HB 705 -- ST. LOUIS PUBLIC SCHOOL RETIREMENT SYSTEM

SPONSOR:  Gambaro

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

This bill makes changes in the St. Louis Public School
Retirement System.  The bill:

(1)  Defines "charter schools" and includes charter schools in
the definition of public schools to include the participation of
charter school employees in the system;

(2)  Defines "retired member" and further defines "active
member" and "inactive member";

(3)  Clarifies laws that allow members to purchase pension
credit for various kinds of service;

(4)  Allows members of the Board of Education to serve as
members of the retirement system Board of Trustees;

(5)  Authorizes the board of trustees to continue to function in
the event of lapses in the school district's corporate
organization;

(4)  Increases the period during which a member can apply for a
pension from 90 to 180 days;

(5)  Increases the pension benefit formula multiplier from 1.25%
to 2%;

(6)  Increases the period during which a member can apply for a
disability pension from 90 to 180 days.  Social Security
disability awards are also accepted as an alternative standard
for disability pension approval;

(7)  Requires payment to a member with fewer than 5 years of
service who ceases to be employed, except by death, of the
amount of accumulated contributions.  The payment must be made
in accordance with the Internal Revenue Code;

(8)  Adds a benefit payment option that allows a member to
receive an actuarially equivalent benefit that is higher prior
to age 62 and lower after age 62;

(9)  Repeals language which required that a member's account not
be credited with annual interest after the date benefits were
first due and payable;

(10)  Allows retired members to continue to receive benefits and
compensation for employment under Section 105.269, RSMo, as
volunteer tutors;

(11)  Requires special advisor payments to be paid as
cost-of-living benefits rather than as expenses of the
retirement system;

(12)  Deletes the requirement that the board of trustees elect a
treasurer;

(13)  Repeals language requiring the annual valuation to be
based on the unfunded liability;

(14)  Changes the amortization schedule for the unfunded
liability from 50 years to a period not to exceed 30 years;

(15)  Allows the board of trustees to adopt an actuarial method
that is appropriate for the system's funded status;

(16)  Allows the system to recognize child support orders issued
through the Division of Child Support Enforcement involving
retired members; and

(17)  Updates and deletes obsolete language.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill ensures the system
will have a full board of trustees.  The bill clarifies that
charter schools are part of the system.  If the school district
collapses, the retirement system will continue.

Testifying for the bill were Representative Gambaro; St. Louis
City School Pension Retirement Fund; and Missouri State Teachers
Association.

OPPONENTS:  There was no opposition voiced to the committee.

Steve Bauer, Legislative Analyst

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