SB 898
Modifies provisions relating to public employee retirement systems
Sponsor:
LR Number:
3453S.03P
Last Action:
4/15/2024 - H Second Read
Journal Page:
Title:
SS SB 898
Effective Date:
August 28, 2024

Current Bill Summary

SS/SB 898 - This act modifies provisions relating to public employee retirement systems.

LAGERS: BOARD OF TRUSTEES (SECTION 70.605)

Currently, the governing bodies of the employers of the system elect three trustees to the Board of Trustees ("Board") of the Missouri Local Government Employees’ Retirement System (“LAGERS”). Beginning on January 1, 2025, this act provides that the employer trustee with a term ending December 31, 2024, shall thereafter be replaced by a person elected by the retirants of the system.

This act also provides that not more than one trustee elected by the members shall be public safety personnel. Additionally, current law provides that the employer trustees shall be elected or appointed officials of the employers and shall not be members of the system and no more than one shall be from any one employer. This act provides that for terms beginning on or after January 1, 2025, employer trustees shall be either elected or appointed officials of the governing bodies of the employers or executive level employees certified by the governing bodies of the employers, but no more than one trustee shall be from any one employer, and no more than one trustee shall be a policeman, and no more than one trustee shall be a fireman, and no more than one trustee shall be public safety personnel.

Additionally, this act repeals the requirements on the annual meetings and elections of delegates. Furthermore, this act states that the elections of the trustees shall be arranged for and managed and conducted by the Board. Finally, this act provides that only four trustees shall constitute a quorum of the Board, instead of four trustees consisting of at least two member trustees and two employer trustees.

This provision is identical to HCS/HB 2431 (2024).

LAGERS: MEMBERSHIP (SECTION 70.630 & 70.690)

This act repeals the provision prohibiting membership in LAGERS for employees where continuous employment to the time of retirement eligibility will leave the employee with less than the minimum required number of years of credited service. Additionally, this act provides that in the event a member's membership terminates, any accumulated contributions unclaimed by the member within ten years, instead of three years, shall be transferred to the investment income fund of the system.

These provisions are identical to provisions in HCS/HB 2431 (2024).

LAGERS: COST OF LIVING CPI (SECTION 70.655)

This act provides that cost of living adjustment for LAGERS shall be a measure of the Consumer Price Index as determined by the U.S. Department of Labor and adopted by the Board of LAGERS, instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers.

This provision is identical to a provision in HCS/HB 2431 (2024).

LAGERS: REPEAL OF OBSOLETE STATUTORY PROVISION (SECTION 70.680)

This act repeals references to obsolete statutory provisions.

This provision is identical to a provision in HCS/HB 2431 (2024).

LAGERS: INVESTMENT DECISIONS (SECTIONS 70.745, 70.746 & 70.747)

This act provides that the Board of LAGERS may deliberate or make decisions on investments or other financial matters in a closed meeting if the disclosure of such deliberations or decisions would jeopardize the ability to implement a decision or to achieve investment objectives. Additionally, records that disclose such deliberations or decisions are not public records and the Board shall not be prohibited from closing records to the extent that such records relate to information in connection with investments in or financial transactions with business entities.

Furthermore, this act repeals the provision providing that the investment counselor of the Board be registered as an investment advisor with the U.S. Securities and Exchange Commission. Lastly, this act repeals the limitation that no more than 1/10th of the funds of the system be invested in real estate.

These provisions are identical to provisions in HCS/HB 2431 (2024).

LAGERS: INVESTMENT FUNDS (SECTION 70.748)

This act provides that the Board may establish and maintain a local government employee retirement systems of Missouri investment fund account in which investments of LAGERS may be placed and be available for investment purposes. The funds may be combined with funds of any retirement plan administered by LAGERS and any retirement plan established for providing benefits to employees of LAGERS, but such funds shall be accounted for separately.

This provision is substantially similar to a provision in HCS/HB 2431 (2024).

ST. LOUIS POLICE RETIREMENT: EARNABLE COMPENSATION (SECTION 86.200)

This act modifies the definition of "earnable compensation", as used by the Police Retirement System of St. Louis, by providing that the term shall not include any funds received through a judgment or settlement of a legal action or claim made or threatened by a member against the City of St. Louis if such funds are intended to retroactively compensate the member for the salary differential between the member's actual rank and the rank the member claims he or she should have received.

This provision is substantially similar to SB 1267 (2024) and a provision in HCS/HB 2431 (2024).

ALL PUBLIC PLANS: INVESTMENT FIDUCIARY CLOSURE OF RECORDS (SECTION 105.688)

This act provide that an investment fiduciary of a public employee retirement system established by the state or any political subdivision of the state shall not be prohibited from closing records related to information in connection with investments in or financial transactions with business entities.

This provision is identical to a provision in HCS/HB 2431 (2024).

PSRS: MULTIPLIER (SECTION 169.070)

Current law provides that the normal retirement allowance multiplier for a member of the Public School Retirement System of Missouri is 2.5% of the member's final average salary for each year of the membership service, except if the member has 32 years or more of service, then the multiplier shall be 2.55%. This act provides that for those members with 33 years of service or more the multiplier factor shall be 2.6%.

This provision is identical to SCS/SB 877 (2024) and is similar to SB 556 (2023).

PSRS/PEERS: WORKING AFTER RETIREMENT (SECTIONS 169.560 & 169.660)

Currently, a retired member, except for those retired due to disability, of the Public School Retirement System ("PSRS") may work after retirement in a certified position with a covered employer without discontinuance of his or her retirement benefits if the member does not exceed 550 hours of work each school year and 50% of the annual compensation to the person who last held the position. This act provides that the member, including those retired due to disability, may earn up to 50% of the annual compensation to the person who last held the position or 50% of the limit set by the employer's school board for the position if submitted and approved by the Board of Trustees.

Additionally, current law provides that if a member of PSRS or the Public Education Employee Retirement System ("PEERS") is in excess of the limitations, the member shall not be eligible to receive the retirement allowance for any month so employed. This act provides that either member shall not be eligible to receive the retirement allowance for any month so employed or the retirement system shall recover the amount earned in excess of the limitations, whichever is less.

These provisions are identical to provisions in the perfected SS#2/SCS/SB 727 (2024) and are similar to provisions in SB 1286 (2024).

KATIE O'BRIEN