HCS HB 1480 -- POLICE OFFICERS ANNUITY FUND

SPONSOR:  Smith, 118 (Rupp)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Retirement
by a vote of 9 to 3.

This substitute creates the Police Chiefs' and Officers' Annuity
Fund.  The annuity will be funded by member contributions of $20
per month and a $7 surcharge in all criminal cases, including
infractions and ordinances.  This surcharge will not be assessed
when the costs are waived or are paid by the state, county, or
municipality.  A six-member board of police officers and police
chiefs will oversee the fund; hire an executive director; and
contract for the services of an actuary, investment counsel, and
certified public accountant.

The fund will make monthly payments, in an amount of $500 per
month for five years to eligible members.  The substitute
specifies the terms of eligibility and how creditable service is
determined.  Eligible members can start drawing the annuity five
years after its creation.

The substitute also allows an eligible member's estate or
designated beneficiary to receive a death benefit of $10,000 upon
the death of the eligible member.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2005, FY
2006, and FY 2007.  Estimated Income on Other State Funds of
$7,439,577 to Unknown in FY 2005, $8,927,492 to Unknown in FY
2006, and $8,927,492 to Unknown in FY 2007.

PROPONENTS:  Supporters say that the bill does not create a new
retirement system, but provides eligible officers with a monthly
annuity payment which can be used to offset the cost of rising
health insurance premiums.  Compounding the issue of rising
health insurance costs, smaller municipalities often struggle or
do not have the resources to provide health insurance benefits to
law enforcement officers.  The bill will allow eligible law
enforcement officials to use the annuity payment to obtain health
insurance at a reduced cost.

Testifying for the bill were Representative Rupp; Missouri
Insurance Coalition; MetLife Resources; Missouri Municipal
League; City of Pacific; City of Hazelwood; Lake St. Louis Police
Department; City of Warrenton; City of Wright City; Manchester
Police Department; and Missouri Police Chiefs' Association.

OPPONENTS:  There was no opposition voiced to the committee.

Joseph Deering, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am