SB 512 - This act modifies laws regarding the Missouri Local Government Employees' Retirement System (LAGERS).
Currently, if a retiree elects to receive a partial lump sum distribution their monthly benefit is reduced or increased based on their age at retirement. This act requires at least a 10% reduction if the retiree elects a partial lump sum distribution.
This act creates a retirement benefit payment option D plan. Under the option D plan the retiree would receive a reduced monthly benefit (80% of the monthly amount), but upon the retiree's death their beneficiary would receive the same amount the retiree was receiving, rather than a percentage of the retiree's amount.
Except for the retiree's spouse, a surviving beneficiary under retirement benefit payment options plans A, B, or D must, in addition to the current age and financial dependency requirements, be a lineal descendant of the retiree or related to the retiree up to the third degree of kinship.
Retirees may authorize LAGERS to deduct payments for health insurance or long-term care insurance premiums from their retirement allowance.
Funding provisions are modified to provide for benefits when a member dies as the result of a duty-related injury or illness. The employer's contribution for pensions that result from duty-related deaths shall be determined once a year.
This act is similar to HB 214 (2009) and HB 1490 (2008).