SB 625 – Modifies fund transfers between retirement systems, modifies retirement for certain public officials, and sets interest paid on member contributions at T-Bill rate

• Sponsor: Kehoe
• LR Number: 5110H.03T
• Committee: Veterans' Affairs, Emerging Issues, Pensions and Urban Affairs
• Last Action: 7/10/2012 - Signed by Governor
• Title: HCS SCS SB 625
• Calendar Position: 3
• Effective Date: August 28, 2012
• House Handler: Jones

Current Bill Summary

HCS/SCS/SB 625 - This act modifies provisions relating to retirement

COUNTY EMPLOYEES' RETIREMENT SYSTEM

This act specifies that an active member of the County Employees' Retirement System who dies after December 31, 2002, and before becoming vested will receive a death benefit of $10,000 and the amount equal to the member's accumulated contributions to the fund. This section is similar to HB 1543 (2012) and HCS#2/SS/SB 729 (2012).

SECTIONS 50.1130 & 50.1140

TRANSFERS BETWEEN MOSERS AND MPERS

Currently when employees transfer between the Missouri State Employees' Retirement System and the Missouri Department of Transportation and Highway Patrol Employees' Retirement System, the value of the employees' accrued benefits are transferred as well. This act will change the computation of accrued benefits to exclude amounts for previously transferred service not subject to asset transfer. Any prior payments already made that should have been excluded must be returned. This section is similar to HB 1331 (2012).

SECTION 104.603

REFUND OF EMPLOYEE CONTRIBUTIONS TO MOSERS (Section 104.1091)

Currently, employees hired after January 1, 2011, and covered under the Missouri State Employees' Retirement System must contribute four percent of their salary into the system. If a member leaves the system before becoming eligible for normal retirement, their contributions are refunded with interest of four percent per year. This act changes the interest rate so that it is equal to the investment rate for the fifty-two week treasury bills issued by the United States Department of Treasury.

Currently, the beneficiary of any MOSERS member who made contributions into the MOSERS system will upon the member's death receive a refund of the contribution less any retirement benefits received by the member. This act will include the interest credited to the member's contributions in the refund. Interest credited to the contributions will cease upon retirement or death.

These provisions are similar to provisions contained in SCS/HB 1331 (2012) and SS#2/SB 492 (2012).

MIKE HAMMANN