SB 476 - This act requires the board of trustees of the Public School Retirement System of Missouri (PSRS) to create a defined contribution retirement plan by July 1, 2014. This retirement plan would provide individual accounts for each employee. The amount of benefits provided to each employee are based solely on the amount allocated to the employee's account, and these benefits vest immediately. The PSRS board of trustees is also required to select the outside administrators to administer these retirement plans. If the board considers it appropriate, the employees in the defined contribution plan may direct investment of their individual accounts among investment options selected by the board.
The contribution rate for employees participating in the defined contribution plan is 7.5% of compensation. Employers will also contribute 7.5% of compensation.
The board of trustees and its employees will not be liable for investment decisions made by individual employees, as long as each board selects and monitors the investment providers, education, advice, and any default investment option, as a prudent person would. The PSRS retirement system is immune from lawsuits associated with the administration of the defined contribution plan.
All employees hired on or after July 1, 2014, must participate in the defined contribution plan and will not accrue any creditable service in PSRS.