SB 563 Modifies disability retirement provisions of the Police Retirement System of St. Louis and modifies provisions relating to teacher and school retirement systems
Sponsor: Smith
LR Number: 2227L.03C Fiscal Note: 2227-03
Committee: Veterans' Affairs, Pensions and Urban Affairs
Last Action: 5/15/2009 - S Calendar S Bills with H Amendments--SCS for SB 563-Smith, with HCS Journal Page:
Title: HCS SCS SB 563 Calendar Position: 6
Effective Date: August 28, 2009
House Handler: Leara

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Current Bill Summary

HCS/SCS/SB 563 - This act modifies provisions related to certain public employee retirement systems.


The medical board that arranges for required disability-related medical examinations is eliminated and is replaced by a medical director who appoints doctors to investigate the physical and mental conditions of applicants for disability retirement. The medical director reports to the board of trustees of the police retirement system.

Any member in service or member of the Board of Police Commissioners who has ten years of creditable service and who has become permanently unable to perform the duties of a police officer as the result of an injury or illness not exclusively caused by their duties as a police officer shall be retired upon certification of the medical director and approval of the board of trustees.

Members who are permanently disabled exclusively as a result of an accident occurring within the actual performance of duty at some definite time and place shall upon application be retired upon certification of the medical director and approval of the board of trustees. These members must apply for disability within five years of the accident, unless the accident was reported within five years and the member was examined by a health care provider provided by the board of police commissioners within thirty days of the accident.

Disability retirees under the age of sixty may be required to submit to a medical examination yearly for the first five years following their retirement and at least once every three years thereafter. If the retiree refuses to submit to a medical examination their disability pension may be discontinued. If the retiree refuses for one year, then their pension may be revoked.

If the medical director certifies to the board of trustees that the disability retiree is able to perform the duties of a police officer and the board agrees, the pension shall end. If the officer returns to active service, then the period of time during which the officer received a disability pension shall not be included in his time of service.


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 HB 947 (2009), SB 327 (2009), and 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).