HCS/SB 394 - This act modifies provisions relating to employee retirement systems.
PACARS (56.363-56.840): This act changes provisions regarding the retirement system for prosecuting and circuit attorneys.
When a county votes to make the office of prosecuting attorney a full time position then the position shall qualify for the same retirement benefits as a full time prosecutor of a first class county and such county shall make the same contributions to the Prosecuting Attorneys and Circuit Attorneys' Retirement Fund (PACARS) as paid by a first class county.
The term "compensation" as used in the PACARS retirement statutes shall include any salary reduction amounts under a cafeteria plan or a deferred compensation plan, but not include reimbursement for any expenses, consideration for agreeing to terminate employment, or any unusual payment not part of regular work pay.
Beginning on January 1, 2018, all members who are eligible to receive an annuity equal to fifty percent of the final average compensation upon retirement will contribute two percent of their salary to the fund, and beginning in 2020 such members shall contribute four percent of salary to the fund. Upon retirement and at the discretion of the board of trustees, a member can receive a lump sum of his or her total contribution not to exceed twenty-five percent of average pay, in addition to any retirement benefits.
A person who becomes a member on or after January 1, 2019, may retire with a normal annuity with twelve or more years of service and reaching the age of sixty-five. Upon termination of employment such member is entitled to a deferred normal annuity payable at age sixty.
A former member who has forfeited creditable service may have the service restored again, in addition to requirements under current law, by becoming a an employee within ten years of termination and contributing an amount to the retirement fund equal to any lump sum payment of contributions received upon termination of service.
Retired members shall receive each year a cost of living increase of at least two percent and not to exceed four percent, rather than not to exceed two percent in any year.
All members serving in a first class county, charter county, St. Louis City, or in an county who has elected to make the position of prosecuting attorney a full time position shall receive one year of creditable service for each year served as a full time prosecuting attorney. A member serving as a part-time prosecuting attorney shall receive six-tenths of a year of creditable service for each year served.
A member who vested as a part time prosecuting attorney and ceased being a member for more than six months before returning as a full time prosecuting attorney shall be entitled only to part time benefits, and any creditable service earned as a full time prosecutor shall begin a new vesting period. A member cannot receive benefits while employed as a prosecuting attorney.
These provisions are identical to provisions in HCS/SCS/SB 309 (2017), SCS/HCS/HB 831 (2017), and HCS/HB 561 (2017) and substantially similar to HB 2538 (2016) and HCS/SB 639 (2016).
LOCAL AREA GOVERNMENT RETIREMENT SYSTEM (Sections 70.600-70.730): This act authorizes a political subdivision, by a majority vote of its governing body, to elect to cover jailers as police officers and emergency medical service personnel as fire fighters for purposes of coverage under the Missouri Local Government Employees' Retirement System. Limitations in current law that provide that an employer's total contribution to the system must not exceed the total contributions for the preceding fiscal year by more than 1% must not apply to an increase resulting from an employer's election for the coverage under the provisions of the act.
These provisions are identical to provisions contained in HCS/HB 865 (2017).
ST. LOUIS PUBLIC EMPLOYEE RETIREMENT SYSTEM (Sections 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 has an emergency clause and is identical to SB 296 (2017) and to provisions in the truly agreed to and finally passed version of SB 62 (2017), SS/SCS/HCS/HBs 302 & 228 (2017), and substantially similar to HB 819 (2017) and to provisions in SCS/HCS/HB 831 and HCS/HB 865 (2017).
5 YEAR VESTING FOR MOSERS YEAR 2000 PLAN (Section 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 substantially similar to provisions in SCS/SB 333 (2017), HCS/HB 729 (2017), the truly agreed to and finally passed version of SB 62 (2017), and SCS/HCS/HB 831 (2017).
TERMINATED VESTED MEMBER BUYOUT - MOSERS (Section 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 the truly agreed to and finally passed version of SB 62 (2017), HCS/HB 729 (2017), SCS/HCS/HB 831, and HCS/HB 865 (2017).
PUBLIC EMPLOYEE RETIREMENT PLAN BENEFITS (Section 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 in the truly agreed to and finally passed version of SB 62 (2017), and similar to HB 1472 (2016) and HCS/HB 752 (2015).
SUCCESSOR BENEFICIARIES (Sections 169.141 & 169.715): Currently, in the public school teacher retirement system or public education employees retirement system, 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 members of the systems 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, 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 provisions are identical to provisions in the truly agreed to and finally passed version of SB 62 (2017), SCS/HCS/HB 831 (2017), SCS/HCS/HB 304 (2017), and HB 1709 (2016) and similar to HB 1086 (2015).
KCPSRS/PSRS (Sections 169.324 & 169.560): Current law provides that a retired teacher from the Kansas City Public School Retirement System 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 substantially similar to provisions in HB 723 (2017), the truly agreed to and finally passed version of SB 62 (2017), HCS/SCS/SB 309 (2017), and SCS/HCS/HB 831 (2017), and similar to provisions in HB 305 (2017), SB 441 (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 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 the truly agreed to and finally passed version of SB 62 (2017), HB 305 (2017), HCS/SCS/SB 309 (2017), SCS/HCS/HB 831 (2017), SB 441 (2017), HB 1710 (2016), and HCS/HB 1085 (2015).
ST. LOUIS CITY PUBLIC SCHOOL RETIREMENT SYSTEM (Sections 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 1% every year until the year 2025 when the rate shall equal 9%. The rate shall remain at 9% thereafter.
These provisions are similar to CCS/HCS/SCS/SB 62 (2017), SCS/HCS/HB 304 (2017), HCS/SCS/SB 309 (2017), SB 409 (2017), HCS/HB 619 (2017), HB 2314 (2016) and HB 1205 (2015).