HB 0416 Changes Numerous Retirement System Benefits
Sponsor:CRUMP (161) Handling House Bill:SCOTT
Committee:ELEC LR Number:S0639.13T
Last Action:06/27/95 - Signed by Governor (w/EC)
Title:CCS/SS/SCS/HCS/HB 416, et al
Effective Date:August 28, 1995
All Actions | Senate Home Page | List of 1995 House Bills
Current Bill Summary

CCS/SS/SCS/HCS/HBs 416, 474, 544 & 587 - This act makes changes to certain retirement system benefits.

These changes include:

(1) Removes incentive payments for prosecuting attorneys and circuit attorneys;

(2) Allows creditable prior service for 75% of service before 8/28/89 for any prosecuting attorney or circuit attorney who was not a member of the Missouri Prosecuting Attorneys and Circuit Attorneys Retirement System Fund on 8/28/89, but who is serving on 8/28/96, and who served for at least 60% of the time as an assistant prosecuting attorney or assistant circuit attorney prior to 8/28/89;

(3) Adds two benefit programs for members of the Missouri Local Government Employees' Retirement System (LAGERS), and removes the lifetime percentage deferred allowance for former members of LAGERS;

(4) Adopts the prudent investor standard for investment fiduciaries as the fiduciary standard which governs the board of trustees of police and firemen's pension systems;

(5) In the case of a division of benefits order as a result of a divorce, any pension, annuity, benefit, right, or retirement allowance provided pursuant to Chapters 104 (Retirement of State Officers and Employees), 287 (Worker's Compensation), and 476 (Courts), RSMo, is marital property, and the monthly dollar amount to be paid to an alternate payee is limited to no more than fifty percent of the member's annuity accrued during the time that the member and alternate payee were married and based on the member's vested annuity at the time of the order;

(6) Increases disabled employee benefits from one and one half percent to one and six-tenths percent of average compensation times the number of years of service;

(7) Increases disabled employee initial benefit for highway patrol members and employees, and highways and transportation employees from 50% to 70% of compensation the employee was receiving the day before the disability, but the benefit plus social security disability benefits shall not exceed 90%. There also are certain retirement options and death benefits for these employees;

(8) Any employee applying for disability benefits shall provide acceptable medical certification to the Board, and in certain cases proof of application and/or denial of social security benefits;

(9) Allows certain terminated vested Missouri State Employees' Retirement System (MOSERS) members to elect for payment of the present value of a deferred annuity, and upon subsequent employment as a Missouri state employee for at least twelve consecutive months in a position covered by MOSERS the employee may purchase creditable service within 90 days after the twelve-month period;

(10) Allows certain Harris-Stowe State College teachers and administrators to purchase creditable service;

(11) Allows persons covered by Sections 476.515 to 476.565 (judges & spouse/survivors), RSMo, or Sections 287.812 to 287.855 (retiring workers' compensation administrative law judges (ALJ) & legal advisors), RSMo, who qualify for disability benefits under Section 104.518, to continue to accrue creditable service at the date of becoming disabled;

(12) Provides a death benefit of $5000 to any special consultant under either Section 287.820 (Workers' Compensation ALJ & Legal Advisors) or 476.601 (Retired Judges), RSMo, who terminates employment and immediately retires on or after August 28, 1995;

(13) Any MOSERS employee under Sections 104.320 to 104.540 who purchased additional life insurance, and who retires on or after September 1, 1995, may retain the amount of life insurance that the person had purchased and was in effect following the date of retirement, up to $60,000. If the employee retires between September 1, 1988 and August 31, 1995, then the maximum limit is $10,000;

(14) Allows a board of trustees under Chapter 104 to appoint attorneys as legal advisors and as representatives in legal proceedings. If the board does not appoint the attorneys, the Attorney General shall furnish necessary legal services;

(15) In lawsuits against MOSERS, medical insurance suits may no longer by brought in the county of residence of the beneficiary, they must now be brought in Cole county;

(16) Currently, certain state employees and certain elected officials to make a one-time transfer of credit to certain other retirement systems. This act includes the Prosecuting Attorneys and Circuit Attorneys' Retirement System as a system to which the credit may be transferred;

(17) The board of trustees or other responsible administrative body for each public retirement plan in Section 105.660, RSMo, is authorized to appoint attorneys as legal advisors and representatives in legal proceedings;

(18) Removes the August 28, 1994 deadline for a member of any Missouri Public School Retirement System (PSRS) who has previous credit in one of the other PSRS systems, to purchase equivalent credit, up to ten years, in the member's present system. This portion of the bill has an emergency clause;

(19) As set forth in 205.971, when the voters approve a levy, the board of directors shall be considered a political subdivision under Section 70.600 to 70.755, RSMo;

(20) When any fire protection district approves a tax levy rate under Section 321.610.1, the district shall deposit all revenue collected plus interest in the district retirement fund. The board of directors for the fire protection district shall comply with the prudent investor standard for investment fiduciaries, under Section 105.688, RSMo, when investing pension program assets;

(21) Any beneficiary of a deceased judge who served as a judge after August 28, 1995 or who was approved for long term disability benefits shall receive retirement compensation (SB 4);

(22) A surviving spouse of a deceased judge may apply to the board of trustees of the Missouri State Employees' Retirement System to serve as a special consultant on the problems of surviving spouses, but such a spouse will not qualify as a consultant if he or she is eligible to receive benefits as a beneficiary of a deceased judge (SB 4).

Part of this act (LAGERS benefit programs) is identical to SB 395 (1995).

This act has an emergency clause for section 169.570, which removes the 8/28/94 deadline for PSRS members to purchase equivalent credit.