SS#2/SCS/HB 147 - This act modifies provisions relating to retirement.SHERIFFS' RETIREMENT SYSTEM (SECTIONS 57.280 TO 57.967, 488.435 & THE REPEAL OF SECTIONS 57.955, 57.962, 483.088 & 488.024)
This act provides that fees collected for service of process, which are not to exceed $75,000, rather than $50,000, in any year, shall be held in a county fund to be expended at the sheriff's discretion for the furtherance of his or her duties. Any such funds in excess of $75,000, rather than $50,000, in any calendar year shall be placed to the credit of the county's general revenue fund.
Currently, sheriffs receive a $10 fee for service of any summons, writ, subpoena or other court order and such moneys shall be deposited in the Deputy Sheriff Salary Supplementation Fund for the purpose to supplement the salaries and resulting employee benefits of county deputy sheriffs. This act provides that the sheriff in charter, first, second, and fourth class counties shall receive a $20 fee for the service and sheriffs in third class counties shall receive a $15 fee for the service. The Missouri Treasurer shall deposit $10 of such fee in the Deputy Sheriff Salary Supplementation Fund, and $10 for charter, first, second, and fourth class counties and $5 for third class counties in the Sheriffs' Retirement Fund. Moneys collected from counties where the sheriff is not a member of the Sheriffs' Retirement System ("System") shall be deposited in total in the Deputy Sheriff Salary Supplementation Fund.
Current law provides that the Board of the System shall proportion the benefits according to funds available if insufficient funds are generated to provide for the benefits that are payable. This act repeals this provision.
This act also clarifies provisions relating to the employer pick-up under the Internal Revenue Code, which provides that a governmental entity may designate the contributions as employee contributions, but the employer pays the employee contribution to the system from the employee's salary.
Any county with a sheriff that participates in the System that receives a per diem cost for incarceration of prisoners or for jail reimbursement shall have $1.75 per day per prisoner of such cost deducted. The Department of Corrections ("Department") shall send such deducted moneys to the State Treasurer who shall deposit it in the Sheriffs' Retirement Fund. If the System is funded at a 90% actuarially sound level and at a level above the actuarial needs of the System, then $1 per day per prisoner of the reimbursement shall be deducted and deposited in the Sheriffs' Retirement Fund. The System shall annually provide a copy of its actuarial report to the Department. This provision shall be effective on January 1, 2026.
Finally, this act repeals the provisions related to the assessment of a $3 fee in criminal and civil cases that is payable to the System.
These provisions are similar to SCS/SB 141 (2025) and in HCS/HB 558 (2025).
LAGERS: MEMBERSHIP (SECTION 70.630 & 70.690)
This act repeals the provision prohibiting membership in Missouri Local Government Employees' Retirement System ("LAGERS") for employees where continuous employment to the time of retirement eligibility will leave the employee with less than the minimum required number of years of credited service. Additionally, this act provides that in the event a member's membership terminates, any accumulated contributions unclaimed by the member within 10 years, instead of 3 years, shall be transferred to the investment income fund of the system.
This provision is identical to a provision in the perfected HB 147 (2025), in SCS/HB 352 (2025), in SCS/SB 514 (2025), in HCS/HB 532 (2025), in HB 559 (2025), in HCS/HB 976 (2025), in HCS/SS/SB 898 (2024), and in SCS/HCS/HB 2431 (2024).
LAGERS: COST OF LIVING CPI (SECTION 70.655)
This act provides that the cost of living adjustment for LAGERS shall be a measure of the Consumer Price Index as determined by the U.S. Department of Labor and adopted by the Board of LAGERS, instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers.
This provision is identical to a provision in the perfected HB 147 (2025), in SCS/HB 352 (2025), in SCS/SB 514 (2025), in HCS/HB 532 (2025), in HB 559 (2025), in HCS/HB 976 (2025), in HCS/SS/SB 898 (2024) and in SCS/HCS/HB 2431 (2024).
LAGERS: REPEAL OF OBSOLETE STATUTORY PROVISION (SECTION 70.680)
This act repeals references to obsolete statutory provisions.
This provision is identical to a provision in the perfected HB 147 (2025), in SCS/HB 352 (2025), in SCS/SB 514 (2025), in HCS/HB 532 (2025), in HB 559 (2025), in HCS/HB 976 (2025), in HCS/SS/SB 898 (2024), and in SCS/HCS/HB 2431 (2024).
LAGERS: INVESTMENT DECISIONS (SECTIONS 70.745 TO 70.747)
This act provides that the Board of LAGERS may deliberate or make decisions on investments or other financial matters in a closed meeting if the disclosure of such deliberations or decisions would jeopardize the ability to implement a decision or to achieve investment objectives. Furthermore, this act repeals the provision providing that the investment counselor of the Board be registered as an investment advisor with the U.S. Securities and Exchange Commission. Lastly, this act repeals the limitation that no more than 1/10th of the funds of the system be invested in real estate.
These provisions are identical to provisions in the perfected HB 147 (2025), in SCS/HB 352 (2025), in SCS/SB 514 (2025), in HCS/HB 532 (2025), in HB 559 (2025), and in HCS/HB 976 (2025), and are similar to provisions in HCS/SS/SB 898 (2024) and in SCS/HCS/HB 2431 (2024).
LAGERS: INVESTMENT FUNDS (SECTION 70.748)
This act provides that the Board may establish and maintain a local government employee retirement systems of Missouri investment fund account in which investments of LAGERS may be placed and be available for investment purposes. The funds may be combined with funds of any retirement plan administered by LAGERS and any retirement plan established for providing benefits to employees of LAGERS, but such funds shall be accounted for separately.
This provision is identical to provisions in the perfected HB 147 (2025), in SCS/HB 352 (2025), in SCS/SB 514 (2025), in HCS/HB 532 (2025), in HB 559 (2025), and in HCS/HB 976 (2025), and are similar to provisions in HCS/SS/SB 898 (2024) and in SCS/HCS/HB 2431 (2024).
KANSAS CITY POLICE AGE LIMIT (SECTIONS 84.540 & 84.570)
Under current law, the Kansas City Board of Police Commissioners may authorize and provide for the organization of a police reserve force composed of residents of the city upon the recommendation of the Chief of Police. This act provides that no person shall serve on the police reserve force after the last day of the month in which the person turns 65 years of age.
Additionally, law enforcement officers shall be separated from service on the last day of the month in which the employee becomes 65 years of age or reaches 35 years of creditable service under the Kansas City Police Retirement System, whichever occurs later.
POLICE RETIREMENT SYSTEM OF ST. LOUIS: EARNABLE COMPENSATION (SECTION 86.200)
This act modifies the definition of "earnable compensation", as used by the Police Retirement System of St. Louis, by providing that the term shall not include any funds received through a judgment or settlement of a legal action or claim made or threatened by a member against the City of St. Louis if such funds are intended to retroactively compensate the member for the salary differential between the member's actual rank and the rank the member claims he or she should have received.
This provision is identical to a provision in HB 147 (2025), in HCS/HB 532 (2025) and HB 2288 (2024) and is substantially similar to SB 357 (2025), a provision in HB 559 (2025), in HCS/SS/SB 898 (2024), in SB 1267 (2024), and in SCS/HCS/HB 2431 (2024).
FIREMEN'S RETIREMENT SYSTEM OF ST. LOUIS: ADMINISTRATION OF OTHER PENSION PLANS (SECTION 87.140 TO 87.350)
This act provides that the Board of Trustees ("Board") of the Firemen's Retirement System of St. Louis ("FRS") shall not be prevented from simultaneously acting as the trustees of any other pension plan that provides retirement, disability, and death benefits for firefighters employed by St. Louis City. The administration of the other plan shall be in accordance with the terms of such plan. Additionally, the administration of the other plan includes the ability of the Board to establish rules and regulations for the administration of the plan's funds and for the transaction of the plan's business. The Board shall maintain separate records of all proceedings of the pension plan.
Furthermore, this act provides that the Board shall have the authority and discretion to invest funds of the other pension plan in property of any kind. The Board may choose to invest the funds of FRS and the funds of the plan in the same investments if the amounts invested and the gains, profits, or losses are accounted for separately. No benefits due from the pension plan shall be paid from the funds of FRS. Additionally, no expenses incurred by the Board in the administration of the other pension plan or in the investment of the other pension plan's funds shall be paid by the funds of FRS. Finally, nothing in this act shall prevent the Board of Aldermen of St. Louis City from adopting ordinances relating to the pensioning of firefighters and their dependents in regards to other pension plans administered by the Board.
These provisions are identical to provisions in the perfected HB 147 (2025), HB 205 (2025), and in HCS/HB 532 (2025), are substantially similar to SB 255 (2025), provisions in HCS/SS/SB 898 (2024), and in SCS/SB 1404 (2024), and are similar to HB 1980 (2024), SB 349 (2021), and HB 1001 (2021).
ALL PUBLIC PENSION PLANS: INVESTMENT FIDUCIARY (SECTION 105.688 & 105.692)
This act modifies provisions relating to duties of fiduciaries for public employee retirement systems. Specifically, investment fiduciaries shall not:
(1) Be prohibited from closing records related to information in connection with investments in or financial transactions with business entities;
(2) Consider environmental, social, or governance characteristics in a manner that would override his or her fiduciary duties;
(3) Be subject to any legislative, regulatory, or other mandates to invest with environmentally, socially, or other noneconomically motivated influence unless the mandates are consistent with the fiduciary's responsibility or as provided in the system's governing statutes, ordinances, charter, or documents with respect to the investment of system assets or other duties imposed by law relating to the investment, management, deposit, or custody of system assets; and
(4) Be subject to any legislative, regulatory, or other mandates for divestment from any indirect holdings in actively or passively managed investment funds or in private assets.
Additionally, this act provides that all shares of common stock held directly by a retirement system shall be voted solely in the economic interest of participants of the system. Voting shares for the purposes of furthering noneconomic environmental, social, political, ideological, or other goals is prohibited. The act creates provisions on proxy voting for such purposes.
These provisions are identical to provisions in the perfected HB 147 (2025), in SB 827 (2024), and in HCS/SS/SB 898 (2024), and are similar to provisions in SB 389 (2025), in SCS/SB 514 (2025), in HB 559 (2025), in HB 657 (2025), in HB 976 (2025), SB 1113 (2024), in SCS/HCS/HB 2431 (2024), HB 769 (2023), and in HCS/HB 863 (2023).
ALL PUBLIC PENSION PLANS: INVESTMENTS IN RESTRICTED ENTITIES (SECTION 105.693)
This act provides that after August 28, 2025, a state or local public retirement system shall not knowingly invest in a restricted entity or a restricted investment product, as such terms are defined in the act to include certain Chinese persons and investments and those listed on the Specially Designated Nationals and Blocked Persons List published U.S. Department of the Treasury. Before December 1, 2025, and at least annually thereafter, the board of a public employee retirement system shall identify all restricted entities and restricted investment products in which the system holds an investment. If the board determines after such review that the system has investments in a restricted entity or a restricted investment product, the board shall establish a plan to divest the investment as soon as financially prudent and the investment shall be divested no later than August 28, 2026, unless the board finds that following conditions exist in which case the investment shall be divested before August 28, 2028:
(1) The aggregate transaction costs are in excess of $500,000;
(2) The selling of global public equity interests would result in a loss on secondary markets; or
(3) The divestment would fail to comply with federal or state law or other legal obligations.
The board shall determine whether to cease or defer divestment and resume investment during any period in which the entity or product has not returned to being a restricted entity or restricted investment product only if certain conditions outlined in the act are met.
Additionally, the act provides that on or before December 31, 2025, and annually thereafter, the board shall submit a report to the General Assembly, which shall include certain information listed in the act including all publicly traded securities sold, redeemed, divested, or withdrawn in compliance with this act and all commingled funds that are exempted from divestment.
This act does not apply to divestment of existing investments in private market funds nor to indirect holdings in actively managed investment funds. If a manager or investment fiduciary creates a similar actively managed investment fund without the restricted entities, the board shall replace all applicable investments with the investments in the similar actively managed investment fund within a period consistent with prudent investing standards.
This provision is identical to HCS/HB 977 (2025) and is similar to SB 529 (2025) and HB 1869 (2024).
PSRSSTL: BOARD OF TRUSTEES (SECTION 169.450)
Currently, there are eleven members on the Board of Trustees of the Public School Retirement System of the City of St. Louis ("PSRSSTL"). This act increases the Board by two members who are appointed for terms of four years by the Missouri Public Charter School Association and who have experience and qualifications relevant to public charter schools and PSRSSTL.
This provision is substantially similar to SB 257 (2025) and SB 1332 (2024) and is similar to HB 2156 (2024).
PSRSSTL: EMPLOYER CONTRIBUTION (SECTION 169.490)
Currently, the employer contribution rate for PSRSSTL was set at 16% in 2018 with yearly 0.5% decreases until the rate is 9% of the total compensation of all members employed in 2032. This act ends such decreases in 2025 at the employer contribution rate of 12.5%. In calendar year 2026 and every subsequent year, this act sets the employer contribution rate at 14%.
This provision is identical to SB 456 (2025) and is substantially similar to a provision in HCS/HB 532 (2025) and HCS/HBs 1504 & 404 (2025) and is similar to HB 406 (2025), a provision in SB 1504 (2024), and in HB 2846 (2024).
KATIE O'BRIEN