SB 999 - This act modifies provisions relating to retirement benefits for members of the Police Retirement System of St. Louis. MEMBERS HIRED ON OR AFTER OCTOBER 1, 2020 (Sections 86.200, 86.250, 86.251, 86.253, 86.254, 86.288, 86.290, and 86.354)
For members that are hired on or after October 1, 2020, the "average final compensation" shall be the average compensation earned during the member's last three years of creditable service as a police officer. Additionally, any such member may receive a retirement benefit after completing 10 years of service and attaining 55 years of age. Any member who commences employment on or after October 1, 2020, and subsequently terminates employment before reaching 55 years of age shall not be eligible to receive a retirement allowance until reaching 55 years of age.
Any member hired on or after October 1, 2020, is eligible for the deferred retirement option plan ("DROP") after twenty years of service. The DROP account of such a member shall earn interest at the rate of return earned by the ten-year United States Treasury note, plus one percent, not to exceed a rate of six percent per year. All members who have participated in DROP and have ended participation for any reason shall not be eligible to participate in DROP again.
Upon retirement, the member who commenced employment on or after October 1, 2020, will not receive a refund of the required contributions made to the system. However, if a member is not vested at the time of termination, then he or she will receive a refund of contributions without interest. Additionally, members hired on or after October 1, 2020, are not eligible, upon retirement, to be hired by the board of trustees as a special advisor on matters relating to retirement in exchange for monthly compensation.
BOARD OF TRUSTEES (Section 86.223)
Currently, there are nine members on the Board of Trustees tasked with administering the system and six members present at a meeting constitute a quorum for the transaction of business. This act provides that a majority of the appointed and elected trustees constitutes a quorum.
ACTUARIAL METHODS (Sections 86.247, 86.330, 86.333, 86.337, and 86.344)
For the annual valuation of assets and liabilities, the actuary of the system may use the entry age normal actuarial cost method if adopted by city ordinance. Upon the adoption of an ordinance, the actuary shall determine the "normal cost," "actuarial accrued liability," and the city's contribution as described in the act, using the entry age normal actuarial cost method. If a court declares the use of the entry age normal actuarial cost method in violation of the Missouri Constitution, then such sections in the act allowing the use of such method shall be null and void and the method of calculation used by the actuary shall return to the method used prior to the implementation of the entry age normal actuarial cost method.
DISABILITY BENEFITS (Sections 86.200, 86.257, 86.260, 86.263, 86.267, 86.277, and 86.283)
Currently, a member who has become permanently unable to perform the duties of a police officer as the result of an injury not exclusively caused or induced by the actual performance of his or her official duties shall be retired upon certification of the medical board and approval by the Board of Trustees. This act allows members who are permanently unable to perform his or her duties due to injury not caused or induced by the actual performance of his or her official duties to be retired upon certification of the medical board, as defined in the act. Additionally, members who have become permanently disabled due to the natural and proximate result of an accident occurring within the actual performance of duty shall be retired by the board upon certification of the medical board.
When a member is retired, receiving a nonduty disability retirement allowance, and is employed in another position, the disability retirement allowance shall be reduced if the sum of the member's salary plus disability retirement allowance equals an amount in excess of one hundred twenty five percent of the member's current salary.
MEMBER CONTRIBUTIONS (Section 86.320)
Members not participating in the DROP shall contribute nine percent of pay to the system, rather than seven percent. Members participating in the DROP shall contribute zero percent of compensation to the system.
This act is similar to HB 2669 (2020), HCS/HB 2202 (2018), provisions in HB 2322 (2018), and HB 1086 (2017).
KATIE O'BRIEN