HCS HB 765 -- STATE EMPLOYEE RETIREMENT AND MEDICAL BENEFITS

SPONSOR:  Wallace (Dempsey)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Retirement by a vote of 8 to 0.

This substitute changes the laws regarding state employee
retirement.  In its main provisions, the substitute:

(1)  Clarifies the benefit amount payable to an ex-spouse when a
division of benefits order has been issued and the ex-spouse is
also the named beneficiary of a joint and survivor option under
the Missouri State Employees' Retirement System (MOSERS) and the
Missouri Department of Transportation and Highway Patrol
Employees' Retirement System (MPERS).  The division of benefits
order will be applied to either the plan the member was
participating in on the date of dissolution or the Year 2000
Plan;

(2)  Removes the provision which allows members of the Missouri
State Employees' Retirement System (MOSERS) to purchase service
that was performed under contract for the State of Missouri;

(3)  Clarifies that members cannot receive credit for the same
period of service in more than one retirement system;

(4)  Members of MOSERS or MPERS must complete the purchase of
creditable service prior to applying for retirement benefits.
Transferring vested service from another public employee
retirement system to the Year 2000 Plan requires that the plans
enter into an agreement;

(5)  Specifies that if a retiree of MOSERS who has elected a
joint and survivor option dies prior to notifying the system of
the spouse's death, his or her benefit will not revert to a
normal annuity and no retroactive payments will be made;

(6)  Specifies that if the board of MOSERS or MPERS provides
education or advice to members pertaining to retirement planning,
it will not be liable for retirement or investment decisions made
by members if the board acted with due diligence in providing the
advice;

(7)  Clarifies that any temporary annuity payable to a retiree,
under the Year 2000 Plan, will terminate no later than age 62;

(8)  Clarifies that retirees, under the Year 2000 Plan, can
retain optional life insurance coverage in excess of $60,000
until age 62;

(9)  Requires that retirees under the MOSERS Closed Plan and the
Year 2000 Plan who are re-employed with the state in a position
normally requiring them to work at least 1,040 hours per year
must work continuously for at least one year in order to accrue
creditable service for retirement purposes;

(10)  Allows the retirement boards to establish rules to
accommodate changes in the state's payroll system as it relates
to the final average compensation for the retirement benefit
calculation;

(11)  Changes the required hours for an employee to be eligible
for benefits from 1,000 hours to 1,040 hours;

(12)  Specifies that after August 28, 2007, part-time employees
of the General Assembly working less than 1,040 hours per year
will not be considered employees as it relates to retirement
benefits;

(13)  Clarifies that a member may receive only one day of
credited service for any one day of calendar service;

(14)  Changes the vesting requirement for service purchase
transfers for legislators from two to three full biennial
assemblies; and

(15)  Authorizes MOSERS to provide services in connection with
medical benefit funds established for state employees, retirees,
and their dependents participating in the state medical plan
administered by the Missouri Consolidated Health Care Plan or any
other medical benefit plan for state employees, retirees, and
their dependents.  MOSERS will invest the funds received from the
state medical plans in the same manner as it invests the funds of
the retirement system.  All assets of the fund will be
exclusively used for satisfying obligations of the state medical
plans and to pay for medical benefits of state employees,
retirees, and their covered dependents.

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

PROPONENTS:  Supporters say that the bill makes changes because
of new requirements made by the Governmental Accounting Standards
Board.  Currently, the premium for medical benefits of retired
members is on a pay as you go basis.  This change will make the
state fund up front and save money in the future.

Testifying for the bill were Representative Dempsey; Missouri
State Employees' Retirement System; and Missouri Consolidated
Health Care Plan.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am