SB 0331 Revises Public School Retirement System benefits
LR Number:S1445.01I Fiscal Note:1445-01
Last Action:02/17/99 - Hearing Conducted S Education Committee Journal page:
Effective Date:Emergency Clause
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Current Bill Summary

SB 331 - This act makes the following changes to the Public School Retirement System (PSRS):

1) Minimum and maximum survivor benefits are increased. Minimum benefits are raised from $400 to $575 and maximums are raised from $600 to $860. Also, the additional payment for each dependent child under age 18 (now one-half of the survivor's base payment) shall be at least $300 per month, but the total payment to spouse including payments for dependents shall not exceed $2160;

2) Survivor and dependent child benefits shall continue until the child is age 24 years if still in college. Currently, such benefits end at age 22 years;

3) Expands the option for a beneficiary, other than a spouse, to select Option 2 survivor benefits if the member dies prior to retirement. The bill expands this to include any beneficiary with an insurable interest in the member;

4) Adds a $2 times years of creditable service increase to monthly payments to beneficiaries of deceased retirees;

5) Applies the current minimum retiree benefits to the beneficiaries of deceased retirees;

6) Adds a $5,000 single-sum, death benefit for retired members;

7) Revises final average salary to be determined on final three years rather than final five years of service;

8) Adds a "Rule of 80" clause to allow full retirement when a member's age plus creditable service equals 80 years or more;

9) Adds an additional $5 times years of creditable service to the monthly benefit for those retiring by July 1, 1999.

The act includes an emergency clause to become effective upon passage and approval or July 1, 1999, whichever is later.

Similar provisions are contained in HCS/HBs 736, 515 & 508. Portions of this act are contained in CCS/HS/HCS/SCS/SBs 308 & 314.