SB 901 - This act modifies provisions relating to public employee retirement systems.MISSOURI DEPARTMENT OF TRANSPORTATION AND HIGHWAY PATROL EMPLOYEES' RETIREMENT SYSTEM (Sections 104.020, 104.035, 104.130, and 104.170)
This act repeals the requirement of one continuous year of service for purposes of restoration of prior service periods for those terminated members of the Missouri Department of Transportation and Highway Patrol Employees' Retirement System ("MPERS") entitled to a deferred normal annuity who reenter service. Additionally, this act repeals the provision relating to the requirement of the Board of MPERS to pay a retired member's designated beneficiaries or estate a death benefit equal to the excess of accumulated member contributions over the total amount of retirement benefits received. The election of chair and vice-chair of the Board by secret ballot is also repealed by this act.
ERROR CORRECTIONS (Sections 104.200, 104.490, and 104.1060)
Currently, the Board of MPERS and the Board of the Missouri State Employees' Retirement System ("MOSERS") shall correct an error that has resulted in a member or beneficiary receiving more or less than entitled if the system discovers or is notified of such error within ten years after the initial date of the error. This act provides that no error shall be corrected unless the system discovers or is notified within ten years after the later of the member's annuity starting date or date of error. However, in cases of fraud, any error shall be corrected.
DIVISION OF BENEFITS IN DISSOLUTION OF MARRIAGE ACTIONS (Sections 104.312 and 104.1051)
This act provides that unused sick leave credited to a member of MPERS or MOSERS shall be excluded in the monthly amount paid to the alternate payee or former spouse for a division of benefits order in a dissolution of marriage action. Additionally, this act specifies that annual benefit increases paid after the member's annuity starting date shall not be considered to be an increase accrued after the termination of the marriage and shall be counted as part of the monthly amount subject to division. Any lump sum payment elected by a member who has not been paid retirement benefits and continues employment for at least two years beyond normal retirement age shall not be subject to any division of benefits order.
DISABILITY BENEFITS FOR MEMBERS OF THE GENERAL ASSEMBLY AND STATEWIDE ELECTED OFFICIALS (Sections 104.410 and 104.1084)
Members of the General Assembly and statewide elected officials who qualify for disability shall continue to accrue service until the earliest of attainment of normal retirement eligibility, termination of disability benefits, or the end of his or her constitutionally mandated limit on service for the particular chamber of the General Assembly or office in which he or she was serving at the time of the disablement.
DETERMINATION OF CONTRIBUTIONS FOR UNFUNDED ACCRUED LIABILITIES (Sections 104.436 and 104.1066)
Currently, contributions for unfunded accrued liabilities shall be determined using level percent-of-payroll amortization. This act repeals this provision and provides only for the entry age normal cost valuation method to be used in determining the normal cost calculation.
SPECIAL CONSULTANTS OF MISSOURI STATE EMPLOYEES' RETIREMENT SYSTEM (Sections 104.515 and 104.1072)
This act provides that special consultants of the Board of Trustees of MPERS or MOSERS who have reached a normal or early retirement age and become a retiree within 65 days, instead of 60 days, shall receive $5,000 of life insurance coverage.
ANNUITIES AND LUMP SUM PAYMENTS (Sections 104.625 and 104.1024)
A member who has not been paid retirement benefits and continues employment for at least two years beyond normal retirement age may currently elect to receive lump sum amounts in its entirety or in three equal annual installments. This act repeals the availability of lump sum payments in installments. Additionally, for those members, this act repeals the calculation of annuities subject to a division of benefits order.
WATER PATROL EMPLOYEES (Section 104.810)
If an employee of the Missouri State Water Patrol has terminated his or her position and subsequently returns to the same position, the employee will be a member of the system in which he or she was a member prior to termination. If the employee returned to any other position, the employee shall be a member of the system that currently covers that position.
YEAR 2000 PLAN (Sections 104.1003, 104.1015, 104.1018, 104.1024, and 104.1091)
A person who has forfeited creditable service with the closed plan or year 2000 plan and becomes an employee on or after August 28, 2020, shall be subject to Missouri State Employees' Plan 2011. Additionally, this act provides that any vested former member who terminated employment after attaining normal retirement eligibility shall be considered a member of the retirement system.
A refund of contributions requested by a former member currently shall be paid by the system after 90 days from the later of either the date of termination or the date of request. This act repeals this provision and provides that a former member may request such a refund after 90 days from the date of termination and the refund shall be paid by the system within 60 days of the request. A former member who receives a refund shall not be eligible to receive any disability benefits.
Additionally, vested former members who terminated employment after attainment of normal retirement eligibility shall be covered by a member's normal retirement eligibility. A vested former member who terminated employment prior to the attainment of early retirement eligibility shall not be eligible for early retirement under the year 2000 plan. This act provides that the annual cost-of-living adjustments shall not commence until the second anniversary of the annuity starting date for vested former members who terminated employment prior to the attainment of early retirement eligibility.
RETIREMENT OF JUDGES (Section 476.521)
Currently, for judges hired after January 1, 2011, his or her contributions are refunded with four percent interest per year. Beginning June 30, 2021, the interest rate is changed so that it is equal to the investment rate for the fifty-two week treasury bills issued by the United States Department of Treasury. Additionally, the interest rate shall cease upon death or retirement of the judge.
This act is similar to HCS/HB 1999 (2020) and HB 1105 (2019).
KATIE O'BRIEN