To repeal sections 50.1020, 50.1030, 50.1090, 50.1130, 50.1140 and 50.1180, RSMo 1994, relating to the county employees' retirement system, and to enact in lieu thereof six new sections relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section A. Sections 50.1020, 50.1030, 50.1090, 50.1130, 50.1140 and 50.1180, RSMo 1994, are repealed and six new sections enacted in lieu thereof, to be known as sections 50.1020, 50.1030, 50.1090, 50.1130, 50.1140 and 50.1180, to read as follows:

     50.1020. 1. The board may accept gifts, donations, grants and bequests from private or public sources to the county employees' retirement system fund.

     2. No state moneys shall be used to fund sections 50.1000 to 50.1200.

     3. In all counties, except counties of the first classification having a charter form of government and any city not within a county, the penalties provided in sections 137.280 and 137.345, RSMo, shall be deposited in the county employees' retirement fund. Any interest derived from the collection and investment of any part of the penalties shall also be credited to the county employees' retirement fund. All penalties and interest shall be transmitted to the board monthly by the county treasurer. The county assessor shall maintain a written log reflecting number of assessment notices sent, number of personal property lists that were not returned by the deadline established by law, number of penalties waived and the reason for waiving such penalty. The taxpayer shall sign an acknowledgement of the waiver and the signature shall be witnessed.

     4. Other provisions of law to the contrary notwithstanding, pending final settlement of taxes collected by the county collector, the county collector shall deposit all money collected in interest-bearing deposits within twenty-four hours after the close of business each day collections are received, except on Fridays of each week or on days prior to a state or national holiday, in a financial institution and all interest or other gain on such deposits shall be paid to the county treasurer and shall be credited to the political subdivision for which the funds were collected.

     5. From August 28, 1994, each county clerk, except in counties of the first classification having a charter form of government and any city not within a county, shall make a monthly payroll deduction of two percent of the compensation of each county employee covered by sections 50.1000 to 50.1200, except employees also covered under the local government employees' retirement system, and the county treasurer shall transmit these moneys monthly to the board for deposit into the county employees' retirement fund.

     50.1030. 1. The general administration and the responsibility for the proper operation of the fund and the investment of the fund are vested in a board of directors of [nine] eleven persons. The governor, with the advice and consent of the senate, shall appoint the tenth member of the board to serve a term of four years beginning January 1, 1998. The governor shall appoint the eleventh member of the board to serve a term of four years beginning January 1, 1999. The eleventh board member shall be a retiree who is receiving an annuity from the fund. Directors shall be elected by a secret ballot vote of the county employee members of this state. No more than one director at any one time shall be a representative of the same elected county office; provided, however, that the retiree representative may be from any elected office, regardless of whether that office has a representative on the board. Directors shall be chosen for terms of four years from the first day of January next following their election except that the members of the first board shall be appointed by the governor by and with the advice and consent of the senate. Three members of the first board shall be appointed for four years, three members for three years, two members for two years and one member for one year. It shall be the responsibility of the initial board to establish procedures for the conduct of future elections of directors and such procedures shall be approved by a majority vote by secret ballot by members of the system. The board shall have all powers and duties that are necessary and proper to enable it, its officers, employees and agents to fully and effectively carry out all the purposes of sections 50.1000 to 50.1200.

     2. The board of directors shall elect one of their number as chairman and one of their number as vice chairman and may employ an administrator who shall serve as secretary to the board. The board shall hold regular meetings at least once each quarter. Board meetings shall be held in Jefferson City. Other meetings may be called as necessary by the chairman. Notice of such meetings shall be given in accordance with chapter 610, RSMo.

     3. The board of directors shall retain an actuary as technical advisor to the board.

     4. The board of directors shall retain investment counsel to be an investment advisor to the board.

     5. The state auditor shall provide for biennial audits of the Missouri county employees' retirement fund and the operations of the board, to be paid for out of the county employees' retirement fund.

     6. The board of directors shall serve without compensation for their services, but each director shall be paid out of the county employees' retirement fund for any actual and necessary expenses incurred in the performance of duties authorized by the board.

     7. The board of directors shall be allowed administrative costs for the operation of the system to be paid out of the county employees' retirement fund.

     8. The board shall keep a record of its proceedings which shall be open to public inspection. It shall annually prepare a report showing the financial condition of the system. The report shall contain, but not be limited to, an auditor's opinion, financial statements prepared in accordance with generally accepted accounting principles, an actuary's certification along with actuarial assumptions and financial solvency tests.

     50.1090. 1. Except as otherwise provided in this section, a member shall only receive creditable service for service as a county employee after August 28, 1994.

     2. Any county employee as defined in section 50.1000 who is employed on or after August 28, 1994, or any part-time county employee who served as a county employee as defined in section 50.1000 for at least eight years and who had prior service as a county employee may, while still employed, upon termination or upon retirement, elect to purchase a portion of such prior service as prior creditable service. The election shall be made in writing to the board [at the time the person applies for retirement under sections 50.1000 to 50.1200] in accordance with rules and regulations adopted by the board. The purchase shall be, for those who are not also members of the local government employees' retirement system, at the rate of one and one-half percent of the retiring member's average final compensation times the number of years purchased. The purchase for those who are also members of the local government employees' retirement system will be at the rate of one percent of the retiring member's average final compensation times the number of years purchased. The purchase of prior creditable service may be made with monthly payments while the employee is employed, in one lump sum payment at the time of retirement or may be deducted in equal monthly installments from the retirement benefits paid to the retired member over a period of years to be agreed upon by the retiree and the board but not to exceed four years. If the retired member dies prior to payment of the full amount due, no further payment shall be due and the surviving spouse of the deceased shall receive the benefits required under the provisions of sections 50.1000 to 50.1200. If an employee has not completed purchase of the prior creditable service prior to termination of employment, the employee may elect to either continue making payments towards the purchase of the prior creditable service or to complete the purchase upon retirement by making one lump sum payment of the remaining balance due or by deductions in equal monthly installments from the retirement benefits paid to the retired member over a period of years to be agreed upon by the retiree and the board but not to exceed four years.

     3. Any county employee as defined in section 50.1000 who was employed on January 1, 1990, and who was not employed on August 28, 1994, and who had prior service as a county employee for at least eight years may apply to the board and shall be made and employed by the board of trustees as a special consultant on the problems of retirement for the remainder of the person's life. Upon request of the board, the consultant shall give opinions or be available to give opinions in writing or orally in response to such requests. As compensation the consultant may elect to become a member of the system and purchase a portion of such prior service as prior creditable service. The election shall be made in writing to the board at the time the person applies to be made a consultant under the provisions of this subsection. The purchase shall be, for those who are not also members of the local government employees' retirement system, at the rate of three percent of the retiring member's average final compensation times the number of years purchased. The purchase for those who are also members of the local government employees' retirement system will be at the rate of two percent of the retiring member's average final compensation times the number of years purchased. Fifty percent of the purchase of prior creditable service shall be made prior to receiving retirement benefits and the balance may be in one lump sum payment at the time of application for appointment as a consultant or may be deducted in equal monthly installments from the retirement benefits paid to the consultant over a period of years to be agreed upon by the consultant and the board but not to exceed four years. If the consultant dies prior to payment of the full amount due, no further payment shall be due and the surviving spouse of the deceased shall receive the benefits required under the provisions of sections 50.1000 to 50.1200.

     4. The provisions of this section shall not be construed as authorizing or permitting the accumulation of prior creditable service to an extent that a retired member would receive or be eligible to receive benefits in excess of those permitted for qualifying public retirement plans under federal tax law.

     5. The county employees' retirement system shall be responsible for verifying all members' records with those of the local government employees' retirement systems and with any other applicable plans to ensure compliance with section 415 of the Internal Revenue Code.

     50.1130. 1. A death benefit of ten thousand dollars shall be paid to the designated beneficiary of every active member upon his death or [to his estate if there is no designated beneficiary.] if the member fails to designate a beneficiary, then to the member's surviving spouse or if there is no spouse then in equal shares to the member's surviving children. If there is neither a surviving spouse nor surviving children, then the benefit shall be paid to the active member's estate.

     2. If the member executes a beneficiary designation form and lists more than one beneficiary but fails to list the percentage of benefit that each beneficiary should receive, then the benefit will be divided equally among the named beneficiaries.

     50.1140. 1. Upon termination of employment, any member who is vested shall be entitled to a deferred annuity, payable at age sixty-two. Any member with less than eight years of creditable service shall forfeit all rights in the fund, including the member's accrued creditable service as of the date of the member's termination of employment, but may receive any refund of contributions to which he is entitled under subsection 2 of this section.

     2. In the event a member ceases to be a member other than by death before the date he becomes vested in the system, he shall be paid, upon his written application filed with the board, his accumulated contributions standing to his credit in the members' deposit fund.

     3. A former member who has forfeited creditable service may have the creditable service restored by again becoming an employee and completing a total of eight years of [continuous] membership service and repaying the amount previously refunded plus interest equal to the current prime rate plus two percent from the date of payment of the refund.

     4. Absences for sickness or injury of less than twelve months shall be counted as membership service.

     50.1180. Sections 50.1000 to 50.1200 shall not apply to counties of the first classification with a charter form of government or to a city not within a county. No employee in a county which accrues benefits under sections 50.1000 to 50.1200 shall lose any of those benefits accrued because the county where the employee serves or served subsequently adopts a charter or constitutional form of government and the county shall continue to assess and collect all fees and penalties provided under law to fund the county employees' retirement fund.