Missouri Senate

Senate Committee Substitute

GED REVOLVING FUND: This act creates the GED Revolving Fund, which will be administered by the Commissioner of Elementary and Secondary Education. The Fund will consist of moneys appropriated by the General Assembly whose source are fees charged to GED test applicants and examinees. Moneys in the fund will be available for the payment of the costs and expenses for GED test administration. (Section 161.860)

VENUE FOR LAWSUITS: All suits or proceedings directly or indirectly brought against the board of trustees of the Public School Retirement System of Missouri (PSRS) or the Public Education Employee Retirement System (PEERS), the board’s members or employees, or the retirement system itself must be brought in Cole County. (Section 169.020)

INVESTMENT ACCOUNT: This act allows for the establishment and maintenance of a retirement systems investment 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, 169.630)

PURCHASE OF SERVICE CREDIT: For the purchase of membership service credit, this act changes the date of payment from June 30 to September 30 and the date of recalculation from July 1 to October 1. In addition, the retirement system may prohibit a purchase, impose additional requirements for making a purchase, or limit the amount of credit purchased if necessary to comply with federal law. (Sections 169.056, 169.655)

DISTRIBUTION OF BENEFITS UPON DEATH OF A MEMBER: This act modifies how 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 that order of precedence. 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 of precedence. This same order applies if the beneficiary to a member dies and the beneficiary's financial institution cannot accept final payment. (Sections 169.070, 169.073, 169.075, 169.670)

GARNISHMENT: This act allows funds belonging to the retirement systems and certain benefits to be subject to execution, garnishment, attachment in a proceeding instituted for spousal maintenance or child support. (Sections 169.090, 169.690)

ASSOCIATION ADMISSION: After June 30, 2010, no additional nonprofit educational associations or organizations will be able to have their employees become members of PSRS or PEERS. (Sections 169.130, 169.650)

LIMITS ON THE NUMBER OF HOURS WORKED AND COMPENSATION EARNED BY A RETIRED MEMBER OF PSRS: Current law provides that a retiree receiving a retirement allowance under PSRS may be employed by a school district on a part-time or temporary-substitute basis for not more than 550 hours in any one school year without a discontinuance of the retirement allowance. The retiree may earn up to fifty percent of the annual compensation payable under the district's salary schedule. This act provides that the limits placed on retirees will be applied on a pro-rata basis to a retiree's hours of work and earnings after the retiree's effective date of retirement during the school year that the member retires. A retiree who performs such part-time or temporary-substitute work will not accrue any creditable service with the retirement system.

If a retiree exceeds the limits on hours of work or earnings, the person will not be eligible to receive his or her retirement allowance for the remainder of that school year. If a retiree is employed in a school district capacity so that he or she would be eligible for membership in PSRS or PEERS, he or she will become a PSRS or PEERS member and make appropriate contributions.

A member must terminate employment with an employer covered by PSRS before being eligible to receive a PSRS benefit. A member will not be deemed to have terminated employment if the member is employed in any capacity by an employer covered by PSRS or PEERS or receives any remuneration from any source of work, as described in the act, within one month after his or her effective date of retirement. If it is determined that the member did not terminate employment, the member must repay any benefit payments.

This section contains an emergency clause. (Section 169.560)

LIMITS ON THE NUMBER OF HOURS WORKED BY A RETIRED MEMBER OF PEERS: Current law provides that a retired member of PEERS who is receiving a PEERS retirement allowance may be employed on a part-time basis or temporary-substitute basis by a district included in PEERS for not more than 550 hours in any one school year without a discontinuance of the retirement allowance. This act provides that the limit on the number of hours worked must be applied on a pro-rata basis to a retiree's hours of work after the retiree's effective date of retirement during the school year that the member retires. A retiree who performs such part-time or temporary-substitute work will not accrue any creditable service with the retirement system.

If a retiree exceeds the limits on hours of work, he or she will not be eligible to receive his or her retirement allowance for the remainder of that school year. If a retiree is employed in a school district capacity so that he or she would be eligible for membership in PSRS or PEERS, he or she will become a PSRS or PEERS member and make appropriate contributions.

A member must terminate employment with an employer covered by PEERS before being eligible to receive a PEERS benefit. A member will not be deemed to have terminated employment if the member is employed in any capacity by an employer covered by PSRS or PEERS or receives any remuneration from any source of work, as described in the act, within one month after his or her effective date of retirement. If it is determined that the member did not terminate employment, the member must repay any benefit payments.

This section contains an emergency clause. (Section 169.660)

INDEMNIFICATION: The board of trustees of PSRS or PEERS may 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 of a proceeding. (Section 169.750)

This act is substantially similar to SCS/HCS/HB 265 (2009), SB 327 (2009) and SCS/SBs 1153, 1154, 1155 & 1156 (2008), and contains provisions similar to SB 492 (2009), HB 1972 (2008), HB 1973 (2008), and HB 2056 (2008).

MICHAEL RUFF