|HB 0260||Retirement Benefits: St. Louis City Firemen & Policemen|
|Sponsor:||O'TOOLE||Handling House Bill:||SCOTT|
|Last Action:||06/27/95 - Signed by Governor|
|Title:||HS/HCS/HBs 260, 137, 328 & 479|
|Effective Date:||August 28, 1995|
HS/HCS/HBs 260, 137, 328 & 479 - This act provides for increases in benefits for certain retired St. Louis City firemen, and adds the Deferred Retirement Option Plan (DROP) for St. Louis City policemen.
Funding for the firemen benefit increases will come from the Future Benefits Fund (Section 87.287, RSMo) when an enabling ordinance has been passed by the St. Louis City Board of Aldermen.
Any retired fireman, or widow or child of a retired fireman, who is not receiving a cost-of-living allowance shall be appointed as a special consultant on retirement, with annual compensation. Compensation shall be calculated based upon the number of years of service, the amount of funds available in an ad hoc COLA, and the classification of the consultant (retired fireman, widow or child). The ad hoc COLA, administered by the Board of Trustees, shall appropriate funding from one-half of the interest in the Future Benefits Fund under Section 87.287, RSMo, beginning September 1, 1996. Beginning September 1, 2016, three- fourths of the annual interest earned in the Future Benefits Fund shall be appropriated to provide an ad hoc COLA, administered by the Board of Trustees.
St. Louis City policemen who have twenty years of service, or who are at least fifty-five years old and are eligible for retirement, are eligible for DROP. Those electing to participate in DROP shall continue in active employment and shall not receive any direct retirement payments or benefits during the period of participation. No one shall participate in the DROP for more than five years. Upon completion of participation in DROP, either by termination of the member's employment or by the passage of five years, the member shall elect to receive the amount in the DROP account, including any accrued interest, either as a lump sum payment or in equal monthly installments over ten years. DROP is subject to approval of the IRS.
The act requires police and firemen's retirement systems in first classification counties to follow the prudent investor standard for investment fiduciaries when investing their assets.
The act also has provisions for the Board of Directors of
the County Employees' Retirement System to adopt its own rules
and regulations. Language pertaining to surviving spouse
benefits when a system member dies prior to retirement is