SB 0609 Optional Retirement System for State Colleges & Universities
LR Number:S2377.01I Fiscal Note:2377-01
Committee:Elections, Pensions and Veterans' Affairs
Last Action:05/28/96 - S Inf Calendar S Bills for Perfection
Effective Date:August 28, 1996
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Current Bill Summary

SB 609 - This act authorizes the employing institutions to establish an alternative retirement plan to be offered, in lieu of membership in the Missouri State Employees' Retirement System, to employees of Truman State University, Northwest Missouri State University, Southeast Missouri State University, Southwest Missouri State University, Central Missouri State University, Harris-Stowe State College, Lincoln University, Missouri Western State College, Missouri Southern State College, and the Coordinating Board for Higher Education.

All full-time teaching and senior administrative personnel shall be eligible to participate in this program. Each institution shall provide for administration of the program and select the companies to which payment of the contributions shall be made for the purchase of annuities.

Eligible employees have the option of participating in the plan or of joining or remaining in MOSERS. Employees who are now vested members of MOSERS shall not forfeit vested rights in MOSERS if they elect to join this plan. The option to join this plan shall be irrevocable, except that if such an employee leaves the employ of one of these institutions and begins to work for the state, he would become a member of MOSERS.

Each institution shall contribute an amount equal to seven percent of the participant's compensation. The state retains no obligation for the retirement benefits of these employees.

Each participant in the optional retirement program shall contribute three percent of annual compensation. This contribution shall be on a before tax basis.

No employee may claim or receive retirement benefits from the state while working full-time for the state. This act shall not limit the right of a state employee to receive surviving spouse or surviving dependent benefits of any retired state employee. Persons may join and receive benefits from two or more state retirement systems so long as the employee retires from state employment before receiving such benefits.

This act is similar to SB 654 from 1994.