PROSECUTING ATTORNEYS AND CIRCUIT ATTORNEYS' RETIREMENT FUND (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, 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 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.

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 substantially similar to provisions in the truly agreed to and finally passed version of SB 892 (2018), the truly agreed to and finally passed version of HB 1291 (2018), SS/SCS/HB 1442 (2018), HCS #2/SS/SB 704 (2018), SCS/SB 1021 (2018), SS/SCS/HB 1329 (2018), SCS/SB 209 (2017), HB 2538 (2016), and HCS/SB 639 (2016).

POLICE RETIREMENT SYSTEM FOR ST. LOUIS CITY (86.200 - 86.355)

This act modifies the calculation and requirements for the retirement benefits of members of the St. Louis police retirement system. For members that are hired on or after October 1, 2018, the "average final compensation" shall be the average compensation earned during the member's last three years of creditable service as a police officer. The member may receive a retirement benefit after ten years of service and attaining the age of fifty-five. The member is eligible for the deferred retirement option plan (DROP) after twenty years of service. The DROP account of such member shall earn interest at the rate of return earned by the ten-year United States Treasury note, plus one percent, not to exceed a rate of six percent per year.

The limit on retirement allowance for a member who began employment prior to October 1, 2018, is increased from seventy percent to seventy-five percent of average final compensation, while those hired after October 1, 2018, will not receive more than seventy percent of average final compensation. Furthermore, such member shall not receive more than a twenty-five percent cost of living increase of the retirement allowance. Upon retirement, the member will not receive a refund of the required contributions made to the system. However, if the member is not vested at the time of termination then he or she will receive a refund of contributions without interest.

Members hired on or after October 1, 2018, are not eligible, upon retirement, to be hired by the board of trustees as a special advisor on matters relating to retirement in exchange for monthly compensation.

Members hired prior to October 1, 2018, shall contribute eight percent of pay to the system, rather than seven percent, while members hired on or after October 1, 2018, shall contribute nine percent of pay.

When a member is retired, receiving a nonduty disability retirement allowance, and is employed in another position, the disability retirement allowance shall be reduced if the sum of the member's salary plus disability retirement allowance equals an amount in excess of one hundred twenty-five percent of the member's current salary.

Currently, there are nine members on the board of trustees tasked with administering the system and six members present at a meeting constitute a quorum for the transaction of business. This act provides that a majority of the appointed and elected trustees constitutes a quorum. Under the act, the board's actuary may use the entry age normal actuarial cost method in the valuation of the assets and liabilities of the system. Upon the adopting of an ordinance by the City of St. Louis, the actuary shall determine the "normal cost," "actuarial accrued liability," and the City's contribution as described in the act, using the entry age normal actuarial cost method. If a court declares the use of entry age normal actuarial cost method in violation of the Missouri Constitution, then such sections in the act allowing the use of such method shall be null and void and the method of calculation used by the actuary shall return to the method used prior to the implementation of entry age normal actuarial cost method.

Finally, the act provides that a member's retirement allowance is not affected by where the member resides during employment or retirement.

These provisions are substantially similar to HCS/HB 2202 (2018).

JESSI JAMES