HCS HB 660 -- PUBLIC SCHOOL RETIREMENT

SPONSOR:  Hagan-Harrell

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Retirement by a vote of 10 to 0.

This substitute makes several changes in the Public School
Retirement System.  The substitute:

(1)  Increases the benefit formula multiplier to 2.55% for each
year of service beyond 31 years beginning July 1, 2001, to July
1, 2008, regardless of age;

(2)  Requires the cost-of-living adjustment to begin with the
second, as opposed to the third, January following retirement
after July 1, 2008; and

(3)  Increases member benefits by $3 per year of creditable
service for members retiring before July 1, 2001.

The substitute also contains increases in benefits for the
Non-Teacher School Employee Retirement System effective July 1,
2001.  The substitute:

(1)  Increases the formula factor from 1.51% to 1.61% with
coordinating adjustments to the 25 and out formula factor;

(2)  Increases the temporary benefit from .4% to .8%;

(3)  Raises the cost-of-living cap from 75% to 80% of the
retirement allowance; and

(4)  Increases the one-time benefit from 3.4% to 7.1%.

The substitute has an emergency clause and is effective on July
1, 2001, or upon passage and approval, whichever occurs later.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill is a needed retirement
increase for teachers and non-teachers.  This will help keep
good qualified teachers in the teaching profession.  It also
rewards the many other occupations that support the schools.

Testifying for the bill were Representative Hagan-Harrell;
Public School Retirement System of Missouri; John Hartman;
Missouri Retired Teachers Association; Missouri National
Education Association; Metropolitan Community Colleges; Missouri
Federation of Teachers; School Administrators Coalition;
Missouri State Teachers Association; Missouri School Boards
Association; Missouri Association of Educational Office
Personnel; and Non-Teachers Retirement Systems.

OPPONENTS:  Those who oppose the bill say that the state should
wait to give additional retirement increases to teachers.
Teachers have had several increases in recent years and receive
adequate benefits.  The increase will cost too much money and
the system may not be able to afford the increases if the stock
market continues to decline.

Testifying against the bill was Richard Moore.

Steve Bauer, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:45 am