SCS/HCS/HB 660 - This act modifies various provisions of the public school retirement systems.

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).

CITY OF ST. LOUIS RETIREMENT SYSTEM - The definition of "school district" is revised to continue to refer uniquely to St. Louis Public School District. Charter schools are defined and relevant definitions have been amended to include the participation of charter school employees under the Retirement System.

The act consolidates provisions for the purchase of credit for service. The act gives the Board of Trustees authority to continue to function in the event of a lapse of the Board of Education for St. Louis Public Schools.

The Board's actuary shall be qualified by membership as a fellow in the Society of Actuaries or by objective standards no less stringent than those established by the Society of Actuaries.

The period during which a member can apply for pension is increased from 90 to 180 days.

The pension benefit formula is increased from one and one- fourth percent to two percent.

The period during which a member can apply for disability pension is increased from ninety to one hundred eighty days and a Social Security Disability Award shall be accepted as an alternative standard for disability pension approval.

Involuntary distribution shall be provided to an inactive member who has accumulated contributions of five thousand dollars or less unless the member elects to become inactive within thirty days of terminating employment.

The act adds a payment option that permits members to receive an actuarially equivalent benefit that is higher prior to age 62 and lower after age 62 to adjust for becoming eligible for Social Security benefits and provide leveled, total pension payments.

The act deletes a provision that a member's account would not be credited with annual interest after the date benefits were first due and payable.

Compensation to retired members, as allowed under section 105.269, RSMo, shall not preclude continued receipt of a pension benefit.

The act provides that various supplements which authorized benefit increases for retirees from 1975 through 1993 will be treated as cost of living adjustments.

The member contribution rate is raised to five percent.

The act eliminates language requiring that the annual valuation be based on the unfunded liability that existed in 1980, changes the amortization schedule for the unfunded liability from 50 years to a period not to exceed 30 years, and allows the Board of Trustees to adopt an actuarial method that is appropriate for the retirement system's funded status.

The retirement system will recognize child support orders from the Division of Child Support Enforcement involving retired members.

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).

RETIRED CERTIFIED TEACHERS - Allows any school district with a shortage of certified teachers to hire retired certificated teachers from any Missouri public teacher retirement system to teach full-time for up to two years without losing his or her retirement benefits. The total number of such retired certificated teachers shall not exceed, at any one time, the greater of ten percent of the total teacher staff for that school district, or five certificated teachers.

Any school district with a shortage of non-certificated employees, as determined by the school district, and any charter school established pursuant to sections 160.400 to 160.420, RSMo, may allow individuals retired pursuant to sections 169.600 to 169.715 to be employed full-time for up to two years without losing his or her retirement benefits. The total number of such retired non-certificated employees shall not exceed, at any one time, the greater of ten percent of the total non-certificated staff for that school district, or five employees. (Section 169.596)

STATEWIDE NON-PROFIT EDUCATION ASSOCIATION & ORGANIZATIONS - Allows persons employed by any statewide non-profit educational association or organization who works at least twenty hours (20) a week on a regular basis in a position that is not covered by the public school retirement system of Missouri to be a member of the non-teacher school employee retirement system.

Contributions to the non-teacher school employee retirement system will be made from employee member salary deductions and matched by the association or organization. (Section 169.650)

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).

KANSAS CITY PUBLIC SCHOOL RETIREMENT SYSTEM (KCPSRS) - The act expands the law to include charter schools in KCPSRS and makes provisions for KCPSRS to continue if the district lapses. This portion of the act is similar to SB 975 (2000).

Charter schools are considered public schools and charter school employees are public school employees. Independent contractors are not considered employees. Charter school employees shall continue to be public school employees and participate in a public school retirement system if the district lapses due to unaccreditation. Purchase of credit for prior service is allowed for charter school employees. Retired employees may not work for either a charter school or the district, except for part-time work provided in this section.

KCPSRS shall continue to be subject to existing KCPSRS law, even if the district lapses. KCPSRS shall continue to be governed by a Board of Trustees established under this section, even if the district lapses. If the district lapses, a majority of trustees then in office shall constitute a quorum, and any action of the Board shall require the vote of a majority of trustees then in office. If the district lapses, KCPSRS shall not be transferred to or merged with another system without prior approval of such action by the KCPSRS Board of Trustees.

The act provides that an inactive employee who returns to work shall receive a separate retirement allowance based upon each period of service ending in a break in service, unless the employee work at least four years after returning, in which case retirement allowance shall be based upon all creditable service and the final salary and benefit formula in effect at the end of the reemployment.

These provisions are similar to SB 333.

ST. LOUIS PUBLIC SCHOOL RETIREMENT SYSTEM - Allows teachers in the St. Louis Public School Retirement System to teach or be an administrator in a charter school for four years without losing retirement benefits.

SCHOOL BOARD TERMS - Columbia 93 School District and Lee's Summit R-VII are exempted from a change in school board term otherwise required pursuant to section 162.481, RSMo, upon becoming an "urban school district" as defined in section 160.011, RSMo. The school board terms for Columbia and Lee's Summit district will remain at three years, rather than increasing to six years, as provided for districts which become "urban".

This act has an emergency clause
CINDY KADLEC