HCS/SCS/SB 86 - This act modifies the provisions of various public retirement plans.
PROSECUTING ATTORNEYS AND CIRCUIT ATTORNEYS' RETIREMENT SYSTEM FUND:
Currently, each county must transfer a certain sum of money to the Missouri Prosecuting Attorneys and Circuit Attorneys' Retirement System Fund. This act provides that each county's contribution shall be adjusted in accordance with the retirement system's funded ratio and a schedule provided in the act. A four dollar surcharge, payable to the prosecutor's retirement system, shall be assessed in cases where a person pleads guilty and pays a fine through a fine collection center (56.807, 488.026).
This provision is identical to provisions contained in HCS/HB 169 (2013), HCS/HB 371 (2013), HCS/HB 215 (2013), HCS/SB 100 (2013), and HCS/SB 12 (2013).
POLICE RETIREMENT SYSTEM OF ST. LOUIS:
Currently, a member of the Police Retirement System of St. Louis who becomes disabled from causes occurring within the performance of duties shall be retired upon certification by the medical director of the police retirement system and approved by the board of trustees of the system. This act replaces this certification process by requiring that one or more physicians of the medical board certify that the member is unable to perform the full and unrestricted duties of a police officer. The act defines both medical board and full and unrestricted duties of a police officer.
Under current law, a member who is disabled in an incident unrelated to the performance of official duties and who has ten or more years of service shall be retired by the board of trustees of the police retirement system. The act provides that a member with a non-duty disability may retire after five years of creditable service provided that the system's actuarial valuation is at least eighty percent. The act also provides that the retirement application shall be certified by a medical board, rather than the medical director (86.200, 86.257, 86.263).
These provisions are similar to provisions in HB 897 (2013), SCS/HCS/HB 722 (2013), CCS/SCS/SB 224 (2013), CCS/SS/HB 336 (2013), and SS/SCS/HB 116 (2013).
DEFINED CONTRIBUTION PLAN FOR EMPLOYEES OF HIGHER EDUCATION INSTITUTIONS:
The act changes provisions regarding the defined contribution retirement plan for employees of certain higher education institutions. On or after July 1, 2014, the employer contribution rate used by institutions for outside employees shall be equal to seven percent of payroll. Institutions may also require outside employees hired on or after July 1, 2014, to contribute an additional amount of pay, not to exceed four percent.
Each institution requiring employee contributions shall pick up and pay such contribution pursuant to federal law. Employees who first become outside employees on or after July 1, 2014, will not be able to transfer into the Missouri State Employees' Retirement System (104.1205, 104.1215).
These provisions are identical to SB 288 (2013), HB 353 (2013), and HB 1741 (2012).
BENEFIT INCREASE FOR PUBLIC RETIREMENT PLANS:
Currently, public retirement plans cannot implement a benefit increase unless the plan's funded ratio is at least 80% and will not be less than 75% after adoption of the benefit increase. This act specifies that plans use the funded ratio as of the most recent periodic actuarial valuation before implementing a benefit increase. The act also authorizes plans to make benefit increases despite having a funded ratio below the require level if necessary to maintain federal tax deferred status on the employer contributions paid into the plan (105.684).
This provision also contains an emergency clause.
This provision is identical to provisions contained in SCS/HCS/HB 233 (2013).
PUBLIC SCHOOL RETIREMENT SYSTEM & PUBLIC EDUCATION EMPLOYEE RETIREMENT SYSTEM:
Currently, certain provisions of the Public School Retirement System of Missouri and the Public Education Employee Retirement System of Missouri which allow teachers and school employees to retire with less than thirty years of service will expire on July 1, 2013. Also, a provision that allows teachers with thirty-one or more years of service to receive a higher multiplier to be used in the calculation of his or her retirement benefits will expire on July 1, 2013. This act makes these alternative retirement provisions permanent (169.070, 169.670).
These provisions are identical to provisions contained in SB 232 (2013), HB 313 (2013), HB 808 (2013), and substantially similar to provisions in CCS/HCS/SCS/SB 17 (2013).