HCS HB 548 -- ST. LOUIS CITY POLICE RETIREMENT SYSTEM

CO-SPONSORS:  O'Toole, Gambaro

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Retirement by a vote of 7 to 3.

This bill revises the St. Louis City Police Deferred Retirement
Option Plan (DROP).  The bill:

(1)  Reduces the number of years a member's average final
compensation is based on from 3 years to 2 years.  Final
compensation is also further defined based on creditable service
earned before, during, and after DROP participation;

(2)  Allows the Board of Trustees to appoint an attorney to
serve as legal advisor and represent the system in all legal
proceedings;

(3)  Prohibits compensation earned during DROP participation
from being used to calculate retirement benefits.  Service
retirement allowances are frozen at the date the member enters
DROP;

(4)  Allows members who cease participation in DROP to return to
active participation in the system at the end of the five-year
DROP period or when they elect to return to active
participation, whichever is earlier, but not later than October
1, 2001.  Also, allows a member participating in DROP to re--
enter the system and to resume making mandatory contributions as
of the day participation in the DROP ends or October 1, 2001,
whichever is later;

(5)  Releases the board from liability for changes to the
member's account;

(6)  Requires a member participating in DROP on August 12, 1999,
who returns to active participation in the system and retires
before earning at least 2 years of service, to receive an
allowance of the member's benefit as of the date the member
entered DROP and an additional benefit based on the service
earned after returning to active participation.  If a member has
at least 2 years of service after returning, total years of
service must be taken into account when determining the benefit;

(7)  Increases compensation for special advisors and surviving
spouses of special advisors from $10 to $15 per month times the
number of years the retired member is past age 60;

(8)  Requires a deduction from a member's salary of 7% to be
contributed into the member's account for members who have
returned to active participation in the system after
participation in DROP;

(9)  Exempts benefits from the Police Relief Association from
Missouri income taxes; and

(10)  Changes several sections to clarify a retired member as a
member who has terminated employment and retired in relation to
participation to DROP.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the retirement system has the
funds to support this increase, which will encourage good
experienced officers to keep working.  St. Louis police officers
don't receive as much retirement benefit as other officers
around the country.  The bill will not cost the state any funds.

Testifying for the bill were Representative O'Toole; and St.
Louis Police Retirement System.

OPPONENTS:  Those who oppose the bill say that the increased
benefits will cost St. Louis City too much money.  If the state
wants these increases, it should pay for them.  The city is
having difficulty paying officers, and it doesn't have the funds
to put into the retirement system.  The police officers receive
a very good benefit package and do not need this increase.

Testifying against the bill were St. Louis Mayor's Office; and
St. Louis City Budget Director.

Steve Bauer, Legislative Analyst

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