SB 1504 - This act modifies provisions relating to contribution rates for the Public School Retirement System of the City of St. Louis ("PSRSSTL"). Currently, the member contribution rate for those members hired before January 1, 2018, was 5% with an annual 0.5% increase until the contribution rate reaches 9% and for members hired after January 1, 2018, is set at 9%. This act provides that the current member contribution rate shall be applicable unless a lower member contribution rate applies as the result of the funded ratio equaling or exceeding 100% with a total actuarially required contribution rate less than 18%. Current law provides that the employer contribution rate shall be 16% in 2018 with yearly 0.5% decreases until the rate is 9% of the total compensation of all members employed. This act provides that the employer contribution rate shall be 14% in 2025 and shall be subsequently determined annually based on the funded ratio, which is defined as the ratio of the actuarial value of assets to the actuarial accrued liability based on the entry age normal cost method with normal cost expressed as a level percentage of covered compensation.
If the funded ration is less than 100%, the employer contribution rate shall be the greater of 14% or the difference between the total actuarially required contribution rate, as defined in the act, and the member contribution rate. If the funded ratio equals or is greater than 100% and the total actuarially required contribution rate is greater than 18%, then the employer contribution rate shall be the difference between the total actuarially required contribution rate and the member contribution rate. If the funded ratio equals or is greater than 100%, but the total actuarially required contribution rate is less than 18%, then the total actuarially required contribution rate shall be allocated equally between the employer and employee and adjusted depending on changes to the total actuarially required contribution rate as provided in the act.
Furthermore, the employer contribution rate and the member contribution rate shall not increase by more than 1% or decrease by more than 0.5% for any period from the corresponding rate in effect.
This act is identical to HB 2846 (2024).
KATIE O'BRIEN