT SYSTEMS RULES - This act requires all school retirement systems created under Chapter 169, RSMo, to promulgate joint rules providing for reciprocity and recognition of credit under any of those systems. The rules shall not permit transfer of creditable service or system assets. (Section 169.569)

This portion of the act is similar to HB 385 (2001) and SB 316 (2001).

NON-TEACHER MEMBER MODIFICATIONS - The benefit factor for members is increased from 1.51% to 1.61%.

Members retiring after July 1, 2001, who participate in the Twenty-five and Out retirement option and retire between July 1, 2001 and July 1, 2003, receive a Benefit Factor Increase of 0.10%.

Members whose creditable service is thirty years or whose sum of age and years of service is eighty years or more and who retire on or after July 1, 2001, receive an increase in the temporary allowance. Qualifying members receive a temporary retirement allowance of eight-tenths of one percent of the member's final average salary multiplied by the member's year of service until the member reaches the minimum age for social security benefits. This is an increase from four-tenths (.4%) to eight-tenths (.8%), which was authorized in HB 1808 (2000).

The cost of living increase (COLA) cap is increased from 75% to 80%.

Members retiring prior to July 1, 2001, receive an increase of seven and one-tenth percent of the previous month's benefit.

This portion of the act has an emergency clause. (Section 169.670)

This portion of the act is similar to SB 481 (2001).
JULIA SOMMER GRUS