To repeal sections 86.260 and 86.267, RSMo 1994, and sections 86.253 and 86.256, RSMo Supp. 1996, relating to the police retirement system of St. Louis, and to enact in lieu thereof four new sections relating to the same subject.

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

     Section A. Sections 86.260 and 86.267, RSMo 1994, and sections 86.253 and 86.256, RSMo Supp. 1996, are repealed and four new sections enacted in lieu thereof, to be known as sections 86.253, 86.256, 86.260 and 86.267, to read as follows:

     86.253. 1. Upon retirement for service, a member shall receive a service retirement allowance which shall be equal to a fraction of the member's average final compensation multiplied by the number of years of the member's creditable service, which fraction for the year of retirement is one-fiftieth plus an amount equal to four percent of the average final compensation for each additional year of service after twenty-five years; but no service retirement allowance shall exceed an amount equal to seventy percent of the average final compensation or the amount already accrued by the member as of August 1, 1979, whichever is greater.

     2. If, at any time since first becoming a member of the retirement system, the member has served in the armed forces of the United States, in any war or period of armed hostilities between the armed forces of the United States and those of a foreign power, and has subsequently been reinstated as a policeman within ninety days after the member's discharge, the member shall be granted credit for such service as if the member's service in the police department of such city had not been interrupted by [his] the member's induction into the armed forces of the United States. If earnable compensation is needed for such period in computation of benefits it shall be calculated on the basis of the compensation payable to the officers of the member's rank during the period of the member's absence.

     3. The service retirement allowance of each present and future retired member who retired from service after attaining age fifty-five or after completing twenty years of service shall be increased annually at a rate not to exceed three percent as approved by the board of trustees beginning with the first increase in the second October following the member's retirement and subsequent increases in each October thereafter, provided that each increase is subject to a determination by the board of trustees that the consumer price index (United States City Average Index) as published by the United States Department of Labor shows an increase of not less than the approved rate during the latest twelve-month period for which the index is available at the date of determination; and provided further, that if the increase is in excess of the approved rate for any year, such excess shall be accumulated as to any retired member and increases may be granted in subsequent years subject to a maximum of three percent for each full year from October following the member's retirement but not to exceed a total percentage increase of [twenty-five] thirty percent. In no event shall the increase described under this subsection be applied to the amount, if any, paid to a member or widow of a deceased member for services as a special consultant under subsection 5 of this section or, if applicable, subsection 6 of this section. If the board of trustees determines that the index has decreased for any year, the benefits of any retired member that have been increased shall be decreased but not below the member's initial benefit. No annual increase shall be made of less than one percent and no decrease of less than three percent except that any decrease may be limited in amount by the initial benefit. Any annuity or retirement allowance paid to a member under this subsection shall be withdrawn from the police retirement system and no moneys shall be withdrawn from the general revenue fund of any city governed by sections 86.200 to 86.363.

     4. In addition to any other annuity or retirement allowance payable under this section and section 86.250, a member, upon retirement, shall be repaid the total amount of the member's contribution to the retirement system, without interest. The board shall pay the retired member such total amount of the member's contribution to the retirement system within sixty days after such retired member's date of retirement. Any annuity or retirement allowance repaid to a member under this subsection shall be withdrawn from the police retirement system and no moneys shall be withdrawn from the general revenue fund of any city [of seven hundred thousand or more persons] governed by sections 86.200 to 86.363.

     5. Any person who is receiving retirement benefits from the retirement system, upon application to the board of trustees, shall be made, constituted, appointed and employed by the board of trustees as a special consultant on the problems of retirement, aging and other matters, for the remainder of the person's life, and upon request of the board of trustees shall give opinions and be available to give opinions in writing or orally, in response to such requests, as may be required. For such services he or she shall be compensated monthly, in an amount which, when added to any monthly retirement benefits being received from the retirement system, shall, unless the provisions of subsection 6 of this section apply, total five hundred fifty dollars a month, effective August 28, 1993; except that a [widow] surviving spouse of a deceased member who is employed as a special consultant shall, unless the provisions of subsection 6 of this section apply, receive compensation for the person's services as a special consultant of not less than five hundred fifty dollars a month, effective August 28, 1993. This compensation shall be paid by the retirement system from funds of the retirement system, and this employment shall in no way affect any person's eligibility for retirement benefits under this chapter, or in any way have the effect of reducing retirement benefits, notwithstanding any provisions of law to the contrary.

     6. The compensation granted retirees and [widows] surviving spouses of deceased members under subsection 5 of this section shall be decreased by one hundred fifty dollars per month upon the issuance of an opinion by the Missouri supreme court which would result in the state of Missouri being obligated or required to pay such additional one hundred fifty dollars per month even though such additional compensation is formally approved or authorized by the appropriate body of any city governed by sections 86.200 to 86.363.

     7. Notwithstanding the provision of any other law to the contrary, the board of trustees of any retirement system, the provisions of which are governed by this chapter, or any political subdivision which funds such retirement system, shall have standing to seek a declaratory judgment concerning the application of article X, section 21 of the Missouri constitution to the provisions of this act. The increase in benefits authorized in this act which are found not to constitute a new activity or service, or increase in the level of an activity or service beyond that required by existing law pursuant to article X, section 21 of the Missouri constitution by a final judgment of a court of competent jurisdiction, shall be payable beginning the first calendar quarter after notice of such judgment is provided to the revisor of statutes. In the event a final judgment is rendered by a court which judgment determines that any provision of this act constitutes a new activity or service or increase in the level of an activity or service beyond that required by existing law pursuant to article X, section 21 of the Missouri constitution, or any successor to that section, that provision of this act shall be void ab initio and any new benefit or feature required by such provision of this act shall be deemed not to have accrued and shall not be payable to members. The provisions of this act are severable pursuant to section 1.140, RSMo.

     86.256. 1. In no event shall a member's annual benefit paid under the plan established pursuant to sections 86.200 to 86.363, exceed the lesser of:

     (1) The amount specified in section 415(b) of the Internal Revenue Code, as adjusted for any applicable increases in the cost of living, as in effect on the last day of the plan year, including any increases after the member's termination of employment; [and] or

     (2) One hundred percent of the average taxable compensation of the member for the member's high three consecutive [plan] calendar years as provided in section 415(b) of the Internal Revenue Code, including any cost-of-living increases after the member's termination of employment.

     2. In no event shall the annual additions to the plan established pursuant to sections 86.200 to 86.363, on behalf of the member, including the member's own contributions, exceed the lesser of:

     (1) Twenty-five percent of the member's compensation, as defined for purposes of section 415(c) of the Internal Revenue Code; or

     (2) Thirty thousand dollars, as adjusted for increases in the cost of living.

     3. In no event shall the combined plan limitation of section 415(e) of the Internal Revenue Code be exceeded; provided that, if necessary to avoid exceeding such limitation, the member's annual benefit under the plan established pursuant to sections 86.200 to 86.363, shall be reduced to the extent necessary to satisfy such limitations.

     4. For purposes of this section, section 415 of the Internal Revenue Code, including the special rules under section 415(b) applicable to governmental plans and qualified participants in police and fire department plans, is incorporated in this section by reference.

     86.260. 1. Upon retirement for ordinary disability a member shall receive a service retirement allowance if [he] the member has attained the age of fifty-five or completed twenty years of service; otherwise [he] the member shall receive an ordinary disability retirement allowance which shall be equal to ninety percent of [his] the member's accrued service retirement in section 86.253, but not less than one-fourth of [his] the member's average final compensation; provided, however, that no such allowance shall exceed ninety percent of [his] the member's accrued service retirement benefit based on continuation of [his] the member's service to the age set out in section 86.250.

     2. The ordinary disability retirement allowance will be increased by ten percent of the member's average final compensation for each unmarried dependent child of the disabled member who is under the age of eighteen, or who, regardless of age, is totally and permanently mentally or physically disabled and incapacitated from engaging in gainful occupation sufficient to support himself or herself, but not in excess of a total of three children; provided, however, that the combined benefit shall not exceed fifty-five percent of such average final compensation.

     3. Any benefit payable to or for the benefit of a child or children under the age of eighteen years under the provisions of subsection 2 of this section shall continue to be paid beyond the age of eighteen years through the age of twenty-two years in those cases where the child is a full-time student at a regularly accredited college, business school, nursing school, school for technical or vocational training, or university, but such extended benefit shall cease whenever the child [shall cease] ceases to be a student. A college or university shall be deemed to be regularly accredited which maintains membership in good standing in a national or regional accrediting agency recognized by any state college or university.

     86.267. 1. Upon retirement for accidental disability, other than permanent total disability as defined in subsection 2, a member shall receive a retirement allowance of seventy-five percent of [his] the member's average final compensation.

     2. Any member who, as the natural and proximate result of an accident occurring in the actual performance of [his] the member's duty at some definite time and place through no negligence on [his] the member's part, is permanently and totally incapacitated from performing any work, occupation or vocation of any kind whatsoever shall receive a retirement allowance as under subsection 1 or, in the discretion of the board of trustees, may receive a larger retirement allowance in an amount not exceeding [his] the member's rate of compensation as a policeman in effect as of the date the allowance begins.

     3. The board of trustees, in its discretion, may, in addition to the allowance granted in accordance with the provisions of subsections 1 and 2, grant an allowance in an amount to be determined by the board of trustees, to provide such member with surgical, medical and hospital care reasonably required after retirement, which are the result and in consequence of the accident causing such disability.

     4. Any person who is receiving benefits pursuant to subsection 2 of this section on or after the effective date of this section, upon application to the board of trustees, shall be made, constituted, appointed and employed by the board of trustees as a special consultant on the problems of retirement, aging and other matters, and upon request of the board of trustees shall give opinions and be available to give opinions in writing or orally, in response to such requests, as may be required. For such services the retired member shall be paid a lump sum payment in an amount equal to the total amount of his contributions to the retirement system, without interest, within sixty days after approval of the retired member's application by the board of trustees. Any annuity or retirement allowance paid to a retired member pursuant to this section shall be withdrawn from the police retirement system and no moneys shall be withdrawn from the general revenue fund of any city governed by sections 86.200 to 86.363.