SS/SB 714 -This act modifies provisions relating to retirement.
This act allows the state auditor to audit any state or local public employee retirement system every three years, unless the auditor is otherwise required by law to audit the system more frequently. (Sections 29.212, 56.809, 70.605, 104.190, 104.480, 169.020)
This act also creates a different retirement plan for any person who becomes a state employee on or after January 1, 2011. To be eligible for normal retirement under this plan, employees will be required to reach age sixty-seven and have at least ten years of service or reach age fifty-five with the sum of the member's age and service equaling at least ninety, uniformed members of the highway patrol will be required to reach age sixty or reach age fifty-five with ten years credited service, members of the general assembly will be required to reach age sixty-two and complete at least three full biennial assemblies or reach age fifty-five with the sum of the member's age and service equaling at least ninety, and statewide elected officials will be required to reach age sixty-two and complete at least four years of service or reach age fifty-five with the sum of the official's age and service equaling at least ninety. Employees, except for uniformed members of the highway patrol, are eligible for early retirement at age sixty-two with ten years of service. Employees must work for the state for ten years to vest in the retirement system. Members of this retirement plan will be required to contribute four percent of their pay to the retirement system. Members will not be able to purchase credit in the retirement plan for their past non-federal full-time public employment, their military service, or transfer credit from other public retirement plans. The employee contribution rate, the benefits under the year 2000 plan, and any other provision of the year 2000 plan may be altered, amended, increased, decreased, or repealed, but such change will only apply to service or interest credits after the effective date of the change. Employees under this plan shall not be eligible for the Backdrop option. (Section 104.1091)
The act creates a different retirement plan for any person who first becomes a judge on or after January 1, 2011. Judges will be required to reach age sixty-seven and have at least twelve years of service or reach age sixty-two and have twenty years of service before they are eligible for normal retirement. If a judge retires at age sixty-seven with less than twelve years of service, or at sixty-two with less than twenty years service, their retirement compensation will be reduced proportionately. Judges in this retirement plan will be required to contribute four percent of their compensation to the retirement system. Judges will not be able to purchase credit in the retirement plan for their past non-federal full-time public employment or their military service. Judges under this plan who continue to work after their normal retirement date will not have cost-of-living increases added to their retirement compensation for the period of time between their eligibility for retirement and their actual retirement date. When a retired judge under this plan dies, their beneficiary will not receive an amount equal to fifty percent of the judge's retirement compensation. Instead, judges will make a choice at retirement among the benefit payment options, that includes options for the amount received by the beneficiary. The employee contribution rate, the benefits under the judicial retirement plan, and any other provision of the judicial retirement plan may be altered, amended, increased, decreased, or repealed, but such change will only apply to service or interest credits after the effective date of the change. (Sections 476.521 and 476.529)
This act prohibits a retired judge who becomes employed after January 1, 2011, as an employee eligible to participate in the MOSERS retirement plan from receiving their judicial retirement benefits while they are employed. Any judge who serves as a judge while he or she is receiving their judicial retirement is prohibited from receiving their judicial retirement while serving as a judge. A judge who serves as a senior judge or senior commissioner while receiving judicial retirement will continue to receive judicial retirement and additional credit and salary for their service. (Section 476.527)
This act creates the Missouri State Retirement Investment Board. This board is authorized to manage the investment of the assets of the Missouri State Employees Retirement System (MOSERS) and the Missouri Department of Transportation and Highway Patrol Employees Retirement System (MPERS). Other Missouri public pension systems, except for the Public School Retirement System (PSRS), the Public Education Employee Retirement (PEERS), and the Missouri Local Government Employees Retirement System (LAGERS), may upon approval of the system or plan and approval of the board enter an agreement with the board to provide investment oversight and management.
The Missouri State Retirement Investment Board is organized as a body corporate and instrumentality of the state, with the company's initial capital provided on an equitable basis by MOSERS and MPERS. MOSERS and MPERS may transfer any of their executives or employees to the company, except for their executive directors.
The board has seven members, the executive director of MOSERS, the executive director of MPERS, the commissioner of administration, and four members appointed by the governor, initially from a list of names submitted by the executive directors of MOSERS and MPERS, and subsequently from a list of names submitted by all board members. The governor has the right to reject any or all of the people on the list submitted by the executive directors or the list submitted by the board members. If the governor rejects an of the people recommended on the lists, the executive directors or the board members, as the case may be, are required to submit a list of two people for each vacant position. This process shall continue until no position on the board remains vacant.
No member of the board may be employed by the board or have a business relationship with any service provider of the board for two years after the end of their membership on the board. No current or former member of the general assembly or statewide elected official may become an employee of the board or work for or have a business relationship with any service provider of the board for five years after their service in the general assembly or as a statewide elected official has ended.
The assets of these retirement systems may be held by the board in a collective trust fund for investment as a single pool. The board is not liable for any payment they make as directed by the executive director, chief executive officer, or other person designated by the retirement system. The administrative and investment expenses of the board shall be apportioned among the retirement systems.
The assets of MOSERS and MPERS will be transferred to the board over a transition period between January 1, 2011 and August 1, 2011. MOSERS and MPERS are responsible for managing their assets until they are transferred to the board. (Sections 104.1500 to 104.1506).
This act also modifies provisions relating to the Public School Retirement System of Kansas City.
This act requires that any formulas and tables in effect upon which the computation of actuarial equivalent is based be maintained as part of a written document and treated as part of the plan document. The formulas and tables may be changed if recommended by the system's actuary and upon approval of the board of trustees. (Section 169.270)
This act provides that the retirement system is intended to be a qualified plan. The Board of Trustees must interpret statutes governing the system and administer the system consistent with a qualified plan. The system's assets must be held in trust for the exclusive benefit of the members and beneficiaries and for defraying reasonable administrative costs. No part of the system's assets may be used or diverted to any purpose other than benefits or purpose of the system. (Section 169.280)
If the retirement system is completely terminated or contributions to the system are discontinued, the rights of all members to benefits accrued to such date, to the extent funded, will be fully vested and non-forfeitable. (Section 169.301)
A retired member of the system who performs substitute, part-time, or temporary employment for an employer in the system cannot earn more than fifty percent of the annual salary or wages he or she was last paid by the employer prior to retirement and receiving a retirement allowance. If a person exceeds these limits, his or her retirement allowance will be suspended for the month in which the limit was exceeded and any subsequent month in the school year the person receives remuneration from any employer in the retirement system. (Section 169.324)
Any member of beneficiary who is entitled to receive a distribution that is an eligible rollover distribution under federal law may elect to have that distribution transferred to another eligible retirement plan. An eligible rollover distribution will include a distribution to a nonspouse beneficiary that is treated as an eligible rollover distribution. These transfers must be made in compliance with the Internal Revenue Code. (Section 169.328)
This act is similar to SB 938 (2010) and SB 1048 (2010).