SB 405 - This act modifies provisions relating to certain public employee retirement plans. The act prohibits the establishment of new defined benefit pension plans in political subdivisions with an assessed valuation of less than 500 million dollars, rather than 100 million dollars, as is provided by current law. (Section 70.615)
The act also provides additional definitions related to provisions within this act. (Section 105.660)
The act reduces the amortization period associated with unfunded accrued liabilities to a maximum of 30 years, rather than the current maximum of 40 years, in order to meet recommendations of the Governmental Accounting Standards Board (GASB). (Section 105.660)
The act requires each plan to create education and continuing education programs for board members, which shall include education on topics enumerated in this act. (Section 105.666)
The act prohibits any appointing authority, board member, or employee from receiving any gains or profit from any funds or transactions of the plan, and provides that any such person who accepts political contributions or compensation to influence his or her action with respect to the system shall forfeit his or her office and be subject to penalties for bribery. Also, any trustee, employee, or participant of a plan who pleads guilty to or is found guilty of a plan-related felony after August 28, 2007, shall forfeit any retirement benefits from such plan. (Section 105.667)
The act also prohibits any new benefit increases for plans that are less than 80 percent funded, but plans funded at 80 percent or more may adopt increases as long as the funded ratio remains above 75 percent; unfunded actuarial accrued liabilities associated with benefit changes shall be amortized over a twenty-year period. Also, any plan with a funded ratio less than 60 percent shall have the actuary prepare an accelerated contribution schedule. The provisions of this section do not apply to the Missouri local government employees' retirement system under chapter 70, RSMo, or the judicial retirement plan under chapter 47, RSMo. (Section 105.684)
The act prohibits fire protection districts from establishing new defined benefit plans for volunteer members, but may provide a defined contribution plan. (Section 320.320)
Effective January 1, 2008, the act prohibits fire protection districts from establishing a new defined benefit plans for volunteer members or district board of directors, except for plans established under the provisions of Chapter 70, RSMo, or unless the new plan is a result of consolidating the plans of two or more fire protection districts that existed prior to January 1, 2007. (Section 321.696)
Provisions within this act are similar to provisions within HB 1306 (2006).
ALEXA PEARSON