Senate Substitute

The act removes the requirement of the Director of Revenue to establish and maintain a branch office in the city of St. Louis (Section 32.040).

The act removes the ten year limitations in the computation of final average salary for members of the Local Government Employees' Retirement System (LAGERS) (Section 70.615).

The act increases the special advisors ad hoc benefit within the City Police Retirement Systems from ten dollars to fifteen dollars monthly per each year of the member's age that is over sixty (Section 86.254).

The act removes insurance investment restrictions relative to the municipal police and fire retirement plans (Section 86.590).

The act adds provisions modifying the current entry age normal cost method within the City Police Retirement Systems, removing the frozen initial liability (Sections 87.120, 87.325, 87.335, 87.340, and 87.345).

The act authorizes retirement boards to promulgate rules to accommodate changes in the state's payroll system as it relates to the final average compensation for the retirement benefit calculation (Sections 104.010.7 and 104.1003(16), RSMo).

The act provides that a retiree is not an employee, and changes the required hours for an employee to be eligible for benefits from 1000 to 1040 hours annually (Sections 104.010.1(20)(b) and 104.1003(13)).

The act changes the definition of "employee" under the retirement systems to exclude part-time employees of the General Assembly who work less than 1040 hours annually, who are employed as such on or after August 28, 2006, and who have not previously been employed in such positions (Sections 104.010.1(20)(b) and 104.1003(13)(e)).

The act modifies the Missouri Department of Transportation and Highway Patrol Retirement System (MPERS) name, to reflect the recent name change (Sections 104.010(36) and 104.1003(24)).

The act allows non-uniformed MPERS members to purchase up to four years of prior service for non-federal full-time public employment in the state of Missouri. This purchase option is currently available to members of the Missouri State Employee’s Retirement System (MOSERS) and uniformed MPERS members (Section 104.040).

The act removes the provision which authorized certain members to elect for the system to pay the present value of a deferred annuity or benefit (Section 104.335).

The act allows prior service credit for former Nursing Board members with city or county health department service prior to 1988 (section 104.340).

The act changes "Southwest Missouri State University" to "Missouri State University" and regional "colleges" to "universities" (Sections 104.342.3 and 104.1200.2).

The act removes language that required all plans to report to the Joint Committee on Public Employee Retirement (JCPER) an affirmative action plan for the utilization of minority and women managers, brokers, and investment counselors. The affirmative action plans will continue to be submitted to the Governor’s Minority Advocacy Commission (Section 104.342.13 and 104.621).

The act removes language which authorized members to purchase creditable prior service performed under a contract, and modifies the service purchase provisions to be consistent with the practice in place for purchase of military service (Section 104.344).

The act eliminates prior service credit for part-time legislative service that did not qualify for retirement eligibility, on a prospective basis (Section 104.352.1)

The act revises provisions that allow a survivor of a deceased member to receive or transfer creditable prior for the purpose of determining survivor benefits (Sections 104.378 and 104.1021(13).

The act provides that a member must request a change in election in the event of a spouse’s death and states when such an election can occur (Section 104.395).

The act provides that members receiving long-term disability benefits are to be treated as active employees for the purposes of determining retirement eligibility, and requires members who are receiving disability benefits to pay the cost of life insurance coverage unless approved for a waiver (Sections 104.410 and 104.1042).

The act allows active employees including those employees of plans administered by MOSERS and terminated-vested members to vote for the two elected employee members of the board (Section 104.450.1).

The act requires a trustee to vacate a board position if he or she is convicted of a crime under chapters 570 or 576, RSMo (Section 104.450.2).

The act requires that no error in benefit calculation can be corrected unless it is discovered within ten years of the date on which the benefits began (Sections 104.490 and 104.1060).

The act provides that an employee working in multiple benefit-eligible positions cannot accrue more than a total of ten hours of sick leave per month for purposes of computing years of service in the calculation of a retirement benefit (Sections 104.601.1, 104.601.2, and 104.1021(2)).

The act provides that all retirees of plans administered by MOSERS and the Department of Transportation and Highway Patrol Employee's Retirement System who become reemployed in a benefit-eligible position will terminate their retirement benefits while so employed, excluding uniformed members of the highway patrol. Upon re-retirement after completing at least one year of service, an additional annuity will be calculated based on the position that was held during reemployment, and the system that paid the original annuity will be responsible for paying the additional annuity (Section 104.603).

The act provides that members purchasing creditable service must apply and complete the purchase prior to applying for retirement benefits (Section 104.606).

The act creates an excess benefit plan allowing MOSERS to pay benefits presently subject to limitations within Internal Revenue Code 415. This act also provides that members earning creditable service in the closed plan or the year 2000 plan of the Missouri state employees’ retirement system who are transferred to the department of transportation shall not become members of the closed plan or the year 2000 plan of the Missouri department of transportation and highway patrol employees’ retirement system unless they elect to do so in writing, and within ninety days of the effective date of such transfer (Section 104.607).

The act extends the final beneficiary payment provisions to judges and members of the Administrative Law Judges and Legal Advisor's Retirement Plan (Section 104.620).

The act extends the date for motor fuel tax auditors under the Missouri Director of Revenue who should have been transferred with the Division of Motor Carrier and Railroad Safety to the Missouri Department of Transportation to make an election to transfer membership from MOSERS to MPERS (Section 104.620.5).

The act provides that a member may receive only one day of credited service for any one day of calendar service (Section 104.1003(9)).

The act provides that pay shall not include any amounts for which contributions have not been made (Section 104.1003(21)(e)).

The act requires that any change in plan election must be completed prior to mailing or electronically transferring the first annuity payment to the member (Section 104.1015(9)).

The act adds safe harbor provisions for the MOSERS board as it relates to education and advice given to members for retirement planning (Sections 104.1012 and 104.1205.2).

The act changes the vesting requirement for service purchase transfers for legislators from two to three full biennial assemblies (Section 104.1021(11).

The act provides that MOSERS may make beneficiary payments to the natural parent or the legal guardian of a minor child until the child reaches age 18; thereafter, the benefit may be paid to the child until he or she reaches the age of 21 (Section 104.1030).

The act provides that a retiree under the year 2000 plan can retain optional life insurance coverage until he or she reaches age 62 (Section 104.1072).

The act requires the plan actuary to prepare an accelerated contribution schedule for MOSERS or MPERS if either plan falls below 50 percent funded for three consecutive plan years, or if it falls below 60 percent funded and 100 percent of the required contributions are not met (Section 104.1095.1).

The act prohibits any benefit increases under MOSERS or MPERS if the plan is less than 80 percent funded, provides that the funded ratio must not be less than 75 percent upon adoption of a benefit increase, and provides that new benefit increases must be amortized over a 15 year period (Section 104.1095.2).

The act requires the filing of written justification with the system’s office and the JCPER for any changes in actuarial assumptions resulting in a change in the funded ratio of MOSERS or MPERS (Section 104.1095.3).

The act clarifies that an employee must participate and receive contributions in the CURP for six years before electing to become a member of MOSERS (Section 104.1215).

The act reduces the amortization period associated with unfunded accrued liabilities to a maximum of 30 years, as recommended by the Governmental Accounting Standards Board, and requires board member education programs and continuing education (Section 105.665).

The act prohibits receiving gains or profit or accepting political contributions by board members (Section 105.667.1).

The act provides that retirement benefits shall be forfeited if the member is convicted of a plan-related felony after August 28, 2008 (Section 105.667.3).

The act prohibits any new benefit increases for plans that are less than 80 percent funded; plans that are greater than 80 percent funded may adopt an increase, provided that the funded ratio remains above 75 percent (Section 105.684.1).

The act provides that new benefit increases shall be amortized over twenty years (Section 105.684).

The act provides that the political subdivision tax withholding is not retroactive, requiring three successive plan years of not meeting recommended contributions with a descending funded ratio. In addition, only 75 percent of the contribution deficiency will be withheld in lieu of all monies due from the state (Section 105.684.4).

The act provides that fire protection districts are prohibited from establishing new defined benefit pension plans for volunteer members; defined contribution plans are permitted (Section 320.320).

The act provides that effective January 1, 2007, fire protection districts are prohibited from establishing new defined benefit pension plans for volunteer members or district boards of directors. A plan formed from consolidation of districts existing prior to January 1, 2006 is excluded from these provisions. Salaried members of fire protection district are not prohibited from providing a defined benefit plan (Section 321.696).

The act amends language to add two firefighters elected by the membership to a fire protection district board. (Section 321.800).

ALEXA PEARSON

SA 1 - INCREASES THE 75 PERCENT CONTRIBUTION DEFICIENCY WITHHOLDING OF STATE TAX MONIES FROM POLITICAL SUBDIVISIONS TO 100 PERCENT, AND REMOVES THE REQUIREMENT FOR 3 SUCCESSIVE YEARS OF A DESCENDING FUNDED RATIO.

SA 2 - AUTHORIZES POLITICAL SUBDIVISIONS ELECTING TO CHANGE BENEFIT OPTIONS TO COVER EITHER ALL PAST AND FUTURE SERVICE OF MEMBERS OR FUTURE SERVICE ONLY (SECTION 70.655).

SA 3 - PROVIDES THAT THE AUTHORIZATION PERIOD FOR MOSERS AND MPERS BENEFIT INCREASES ARE INCREASED FROM FIFTEEN TO TWENTY YEARS.

SA 4 - REMOVES SECTION 104.603 IN ITS ENTIRELY, WHICH HAD INCORPORATED AND INCLUDED ADMINISTRATIVE LAW JUDGES, LEGAL ADVISORS, AND JUDGES INTO CURRENT LAW WHICH PROVIDES THAT ALL RETIREES OF PLANS ADMINISTERED BY MOSERS WHO ARE REEMPLOYED INTO A BENEFIT ELIGIBLE POSITION AFTER RETIREMENT WILL HAVE THEIR RETIREMENT BENEFIT CEASE WHILE SO EMPLOYED, EXCLUDING MEMBERS RETIRING UNDER THE MPERS CLOSED PLAN, AND ALSO PROVIDED THAT UPON RE-RETIREMENT, AN ADDITIONAL ANNUITY WOULD BE CALCULATED FOR THE RETIREE BASED ON THE POSITION HELD WHILE REEMPLOYED.

SA 6 - EXTENDS THE EIGHT-YEAR TRANSFER PROVISION TO MSEP 2000 MEMBERS.

SA 7 - PROHIBITS BENEFIT DECREASES IN ADDITION TO BENEFIT INCREASES TO MOSERS OR MPERS IF THE PLAN IS LESS THAN 80 PERCENT FUNDED.