HCS HB 426 -- STATE EMPLOYEES DEFERRED RETIREMENT OPTION

SPONSOR:  O'Toole

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Retirement by a vote of 9 to 1.

This substitute creates a deferred retirement option that
provides an annuity that may be distributed in a single lump sum
or in 3 annual payments for members of the Missouri State
Employees' Retirement System and the Highway and Transportation
Employees' and Highway Patrol Retirement System in both the
closed plan and the Year 2000 plan.  Elected officials and
members of the General Assembly are not eligible.  Employees who
have reached normal retirement age and continue to work for at
least 2 more years may select a retroactive starting date, which
would be the later of the date when a normal retirement benefit
would have been payable if the member had retired or 5 years
before the annuity starting date.  The annuity would be the
amount that would have been payable had the member actually
retired on the retroactive starting date.  The lump sum amount
would be 90% of the annuity.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill will give employees an
additional option at retirement.  The bill will also keep
employees working longer.  Many of these employees have valuable
institutional knowledge.

Testifying for the bill were Representative O'Toole; Missouri
State Transportation Employees Association; and Missouri Highway
Employees Association.

OPPONENTS:  There was no opposition voiced to the committee.

Steve Bauer, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:44 am