JEFFERSON CITY — Legislation sponsored by Sen. Joe Keaveny, D-St. Louis, to assist in the long-term sustainability and security of Missouri’s public pension plans was approved in the Missouri Senate. The measure (SB 86) will now be sent to the House for its consideration.

The measure would clarify provisions associated with a public pension reform package (SB 406) passed by the Missouri General Assembly in 2007. When the initiative passed, it incorporated several provisions associated with pension plan funding, as well as fiduciary responsibility and education requirements. Current state statute (Section 105.684, RSMo) prohibits public pension plans from implementing benefit enhancements beyond the plan’s provisions in effect prior to Aug. 28, 2007, unless the plan’s funded ratio is at least 80 percent.

Senator Keaveny’s bill specifies that plans use the funded ratio as of the most recent periodic actuarial valuation before implementing a benefit increase. The act also authorizes plans to make benefit increases, despite having a funded ratio below the required level, if necessary to maintain federal tax deferred status on the employer contributions paid into the plan.

Missouri’s 128 public pension plans cover more than 500,000 participants. Senator Keaveny notes that many of individuals do not participate in Social Security and rely on these pension plans as their primary source of retirement income.

“We need to establish solid retirement security for our hard-working public employees, such as our teachers and public safety personnel,” Sen. Keaveny said. “After a career of working for the state and serving others, Missourians should feel confident in their retirement and not have undue stress about their livelihood.”

Senate Bill 86 was voted out of the Seniors, Families and Pensions Committee on Tuesday, Feb. 5. To follow the progress of this measure, visit the Missouri Senate website at www.senate.mo.gov.