HCS HB 348 & 347 -- LOCAL GOVERNMENT EMPLOYEES' RETIREMENT SYSTEM

CO-SPONSORS:  Smith, 118 (Dempsey)

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

This substitute revises the optional retirement allowance and
beneficiary election provision of the Missouri Local Government
Employees' Retirement System (LAGERS).

The substitute allows retirees to elect to receive their
allowance with or without a lump-sum distribution.  The partial
lump-sum distribution will equal 24 times the amount of the
retiree's monthly allowance, excluding any temporary allowance
which may be payable.  The process for applying for the lump-sum
distribution is contained in the substitute.

If a retiree elects the partial lump-sum distribution, a
retiree's monthly allowance will be adjusted according to age at
retirement.  The substitute also requires that the adjustment in
the monthly allowance be applied before additional reductions are
calculated based on the selection of a beneficiary option
contained in the substitute.

The substitute also requires that if a beneficiary dies before a
retiree, the optional plan selected by the retiree at the time of
retirement will terminate.

In addition, if a retiree of LAGERS becomes re-employed in a
covered position, the retiree is subject to a monthly allowance
forfeiture for each calendar year employed.  A retiree must also
continue to make contributions to LAGERS and is considered a
re-employed member.

The substitute entitles retirees to continue to receive their
retirement allowance from LAGERS if they are not currently
receiving a retirement benefit from a political subdivision
resulting from employment in a position covered by LAGERS.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill would provide LAGERS
more flexibility when administering benefits for retirees who
become re-employed in a political subdivision from which a
retirement allowance is being collected or not being collected.
The bill is cost-neutral because members who elect to receive the
lump-sum option will have their monthly allowance reduced as
determined by the age the retiree elects to receive the lump-sum
option.

Testifying for the bill were Representative Dempsey; and Bill
Schwartz, Executive Director, Local Government Employees'
Retirement System.

OPPONENTS:  There was no opposition voiced to the committee.

Joseph Deering, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am