PERFECTED
HB 482 -- TEACHER AND NONTEACHER RETIREMENT SYSTEMS (Franklin)
This bill makes several changes to the Public School Retirement
System (teachers' system) and the Nonteacher School Employee
Retirement System. In most cases, the bill makes the same
changes to the equivalent provisions in both systems.
CHANGES APPLICABLE TO BOTH SYSTEMS
The board of the retirement system may set a percentage of
maximum increase in annual compensation on a yearly basis during
the period for which final average salary is calculated. Under
the 120- and 60-month reduced member benefit options, when no
beneficiary survives to collect the remaining benefits, the
payment will be made to the estate of the last person to receive
a monthly allowance. When a beneficiary dies after receiving a
benefit under certain options and the benefits paid out have
been less than the total contributions, the difference will be
paid to the beneficiary's estate, instead of the retiree's
estate, unless the retiree designated a different recipient.
Beginning January 1, 1999, the board will make all payments
through electronic funds transfer, after a one-year phase-in
period for new recipients.
TEACHERS' SYSTEM
Application for purchase of creditable service made on or after
June 19, 1997, is valid if election to purchase the service is
made before July 1, 1998. A monthly benefit is payable for the
month of a beneficiary's or survivor's death; currently, this
payment is made only for a retired member. Provisions that
allowed retired members with at least 20 and at least 25 years
of service to receive a supplemental benefit to raise the total
of benefits to $600 and $800 per month, respectively, have been
deleted.
NONTEACHERS' SYSTEM
Junior college district employees must elect to purchase
membership service credit before retirement, instead of within 5
years of the date of membership in the system. The system will
pay a monthly benefit for a retired member or beneficiary for
the month in which a member or beneficiary dies. After August
28, 1997, any person first employed in a position qualified for
membership in the nonteacher retirement system who is certified
to teach will be a member of the teachers' system. These
persons retain the option of being a member of the nonteacher
system if they exercise the option within 90 days of first such
employment.
FISCAL NOTE: No impact on state funds.
COMMITTEE
HB 482 -- Teacher and Nonteacher Retirement Systems
SPONSOR: Franklin
COMMITTEE ACTION: Voted "do pass by consent" by the Committee
on Retirement by a vote of 9 to 0.
This bill makes several changes to the Public School Retirement
System (teachers' system) and the Nonteacher School Employee
Retirement System. In most cases, the bill makes the same
changes to the equivalent provisions in both systems.
CHANGES APPLICABLE TO BOTH SYSTEMS
The board of the retirement system may set a percentage of
maximum increase in annual compensation on a yearly basis during
the period for which final average salary is calculated. Under
the 120- and 60-month reduced member benefit options, when no
beneficiary survives to collect the remaining benefits, the
payment will be made to the estate of the last person to receive
a monthly allowance. When a beneficiary dies after receiving a
benefit under certain options and the benefits paid out have
been less than the total contributions, the difference will be
paid to the beneficiary's estate, instead of the retiree's
estate, unless the retiree designated a different recipient.
Beginning January 1, 1999, the board will make all payments
through electronic funds transfer, after a one-year phase-in
period for new recipients.
TEACHERS' SYSTEM
Application for purchase of creditable service made on or after
June 19, 1997, is valid if election to purchase the service is
made before July 1, 1998. A monthly benefit is payable for the
month of a beneficiary's or survivor's death; currently, this
payment is made only for a retired member. Provisions that
allowed retired members with at least 20 and at least 25 years
of service to receive a supplemental benefit to raise the total
of benefits to $600 and $800 per month, respectively, have been
deleted.
NONTEACHERS' SYSTEM
Junior college district employees must elect to purchase
membership service credit before retirement, instead of within 5
years of the date of membership in the system. The system will
pay a monthly benefit for a retired member or beneficiary for
the month in which a member or beneficiary dies. After August
28, 1997, any person first employed in a position qualified for
membership in the nonteacher retirement system who is certified
to teach will be a member of the teachers' system. These
persons retain the option of being a member of the nonteacher
system if they exercise the option within 90 days of first such
employment.
FISCAL NOTE: No impact on state funds.
PROPONENTS: Supporters say that this bill is a primarily clean--
up bill for the school retirement systems. Perhaps the most
innovative aspect is the electronic transfer of funds, which
becomes effective in 1999, after a trial period.
Testifying for the bill were Representative Franklin; Public
School Retirement System; Missouri National Education
Association; and Missouri State Teachers Association.
OPPONENTS: There was no opposition voiced to the committee.
Becky DeNeve, Research Analyst
INTRODUCED
HB 482 -- Teacher and Nonteacher Retirement Systems
Sponsor: Franklin
This bill makes several changes to the Public School Retirement
System (teachers' system) and the Nonteacher School Employee
Retirement System. In most cases, the bill makes the same
changes to the equivalent provisions in both systems.
CHANGES APPLICABLE TO BOTH SYSTEMS
The board of the retirement system may set a percentage of
maximum increase in annual compensation on a yearly basis during
the period for which final average salary is calculated. Under
the 120- and 60-month reduced member benefit options, when no
beneficiary survives to collect the remaining benefits, the
payment will be made to the estate of the last person to receive
a monthly allowance. When a beneficiary dies after receiving a
benefit under certain options and the benefits paid out have
been less than the total contributions, the difference will be
paid to the beneficiary's estate, instead of the retiree's
estate, unless the retiree designated a different recipient.
Beginning January 1, 1999, the board will make all payments
through electronic funds transfer, after a one-year phase-in
period for new recipients.
TEACHERS' SYSTEM
Application for purchase of creditable service made on or after
June 19, 1997, is valid if election to purchase the service is
made before July 1, 1998. A monthly benefit is payable for the
month of a beneficiary's or survivor's death; currently, this
payment is made only for a retired member. Provisions that
allowed retired members with at least 20 and at least 25 years
of service to receive a supplemental benefit to raise the total
of benefits to $600 and $800 per month, respectively, have been
deleted.
NONTEACHERS' SYSTEM
Junior college district employees must elect to purchase
membership service credit before retirement, instead of within 5
years of the date of membership in the system. The system will
pay a monthly benefit for a retired member or beneficiary for
the month in which a member or beneficiary dies. After August
28, 1997, any person first employed in a position qualified for
membership in the nonteacher retirement system who is certified
to teach will be a member of the teachers' system. These
persons retain the option of being a member of the nonteacher
system if they exercise the option within 90 days of first such
employment.
Missouri House of Representatives' Home Page
Last Updated August 11, 1997 at 4:14 pm