FIRST REGULAR SESSION

HOUSE BILL NO. 377

91ST GENERAL ASSEMBLY

INTRODUCED BY REPRESENTATIVES FRASER (Sponsor), HAYWOOD, OSTMANN, GAMBARO,

BOUCHER AND LEVIN.

Read 1st time January 16, 2001, and 1000 copies ordered printed.

TED WEDEL, Chief Clerk

0285L.01I

AN ACT

To repeal section 169.460, RSMo 2000, relating to public school teacher retirement, and to enact in lieu thereof one new section relating to the same subject.



Be it enacted by the General Assembly of the state of Missouri, as follows:

Section A. Section 169.460, RSMo 2000, is repealed and one new section enacted in lieu thereof, to be known as section 169.460, to read as follows:

169.460. 1. Any member may retire on a service retirement allowance upon his or her written application to the board of trustees setting forth at what time not less than fifteen days nor more than ninety days subsequent to the execution and filing of such application he or she desires to be retired; provided, that the member at the time so specified for his or her retirement either (a) shall have attained age sixty-five or (b) shall have attained an age which when added to the number of years of creditable service of such member shall total a sum not less than eighty-five. For purposes of computing any member's age [under] pursuant to this section, the board shall add to his or her actual age any accumulated and unused days of sick leave included in his or her creditable service.

2. Upon retirement for service [under] pursuant to subsection 1 of this section, a member shall receive an annual service retirement allowance payable in monthly service installments equal to his or her number of years of creditable service multiplied by one and one-fourth percent of his or her average final compensation.

3. A member who is not eligible for service retirement [under] pursuant to subsection 1 of this section but has attained age sixty and has five or more years of creditable service may make application in the same manner as [under] pursuant to subsection 1 of this section for an early service retirement allowance which shall be a percentage of his or her projected annual service retirement allowance. His or her projected annual service retirement allowance shall equal [his] the number of years of creditable service multiplied by one and one-fourth percent of [his] the average final compensation. The percentage of his or her projected annual service retirement allowance shall be computed by deducting from one hundred percent a sum equal to five-ninths of one percent for each month such member's early retirement date precedes the earliest date he or she could receive a service retirement allowance [under] pursuant to subsection 1 of this section had his or her service continued.

4. Upon the written application of the member or of the employing board, any active member who has had five or more years of creditable service with such board and does not qualify for service retirement [under] pursuant to subsection 1 of this section may be retired by the board of trustees, not less than fifteen and not more than ninety days next following the date of filing such application, on an ordinary disability retirement allowance; provided, that the medical board after a medical examination of such member shall certify that such member is unable to further perform his or her duties due to mental or physical incapacity, and that such incapacity is likely to be permanent and that such member should be retired. The determination of the board of trustees in the matter shall be final and conclusive. A disability retirant who has accumulated unused vacation and sick leave may elect to have the commencement of his or her disability retirement allowance deferred for more than ninety days during the period he or she is entitled to vacation and sick pay.

5. Upon retirement for disability, a member shall receive a disability retirement allowance which shall be the larger of:

(1) A service retirement allowance based on his or her creditable service to the date of his or her disability retirement and calculated as if he or she were age sixty-five; or

(2) One-fourth of his or her average final compensation;



except that such allowance shall not exceed the service retirement allowance which he or she would receive upon retirement had his or her service continued and satisfied the eligibility requirements of subsection 1 of this section and had his or her final average compensation been unchanged.

6. Once each year during the first five years following retirement on a disability retirement allowance and once in every three-year period thereafter, the board of trustees may, and shall, require any disability beneficiary who has not yet become eligible for service retirement pursuant to subsection 1 of this section to undergo a medical examination at a place designated by the medical board or by a physician or physicians designated by such board. Should any such disability beneficiary refuse to submit to such medical examination, his or her allowance may be discontinued until his or her withdrawal of such refusal, and should his or her refusal continue for one year, all rights in and to his or her pension may be revoked by the board of trustees.

7. Should the board of trustees find that any disability retirant is engaged in or is able to engage in a gainful occupation paying more than the difference between his or her retirement allowance plus benefits, if any, to which [he and his] the retirant and the retirant's family are eligible [under] pursuant to the federal Old Age, Survivors and Disability Insurance System of the Social Security Act and the current rate of monthly compensation for the position he or she held at retirement, then the amount of his or her retirement allowance shall be reduced to an amount which together with the amount earnable by him or her shall equal such current rate of monthly compensation. Further adjustments in the disability retirement allowance because of earnings changes shall be made by the board of trustees. The decisions of the board of trustees in regard to such modification of disability allowance shall be final and conclusive.

8. Should any disability retirant be restored to service as an employee, he or she shall again become a member of the retirement system and contribute thereunder. If he or she is under age sixty at date of again becoming a member, his or her creditable service at the time of his or her retirement shall be restored to full force and effect, and the excess of his or her accumulated contributions at retirement over the total payments which he or she received during retirement shall be credited to his or her account. If he or she is age sixty or over, his or her disability retirement allowance shall cease and be resumed upon subsequent retirement, together with such retirement allowance as shall accrue by reason of his or her latest period of membership.

9. Should a member cease to be an employee, except by death or retirement, he or she shall be paid on demand the amount of his or her accumulated contributions standing to the credit of his or her individual account, provided that a member with five or more years of creditable service may leave his or her accumulated contributions with the retirement system and be an inactive member and claim a retirement allowance at any time after he or she reaches the minimum age for voluntary retirement. When his or her claim is presented to the board of trustees, he or she shall be granted an allowance at such time and for such amount as is available [under] pursuant to subsection 2 or 3 of this section in accordance with the provisions of law in effect at the time his or her active membership ceased. The accumulated contributions of an inactive member may be withdrawn at any time upon ninety days' notice or such shorter notice as is approved by the board of trustees. Should a member die before retirement, his or her accumulated contributions shall be paid to his or her designated beneficiary, if living, otherwise to the estate of the member. A member's accumulated contributions shall not be paid to him or her so long as he or she remains in service as an employee.

10. Any member upon retirement shall receive his or her benefit in a retirement allowance payable throughout life subject to the provision that if his or her death occurs before he or she has received total benefits at least as large as his or her accumulated contributions at retirement, the difference shall be paid in one sum to his or her designated beneficiary, if living, otherwise to the estate of the retired member.

11. Prior to the date of retirement [under] pursuant to subsection 2, 3, or 4 of this section, a member may elect to receive the actuarial equivalent at that time of his or her retirement allowance in a lesser retirement allowance, payable throughout life [under] pursuant to one of the following options with the provision that:

Option 1. Upon [his] death, his or her retirement allowance shall be continued throughout the life of and paid to his or her beneficiary, or

Option 2. Upon [his] death, one-half of his or her retirement allowance shall be continued throughout the life of and paid to his or her beneficiary, or

Option 3. Upon [his] death, his or her retirement allowance shall be continued throughout the life of and paid to his or her beneficiary, provided that in the event his or her designated beneficiary predeceases him or her, then his or her retirement allowance shall be adjusted at that time to the amount determined [under] pursuant to subsection 2 or 3 of this section at the time of his or her retirement, or

Option 4. Upon [his] death, one-half of his or her retirement allowance shall be continued throughout the life of and paid to his or her beneficiary, provided that in the event his or her designated beneficiary predeceases him or her, then his or her retirement allowance shall be adjusted at that time to the amount determined [under] pursuant to subsection 2 or 3 of this section at the time of his or her retirement.



The survivor benefits payable to a beneficiary, other than the spouse of the retirant, [under] pursuant to any of the foregoing options shall in no event exceed fifty percent of the actuarial equivalent of the retirement allowance determined [under] pursuant to subsection 2 or 3 of this section at the time of retirement. The actuarial equivalent of a member's retirement allowance shall be computed as of the earlier of his or her actual retirement or the date he or she became eligible for service retirement [under] pursuant to subsection 1 of this section.

12. If an option has been elected [under] pursuant to subsection 11 of this section, and both the retired member and beneficiary die before receiving total benefits as large as the member's accumulated contributions at retirement, the difference shall be paid to a designated beneficiary, if living, otherwise to the estate of the person last entitled to benefits.

13. If an active member dies while an employee and with five or more years of creditable service and a dependent of the member is designated as beneficiary to receive his or her accumulated contributions, such beneficiary may, in lieu thereof, request that benefits be paid [under] pursuant to option 1, subsection 11 of this section, as if the member had attained age sixty, if the member was less than sixty years of age at the time of his or her death, and had retired [under] pursuant to such option as of the date of death, provided that under the same circumstances a member may provide by written designation that benefits must be paid [under] pursuant to option 1 to such beneficiary. In addition to benefits received [under] pursuant to option 1, subsection 11 of this section, a surviving spouse receiving benefits [under] pursuant to this subsection shall receive sixty dollars per month for each unmarried dependent child of the deceased member who is under twenty-two years of age and is in the care of the surviving spouse; provided, that if there are more than three such unmarried dependent children one hundred eighty dollars shall be divided equally among them. A "dependent beneficiary" for the purpose of this subsection only shall mean either the surviving spouse or a person who at the time of the death of the member was receiving at least one-half of his or her support from the member, and the determination of the board of trustees as to whether a person is a dependent shall be final.

14. If the board of trustees is unable to refund the contributions of a member or to commence payment of benefits after such refund or benefits are otherwise first due and payable and thereafter, proper application is made for such refund or benefits, the board will make payment of such refund or benefits but no credit will be allowed for interest after the date the refund or benefits were first due and payable.

15. In lieu of accepting the payment of the accumulated contributions of a member who dies after having at least eighteen months of creditable service and while an employee, an eligible beneficiary or, if no surviving beneficiary, the unmarried dependent children of the member under twenty-two years of age may elect to receive the benefits [under] pursuant to subdivision (1), (2), (3), or (4) of this subsection. An "eligible beneficiary" is the surviving spouse, unmarried dependent children under twenty-two years of age or dependent parents of the member, if designated as beneficiary. A "dependent" is one receiving at least one-half of his or her support from the member at his or her death.

(1) A surviving spouse who is sixty-two years of age at the death of the member or upon becoming such age thereafter, and who was married to the member at least one year, may receive sixty dollars per month for life. A spouse may receive this benefit after receiving benefits [under] pursuant to subdivision (2) of this subsection;

(2) A surviving spouse who has in his or her care an unmarried dependent child of the deceased member under twenty-two years of age may receive sixty dollars per month plus sixty dollars per month for each child under twenty-two years of age but not more than a total of two hundred forty dollars per month;

(3) If no benefits are payable [under] pursuant to subdivision (2) of this subsection, unmarried dependent children under the age of twenty-two may receive sixty dollars each per month; provided that if there are more than three such children one hundred eighty dollars per month shall be divided equally among them;

(4) A dependent parent upon attaining sixty-two years of age may receive sixty dollars per month as long as not remarried provided no benefits are payable at any time [under] pursuant to subdivision (1), (2), or (3) of this subsection. If there are two dependent parents entitled to benefits, sixty dollars per month shall be divided equally between them;

(5) If the benefits [under] pursuant to this subsection are elected and the total amount paid is less than an amount equal to the accumulated contributions of a member at his or her death, the difference shall be payable to the beneficiary or the estate of the beneficiary last entitled to benefits.

16. If a retired member dies while receiving a disability retirement allowance, the surviving spouse and children, if any, shall receive benefits [under] pursuant to subsection 15 of this section to the same extent as if he or she had died while an employee, unless such member elected optional benefits [under] pursuant to subsection 11 of this section.

17. Should a service retirant again become a member, his retirement allowance payments shall cease during such membership and shall be resumed upon subsequent retirement together with such retirement allowance as shall accrue by reason of his or her latest period of membership. A retirant may not receive a retirement allowance payment in any month for which he or she receives compensation from an employing board, except he or she may serve as a part-time or temporary employee for not to exceed [sixty] seventy-five days in any school year without becoming a member and without having his or her retirement allowance discontinued. A retirant may also serve as a member of the board of trustees and receive any compensation and reimbursement for expenses allowed him or her because of such service without becoming a member and without having his or her retirement allowance discontinued or reduced.

18. Upon approval of the board of trustees, any member may make contributions in addition to those required. Any additional contributions shall be accumulated at interest and paid in addition to the benefits provided hereunder. The board of trustees shall make such rules and regulations as it deems appropriate in connection with additional contributions including limitations on amounts of contributions and methods of payment of benefits.

19. Notwithstanding any other provisions of this section, any member retiring on or after age sixty-five who shall have five or more years of creditable service shall be entitled to an annual service retirement allowance of the lesser of (a) an amount equal to his or her number of years of creditable service multiplied by one hundred twenty dollars, or (b) one thousand eight hundred dollars. Upon the death of such member, any benefits payable to the beneficiary of such member shall be computed as otherwise provided.

20. Notwithstanding any other provisions of this section, any member who continues his or her employment with an employing board after attaining seventy and one-half years of age shall receive service retirement benefits during the continuation of his or her employment if and to the extent the payment of such service retirement benefits is required by the Internal Revenue Code of 1986, as amended, and Treasury regulations promulgated thereunder; and such service retirement benefits shall be adjusted annually for additional benefits which shall accrue by reason of such continued employment in accordance with the rules and regulations of the board of trustees. Optional benefits [under] pursuant to subsection 11 of this section must be elected by a member prior to the commencement of benefits hereunder.


Missouri House of Representatives