HCS SB 961 -- KANSAS CITY POLICE RETIREMENT SYSTEMS

CO-SPONSORS:  Wiggins, Kenney, DePasco, Quick, Bland (Curls)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Urban Affairs by a vote of 12 to 0.

This substitute:

(1)  Prohibits the Board of Police Commissioners of Kansas City
from adopting any policy that would impose an increase in
contributions to the police retirement system without the city's
consent;

(2)  Allows any policy adopted by the board in contravention of
any provision in the statutes to remain valid until the close of
the next regular session of the General Assembly, unless the
statutes are amended during the session to adopt and incorporate
the policy within statute;

(3)  Requires a member's benefits to be 100% vested and
nonforfeitable upon the member's attainment of the normal
retirement age;

(4)  Requires the distribution of retirement benefits to begin no
later than April 1 of the year following the calendar year during
which the member becomes 70 1/2 years of age;

(5)  Limits benefits to those set under Section 415 of the
Internal Revenue Code;

(6)  Limits the total salary taken into account for any purpose
for any member to no more than $200,000 per year.  This amount
will change as permitted by the Internal Revenue Code;

(7)  Gives the board authority to change actuarial assumptions at
any time;

(8)  Allows a member or beneficiary to transfer an eligible
rollover distribution to another eligible retirement plan; and

(9)  Gives the board authority to provide fiduciary liability
insurance.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill is necessary to bring
the Kansas City Police Department's retirement system into
compliance with IRS regulations.  This will allow the retirement
system to receive a letter of determination from the IRS showing
that the retirement system is compliant.  This will also provide
current Kansas City police officers with a tax break.

Testifying for the bill were Senator Wiggins; and Kansas City
Police Department Pension System.

OPPONENTS:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:04 am