HCS/SCS/SB 411 - This act modifies laws regarding certain public employee retirement systems.
MISSOURI DEVELOPMENT FINANCE BOARD EMPLOYEES
Certain employees of the Missouri Development Finance Board are made members of the Missouri State Employee's Retirement System (MOSERS). These employees may purchase credited service for any period of employment as an employee of the board prior to August 28, 2009. Employees may decide whether to transfer their individual account balance under the board's plan to MOSERS. The board must certify to MOSERS that any amount transferred to MOSERS is attributable to such contributions by the board for such employee, plus earnings thereon. MOSERS shall be immune from lawsuits and not subject to liability arising out of or associated with the proper source or nature of the amount of funds transferred. If necessary to pay for the employee's credited service, the board will be required to pay contributions to MOSERS. (Section 100.273)
PUBLIC SCHOOL RETIREMENT SYSTEM OF MISSOURI (PSRS) & THE PUBLIC EDUCATION EMPLOYEE RETIREMENT SYSTEM (PEERS)
VENUE FOR LAWSUITS: All suits or proceedings directly or indirectly brought against the board of trustees for PSRS or PEERS, the board’s members or employees, or the retirement system itself must be brought in Cole County. (Section 169.020)
INVESTMENT ACCOUNT: This act allows for the establishment and maintenance of a retirement systems investment account for investment purposes. Moneys from PSRS and PEERS may be combined in the account for investment purposes so long as the funds are accounted for and reported separately. (Sections 169.040, 169.630)
PURCHASE OF SERVICE CREDIT: For the purchase of membership service credit, this act changes the date of payment from June 30 to September 30 and the date of recalculation from July 1 to October 1. In addition, the retirement system may prohibit a purchase, impose additional requirements for making a purchase, or limit the amount of credit purchased if necessary to comply with federal law. (Sections 169.056, 169.655)
DISTRIBUTION OF BENEFITS UPON DEATH OF A MEMBER: This act modifies how retirement benefits may be distributed upon the death of a member prior to the member having received the specified number of monthly payments. The remainder of such payments will be paid to the surviving spouse, surviving children in equal shares, surviving parents in equal shares, or the estate of the last person to receive a monthly allowance in a lump sum payment, in that order of precedence. In addition, if a member dies and the member's financial institution cannot accept the final payment or payments, the final payment or payments will be paid to the beneficiary, or if no beneficiary exists, to the surviving spouse, to the surviving children in equal shares, surviving parents in equal shares, or the estate of the member, in that order of precedence. This same order applies if the beneficiary to a member dies and the beneficiary's financial institution cannot accept final payment. (Sections 169.070, 169.073, 169.075, 169.670)
GARNISHMENT: This act allows funds belonging to the retirement systems and certain benefits to be subject to execution, garnishment, attachment in a proceeding instituted for spousal maintenance or child support. (Sections 169.090, 169.690)
ASSOCIATION ADMISSION: After June 30, 2010, no additional nonprofit educational associations or organizations will be able to have their employees become members of PSRS or PEERS. (Sections 169.130, 169.650)
INDEMNIFICATION: The board of trustees of PSRS or PEERS may indemnify and protect any trustee or employee against all claims or liabilities in his or her official or individual capacity except for gross negligence or willful misconduct. The board of trustees may obtain insurance or indemnity policies. For an employee or trustee to qualify for indemnity, he or she must provide written notice to the board of trustees within fifteen days after receiving service of process of a proceeding. (Section 169.750)
This act is similar to SB 327 (2009), HB 265 (2009), and SCS/SBs 1153, 1154, 1155 & 1156 (2008), and contains provisions similar to HB 1972 (2008), HB 1973 (2008), and HB 2056 (2008).