The act:

(1) Alters the name of the Nonteacher School Employee Retirement System (NTRS) to the Public Education Employee Retirement System;

(2) Excludes from the definition of "salary" employer-paid premiums for medical insurance for a spouse and children and employer contributions to deferred compensation plans;

(3) Requires the cost of the remaining credit not paid by the member purchasing prior service credit by June 30 of each year to be recalculated each July 1 in lieu of charging interest. Members filing purchase applications prior to January 1, 2006 may elect to continue to have the cost of their purchases based on the calculation in effect prior to January 1, 2006;

(4) Allows members who have prior nonfederal public employment or who were employed in a position covered by Social Security and who worked at least 20 hours a week on a regular basis to purchase equivalent creditable service;

(5) Adds a term-certain retirement option under which a lump sum will be paid to a beneficiary if all guaranteed payments to the retired individual and their beneficiary are less than the member's accumulated contributions;

(6) Provides an order of distribution for any benefits payable upon the death of a member or the death of a deceased member's beneficiary;

(7) Specifies that if a member of PSRS has received disability retirement, they are not eligible to elect a distribution under the partial lump sum option plan. This provision is already in the NTRS;

(8) Allows a member's beneficiary, in lieu of receiving any benefit from the retirement system, to elect that the benefits be payable to the deceased member's children;

(9) Repeals Section 169.555, RSMo, which regards contribution rates; and

(10) Allows the NTRS to establish a qualified governmental excess benefit arrangement plan.

(11) Allows certain information related to investment activities to be closed under Chapter 610, RSMo, so long as the disclosure of such information would jeopardize the ability of the board to implement a decision or to achieve investment objectives.