HB 2104 Modifies laws relating to several public employee retirement systems

     Handler: Crowell

Current Bill Summary

- Prepared by Senate Research -


SCS for HCS/HB 2104, HB 1574, HB 1706, HCS/HB 1774, HB 2055, & HCS/HB 2056 - This act modifies various provisions relating to several retirement systems.

Under this act, the sheriff shall receive an additional $10 fee for service of any civil summons, writ, subpoena, or other court order. The money received by the sheriff shall be collected by the county treasurer and made payable to the state treasurer. The money paid to the treasurer shall be deposited into the newly created "Deputy Sheriff Salary Supplementation Fund." The money shall be used only to supplement the salaries, and employee benefits resulting from such salary increases, of county deputy sheriffs. The Missouri Sheriff Methamphetamine Relief Taskforce (MoSMART), housed within the Department of Public Safety, shall administer the fund. Sections 57.280, 488.435, and 650.350.

Currently, the beneficiary of an active member of the Sheriff's Retirement System receives a death benefit of $10,000 or, if the member is killed in the performance of his or her duty, the beneficiary receives $20,000. This act increases the death benefit of any active member who dies to $20,000. Also, certain limitations on the amount of payments of medical insurance premiums are deleted. Sections 57.967 and 57.980.

The act allows a retiree to authorize the board of the Missouri Local Government Employees' Retirement System (LAGERS) to deduct health insurance or long-term care insurance premiums from his or her retirement allowance. Section 70.695.

The act creates a funding mechanism for survivor benefits when a member of LAGERS dies as the result of a duty-related injury or illness. Sections 70.710, 70.720, and 70.730.

Currently, investments made by boards of trustees of police and firemen's retirement systems are subject to all terms, conditions, limitations, and restrictions imposed upon life insurance or casualty companies in making their investments. This act removes those terms, conditions, limitations, and restrictions and requires the board to invest the funds of the systems as permitted by Sections 105.687 to 105.690, RSMo, regarding the duties of investment fiduciaries. Sections 86.107 and 86.590.

The act provides that if a member of the Police Retirement System of St. Louis City dies due to a duty-related accident, that the board of the system may review applications for survivor benefits from a dependent parent of such member and may determine the amount of benefits paid based upon the proportionate share of support provided by the member to the applicant at the time of the member's death. Sections 86.200 and 86.287.

The act requires members of the Police Retirement System of Kansas City and the Civilian Employees' Retirement System of the Police Department of Kansas City to be in active service in order to be eligible for certain duty-related or nonduty-related disability retirement benefits. Duplicate language regarding supplemental benefits for the Police Retirement System of Kansas City, enacted in 2007, is also repealed. Sections 86.4480, 86.1200, 86.1230 and 86.1560.

The school board for each district is required to annually provide a detailed financial statement to the department of elementary and secondary education (DESE) containing names, total compensation packages, and any expenses made on behalf of the districts' superintendents, any assistant superintendents, and any consultant hired for administrative duties. Such information shall be published on DESE's website. Section 165.111.

This act changes from ten percent to twenty percent the maximum percentage of increase in annual compensation from one year to the next in the final average salary period for members of the Public School Retirement System of Missouri (PSRS), other than a superintendent of schools or other certified central office personnel of a school district. Section 169.010.

All suits or proceedings directly or indirectly against the board of trustees of PSRS or the Public Education Employee Retirement System (PEERS) must be brought in Cole County. Section 169.020.

The act allows for the establishment and maintenance of a retirement systems account for investment purposes; moneys from PSRS and PEERS may be combined in the account for investment purposes so long as the funds are accounted for and reported separately. Sections 169.040 and 169.630.

For the purchase of membership service credit in PSRS and PEERS, the act changes the date of payment from June 30 to September 30 and the date of recalculation from July 1 to October 1. Sections 169.056 and 169.655.

The act modifies how PSRS and PEERS retirement benefits may be distributed upon the death of a member prior to the member having received the specified number of monthly payments; the remainder of such payments will be paid to the surviving spouse, surviving children in equal shares, surviving parents in equal shares, or the estate of the last person to receive a monthly allowance in a lump sum payment. In addition, if a member dies and the member's financial institution cannot accept the final payment or payments, the final payment or payments will be paid to the beneficiary, or if no beneficiary exists, to the surviving spouse, to the surviving children in equal shares, surviving parents in equal shares, or the estate of the member, in that order. This same order applies if the beneficiary to a member dies and the beneficiary's financial institution cannot accept final payment. Sections 169.070 and 169.670.

The act corrects several statutory references. Sections 169.073, 169.075, and 169.673.

The act allows funds of PSRS and PEERS and benefits thereof to be subject to execution, garnishment, or attachment as described in the act in a proceeding for spousal maintenance or child support. Sections 169.090 and 169.690.

After June 30, 2009, nonprofit educational associations or organizations will no longer be able to have their employees become members of PSRS or PEERS. Sections 169.130 and 169.650.

This act allows a member of PSRS or PEERS who elected a joint and survivor option at retirement and whose marriage to the nominated beneficiary is dissolved and the dissolution decree provides for sole retention by the retiree of all rights to the retirement allowance to revert the allowance to an unreduced retirement payment option. Sections 169.141 and 169.715.

The act authorizes the board of trustees of PSRS or PEERS to indemnify and protect any trustee or employee against all claims or liabilities in his or her official or individual capacity, except for gross negligence or willful misconduct. The board of trustees may obtain insurance or indemnity policies. For an employee or trustee to qualify for indemnity, he or she must provide written notice to the board of trustees within fifteen days after receiving service of process. Section 169.562.

Provisions within this act are similar to HB 2056 and HB 1972, and provisions within the act are identical to SCS/SB 935, HB 2171, HB 1574, SB 997, HB 2055, SB 980, HB 1710, HB 2489, SCS/SB 994, HCS/HB 1774, SB 1203, HB 1902, HB 1972, HB 2204, HB 1973, HB 1706, and provisions within HB 1490, SB 1063, HCS/HB 2040 & 2430, HCS/HB 2056, HCS/HB 2104, and SCS/SB 1153, 1154, 1155, & 1156, all from the 2008 legislative session.

ALEXA PEARSON


Go to Main Bill Page  |  Return to Summary List  |  Return to Senate Home Page