HB 514 -- Pension Benefits and Compensation

Sponsor:  Skaggs

This bill makes changes to several public retirement systems and
related provisions.  The bill:

(1)  Requires in both the Closed Plan and the Year 2000 Plan
that the amount paid to an alternate payee must be based upon a
percentage of the monthly annuity in lieu of a specific dollar
amount and further requires that the percentage will apply to
any lump sum distribution that may be paid under the cash-out
provision.  The bill also clarifies that the cost-of-living
adjustments are subject to division which reflects the present
administrative practice and that the division of benefits order
must be based upon the value of the Closed Plan benefit except
that any annual increase received after retirement must be based
upon the plan elected at the time of the member's retirement
(Section 104.312, RSMo);

(2)  Removes current language regarding military service credit
and inserts language that requires a member to receive
creditable service and salary credit mandated by federal and
state law (Section 104.330);

(3)  Allows legislators and statewide elected officials to have
the same death-in-service benefits that are available to general
members of the Closed Plan and the Year 2000 Plan.  Legislators
and elected officials are also allowed to select from the same
menu of retirement options that are available to general
employees (Sections 104.372-395 and 104.1030-1051);

(4)  Requires that the benefit paid for a duty-related death for
legislators and statewide elected officials with 12 or more
years be based upon the monthly pay rate instead of final
average compensation (Section 104.420);

(5)  Allows members of the Missouri State Employees' Retirement
System (MOSERS) Board of Trustees to continue serving as
trustees until they resign or are replaced by new appointments
(Section 104.450);

(6)  Allows the definitions of disability and other rules
established by the board to be included in any contract between
any insurer or service organization employed by the board to
administer disability benefits.  The responsibilities,
obligations, liabilities, and appeals process of any insurer or
service organization are further outlined (Section 104.518);

(7)  Allows the board the flexibility of choosing to either
self-insure or purchase liability insurance to indemnify,
protect, defend, and hold harmless the trustees, officers, and
employees of the system against claims or suits for negligence
or wrongful acts committed in the scope of their service or
employment (Section 104.530);

(8)  Allows for the complete transfer of service between MOSERS
and Highway and Transportation Employees' and Highway Patrol
Retirement systems (Section 104.602);

(9)  Requires that refunds for purchased service be issued in
the event a member or beneficiary receives less than the amount
paid to the system in connection with a purchase (Section
104.620);

(10)  Allows any member retiring under the Rule of 80 to be
eligible to retain any optional life insurance held immediately
prior to retirement until the earliest age for social security
eligibility (Section 104.1072);

(11)  Expands the designation of an agent to include
administrative law judges, legal advisors, and judges.  The
designation is effective only upon the disability or incapacity
of the benefit recipient as determined by the person's physician
and communicated in writing to the system (Section 104.1093);

(12)  Establishes that any judge that has creditable service
under the Closed Plan or the Judicial Plan as a commissioner or
deputy commissioner may make a one-time election upon
application to receive all retirement benefits for that service
under either plan (Section 476.517); and

(13)  Requires that the contribution rate used for calculating
purchase of military service for a judge must be the computed
rate on the date of employment (Section 476.524).

The bill clarifies that the Highways and Transportation
Commission may provide liability insurance on any vehicle,
including automobiles, airplanes, boats, and any other vehicle
owned or leased by the commission.  The bill also extends
workers' compensation benefits to the executive director and
employees of the Highway and Transportation Employees' and
Highway Patrol Retirement System (HTEHPRS).  If the commission
provides insurance coverage or workers' compensation benefits
for the executive director and employees of HTEHPRS, the system
must reimburse the commission for all costs of the coverage.

Missouri House of Representatives
Last Updated September 13, 2001 at 2:02 pm