HCS HB 334 -- MISSOURI STATE EMPLOYEES' RETIREMENT SYSTEM

SPONSOR:  Smith, 118 (Franz)

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

This substitute changes the laws regarding the Missouri State
Employees' Retirement System (MOSERS).  The substitute:

(1)  Adds language allowing retirement boards to promulgate rules
to accommodate changes in the state's payroll system as it
relates to the final average compensation for retirement benefit
calculation (Sections 104.010.7 and 104.1003(16), RSMo);

(2)  Changes the required hours for an employee to be eligible
for benefits from 1,000 hours to 1,040 hours (Section
104.010.1(20));

(3)  Revises the definition of "member" as an employee, retiree,
or vested former employee (Section 104.010.1(27));

(4)  Removes cash-out provisions for active employees (Section
104.335);

(5)  Removes language that allows members to purchase contract
service (Section 104.344);

(6)  Revises the section allowing a survivor of a deceased member
to receive or transfer creditable prior service for determining
survivor benefits (Sections 104.378 and 104.1021(13));

(7)  Clarifies that members on long-term disability are to be
treated like active employees as it relates to insurance and
retirement benefits (Sections 104.410 and 104.1042);

(8)  Requires errors made on a member's or beneficiary's
retirement or survivor's benefit calculation be corrected within
a 10-year period (Section 104.490);

(9)  Adds language that all retirees of the plans administered by
MOSERS, including administrative law judges and legal advisors
and judges, who become reemployed into a benefit eligible
position would terminate their retirement benefits while so
employed.  Upon re-retirement, an additional annuity would be
calculated based on the position held while reemployed.  The
retirement system that paid the original annuity will be
responsible for paying the additional annuity (Section 104.603);

(10)  Requires that members purchasing creditable service must
apply and complete the purchase prior to applying for retirement
benefits (Section 104.606);

(11)  Creates an excess benefit plan allowing MOSERS to pay
benefits presently subject to Internal Revenue Code 415
limitations (Section 104.607);

(12)  Extends the final beneficiary payment provisions to judges
and members of the Administrative Law Judges and Legal Advisors'
Retirement Plan (ALJLAP) (Section 104.620);

(13)  Clarifies language regarding the transfer of service
between MOSERS and the Highways and Transportation Employees' and
Highway Patrol Retirement System (HTEHPRS) (Section 104.800);

(14)  Adds safe harbor provisions for the MOSERS board as it
relates to education and advice given to members for retirement
planning (Sections 104.1012 and 104.1205.2);

(15)  Changes the vesting requirement for service purchase
transfers for legislators from two to three full biennial
assemblies (Section 104.1021(11));

(16)  Clarifies that MOSERS can make beneficiary payments to the
natural parent or the legal guardian of a minor child until age
18; thereafter, the benefit may be paid to the child until age 21
(Section 104.1030);

(17)  Allows judges and administrative law judges to vote and be
a candidate for an elected position on the MOSERS board (Section
104.450); and

(18)  Clarifies that retirees, under the new plan, can retain
optional life insurance coverage until age 62 (Section 104.1072).

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the bill clarifies and makes
necessary changes to the laws regarding the retirement system.

Testifying for the bill was Representative Franz.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that this is a zero
cost bill, and retirement systems are a constant work in progress
with changes needed periodically to keep up-to-date.

Others testifying on the bill was Missouri State Employees'
Retirement System.

Marc Webb, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:18 pm