SB 221 – This act modifies the Public School Retirement System of Missouri (PSRS) and the Public Education Employee Retirement System of Missouri (PEERS). This act requires that the employee and employer contribution rates for both systems not be fixed below the 2011-2012 school year rate until the systems experience a funded ratio of one hundred percent. In addition, the level rate of contribution for a fiscal year cannot exceed the level rate of contribution for the prior fiscal year by more than one-half percent for PSRS or one-quarter percent for PEERS.
The systems' annual actuarial valuations will not be used to fix the contribution rates so long as the contribution rate is set at or above the 2011-2012 school year rates.
This act implements a thirty-year amortization period beginning with the 2011-2012 school year to pay off the unfunded actuarial accrued liability or until the system becomes one hundred percent funded.
Retirees will receive a two percent cost-of-living adjustment when the cost of living increases less than five percent until the system experiences a funded ratio of one hundred percent.
This act contains an emergency clause.
This act is substantially similar to SCS/SB 842 (2012).