SCS HCS HB 152 & 180 -- PUBLIC EMPLOYEE RETIREMENT SYSTEMS

This bill makes various changes to public employee retirement
systems.

ST. LOUIS POLICE RETIREMENT SYSTEM

The bill makes technical corrections to the Deferred Retirement
Option Plan (DROP) for the St. Louis City Police Retirement
System.

KANSAS CITY POLICE AND CIVILIAN EMPLOYEES' RETIREMENT SYSTEMS

Concerning the Kansas City Police and Civilian Employees'
Retirement Systems, the bill:

(1)  Requires benefits and conditions to always be adjusted to
ensure that tax-exempt status is maintained;

(2)  Requires a member's benefits to be 100% vested and
non-forfeitable 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 in accordance with the Internal Revenue Code;

(6)  Gives the retirement boards authority to approve changes to
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 retirement boards authority to provide fiduciary
liability insurance;

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

(10)  Changes the designation and election for the five elected
members of the Kansas City Police Retirement Board in 2004;

(11)  Allows members to receive a partial lump-sum option
payment;

(12)  Makes the retirement boards state agencies 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 to 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 to adopt a program of incentives to encourage
early retirement of members and civilian employees, 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.

TEACHING PERSONNEL, PUBLIC SCHOOL RETIREMENT SYSTEMS, AND THE
NON-TEACHER SCHOOL RETIREMENT SYSTEM

The bill requires the State Board of Education to develop rules
to facilitate job-sharing positions for classroom teachers.  The
bill contains a definition for "job-sharing position" and
entitles teachers in these positions to certain employment and
retirement benefits.

Pertaining to retirement systems in school districts with 300,000
residents or less and the Non-Teacher School Retirement System,
the bill:

(1)  Requires the Board of Trustees of both systems to determine
and certify to employers the level rate of contribution and
specifies the time period that the rate should be established;

(2)  Requires the level rate of contribution for a fiscal year
not to exceed the rate of contribution for the prior fiscal year
by more than 0.5%.  The level rate of contribution for the
Non-Teacher School Retirement System for a fiscal year will not
exceed the rate of contribution for the prior fiscal year by more
than 0.25%;

(3)  Requires the boards to determine and certify the level rate
of contribution for a fiscal year based on an actuarial
valuation;

(4)  Requires the boards to have an actuary conduct an actuarial
valuation of the system and additional valuations at least once
every 10 years; and

(5)  Prohibits legislation from being enacted after July 1, 2003,
which provides benefit increases to members and retirees of both
systems until the contribution rate is equal to or less than the
contribution rate in effect on July 1, 2003.

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