To repeal section 104.103, RSMo 1994, relating to the highways and transportation employees' and highway patrol retirement system, and to enact in lieu thereof one new section relating to the same subject.

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

     Section A. Section 104.103, RSMo 1994, is repealed and one new section enacted in lieu thereof to be known as section 104.103, to read as follows:

     104.103. 1. Each member who was employed prior to August 28, 1997 and retires on or after May 12, 1981, shall receive each year [an] a percentage increase in the amount of benefits received by the member during the preceding year of eighty percent of the increase in the consumer price index determined in the manner hereinafter provided. Any such annual benefit increase, however, shall not exceed five percent, nor be less than four percent, and the total increase in the amount of benefits received pursuant to the provisions of this section shall not exceed sixty-five percent of the initial monthly benefit which the member received upon retirement or the benefit received immediately prior to October 1, 1986, whichever is later.

     2. Each member who is employed for the first time on or after August 28, 1997, and retires shall be entitled annually to a percentage increase in the retirement benefit payable equal to eighty percent of the increase in the consumer price index. Such benefit increase, however, shall not exceed five percent of the retirement benefit payable prior to the increase.

     3. Each member who is employed before August 28, 1997, and terminates employment or retires after that date shall be entitled to the annual benefit increase described in subsection 1 of this section. For such members, the annual benefit increase described in subsection 2 of this section shall not be effective until the year in which the member reaches the limit on total annual benefit increases provided by subsection 1 of this section. After that year, the member shall receive the annual benefit increase described in subsection 2 of this section.

     4. Survivors of members described in subsection 2 of this section shall be entitled to the annual benefit increase described in that subsection.

     [2.] 5. For the purposes of this section, any increase in the consumer price index shall be determined [by the board in February] in January of each year, [beginning with February of 1981,] based upon the percentage increase of (a) the consumer price index for the preceding calendar year over (b) the consumer price index for the calendar year immediately prior thereto. Any increase so determined shall be applied [by the board] in calculating any benefit increases that become payable under this section [for the twelve-month period beginning with the March first immediately following such determination] during the calendar year in which the determination is made and in no case shall the percentage be less than zero.

     [3.] 6. An annual increase, if any is due under either this section or section 104.612 for special consultants with the highways and transportation employees' and highway patrol retirement system, shall be payable monthly beginning on a date specified by the board.

     [4.] 7. For members who retire on or after August 28, 1994, in the event such member has chosen a joint and survivor option under the provisions of section 104.090 and the member's eligible spouse precedes the member in death, the member's benefit shall revert, effective the first of the month following receipt by the board of a written application for the benefit provided in this subsection, to an amount equal to the member's normal annuity, as adjusted for early retirement if applicable; such benefit shall include any increases the member would have received since the date of retirement had the member elected a normal annuity. In no event shall retroactive benefits be paid.

     [5.] 8. Effective on or after August 28, 1994, any retired member who had elected a joint and survivor payment option and whose spouse precedes or preceded the member in death, shall upon application to the board be made, constituted, appointed and employed by the board as a special consultant on the problems of retirement, aging and other state matters. As a special consultant under the provisions of this subsection, the member's reduced benefit will revert to a normal annuity as adjusted for early retirement if applicable, effective the first of the month following receipt by the board of a written application; such benefit shall include any increases the retired member would have received since the date of retirement had the member elected a normal annuity. In no event shall retroactive benefits be paid.