SB 201
Modifies provisions of the state deferred compensation plan
Sponsor:
LR Number:
1220S.01I
Last Action:
2/7/2011 - Second Read and Referred S Veterans' Affairs, Emerging Issues, Pensions and Urban Affairs Committee
Journal Page:
Title:
Calendar Position:
Effective Date:
August 28, 2011

Current Bill Summary

SB 201 - This act makes enrollment in the state deferred compensation program automatic for those state employees eligible for the plan hired on or after July 1, 2012. These employees will automatically have one percent of eligible compensation contributed to the deferred compensation plan. Employees who do not want to contribute to the program may opt out of the plan within the first thirty days of employment, and at a later date decide to participate. Employees who are automatically enrolled can change the amount of contribution. Employees of state colleges or universities would not be automatically enrolled.

On or after September 1, 2011, if a participant in the deferred compensation plan or the 401(a) plan established in Section 105.927 is married, their surviving spouse will be automatically designated as their primary beneficiary, unless the surviving spouse consented in writing to allow the participant to designate someone else as their beneficiary. This automatic beneficiary designation does not apply to designations made prior to September 1, 2011.

The Missouri State Employees Retirement System Board is also authorized to adopt and amend plan documents to change terms and conditions of the deferred compensation plan that are consistent with federal law.

If the General Assembly appropriated money for a state match, each participant in the deferred compensation plan would be eligible, rather than only state employees who have been employees for at least twelve consecutive months before the match and contribute at least twenty-five dollars a month.

The act also allows a state agency to credit funds directly to a participant in the deferred compensation plan if that agency's payroll is not issued through the State Treasurer.

This act is similar to a provision of SS/SCS/HB 282 (2011) and SB 290 (2009).

EMILY KALMER

Amendments