HCS SCS SB 212 & 220 -- KANSAS CITY POLICE RETIREMENT; HIGHWAY
PATROL

SPONSOR:  Bartle (Johnson, 47)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Local Government by a vote of 16 to 0.

Regarding the Kansas City Police Retirement System, this
substitute:

(1)  Requires benefits and conditions to always be adjusted to
qualify for tax-exempt status;

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

(3)  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;

(4)  Prohibits benefits in excess of the limits set by Section
415 of the Internal Revenue Code;

(5)  Limits the total salary taken into account for any purpose
for any member to no more than $200,000 per year, subject to
adjustments permitted by the Internal Revenue Code;

(6)  Gives the Kansas City Police Retirement Board authority to
change actuarial assumptions at any time annually, but a change
in actuarial assumptions may not result in any decrease in
benefits accrued as of the effective date of the change;

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

(8)  Gives the board authority to provide fiduciary liability
insurance;

(9)  Makes other changes to conform with the Internal Revenue
Code;

(10)  Changes the requirements for the five elected members of
the board.  If Kansas City has established a Civilian Employees'
Retirement System of the police department, the substitute
requires the elected members to consist of three restricted
members and two open members.  The three restricted members will
consist of a retired member, an active member below the rank of
sergeant, and a civilian member.  If Kansas City has not
established a Civilian Employees' Retirement System of the police
department, three members will be open members.  (Kansas City has
established a Civilian Employees' Retirement System.)  Open
members will have no qualification requirements.  Current law has
no requirement that the board have an open member.  The
substitute outlines a staggered election process;

(11)  Allows members of the police retirement system and the
civilian employees' retirement system to receive a partial
lump-sum option payment;

(12)  Makes the board a state agency for the purpose of the
administrative procedure and review process;

(13)  Requires the Kansas City Police Department to grant
authorized leave with pay to active police officers and civilian
employees who attend educational seminars and similar functions
for a period not to exceed 10 days in any calendar year;

(14)  Authorizes the City of Kansas City and the Kansas City
Police Department, if they adopt a program of incentives to
encourage early retirement of members or civilian employees, to
administer and pay the incentives established by the program.
This provision is contingent upon the city requesting and
agreeing to increase financial contributions to the police
retirement system; and

(15)  Requires a funeral benefit of $1,000 to be paid in addition
to all other benefits for a civilian employee.  Proper proof of
death is required.  If the funeral benefit for a civilian
employee is less than the employee's accumulated contributions,
an amount equal to the difference is required to be paid to the
employee's designated beneficiary or personal representative.

The substitute also requires the Superintendent of the State
Highway Patrol to submit a salary schedule report to the
Governor, Speaker of the House of Representatives, and the
President Pro Tem of the Senate.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the substitute expands benefits
that may be offered to Kansas City police to include early
retirement and a partial lump sum option.  The substitute also
brings state law into compliance with Internal Revenue Service
changes.

Testifying for the bill were Senator Bartle; and Representative
Behnen.

OPPONENTS:  There was no opposition voiced to the committee.

Steve Bauer, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:13 am