HCS HB 1628 -- STATE EMPLOYEES' RETIREMENT

SPONSOR:  Smith (118)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Retirement
by a vote of 5 to 4 with 1 present.

Effective July 1, 2007, this substitute requires the Executive
Director of the Missouri State Employees' Retirement System
(MOSERS) to take all actions necessary in accordance with
Chapter 104, RSMo, to administer the Missouri Department of
Transportation and Highway Patrol Employees' Retirement System
(MPERS).  The board of trustees of the Highways and
Transportation Employees' and the Highway Patrol Employees'
Retirement System will no longer have any powers, duties, or
obligation to administer the system and will be dissolved.

The substitute also allows any actively employed member of the
system to purchase any prior creditable service as long as it is
completed prior to retirement or termination of employment.  If a
member who purchased service dies prior to retirement, the
surviving spouse can receive a refund of the amount contributed
for the purchase if he or she is not eligible for survivor
benefits.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill moves the
administration of the Missouri Department of Transportation and
Highway Patrol Employees' Retirement System (MPERS) over to the
Missouri State Employees' Retirement System (MOSERS).  Both
systems are for state employees and could be combined.  MOSERS
investments are consistently doing better than MPERS.

Testifying for the bill were Representative Smith (118); and
International Union of Operating Engineers, Local #2.

OPPONENTS:  Those who oppose the bill say that it is a forced
consolidation.  The MPERS investment program has been updated and
is producing returns similar to MOSERS.  The system has hired an
investment officer and is improving the diversity of their
investment portfolio.  The retirement staff takes very good care
of the retirees.

Testifying against the bill were Missouri Department of
Transportation and Highway Patrol Employees' Retirement System
(MPERS); Department of Transportation; Col. Roger Stottlemyre;
William Shaw; Bob Sfreddo, Jefferson City Area Missouri
Department of Transportation Retirees; and Association of Retired
Missouri State Employees.
Marc Webb, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:44 am