SCS HCS HB 346 & 174 -- PUBLIC SCHOOL RETIREMENT SYSTEMS

This bill revises various provisions of the Missouri Public
School Retirement System.

TEACHING PERSONNEL AND RETIREMENT BENEFITS

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
benefits and retirement benefits.

PUBLIC SCHOOL RETIREMENT SYSTEMS

The bill contains provisions pertaining to certain public school
districts and retirement systems.

In school districts with 300,000 residents or less, the bill:

(1)  Requires the board to determine and certify to employers the
level rate of contribution and specifies the time period 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%;

(3)  Requires the board to determine and certify the level rate
of contribution for a fiscal year based on an actuarial
valuation.  The valuation will be based on an entry age normal
actuarial cost method and an asset valuation method, with the
unfunded actuarial liability amortized over a period not to
exceed 30 years;

(4)  Requires the board to have an actuary review the actuarial
valuation of the system and perform an additional valuation at
least once every 10 years;

(5)  Prohibits legislation from being enacted after July 1, 2003,
which provides benefit increases to members and retirees unless
there is a matching contribution rate which equals 10.5% as
determined by an actuarial valuation.  Legislation can be enacted
after July 1, 2003, that provides an extension of time for a
member to make an election for a retirement allowance;

(6)  Allows a member who is reinstated with the retirement system
to effect reinstatement by repaying to the system accumulated
contributions which are withdrawn or refunded prior to
termination with the retirement system;

(7)  Allows members who have accrued at least one year of
membership service credit and who have covered employment with
the system following the credit being purchased to purchase
membership service credit or equivalent service credit under
certain terms and conditions.  Payment for the membership service
credit is required prior to termination of membership with the
retirement system;

(8)  Allows a member who has served in the armed forces and who
is no longer in service to purchase membership service credit
equivalent to the period of active duty service;

(9)  Extends the period of a certain retirement allowance
computation provision (Option 1) from July 1, 2003, to July 1,
2008; and

(10)  Allows a member eligible for retirement who has not
previously received a retirement allowance to elect to receive a
partial lump-sum distribution based on an option plan.  This
election is based on years of creditable service and age and is
subject to certain terms and conditions.

Pertaining to the Kansas City School District, the bill:

(1)  Allows retired certificated teachers who are receiving
benefits to teach full-time for up to two years without losing
retirement benefits.  The total number of retired certificated
teachers cannot exceed 15 at any one time;

(2)  Requires the district to make a good faith effort to fill
current positions with non-retired certificated teachers, declare
a shortage of certificated teachers, and follow certain
recruitment requirements;

(3)  Requires the district to pay the employer's contribution
rate and the rehired teacher is required to pay the employee's
contribution rate; and

(4)  Requires the district to be responsible for additional
actuarial costs resulting from rehiring retired certificated
teachers.

GENERAL RETIREMENT PROVISIONS

The bill:

(1)  Allows members of specified public school retirement systems
who have previous credit in another public school retirement
system to purchase equivalent service credit in their present
retirement system;

(2)  Allows members of specified retirement systems who are
within five years of retirement to purchase additional creditable
service;

(3)  Revises the health insurance benefits provision by allowing
employees one year from the date of last employment to qualify
for the coverage; and

(4)  Contains a provision which allows school districts covered
under Sections 169.010 to 169.141, RSMo, with a shortage of
certificated teachers to employ up to five retired certificated
teachers for up to two years.  The teachers would not lose
retirement benefits.  The bill also allows up to five persons who
are receiving retirement benefits from the non-teacher school
retirement system to be employed on a full-time basis for up to
two years without losing benefits.  A school district covered
under this system is required to have a shortage of non-
certificated employees.

NON-TEACHER SCHOOL RETIREMENT SYSTEM

The bill:

(1)  Requires the Board of Trustees to determine and certify to
employers the level rate of contribution and specifies the time
period 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 0.25%;

(3)  Requires the board to determine and certify the level rate
of contribution for a fiscal year based on an actuarial
valuation.  The valuation will be based on an entry age normal
actuarial cost method and an asset valuation method, with the
unfunded actuarial liability amortized over a period not to
exceed 30 years;

(4)  Requires the board to have an actuary review the actuarial
valuation of the system and perform an additional valuation at
least once every 10 years;

(5)  Prohibits legislation from being enacted after July 1, 2003,
which provides benefit increases to members and retirees unless
there is a matching contribution rate which equals 5% as
determined by an actuarial valuation.  Legislation can be enacted
after July 1, 2003, that provides an extension of time for a
member to make an election for a retirement allowance;

(6)  Allows a member who is reinstated with the retirement system
to effect reinstatement by repaying to the system accumulated
contributions which are withdrawn or refunded prior to
termination with the retirement system;

(7)  Allows members who have accrued at least one year of
membership service credit and who have covered employment with
the system following the credit being purchased to purchase
membership service credit or equivalent service credit under
certain terms and conditions;

(8)  Allows a member who has served in the armed forces and who
is no longer in service to purchase membership service credit
equivalent to the period of active duty service;

(9)  Revises a retirement allowance computation provision; and

(10)  Allows a member eligible for retirement who has not
previously received a retirement allowance to elect to receive a
partial lump-sum distribution based on an option plan.  This
election is based on years of creditable service and age and is
subject to certain terms and conditions.

The bill contains an emergency clause for certain provisions.

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