SB 512 Modifies provisions relating to the Missouri local government employees' retirement system (LAGERS)
Sponsor: Dempsey
LR Number: 2171S.01I Fiscal Note: 2171-01
Committee: Veterans' Affairs, Pensions and Urban Affairs
Last Action: 3/23/2009 - Removed S Consent Calendar Journal Page: S655-656
Title: Calendar Position:
Effective Date: August 28, 2009

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Current Bill Summary

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).