HB 319 -- FIREMEN'S RETIREMENT SYSTEM OF ST. LOUIS

SPONSOR:  Villa

COMMITTEE ACTION:  Voted "do pass by consent" by the Special
Committee on Retirement by a vote of 7 to 0.

This bill changes the laws regarding the Firemen's Retirement
System of St. Louis.  In its main provisions, the bill:

(1)  Changes the method of calculating the actuarial value of
retirement benefits by using the entry age normal funding method
and removing the frozen initial liability;

(2)  Allows the board of trustees of the retirement system to
retain a legal advisor and consultant other than the city
counselor;

(3)  Allows the beneficiary of a member who dies, while actively
employed and participating in the Deferred Retirement Option Plan
(DROP), to choose a lump sum payment or a periodic payment; and

(4)  Allows members retiring due to accidental disability, who
are participating or have participated in the DROP, to receive
their monthly retirement benefit, the DROP accumulation, and any
other authorized benefits.

FISCAL NOTE:  No impact on state funds in FY 2008, FY 2009, and
FY 2010.

PROPONENTS:  Supporters say that the bill is changing the funding
methodology on the recommendation of the Governmental Accounting
Standards Board which will save the system approximately $1.7
million per year.  The changes regarding the disability
retirement benefits will also be helpful for firefighters who
have been injured on the job.

Testifying for the bill were Representative Villa; and Bruce
Williams, International Association of Firefighters, Local 73.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that in the retirement
plan, the employees' contribution rate is fixed; however, the
employer's rate will change from year to year based on changes to
the actuarial value of the system.

Testifying on the bill was Claire West, St. Louis Task Force on
Pensions.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:18 am