Within the Missouri Department of Transportation and Highway Patrol Employees' Retirement System (MPERS), if the actuary for MPERS determines that the funded ratio of the system is below fifty percent for three consecutive years, the plan will close to new members effective January 1 of the following year. A member of MPERS may purchase up to four years of his or her prior creditable service as a nonfederal, full-time public employee as long as he or she is not receiving or eligible to receive credits or benefits from any other public plan for the service being purchased. The purchase of this service must be 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.

This act also defines "defined benefit plan," "defined contribution plan," "funded ratio," and "lump sum benefit plan". The act also changes the contribution period from forty to thirty years, for which plans may not exceed unfunded accrued liabilities. The act also requires retirement systems to establish mandatory board member education programs regarding responsibilities, ethics, governance, plan design, administration of benefits, investments, legal liability, and actuarial principles, and also provides that board members will be required to attend at least two continuing education programs annually. The act also prohibits appointing authorities, board members, or employees from receiving a gain or profit from funds or transactions of the plan, except benefits which are common to all members of the plan. If political contributions or other compensations are accepted to influence the investment of system funds, the person accepting such contributions or compensations will forfeit his or her office and be subject to penalties prescribed for bribery. The act provides that any trustee, employee, or plan participant convicted of a plan-related felony directly connected with his or her duties will be ineligible for retirement benefits. After August 28, 2006, plans with a fund ratio of less than eighty percent are prohibited from providing additional benefits. Plans with a fund ratio greater than eighty percent can adopt benefit enhancements if the ratio does not decrease more than ten percent or below seventy-five percent. The unfunded actuarial accrued liabilities associated with these benefit changes will be amortized over a period not to exceed twenty years. Plans with a ratio of less than sixty percent in which the plan has not met one hundred percent of the actuarially required contribution payment for three successive plan years shall be deemed delinquent in the contribution payment, which will constitute a first lien on the funds of the political subdivision. Until the delinquency in the contribution payment is satisfied, the state treasurer and the director of the department of revenue will withhold all moneys due to the political subdivision from the state. The act also removes the requirement that the board of public buildings provide the department of revenue and the department director with suitable quarters in St. Louis City, whereas currently the board is required to provide quarters in Jefferson City, Kansas City, and St. Louis City.

ALEXA PEARSON