Missouri Senate

Introduced

COMMITTEE OF ORIGIN: Committee on Retirement

This bill changes the laws regarding the Public School Retirement

System of Kansas City. In its main provisions, the bill:

(1) Revises the definition of "actuarial equivalent" to require

the formulas and tables in effect that are used to determine

actuarial equivalents to be in a written document maintained at

the system's office and treated for all purposes as part of the

documents governing the system. The formulas and tables can be

changed if recommended by the system's actuary and approved by

the board of trustees (Section 169.270, RSMo);

(2) Specifies that the system is intended to be a qualified plan

under federal law and requires the board of trustees of the

system to interpret the statutes governing the system and to

administer the system consistently in all respects with that

intent. System assets must be held in trust for the exclusive

benefit of its members and their beneficiaries and for defraying

reasonable administrative costs (Section 169.280);

(3) Specifies that the rights of all members to benefits accrued

to the date of termination or discontinuance, to the extent

funded at that time, will be fully vested and nonforfeitable if

the system is completely terminated or contributions are

discontinued (Section 169.301.4);

(4) Specifies that if a member leaves employment to perform

qualified military service and dies while in that service, his or

her survivors will be entitled to any additional benefits that

would have been provided had the member resumed employment with

the employer and then terminated on account of death. In this

case, the member's period of qualified military service will be

counted as creditable service for the purpose of vesting but not

for the purpose of determining the amount of the member's

retirement allowance (Section 169.301.5);

(5) Specifies that any retired member of the system performing

substitute, part-time, or temporary employment for an employer in

the system cannot earn more than 50% of the annual salary or

wages earned prior to retirement adjusted for inflation and

continue to receive his or her retirement allowance. Anyone

exceeding this limit will have his or her retirement allowance

suspended for any month in which the limit was exceeded and each

subsequent month he or she receives remuneration from any

employer in the system (Section 169.324); and

(6) Allows any member or beneficiary who is entitled to receive

an eligible rollover distribution under federal law to elect to

have that distribution transferred to another eligible retirement

plan (Section 169.328).

FISCAL NOTE: No impact on state funds in FY 2012, FY 2013, and

FY 2014.