SCS HCS HB 660 -- PUBLIC SCHOOL RETIREMENT SYSTEMS

This bill revises several school retirement systems.

PUBLIC SCHOOL RETIREMENT SYSTEM

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

(1)  Increases the benefit formula multiplier from 2.50% to
2.55% for years of service beyond 31 beginning July 1, 2001, to
July 1, 2008, regardless of age; this provision is subject to an
emergency clause;

(2)  Requires the cost-of-living adjustment to begin with the
second, as opposed to the third, January following retirement
for members retiring on or after July 1, 2001;

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

(4)  Extends to surviving spouses of members of the Public
School Retirement System who remarried before August 28, 1995,
any remaining benefits.  The bill prohibits retroactive benefits.

NON-TEACHER SCHOOL EMPLOYEE RETIREMENT SYSTEM

The bill also contains increases in benefits for the Non-Teacher
School Employee Retirement System.  The bill:

(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 0.4% to 0.8%;

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

(4)  Adds a one-time special consultant benefit of 7.1% for
members retiring prior to July 1, 2001.

This portion of the bill has an emergency clause and is
effective on July 1, 2001, or upon passage and approval,
whichever occurs later.

Noncertified employees of statewide, nonprofit educational
associations or organizations serving the active membership of
the Nonteacher School Employee Retirement System are authorized
to become members of the system.

KANSAS CITY PUBLIC SCHOOL RETIREMENT SYSTEM

In revisions to the Kansas City Public School Retirement System,
the bill:

(1)  Clarifies the relationship of charter school employees to
the retirement system.  Charter school employees will be
considered public school employees for purposes of retirement.
If a school system lapses, charter school personnel will
continue to participate in the retirement system as they did
before the lapse;

(2)  Adds provisions that address the effect of a possible lapse
of corporate structure of the district on the continued
existence of the retirement system;

(3)  Raises the current limit on reemployment after retirement
without loss of benefits from 530 hours to 600 hours;

(4)  Adds provisions concerning the reemployment of retired
members that clarify that the amount of the pension attributable
to the person's first period of employment will not be changed
by reemployment and addresses the calculation of additional
pensions for persons who retire a second time.  If an inactive
member becomes an active member after June 30, 2001, the
person's pension will be calculated separately for each separate
period ending with a break in service, unless the person earns
at least 4 years of creditable service without a break; and

(5)  Changes the starting date of the cost-of-living adjustment
from the fourth January after retirement to the second January.

ST. LOUIS PUBLIC SCHOOL RETIREMENT SYSTEM

The 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 provisions 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 to continue to function in the event
of lapse in the school district's corporate organization;

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

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

(8)  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;

(9)  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;

(10)  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;

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

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

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

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

(15)  Increases the member contribution rate from 4% to 5% of
salary;

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

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

(18)  Requires the annual actuarial valuation to be based on the
actuarial cost method and assumptions adopted by the board;

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

(20)  Updates and deletes obsolete language.

OTHER PROVISIONS

The bill directs the 4 retirement systems serving teacher and
nonteacher employees of public schools to promulgate joint rules
for the recognition of service toward retirement eligibility
under any of the systems.  The rules must not permit transfer of
creditable service or system assets.  The rules must be filed
with the Joint Committee on Public Employee Retirement at least
30 days before any retirement system board meeting at which
rules are voted upon and must be approved by a majority of all
trustees of each board.

Teachers in metropolitan school districts (St. Louis City) are
allowed to teach or be an administrator in a charter school for
4 years without losing retirement benefits.  Under current law,
teachers are only allowed to teach in district schools for 2
years without the loss of benefits.

The bill also authorizes the Public School Retirement System
Board of Trustees to establish a benefit plan for benefits in
excess of the federal maximum benefit amount established in 26
U.S.C. 415.  The "secondary" plans may only be used to provide
benefits in excess of the federal maximum benefit amounts.

The bill outlines the election procedure for the school board of
any school district that becomes an urban school district by
reason of the 2000 federal decennial census.

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