SB 409 - 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.
Currently, a member that retires prior to January 1, 2018, shall have their retirement benefits calculated using a 2% multiplication factor. 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 years of service prior to January 1, 2018, and 1.75% for years of service on or after January 1, 2018.
For any member hired before January 1, 2018, the act increases their contribution to the retirement system 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% of the total compensation of all members employed by that employer. For each calendar year thereafter, the amount shall decrease by 1% until calendar year 2025, when the amount the employer contributes shall equal 9% of the total compensation of all members employed by the employer, and shall stay at that rate for subsequent calendar years.
This act is similar to CCS/HCS/SCS/SB 62 (2017), SCS/HCS/HB 304 (2017), HCS/SCS/SB 309 (2017), HCS/HB 619 (2017), HCS/SB 394 (2017), HB 2314 (2016) and HB 1205 (2015).