CCS/SCS/SB 892 - This act modifies provisions relating to various retirement plans for public employees.
PROSECUTING AND CIRCUIT ATTORNEYS RETIREMENT SYSTEM (56.363, 56.805, 56.807, 56.814, 56.833, 56.840)
The act modifies 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, 2019, 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 the year 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 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.
All members serving in a county that has elected to make the position of prosecuting attorney a full-time position shall receive one year of creditable vesting service for each year served as a part-time or full-time prosecuting attorney. However, a member serving as a part-time prosecuting attorney shall receive six-tenths of a year of creditable benefit service for each year served. Any member who has less than twelve years of creditable benefit service upon retirement shall receive a reduced full-time benefit.
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 contained in the truly agreed to and finally passed version of HB 1291 (2018) and substantially similar to provisions in SS/SCS/HB 1442 (2018), SCS/HB 2044 (2018), SS/SCS/HB 1329 (2018), HB 2322 (2018), HCS #2/SS/SB 704 (2018), SCS/SB 1021 (2018), SCS/SB 209 (2017), HB 2538 (2016), and HCS/SB 639 (2016).
LOCAL GOVERNMENT EMPLOYEES' RETIREMENT SYSTEM (70.227, 278.157)
This act allows employees of a metropolitan planning organization to become members of the Missouri Local Government Employees' Retirement System upon a majority vote of the district's governing board. The Governor will issue a certificate of dissolution of the organization upon a finding that all monies owed to the retirement plan for unfunded accrued liabilities of past and current employees have been paid.
This provision is identical to a provision contained in SS/SCS/HB 1329 (2018), SCS/HB 2044 (2018), and SCS/SB 1021 (2018).
Furthermore, employees of soil and water conservation districts may also become members of the Missouri Local Government Employees' Retirement System upon a majority vote of the district's governing board. Prior to the disestablishment of a soil and water conservation district, the district must pay all monies owed to the retirement plan for unfunded accrued liabilities of past and current employees.
This section is identical to a provision contained in SS/SCS/HB 1329 (2018), SCS/HB 2044 (2018), and SCS/SB 1021 (2018) and substantially similar to SB 628 (2018) and HB 1354 (2018).
PUBLIC SCHOOL RETIREMENT SYSTEM OF KANSAS CITY (169.291, 169.324, 169.350, 169.360)
When determining whether retirants are eligible for a benefit increase, the funded ratio of the Public School Retirement System of Kansas City as of January 1st of the year preceding the year of a proposed increase shall be at least 100% before, rather than after, adjusting for the effect of the proposed increase. Likewise, the actuarially required contribution rate shall not exceed the then applicable employer and member contribution rate before, rather than after, adjusting for the effect of the proposed increase.
The member contribution rate for 2019 and subsequent periods shall be 9% of compensation unless a lower member contribution rate applies as set forth in the act.
Currently, the actuary for the retirement system determines the rate of contribution payable by employers each year. For calendar year 2019, the employer contribution rate shall be 10.5%. From January 1, 2020, through June 30, 2021, the rate shall be 12%. For the 12-month period beginning July 1, 2021, and for each subsequent 12-month period beginning July 1 of each year, the employer contribution rate shall be determined as set forth in the act.
The Board of Trustees shall certify to the employers the contribution rate to be effective for July 1, 2021, and for each following July 1st no later than 6 months prior to the date such rate is to be effective.
Starting January 1, 2019, each employer shall transfer its employer contributions to the retirement system promptly following the end of each payroll period at the time the employer transfers member contributions.
These provisions are identical to provisions contained in SS/SCS/HB 1329 (2018), SCS/HB 2044 (2018), SCS/SB 1021 (2018), and HB 2184 (2018), and substantially similar to SB 856 (2018).
PUBLIC SCHOOL EMPLOYEE RETIREMENT SYSTEM (169.560)
This act allows any teacher retired from the Public School Employee Retirement System of Missouri (PSRS) to be employed in a position covered under the Public Education Employee Retirement System (PEERS) without stopping their retirement benefit. Such retired teacher may earn up to 60% of the minimum teacher's salary as set forth in Missouri statute and shall not contribute to PEERS or earn creditable service.
The employer's contribution rate shall be paid by the hiring employer. If a person is employed in excess of the salary limitation set forth in the act the person shall not be eligible to receive their retirement allowance for any month the person is employed and such person shall contribute to PEERS if he or she is employed in an eligible position.
This provision is identical to HCS/HB 2335 (2018) and substantially similar to SB 1045 (2018) and to provisions in SCS/HB 2044 (2018) and SCS/SB 1021 (2018).