DUTY-RELATED DEATH BENEFITS IN LAGERS

This act specifies how duty-related death benefits will be funded for the Missouri Local Government Employees' Retirement System (LAGERS). In the same way as when a disability benefit is due to a member of the LAGERS system, when a duty-related death benefit is due to a beneficiary, the accrued service pension reserve will be calculated, as of the effective date of the disability benefit. Contributions from political subdivisions for duty-related death benefits will be held in the Casualty Reserve Fund. Political subdivisions that participate in LAGERS will have a portion of their contributions for duty-related death benefits determined on a one-year term basis in the same way that their contribution for a portion of disability benefits is determined. (Sections 70.710, 70.720, and 70.730)

POLICE RETIREMENT SYSTEM OF KANSAS CITY AND THE CIVILIAN EMPLOYEES' RETIREMENT SYSTEM OF THE POLICE DEPARTMENT OF KANSAS CITY

This act modifies laws regarding the Police Retirement System of Kansas City and the Civilian Employees' Retirement System of the Police Department of Kansas City.

POLICE RETIREMENT SYSTEM OF KANSAS CITY

This act specifies that the retirement benefits of members who retire after August 28, 2011 start on the first day of the month after the member retires. The member will not receive a prorated payment for the month in which the member retires.

The act also requires that all benefit payments will be paid on the last day of the month. When a member dies, certain benefits will be prorated for the portion of the month in which the member was alive, other benefits will not be prorated. The retirement system is required to withhold payment of benefits until the required documentation is filed to prove that a person is entitled to the payment. (Sections 86.900, 86.1230, 86.1240, 86.1250, 86.1030)

Members are no longer able to receive credit toward retirement for unpaid leaves of absence of less than thirty days, except for leaves of absence for certain military service. If a member is on a leave of absence, to receive credit towards retirement for their leave, the person must return to active service and pay the actuarial cost of the service. (Sections 86.1100 and 86.1140)

A person who has at least five years of service and returns to membership in the retirement system can purchase credit for prior service, but must pay the actuarial cost of the service, rather than repaying the amount of their accumulated contributions with interest. (Section 86.1120)

If a person leaves the police department before retirement after at least fifteen years of service, the pension the person receives will start on the first day of the month after the person turns fifty-five, rather than the day the person turns fifty-five. (Section 86.1150)

CIVILIAN EMPLOYEES' RETIREMENT SYSTEM OF THE POLICE DEPARTMENT OF KANSAS CITY

This act prohibits membership in the Civilian Employees' Retirement System of the Police Department of Kansas City by any employee appointed after August 28, 2011 who is eligible to receive a pension from any other Kansas City retirement system. (Section 86.1310)

The act specifies that the retirement benefits of members who retire after August 28, 2011 start on the first day of the month after the member retires. The member will not receive a prorated payment for the month in which the member retires.

The act also requires that all benefit payments will be paid on the first day of the month. When a member dies, benefits to the surviving spouse will not be prorated. The retirement system is required to withhold payment of benefits until the required documentation is filed to prove that a person is entitled to the payment. (Section 86.1420, 86.1540, 86.1560, 86.1600, 86.1610, 86.1620)

Members are prohibited from receiving credit toward retirement for unpaid leaves of absence, except for leaves of absence for certain military service. If a member is on a leave of absence, to receive credit towards retirement for their leave, the person must return to active service and pay the actuarial cost of the service. (Sections 86.1490, 86.1500)

A person who has at least three years of service and returns to membership in the retirement system can purchase credit for prior service, but must pay the actuarial cost of the service, rather than repaying the amount of their accumulated contributions with interest. (Section 86.1510)

FIREMEN'S RETIREMENT SYSTEM OF ST. LOUIS

The act specifies that the retirement plan of the Firemen's Retirement System of St. Louis is intended to be a qualified governmental plan under federal tax law. The benefits and conditions of the plan shall be interpreted and the system shall be operated to ensure that the system meets the federal qualification requirements. (Section 87.127)

This act also modifies the service-connected disability benefits for St. Louis City firefighters who retire on or after August 28, 2011. Currently, the service-connected disability benefit is 75 percent of the top pay of the rank the firefighter is at when they are retired. This act makes the service-connected disability benefit vary based on the number of years a person has served as a firefighter. Firefighters will receive a base pension of 25 percent of the compensation provided for the step in the range of salary they hold at the time the firefighter is retired. Those firefighters with 10 or more years of service, but less than 25 years of service, will receive an additional accidental retirement pension benefit calculated by multiplying their years of service by 2 3/4 percent of the step in the range of salary received by the firefighter at the time of their retirement. Those firefighters with more than 20 years of service, but less than 25 years of service have the option to waive the other benefits and receive a benefit that combined with their base pension will equal 65 percent of the compensation then provided for the step in the range of salary received by the firefighter at the time of their retirement. If a firefighter has more than 25 years of service, or is retired based on conditions of the heart, lungs, or cancer, or is unable to perform any other work, as determined by Board of Trustees based on medical evidence, the firefighter will receive a benefit that is equal to 75 percent of the compensation provided for the step in the range of salary they receive at the time of their retirement.

St. Louis City firefighters who are retired based on a service-connected disability on or after August 28, 2011, will have the option at retirement to be reimbursed for tuition at a college, community college, or vocational or technical school. These firefighters must enroll in school at the first opportunity after their retirement. These firefighters will also receive a supplemental disability retirement pension, if they have twenty-five years or less of service, so that their total accidental disability retirement pension will equal the total compensation provided for the step in the range of salary they received at the time they were retired. This educational reimbursement benefit and the supplemental disability retirement pension benefit shall end when the firefighter is not a full-time student, fails to provide proof of a grade point average of two on a four point scale for each academic term, or returns to service as a firefighter, and will only be available for five years after the firefighter's retirement. (Section 87.205)

The cost-of-living adjustment for firefighters who are retired based on a service-connected disability on or after August 28, 2011 will be either one percent a year or 2 1/4 percent per year, based on the number of years of service, rather than three percent a year, up to age sixty. (Section 87.207)

MISSOURI DEVELOPMENT FINANCE BOARD EMPLOYEES

This act makes any full-time employee of the Missouri Development Finance Board (MDFB) on September 1, 2011 a state employee and member of the Missouri State Employee's Retirement System (MOSERS). However, these employees will not be covered under the Missouri consolidated health care plan (MCHCP), unless the board requests coverage and MCHCP's board approves the request. These employees may purchase credited service toward retirement for their employment with the board retroactive to the employees' start dates with MDFB, except these employees will not be required to vest before they may purchase the service. (Section 100.273)

TRANSFERS OF SERVICE BETWEEN MPERS AND MOSERS

This act also requires that the Missouri Department of Transportation and Highway Patrol Employees' Retirement System (MPERS) and the Missouri State Employees' Retirement System (MOSERS) transfer money between the two systems when an employee transfers service between the two systems on or after September 1, 2011. The act specifies the method that the systems are required to use to calculate the amount of the transfer payment. The amount of the money transferred shall be the present value of the accrued benefit. (Section 104.603)

QUARTERLY REPORTING TO THE JOINT COMMITTEE ON PUBLIC EMPLOYEE RETIREMENT

This act specifies that each public retirement system that provides a defined benefit retirement plan shall be required to submit a quarterly report about the plan's investment performance to the Joint Committee on Public Employee Retirement. If the plan fails to submit this report, the committee may subpoena witnesses, take testimony under oath, and compel the production of records regarding this information according to the committee's statutory authority. (Section 105.661)

DEFERRED COMPENSATION PROGRAM

This act makes enrollment in the state deferred compensation program automatic for those state employees eligible for the plan hired on or after July 1, 2012. These employees will automatically have one percent of eligible compensation contributed to the deferred compensation plan. Employees who do not want to contribute to the program may opt out of the plan within the first thirty days of employment, and at a later date decide to participate. Employees who are automatically enrolled can change the amount of contribution. Employees of state colleges or universities would not be automatically enrolled.

On or after September 1, 2011, if a participant in the deferred compensation plan or the 401(a) plan established in Section 105.927 is married, their surviving spouse will be automatically designated as their primary beneficiary, unless the surviving spouse consented in writing to allow the participant to designate someone else as their beneficiary. This automatic beneficiary designation does not apply to designations made prior to September 1, 2011.

The Missouri State Employees Retirement System Board is also authorized to adopt and amend plan documents to change terms and conditions of the deferred compensation plan that are consistent with federal law.

If the General Assembly appropriated money for a state match, each participant in the deferred compensation plan would be eligible, rather than only state employees who have been employees for at least twelve consecutive months before the match and contribute at least twenty-five dollars a month.

The act also allows a state agency to credit funds directly to a participant in the deferred compensation plan if that agency's payroll is not issued through the State Treasurer. (Sections 105.915 and 105.927)

This act is similar to HB 183 (2011), SB 170 (2011), SB 271 (2011), SS/SCS/HCS/HB 664 (2011), SB 121 (2011), HB 448 (2011), SB 201 (2011), SB 290 (2009), and SB 410 (2011).

EMILY KALMER