|SB 0378||Changes in PSRS, Nonteacher, K.C. & St. Louis Retirement|
|Last Action:||05/31/95 - Signed by Governor (w/EC)|
|Effective Date:||August 28, 1995|
CCS/HS/HCS/SB 378 - This act makes several changes affecting both the Public School Retirement System (PSRS) and Non-Teachers Retirement System (NTRS) statutes:
(1) PSRS and NTRS employee compensation which exceeds the limits set out in the Internal Revenue Code will be disregarded in determining retirement contributions and benefits.
(2) The benefits for PSRS and for NTRS cannot exceed 100% of the members final average compensation.
(3) The PSRS and NTRS may delegate authority to registered investment counselors who will invest system funds under the prudent person provisions in section 105.688, RSMo.
(4) Three additional benefit options for PSRS and NTRS members are created.
NONTEACHERS RETIREMENT SYSTEM - The number of hours a retired member of NTRS may work on a temporary-substitute basis without forfeiting any benefits is increased from 360 to 550 hours. The benefit factor for NTRS is increased from one and one-fourth percent to one and thirty-five hundredths percent.
PUBLIC SCHOOL RETIREMENT SYSTEM -
(1) PSRS retiree benefits shall be no less than: $1100/month for 30 or more years of service, $1000/month for 25 to 30 years, $800/month for 20 to 25 years, $600/month for 15 to 20 years. (A higher minimum benefit amount for 30 or more years of service is also contained in the TAT version of SCS/SBs 136 and 151.)
(2) The allowable purchase of creditable service for maternity leave is increased from two to four years and such purchase is allowed for paternity leave.
(3) Between July 1, 1996 and July 1, 1998, the retirement allowance factor for PSRS retirees who are less that 55 years of age and have more than 25 years and less than 30 years of creditable service shall be: 2.20%/yr for 29 to 30 years, 2.15%/yr for 28 to 29 years, 2.10%/yr for 27 to 28 years, 2.05%/yr for 26 to 27 years, 2.00%/yr for 25 to 26 years.
(4) Provides an extra per month allowance for any PSRS member retiring prior to May 26, 1994, provided that the person's retirement compensation under Chapter 169, RSMo, is less than twenty-four thousand dollars per year. The increase in the retirement allowance shall be the lesser of sixty dollars or the product of two dollars times the number of years of creditable service. This increase shall be included in any future cost of living adjustments. A similar benefit applicable to persons receiving less than thirty thousand dollars per year is also contained in the TAT version of SCS/SBs 136 and 151.
(5) Certain survivors of members of PSRS may elect to receive benefits under section 169.075, RSMo. Current law provides for benefits to the surviving spouse to be terminated upon remarriage of the surviving spouse. The amendment removes the requirement that benefits to the surviving spouse be terminated upon remarriage.
(6) The surviving spouse or the estate of a PSRS member who dies shall be allowed to keep all benefits paid to the member during the month the death occurred.
KANSAS CITY TEACHERS RETIREMENT SYSTEM (KCTRS) - The act makes several changes in the Kansas City Teachers Retirement System (KCTRS) statutes:
(1) Seven trustees shall constitute a quorum of the twelve- member board, and a vote of at least seven trustees in support of a motion is required to constitute a decision of the board.
(2) Specific statutory provisions for service purchase, transfer and portability are repealed and replaced by general authorization for the Board of Trustees to adopt rules and regulations for service purchase, transfer and portability.
(3) Application for retirement may be made at any time prior to retirement (current law requires notice of between thirty and ninety days prior to retirement).
(4) Effective Jan. 1, 1996, any member who retired with at least twenty years creditable service shall receive a retirement allowance of at least three hundred dollars per month, and any member who retired with at least ten years of creditable service shall receive a retirement allowance of at least one hundred and fifty dollars per month plus fifteen dollars per month for each full year of creditable service greater than ten years and less than twenty years. Retirees with at least ten years of creditable service or their beneficiaries may receive the actuarial equivalent of the minimum monthly benefit provided under the act.
(5) Benefits may be increased for a year only if the retirement system's funded ratio (ratio of assets to pension benefit obligation) as of January 1 of the preceding year was at least one hundred percent.
(6) No optional selection of a retirant shall become effective if the retirant dies within thirty days after retirement or within thirty days of filing such selection, and the retirant shall be considered as an active member at the time of death.
(7) If a member dies prior to retirement, the member's accumulated contributions with interest shall be paid to the member's estate or designated beneficiary, or the beneficiary may choose to have the benefits paid as if the member retired more than thirty days prior to retirement and designated such person as an option 1 beneficiary under section 169.326, RSMo. The benefits shall be calculated as if the member had at least ten years creditable service.
CREDIT FOR SERVICE TO NONPROFIT AGENCY - The act allows purchase of creditable service by certain members of the Public School Retirement System (PSRS) and the Nonteacher Employee School Retirement System (NTRS). A member may purchase up to two years of service credit for full-time service to a nonprofit agency which primarily supports education or education research while the member is on leave from employment with a school district. To be eligible to purchase such service credit, the member must return to service with a school district for at least one year.
The contribution rate shall be based on the lesser of the salary while employed by the nonprofit agency or what the teacher would have been paid if the member had remained employed in the district, based on the district salary schedule.
All other terms and procedures of the purchase shall be according to rules promulgated by the Board of Trustees of the appropriate retirement system for purchase of credit for prior service with a private school.
The portion of the act relating to purchase of credit for service to nonprofit education agencies is similar to SB 151.
(1) State retirement systems established by law shall develop a plan for use of minority and women money managers, brokers and investment counselors and shall report on progress annually to the Joint Committee on Public Employee Retirement and to the Governor's Minority Advocacy Commission.
(2) St. Louis City Teachers Retirement System employee compensation which exceeds the limits set out in the Internal Revenue Code will be disregarded in determining retirement contributions and benefits.
(3) Any member of a retirement system under Chapter 169, RSMo, (public schools) who is within five years of being able to retire with a retirement allowance may elect to purchase additional creditable service of up to four-tenths of a year by making a written request and paying the employee and employer contributions with interest for such purchase. Such credit may be used toward meeting the minimum creditable service time required for a retirement allowance. This provision shall not allow a person to be vested by using such purchased creditable service.
The act contains an emergency clause for the portion
increasing the benefit factor and providing three additional
benefit options for NTRS.