HB 1466 -- POLICE RETIREMENT SYSTEM OF ST. LOUIS

SPONSOR:  Daus

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

This bill changes the laws regarding the distribution of benefits
for the Police Retirement System of St. Louis.  The bill:

(1)  Requires, beginning January 1, 2003, that required minimum
distributions be made in accordance with the United States
Treasury regulations under Section 401(a)(9) of the Internal
Revenue Code of 1986, as amended;

(2)  Requires the member's entire interest to be distributed or
begin to be distributed no later than the member's required
beginning date of receiving benefits;

(3)  Specifies to whom and when distributions will be made if a
member dies before distributions begin;

(4)  Requires that distributions for calendar years 2003, 2004,
and 2005 meet United States Treasury regulations if the payments
satisfy Section 401(a)(9) of the Internal Revenue Code of 1986,
as amended;

(5)  Allows a member, upon termination of employment and actual
service retirement, to request payment of his or her mandatory
contributions to the retirement system without interest.
Currently, this payment is made automatically;

(6)  Prohibits the board of trustees from paying an eligible
rollover distribution of $5,000 or less to a member or retired
member who has not attained age 62 unless the member consents in
writing to receive the distribution in cash or to have the
distribution directly rolled over in accordance with the
provisions of this section; and

(7)  Requires that if any retroactive payment is made to a member
or the member's beneficiary for any reason, a lump sum amount
equal to the retroactive payments plus interest be paid.

FISCAL NOTE:  No impact on state funds in FY 2007, FY 2008, and
FY 2009.

PROPONENTS:  Supporters say that the bill will allow the Police
Retirement System of St. Louis to be in compliance with
provisions of the federal Internal Revenue Code regarding
distributions.  Non-compliance may jeopardize the plan's
qualified status.

Testifying for the bill were Representative Daus; Police
Retirement System of St. Louis; and St. Louis Police Leadership
Organization.

OPPONENTS:  There was no opposition voiced to the committee.

Marc Webb, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:43 am