SB 62 Modifies provisions regarding various pension systems and forfeiture of a pension benefit due to a felony conviction
Sponsor: Hegeman
LR Number: 0457S.09T Fiscal Notes
Committee: Health and Pensions
Last Action: 7/14/2017 - Signed by Governor Journal Page: S1908-1909
Title: CCS HCS SS SB 62 Calendar Position:
Effective Date: Varies
House Handler: Black

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Current Bill Summary


CCS/HCS/SS/SB 62 - The act modifies provisions regarding various pension systems and forfeiture of a pension benefit due to a felony conviction.

CERF (52.290, 137.280, 137.345, 140.100)

This act increases various existing fees that are deposited in the county employees’ retirement fund (CERF) and creates a new fee that will also be paid into the fund.

A fee collected on delinquent and back taxes of which three-sevenths is paid to CERF is changed from seven percent of all sums collected to nine percent. Of the nine percent collected two-ninths is paid to the county general fund, two-ninths is paid to the county's tax maintenance fund, and five-ninths is paid to CERF.

Penalty fees for a taxpayer failing to return personal property assessment lists to the county assessor are increased by five dollars. The assessor must annually submit to CERF the log of property lists not returned and the dollar amount associated with the penalties waived by the assessor when annual waivers exceed forty percent.

Under the act, the collector and county clerk shall each receive five dollars for recording delinquent land lists and such fee shall go to CERF.

These provisions shall go into effect January 1, 2018, and are substantially similar to provisions in SCS/HCS/HB 831 (2017), HCS/HB 979 (2017), HCS/HB 1151 (2017), HCS/SB 114 (2017), HCS/SS/SB 124 (2017), and SCS/SB 295 (2017).

ST. LOUIS AIRPORT POLICE (86.207)

This act repeals a provision allowing an employee of the City of St. Louis who is a member of the city's retirement system and who subsequently becomes a police officer to elect to remain a member of the city's retirement plan rather than joining the Police Retirement System of St. Louis.

Additionally, those employed as airport police officers by the City of St. Louis are not required to join the Police Retirement System of St. Louis as a condition of their employment.

This provision is identical to SB 296 (2017) and to provisions in SCS/HCS/HB 831 (2017), and SS/SCS/HCS/HBs 302 & 228 (2017), and substantially similar to HB 819 (2017) and to provisions in HCS/HB 865 (2017) and HCS/SB 394 (2017).

5 YEAR VESTING FOR MOSERS YEAR 2000 PLAN (104.1091)

This act changes the vesting requirement for normal retirement eligibility from ten years to five for members of the state retirement benefit plan known as the Year 2000 Plan who first become employees on or after January 1, 2011.

Additionally, the act modifies the benefits of such members who have vested, but are no longer state employees and are not statewide elected officials or members of the General Assembly. Members shall receive a cost of living adjustment twenty four months after retirement, rather than at twelve months following retirement. If a vested former member dies prior to his or her retirement date, his or her spouse will receive the member’s retirement annuity at the date that the member would have retired had he or she not died, rather than at the time of death. Finally, a vested former member who terminates employment prior to normal retirement eligibility is not allowed to convert unused sick leave into credited service.

These provisions are effective January 1, 2018, and are identical to HCS/HB 729 (2017) and are substantially similar to provisions in SCS/HCS/HB 831 (2017), HCS/SB 394 (2017), and SCS/SB 333 (2017).

TERMINATED VESTED MEMBER BUYOUT - MOSERS (104.1092)

This act allows terminated vested members of the closed plan of the Missouri State Employees' Retirement System or the Year 2000 plan to elect to receive a lump sum payment instead of a deferred annuity. The member has until May 31, 2018, to make such election.

This provision is identical to a provision contained in SCS/HCS/HB 831 (2017), HCS/HB 729 (2017), HCS/SB 394 (2017), and HCS/HB 865 (2017).

COLLEGE AND UNIVERSITY RETIREMENT PLAN (104.1205)

This act provides that the retirement plan for employees of certain higher education institutions shall contribute six percent of payroll to the plan, rather then the current one percent of payroll less than the normal cost contribution rate established for employees of institutions other than outside employees, and that employees hired on or after July 1, 2018, shall contribute two percent of pay.

Additionally, all employees may also contribute to an optional supplemental retirement account.

The effective date of this section is July 1, 2018, and the is identical to provisions in SCS/HB 758 (2017), SCS/HCS/HB 831 (2017), and substantially similar to provisions in HCS/HB 886 (2017), SB 1090 (2016), and to provisions in SS/SCS/SB 980 (2016).

PENSION FORFEITURE DUE TO FELONY CONVICTION (105.669)

Currently, if a member of a public retirement plan is found guilty of certain felonies committed in direct connection with the member's duties as an employee, then such member shall not be eligible to receive any retirement benefits from the respective plan.

The act provides that a member of a public retirement plan who is "convicted", rather than "found guilty," of certain felony offenses, is not eligible to receive retirement benefits. The act also repeals the provisions that provide that in such cases the court shall make a determination on the value of the money involved in committing the offense, and notify the appropriate retirement system. Instead, the employer of the member who is charged or convicted of the felony shall notify the appropriate retirement system.

This provision is identical to HB 996 (2017), to provisions in the truly agreed to and finally passed version of SB 34 (2017), and to provisions in HCS/SB 394 (2017), and similar to HB 1472 (2016) and HCS/HB 752 (2015).

PSRS/PEERS (169.141, 169.715)

Currently, in the Public School Teacher Retirement System (PSRS) and Public Education Employees Retirement System (PEERS) nomination of a successor beneficiary must be filed within ninety days of a remarriage. Under the act, the nomination shall be filed within one year of a remarriage.

This act allows retired members of PSRS or PEERS who elected a reduced retirement allowance to provide for survivor benefits for his or her spouse to have the retirement allowance increased to the single life annuity amount, with no survivor benefits, if the member and his or her spouse become divorced on or after September 1, 2017, and if the dissolution decree provides for sole retention by the retired person of all rights in the retirement allowance.

Any such increase in the retirement allowance shall be effective upon the receipt of an application for the increase and a certified copy of the decree of dissolution that meets the requirements of the act.

These sections are identical to provisions in SCS/HCS/HB 831 (2017), HCS/SB 394 (2017), SCS/HCS/HB 304 (2017), and HB 1709 (2016) and similar to HB 1086 (2015).

KCPSRS/PSRS (169.324, 169.560)

Current law provides that a retired teacher from the Kansas City Public School Retirement System (KCPSRS) may work part-time for a school district during the school year and not forfeit his or her retirement allowance. The retired teacher may work up to 600 hours and earn 50% of the annual salary received while he or she was teaching prior to retirement.

This act expands this provision to include an individual who is employed by a third party or working as an independent contractor if the services provided by the retiree are provided to or for the benefit of any employer in the Kansas City Public School Retirement System. Documentation may be required showing proof of compliance with this provision.

This provision is identical to HB 723 (2017), to provisions in HCS/SB 394 (2017), and to provisions in HCS/SCS/SB 309 (2017), and substantially similar to provisions in HB 305 (2017), SB 441(2017), SCS/HCS/HB 831 (2017), HB 1710 (2016), and HCS/HB 1085 (2015).

Current law also provides that a retired teacher receiving an allowance from the Missouri Public School Retirement System (PSRS) may work part-time for a school district covered by the system and not forfeit his or her retirement allowance. The retired individual may work up to 550 hours and earn up to 50% of the annual salary received by the individual while he or she was teaching prior to retirement.

The act expands this provision to any individual who is employed by a third party or working as an independent contractor as a substitute teacher or other position normally requiring certification. Documentation may be required showing proof of compliance with this provision.

This provision is identical to provisions in SCS/HCS/HB 831 (2017), HB 305 (2017), HCS/SCS/SB 309 (2017), HCS/SB 394 (2017), SB 441 (2017), HB 1710 (2016), and HCS/HB 1085 (2015).

ST. LOUIS CITY PUBLIC SCHOOL RETIREMENT SYSTEM (169.460, 169.490)

This act modifies provisions relating to the public school retirement system of the City of St. Louis.

Currently, a member of the public school retirement system of the City of St. Louis may retire at age 65 or when his or her age when added to the number of years of credited service is not less than 85. This act lowers the retirement age when added to the number of years of credited service to not less than 80.

Beginning January 1, 2018, new employees hired for the first time shall have their retirement benefits calculated using a 1.75% multiplication factor. Existing employees shall have their benefits calculated using a multiplication factor of 2% for all years of service.

Beginning January 1, 2018, a current member's contribution to the retirement system shall increase by 0.5% of the member's compensation each year until the contribution rate equals 9%. Members hired on or after January 1, 2018 shall automatically contribute 9%.

For calendar year 2018, the rate of contribution payable by each employer shall equal 16% and shall decrease annually by 0.5% every year until the 2032 when the rate shall equal 9%. The rate shall remain at 9% thereafter.

These provisions are identical to HCS/HB 619 (2017) and to provisions in HCS/SCS/SB 309 (2017) and similar to SB 409 (2017), HB 1085 (2017), SCS/HCS/HB 304 (2017), HCS/SB 394 (2017), HB 2314 (2016), and HB 1205 (2015).

JESSI BAKER