This act changes the method of calculating the actuarial value of retirement benefits, the required contribution amounts by the system, and the amount required to amortize the unfunded actuarial liability by using the entry age normal funding method, as defined within. (Sections 87.120(11), 87.235, 87.330, 87.335)

Current law provides that the administration of the system is vested in a board of trustees of nine persons, and that five votes are necessary for a decision of such trustees. This act provides that five trustees shall constitute a quorum for transaction of business, and that any action of the board shall be based on the majority vote of the trustees present. (Section 87.140.5)

Current law provides that the city counselor shall be the legal advisor of the board of trustees. This act provides that the board of trustees of the system is authorized to use the city counselor as legal advisor, but is also authorized to retain an attorney or firm to serve as a legal advisor and consultant to the board. (Section 87.160.1)

The act authorizes 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. Also, members who retire due to accidental disability who are participating or have participated in DROP, may elect to receive the monthly retirement benefit as determined by DROP participation, the DROP accumulation, and any other authorized benefits. (Section 87.182.4)

The act also provides that any future increase or decrease in the unfunded actuarial accrued liability from statutory changes and method changes shall be amortized over a thirty-year period, to be reestablished at each valuation date. The total amount payable to the general reserve for the system shall not be less than the sum of the normal contribution and the accrued liability contribution, and the city may contribute at any time an additional amount equal to or lesser than to the actuarially-determined unfunded accrued liability, which shall be used to prevent or reduce future accrued liability contributions. (Sections 87.335, 87.340, and 87.345)

ALEXA PEARSON