Read 1st time January 27, 1997, and 1,000 copies ordered printed.

Read 2nd time February 5, 1997, and referred to the Committee on Elections, Pensions and Veterans' Affairs.

Reported from the Committee March 27, 1997, with recommendation that the bill do pass with Senate Committee Amendment No. 1.

Taken up for Perfection April 8, 1997. Bill declared Perfected and Ordered Printed, as amended.

TERRY L. SPIELER, Secretary.

S1173.01P

To repeal sections 86.387, 86.447, 86.450, 86.453, 86.457, 86.463, 86.467, 86.620, 86.650 and 86.670, RSMo 1994, and sections 86.370, 86.430, 86.600, 86.630 and 86.672, RSMo Supp. 1996, relating to certain police retirement systems, and to enact in lieu thereof sixteen new sections relating to the same subject.

Be it enacted by the General Assembly of the State of Missouri, as follows:

     Section A. Sections 86.387, 86.447, 86.450, 86.453, 86.457, 86.463, 86.467, 86.620, 86.650 and 86.670, RSMo 1994, and sections 86.370, 86.430, 86.600, 86.630 and 86.672 are repealed and sixteen new sections enacted in lieu thereof, to be known as sections 86.370, 86.387, 86.430, 86.447, 86.450, 86.453, 86.457, 86.463, 86.467, 86.600, 86.620, 86.630, 86.650, 86.670, 86.672 and 86.810, to read as follows:

     86.370. The following words and phrases as used in sections 86.370 to 86.497, unless a different meaning is plainly required by the context, shall have the following meanings, and the use of masculine gender shall include the feminine:

     (1) "Accumulated contributions", the sum of all amounts deducted from the compensation of a member and paid to the retirement board, together with all amounts paid to the retirement board by a member or by a member's beneficiary, for the purchase of prior service credits or any other purpose permitted under sections 86.370 to 86.497;

     (2) "Beneficiary", any person in receipt of pension or other benefit as provided in sections 86.370 to 86.497;

     (3) "Board of police commissioners", any board composed of police commissioners and any other officials or boards authorized by law to employ and manage an organized police force in the cities;

     (4) "City" or "cities", any city which now has or may hereafter have a population of more than three hundred thousand and less than seven hundred thousand inhabitants;

     (5) "Compensation", whenever used in connection with members of the police retirement system created by sections 86.370 to 86.497, and whether used solely or as part of another defined term, the regular compensation which a member would earn during one year on the basis of the stated compensation for his rank and position, and therefore excluding any overtime pay, meal and travel expenses, uniform or other clothing allowances, any sick leave or vacation entitlements accrued from prior years, college incentive or skill incentive allowances and any other allowances available only to particular individuals and not a part of the base stated compensation for all persons holding the given rank and position;

     (6) "Creditable service", prior service plus membership service as provided in section 86.423;

     (7) "Final compensation", the average annual compensation of a member during his service if less than two years, or the twenty-four months of his service for which he received the highest salary whether consecutive or otherwise. In computing the average annual compensation of a member under this subdivision, no compensation received for service which occurred after the thirtieth full year of membership service and no compensation attributable to any time a member was suspended from service without pay shall be included;

     (8) "Fiscal year", the fiscal year of the cities;

     (9) "Medical board", not less than one nor more than three physicians appointed by the retirement board to arrange for and conduct medical examinations as directed by the retirement board;

     (10) "Member", a member of the police retirement system as defined in section 86.380;

     (11) "Membership service", all service rendered as a policeman for compensation after June 15, 1946, excluding all probationary service of six months or less served prior to May 1, 1951;

     (12) "Pension", annual payments for life, payable monthly, beginning with the date of retirement and ending with death; if the total of such monthly payments plus benefits pursuant to section 86.447 is less than the total of the member's accumulated contributions, the excess of such accumulated contributions over the total of such monthly payments shall be paid in one sum to the beneficiary named by the member;

     (13) "Pension fund", the fund resulting from contributions made thereto by the cities affected by sections 86.370 to 86.497 and by the members of the police retirement system;

     (14) "Policeman", entitled to membership in the police retirement system created by sections 86.370 to 86.497, is an officer or member of the police department of the cities employed for compensation by the boards of police commissioners of the cities for police duty and includes the chief of police, lieutenant colonels, majors, superintendents, captains, lieutenants, sergeants, corporals, detectives, patrolmen, supervisors, technicians, radio operators, radio dispatchers, jailers, and matrons, but does not include any police commissioner or members of the police reserve corps, or special officers appointed to serve at elections, or temporary police appointed at school crossings or special officers appointed to serve during emergencies, or anyone employed in a clerical or other capacity not involving police duties; except that any policeman as herein defined, who is assigned to the performance of other duties for the police departments of the cities, by reason of personal injury by accident or disability arising out of and in the course of his employment as a policeman, shall be and remain a member of the police retirement system without regard to the duties performed under such assignment; in case of dispute as to whether any person is a policeman qualified for membership in the retirement system, the decision of the board of police commissioners shall be final;

     (15) ["Prior service", all service rendered as a policeman for compensation prior to June 15, 1946, as such policeman is defined in subdivision (14) of this section, excluding, however, six months' probationary service in each case;

     (16)] "Retirement board", the board provided in section 86.393 to administer the retirement system;

     [(17)] (16) "Retirement system", the police retirement system of the cities as defined in section 86.373.

     86.387. Should any member be absent by authority of the board of police commissioners in military service or should he be granted temporary leave of absence by the board of police commissioners after the passage of sections 86.370 to 86.497, he shall not, because of such absence, cease to be a member. [Any such member shall receive service credit for the time during which he is on a temporary leave of absence; except that, if a member is on a temporary absence of more than one month without compensation he shall,] A member absent for military service shall be entitled to such credits as are permitted by section 87.430. If a member is on temporary leave of absence for one month or less, such member shall receive service credit for such time. If a member is on temporary leave of absence for more than one month without compensation, such member shall not receive service credits for such time unless such member shall, within one year of his return from such absence, pay into the retirement system fund an amount equal to the member's contribution percentage at the time such absence began times an assumed salary figure for the period of such absence, computed by assuming that such member received a salary during his absence at the rate of the base annual salary the member was receiving immediately prior to his absence.

     86.430. 1. Creditable service at retirement on which the retirement allowance of a member is based consists of the membership service rendered by him since he last became a member and also, if he has a prior service certificate which is in full force and effect, the amount of the prior service certified on his prior service certificate.

     2. Creditable service also includes all services rendered by a member as defined in subdivision (14) of section 86.370 even though he is assigned to the performance of duties for the police department of the cities other than for law enforcement.

     3. Creditable service shall not include any time a member was suspended from service without pay. No contribution is required from either the member under section 86.470 or from the city under section 86.477 for such time.

     [3.] 4. Any active member on August 28, 1995, who served on active duty in the armed forces of the United States and who became a member, or returned to membership, after discharge under honorable conditions, may elect, prior to retirement but in no case later than August 28, 1997, to purchase creditable service equivalent to such service in the armed forces, not to exceed two years, provided the member is not receiving and is not eligible to receive retirement credits or benefits from any other public or private retirement plan for the service to be purchased other than a United States military service retirement system or United States Social Security benefits attributable to such military service, and an affidavit so stating is filed by the member with the retirement system. A member electing to make such purchase shall pay to the retirement system an amount equal to the actuarial value of the additional benefits attributable to the creditable service so purchased, as of the date the member elects to make the purchase. The retirement system shall determine the value using accepted actuarial methods and the same assumptions with respect to interest rates, mortality, future salary increases and all related factors used in performing the most recent regular actuarial valuation of the retirement system. Payment in full of the amount due from a member electing to purchase creditable service under this subsection shall be made over a period not to exceed five years, measured from the date of election, or prior to the commencement date for payment of benefits to the member from the retirement system, whichever is earlier, including interest on unpaid balances compounded annually at the interest rate assumed from time to time for actuarial valuations of the retirement system. If payment in full including interest is not made within the prescribed period, any partial payments made by the member shall be refunded, and no creditable service attributable to such election, or as a result of any such partial payments, shall be allowed; provided that if a benefit commencement date occurs because of the death or disability of a member who has made an election under this subsection and if the member is current in payments under an approved installment payment plan at the time of death or disability, such election shall be valid if the member, the surviving spouse or other person entitled to benefit payments pays the entire balance of the remaining amount due, including interest to the date of such payment, within sixty days after the member's death or disability. The time of a disability shall be deemed to be the time when such member is retired by the board of police commissioners for reason of disability as provided in sections 86.370 to 86.497.

     [4.] 5. Any individual who becomes a member of the retirement system subsequent to August 28, 1995, and who served on active duty in the armed forces of the United States and who became a member, or returned to membership, after discharge under honorable conditions, may elect, prior to retirement but in no case later than two years after the effective date of his membership in the retirement system, to purchase creditable service equivalent to such service in the armed forces, not to exceed two years, provided the member is not receiving and is not eligible to receive retirement credits or benefits from any other public or private retirement plan for the service to be purchased, other than a United States military service retirement system or United States Social Security benefits attributable to such military service, and an affidavit so stating is filed by the member with the retirement system. A member electing to make such purchase shall pay to the retirement system an amount equal to the actuarial value of the additional benefits attributable to the additional service credit to be purchased, as of the date the member elects to make such purchase. The retirement system shall determine such value using accepted actuarial methods and the same assumptions with respect to interest rates, mortality, future salary increases and all related factors used in performing the most recent regular actuarial valuation of the retirement system. Payment in full of the amount due from a member electing to purchase creditable service under this subsection shall be made over a period not to exceed five years, measured from the date of election, or prior to the commencement date for payment of benefits to the member from the retirement system, whichever is earlier, including interest on unpaid balances compounded annually at the interest rate assumed from time to time for actuarial valuations of the retirement system. If payment in full including interest is not made within the prescribed period, any partial payments made by the member shall be refunded, and no creditable service attributable to such election, or as a result of any such partial payments, shall be allowed; provided that if a benefit commencement date occurs because of the death or disability of a member who has made an election under this subsection and if the member is current in payments under an approved installment plan at the time of the death or disability, such election shall be valid if the member, the surviving spouse or other person entitled to benefit payments pays the entire balance of the remaining amount due, including interest to the date of such payment, within sixty days after the member's death or disability. The time of a disability shall be deemed to be the time when such member is retired by the board of police commissioners for reason of disability as provided in sections 86.370 to 86.497.

     86.447. 1. Upon receipt of the proper proofs of death of a member in service for any reason whatever or of the death of a member after having been retired and pensioned, there shall be paid, in addition to all other benefits, the following:

     (1) To his surviving spouse, if any, a pension equal to forty percent of the final compensation of such member, subject to adjustment, if any, as provided in section 86.441, which pension shall terminate on the remarriage of such surviving spouse;

     (2) To his child or children under the age of eighteen years at the time of decease, fifty dollars per month each, subject to adjustment, if any, as provided in section 86.441, until he or she shall attain the age of eighteen years; however, each such child who is or becomes a full-time student at an accredited educational institution shall continue to receive payments hereunder for so long as such child shall remain such a full-time student or shall be in a summer or other vacation period scheduled by the institution with intent by such child, demonstrated to the satisfaction of the retirement board, to return to such full-time student status upon the resumption of the institution's classes following such vacation period, but in no event shall such payments be continued after such child shall attain the age of twenty-one years except as hereinafter provided. Any child eighteen years of age or older, who is physically or mentally incapacitated from wage earning, so long as such incapacity exists as certified by a member of the medical board, shall be entitled to the same benefits as a child under the age of eighteen;

     (3) A funeral benefit of one thousand dollars.

     2. If there is no person qualified to receive a pension as a surviving spouse or if a surviving spouse remarries or dies, the total amount which would be received by a qualified surviving spouse or which is being received by the surviving spouse at the date of the remarriage or death of such surviving spouse shall be added to the amounts received by and shall be divided among the children under the age of eighteen years and the incapacitated children in equal shares. As each child attains the age of eighteen years or has his incapacity removed, the total of the surviving spouse's pension shall then be added to and divided among the remaining children, and when there is only one child under the age of eighteen years or incapacitated, whether such child is the sole surviving child of the member or the youngest child of several children, the total amount of the surviving spouse's pension shall be paid to the child until he reaches the age of eighteen years or his incapacity is removed.

     3. No surviving spouse shall be entitled to receive benefits or the payment of a pension under this section unless [marriage] such spouse was married to the member [occurred at least two years before the member's retirement or at least two years before the death of the member while in service; provided, that no benefits shall be denied under this subsection to the surviving spouse of a member whose death occurred in the line of duty or from an occupational disease arising out of and in the course of the member's employment] at the time of the member's retirement.

     4. If no benefits are otherwise payable to a surviving spouse or child of a deceased member, the member's accumulated contributions, to any extent not fully paid to such member prior to the member's death or to the surviving spouse or child of such member, shall be paid in one lump sum to the member's named beneficiary or, if none, to the member's estate.

     5. For purposes of this section, a determination of whether a child of a member is physically or mentally incapacitated from wage earning so that the child is entitled to benefits under this section shall be made at the time of the member's death. If a child becomes incapacitated after the member's death, or if after a child's incapacity existing at the member's death is removed and such child later becomes incapacitated again, such child shall not be entitled to benefits as an incapacitated child under the provisions of this section. A child shall be deemed incapacitated only for so long as the incapacity existing at the time of the member's death continues.

     86.450. 1. If the board of police commissioners determines that any member [who] has become totally and permanently incapacitated for duty as the natural and proximate result of an accident occurring within the actual performance of duty at some definite time or place or through an occupational disease arising out of and in the course of his employment [shall be retired by the board of police commissioners upon certification by one or more physicians on the medical board], that the member is mentally or physically incapacitated for further performance of duty as a policeman, that the incapacity is permanent or likely to become permanent, and that the member should be retired, such member shall be entitled to a disability benefit upon the terms and conditions provided in this section.

     2. Upon such retirement, a member shall receive a pension equal to sixty percent of his final compensation for so long as the permanent disability shall continue, during which time such member shall for purposes of this section be referred to as a disability beneficiary. Such pension may be subject to offset or reduction under section 86.460 by amounts paid or payable under any workers' compensation law.

     3. Once each year during the first five years following his retirement, and at least once in every three-year period thereafter, the retirement board may, and upon the member's application shall, require any disability beneficiary who has not yet attained the age of sixty years, to undergo a medical examination at a place designated by the medical board or some member thereof. If any disability beneficiary who has not attained the age of sixty years refuses to submit to a medical examination his disability pension may be discontinued until his withdrawal of such refusal, and if his refusal continues for one year, all rights in and to such pension may be revoked by the retirement board.

     4. If one or more members of the medical board certify to the retirement board that [the] a disability beneficiary is [engaged in or is able to engage in a gainful occupation paying more than the difference between his pension and his final compensation] no longer totally and permanently incapacitated for duty, and if the retirement board concurs on the report, then [the amount of his pension shall be reduced to an amount which, with the amount earnable by him, equals the amount of his final compensation. If his earning capacity later changes, the amount of his pension may be further modified, but the new pension shall not exceed the amount of the pension originally granted and an amount which, when added to the amount earnable by the beneficiary, equals the amount of his final compensation] such beneficiary's disability pension shall cease.

     5. If [any] upon cessation of a disability pension under subsection 4 of this section, the former disability beneficiary [under the age of sixty] is restored to active service [at a compensation not less than his final compensation, his disability pension shall cease and], he shall again become a member, and he shall contribute thereafter at the same rate as other members. [Any prior service certificate on the basis of which his service was computed at the time of his retirement shall be restored to full force and effect, and in addition,] Upon his subsequent retirement, he shall be credited with all his service as a member, including any years in which such disability beneficiary received a disability pension under this section.

     [5. When a member who has been retired at the age of sixty or older is restored to active service at a salary less than one-half his final compensation, he shall not be required to make contributions and shall continue to receive a disability pension in an amount which when added to his compensation shall equal his final compensation until he attains the age of sixty-five after which he shall receive a retirement pension according to law.]

     6. If upon cessation of a disability pension under subsection 4 of this section, the former disability beneficiary is not restored to active service, such former disability beneficiary shall be entitled to the retirement benefit to which such former disability beneficiary would have been entitled if such former disability beneficiary had terminated service for any reason other than dishonesty, intemperate habits or being convicted of a felony at the time of such cessation of such former disability beneficiary's disability pension. For the purpose of such retirement benefits, such former disability beneficiary will be credited with all the former disability beneficiary's service as a member, including any years in which the former disability beneficiary received a disability beneficiary pension under this section.

     86.453. 1. Upon the receipt of the proper proofs that the death of a member in service was the natural and proximate result of an event occurring within the performance of duty or of an occupational disease arising out of and in the course of his employment, there shall be paid to his surviving spouse, or if there be no surviving spouse, then to his child or children under the age of twenty-one years or over the age of twenty-one years if mentally or physically incapacitated from wage earning, in equal shares or divided between or among them, as the retirement board in its sole discretion shall direct, the sum of [twenty] fifty thousand dollars [payable five thousand dollars cash and the sum of three hundred dollars per month thereafter until the balance is fully paid].

     2. [If the surviving spouse remarries or dies before all payments due under this section are made, all such payments to the surviving spouse shall terminate. The remaining payments which would be due under this section had the surviving spouse not remarried or died shall be paid to the member's child or children under the age of twenty-one years or over the age of twenty-one years if mentally or physically incapacitated from wage earning, in equal shares or divided between or among them, as the retirement board in its sole discretion shall direct.

     3.] If the member dies in such a manner that a surviving spouse or child would be entitled to benefits under this section but there is no surviving spouse or child eligible to receive payments under this section, no payments under this section shall be paid. [If payments are begun to a surviving spouse under the provisions of this section and such surviving spouse remarries or dies, then if no child is eligible to receive payments under this section at the time of such remarriage or death, no further payments under this section shall be made. If payments are begun to a child or children under this section and all surviving children cease to be eligible to receive such payments, no further payments under this section shall be made.

     4.] 3. Notwithstanding anything to the contrary in this chapter or any other chapter of the Missouri revised statutes, amounts payable under this section shall not be subject to offset or reduction by amounts paid or payable under any workers' compensation or similar law.

     [5. For purposes of this section, a determination of whether a child of a member is physically or mentally incapacitated from wage earning so that the child is entitled to benefits under this section shall be made at the time of the member's death. If a child becomes incapacitated after the member's death, or if after a child's incapacity existing at the member's death is removed and he later again becomes incapacitated, such child shall not be entitled to benefits as an incapacitated child under the provisions of this section. A child shall be deemed incapacitated only for so long as the incapacity existing at the time of the member's death continues.]

     86.457. 1. If a member has completed ten or more years of creditable service and if the board of police commissioners determines that such [any] member [who has completed ten or more years of creditable service and who] has become permanently incapacitated for duty as the result of an injury or illness not caused or induced by the actual performance of his official duties[,] or by his own negligence, [shall be retired by the board of police commissioners upon certification by one or more physicians on the medical board] that [the] such member is mentally or physically incapacitated for further performance of duty as a policeman, that the incapacity is permanent or likely to become permanent, and that [the] such member should be retired, such member shall be entitled to a disability benefit upon the terms and conditions provided in this section.

     2. Upon such retirement, a member shall receive a pension equal to two percent of his final compensation multiplied by number of years of his creditable service. Such pension shall be paid for so long as the permanent disability shall continue, during which time such member shall for purposes of this section be referred to as a nonduty disability beneficiary.

     3. Once each year during the first five years following such member's retirement, and at least once in every three-year period thereafter, the retirement board may, and upon the member's application shall, require any nonduty disability beneficiary who has not yet attained the age of sixty years, to undergo a medical examination at a place designated by the medical board or some member thereof. If any nonduty disability beneficiary who has not attained the age of sixty years refuses to submit to a medical examination his nonduty disability pension may be discontinued until his withdrawal of such refusal, and if his refusal continues for one year, all rights in and to such pension may be revoked by the retirement board.

     4. If one or more members of the medical board certify to the retirement board that a nonduty disability beneficiary is no longer totally and permanently incapacitated for duty, and if the retirement board concurs on the report, then such beneficiary's nonduty disability pension shall cease.

     86.463. 1. Whenever the service of a member is not terminated by death or retirement, but by order of the board of police commissioners for any reason other than dishonesty, intemperate habits or being convicted of a felony, and the member has not less than ten years of creditable service, the member shall become entitled to an annual pension beginning at the age of sixty, if he is then living, bearing the same ratio to fifty percent of his final compensation, as defined in section 86.370, that the number of years of creditable service bears to thirty. When the member has less than ten years of creditable service, upon termination of service he shall be paid the amount of his accumulated contributions in [twelve equal monthly installments] one lump sum payment without interest, which shall constitute payment in full of all benefits to which he might be entitled under sections 86.370 to 86.497. [If the member has been in service less than two years, then the sum shall be refunded in one lump sum payment without interest. If any member to whom payment of his accumulated contributions in installments has begun shall die before the repayment in full of his accumulated contributions, the unpaid balance thereof shall be paid in one lump sum to his named beneficiary or, if none, to his estate.]

     2. Whenever the service of a member is not terminated by death or retirement, but by voluntary resignation and the member has not less than fifteen years of creditable service, the member may elect not to withdraw his accumulated contributions and shall become entitled to an annual pension beginning at the age of fifty-five, if he is then living, equal to two percent of his final compensation multiplied by the number of years of his creditable service. When the member has less than fifteen years of creditable service, upon resignation from service he shall be paid the amount of his accumulated contributions in [twelve equal monthly installments] one lump sum payment without interest, which shall constitute payment in full of all benefits to which he might be entitled under sections 86.370 to 86.497. [If the member has been in service less than two years, then the sum shall be refunded in one lump sum payment without interest. If any member to whom payment of his accumulated contributions in installments has begun shall die before the repayment in full of his accumulated contributions, the unpaid balance thereof shall be paid in one lump sum to his named beneficiary or, if none, to his estate.]

     86.467. Whenever the service of a member is terminated [by order of the board of police commissioners, for dishonesty or intemperate habits or being convicted of a felony, or whenever the service of a member is terminated voluntarily before the beginning of payment of any benefits provided herein] for any reason, such member may choose to withdraw all of such member's accumulated contributions to the fund, in which case such member shall be paid on demand the amount of his accumulated contributions in [twelve equal monthly installments] one lump sum, and such payment shall be in lieu of any and all other benefits to which he might otherwise become entitled under sections 86.370 to 86.497[; except that, if such member has been in service less than two years such sum shall be refunded in one lump payment. If any member to whom payment of his accumulated contributions in installments has begun shall die before the repayment in full of his accumulated contributions, the unpaid balance thereof shall be paid in one lump sum to his named beneficiary or, if none, to his estate].

     86.600. As used in sections 86.600 to 86.790, unless a different meaning is plainly required by the context, the following words and phrases mean:

     (1) "Accumulated contributions", the sum of all amounts deducted from the compensation of a member and paid to the retirement board, together with all amounts paid to the retirement board by a member or by a member's beneficiary for the purchase of prior service credits or any other purpose permitted under sections 86.600 to 86.790 in all cases with interest thereon at a rate determined from time to time for such purpose by the retirement board;

     (2) "Actuarial equivalent", a benefit of equal value when computed upon the basis of the mortality tables and interest rate as shall be adopted by the retirement board;

     (3) "Appointing authority", any person or group of persons having power by law to make appointments to any position in the police departments of the cities;

     (4) "Beneficiary", any person receiving a benefit from the retirement system as a result of the death of a member;

     (5) "Compensation", the basic wage or salary paid an employee for any period, excluding bonuses, overtime pay, expense allowance, and other extraordinary compensation;

     (6) "Creditable service", the period of service to which an employee, a former employee, or a member is entitled, as prescribed by sections 86.600 to 86.790;

     (7) "Employee", any regularly appointed civilian employee of the police departments of the cities as specified in sections 86.600 to 86.790, who is not eligible to receive a pension from the police pension system;

     (8) "Employer", the police boards of the cities as specified in sections 86.600 to 86.790;

     (9) "Final compensation", the average annual compensation of a member during his service if less than two years, or the twenty-four months of his service for which he received the highest salary whether consecutive or otherwise. In computing the average annual compensation of a member under this subsection, no compensation attributable to any time a member was suspended from service without pay shall be included;

     (10) "Medical board", the board of physicians chosen by the retirement board;

     (11) "Member", any member of the retirement system as provided by sections 86.600 to 86.790;

     (12) "Normal retirement", retirement from the service of the employer on or after the normal retirement date;

     (13) "Operative date", the date this retirement system becomes operative;

     (14) "Pension", the annual payments for life which shall be payable in equal monthly installments to a member or his spouse;

     (15) "Retirement board", the persons appointed or elected to be members of the retirement board for civilian employees of police departments of the cities;

     (16) "Retirement system", the retirement system of the civilian employees of the cities as specified in sections 86.600 to 86.790;

     (17) "Surviving spouse", the legally married wife or husband of a member surviving the member's death.

     86.620. All civilian employees of the police departments of the cities specified herein shall become members of the retirement system on the first day of the month following completion of six months of continuous employment as a condition of employment. All civilian employees of such police departments who have completed six months of continuous employment as of August 13, 1990, but who have not theretofore been members of this retirement system because they were proscribed from participation by provisions of law in effect prior to such date, shall become members on that date. Any employee described in the preceding sentence may establish creditable service for purposes of calculating such employee's pension under sections 86.600 to 86.790 for all years of such employee's employment by such police department, by paying as an employee contribution to the retirement system, on or before August 13, 1991, a single sum equal to the aggregate amount of contributions, without interest, which would have been deducted from such employee's compensation for all years pursuant to section 86.760 if such employee had not been proscribed from participation. Except as hereinafter provided, upon termination of employment prior to completion of five years of creditable service, an employee member shall be paid all of his accumulated contributions to the fund, and his membership in the retirement system shall cease and he shall forfeit all rights to any other benefits under the system arising from his service to date of termination. A terminated employee member with five or more years of creditable service may choose to withdraw all of such member's accumulated contributions to the fund, in which case such member shall be paid upon demand the amount of his accumulated contributions in one lump payment, or such terminated employee member may permit his contributions to remain in the fund until he reaches his normal retirement date, at which time he shall be entitled to a pension as provided in section 86.650. Should a terminated member choose to withdraw his contributions, his membership in the retirement system shall cease, and he shall forfeit all rights to any other benefits under the system arising from his service to date of termination.

     86.630. 1. The years of future creditable service of an employee member shall be the number of years and months of completed membership in the retirement system up to the time of retirement during which he has received compensation. The years and months of creditable service prior to October 13, 1965, shall be the continuous years and months of service from the latest date of employment. When an employee has been given a leave of absence prior to October 13, 1965, because of illness or disability and at the time he had reached the retirement age prescribed in sections 86.600 to 86.790, he shall be entitled to retire and the number of years served by him up to the time of the leave of absence are the years and months of creditable service. Whenever a member is given a leave of absence for military service and he returns to his employment within ninety days after his discharge from the service, he shall be entitled to creditable service for the years of his employment prior to the leave of absence.

     2. Members who terminate membership and later return to membership may receive credit for prior service and membership service after they have been reemployed for at least two consecutive years and have repaid withdrawn contributions if an election to return to membership is made within three years of reemployment. Such repayment of withdrawn contributions shall be accompanied by additional payment of interest in the amount of the actual net yield earned or incurred by the pension fund, including both net income after expenses and net appreciation or depreciation in values of the fund, whether realized or unrealized, during the period of time from the date upon which such contributions have been withdrawn to the date of repayment thereof, determined in accordance with such rules for valuation and accounting as may be adopted by the retirement board for such purposes.

     3. Creditable service shall not include any time a member was suspended from service without pay. No contribution is required from either the member or from the city under section 86.760 for such time.

     [3.] 4. Any active member on August 28, 1995, who served on active duty in the armed forces of the United States and who became a member, or returned to membership, after discharge under honorable conditions, may elect, prior to retirement but in no case later than August 28, 1997, to purchase creditable service equivalent to such service in the armed forces, not to exceed two years, provided the member is not receiving and is not eligible to receive retirement credits or benefits from any other public or private retirement plan for the service to be purchased, other than a United States military service retirement system or United States Social Security benefits attributable to such military service, and an affidavit so stating is filed by the member with the retirement system. A member electing to make such purchase shall pay to the retirement system an amount equal to the actuarial value of the additional benefits attributable to the creditable service so purchased, as of the date the member elects to make such purchase. The retirement system shall determine the value using accepted actuarial methods and the same assumptions with respect to interest rates, mortality, future salary increases and all related factors used in performing the most recent regular actuarial valuation of the retirement system. Payment in full of the amount due from a member electing to purchase creditable service under this section shall be made over a period not to exceed five years, measured from the date of election, or prior to the commencement date for payment of benefits to the member from the retirement system, whichever is earlier, including interest on unpaid balances compounded annually at the interest rate assumed from time to time for actuarial valuations of the retirement system. If payment in full including interest is not made within the prescribed period, any partial payments made by the member shall be refunded, and no creditable service attributable to such election or as a result of any such partial payments shall be allowed; provided that if a benefit commencement date occurs because of the death or disability of a member who has made an election under this subsection and if the member is current in payments under an approved installment payment plan at the time of the death or disability, such election shall be valid if the member, the surviving spouse or other person entitled to benefit payments pays the entire balance of the remaining amount due, including interest to the date of such payment, within sixty days after the member's death or disability. The time of a disability shall be deemed to be the time when such member is determined by the retirement board to be totally and permanently disabled as provided in section 86.670.

     [4.] 5. Any individual who becomes a member of the retirement system subsequent to August 28, 1995, and who served on active duty in the armed forces of the United States and who became a member, or returned to membership, after discharge under honorable conditions, may elect, prior to retirement but in no case later than two years after the effective date of his membership in the retirement system, to purchase creditable service equivalent to such service in the armed forces, not to exceed two years, provided the member is not receiving and is not eligible to receive retirement credits or benefits from any other public or private retirement plan for the service to be purchased, other than a United States military service retirement system or United States Social Security benefits attributable to such military service, and an affidavit so stating is filed by the member with the retirement system. A member electing to make such purchase shall pay to the retirement system an amount equal to the actuarial value of the additional benefits attributable to the additional service credit to be purchased, as of the date the member elects to make the purchase. The retirement system shall determine such value using accepted actuarial methods and the same assumptions with respect to interest rates, mortality, future salary increases and all related factors used in performing the most recent regular actuarial valuation of the retirement system. Payment in full of the amount due from a member electing to purchase creditable service under this section shall be made over a period not to exceed five years, measured from the date of election, or prior to the commencement date for payment of benefits to the member from the retirement system, whichever is earlier, including interest on unpaid balances compounded annually at the interest rate assumed from time to time for actuarial valuations of the retirement system. If payment in full including interest is not made within the prescribed time period, any partial payments made by the member shall be refunded, and no creditable service attributable to such election, or as a result of any such partial payments, shall be allowed; provided that if a benefit commencement date occurs because of the death or disability of a member who has made an election under this section and if the member is current in payments at the time of death or disability, under an approved installment plan, such election shall be valid if the member, the surviving spouse or other person entitled to benefit payments shall pay the entire balance of remaining amount due, including interest to the date of such payment, within sixty days after the member's death or disability. The time of a disability shall be deemed to be the time when such member is determined by the retirement board to be totally and permanently disabled as provided in section 86.670.

     86.650. 1. Upon retirement on or after a member's normal retirement date, such member shall receive a normal pension in the amount of[:

     (1) For any unmarried member, and for any married member who together with such member's spouse shall elect in writing to waive all rights to any spousal annuity or other spousal benefit from this retirement system (other than contingent rights to the return of any otherwise undistributed balance of such member's own contributions to this system),] two percent of such member's final compensation times the number of years, including fractions thereof, of such member's creditable service. [An election to waive spousal benefits shall be void if the member dies before the due date of the first payment of such member's pension;

     (2) For any other married member, one and eight-tenths percent of such member's final compensation times the number of years, including fractions thereof, of such member's creditable service.]

     2. A member who is married at the time of his retirement may by a written election, with the written consent of such member's spouse, elect an optional annuity, in lieu of a normal pension. Such optional annuity shall be a monthly pension in the initial amount which shall be actuarially equivalent to the actuarial value of the normal pension for such member at the date of retirement (including the value of survivorship rights of a surviving spouse, where applicable, pursuant to section 86.690), upon the basis that the annuity for the member's spouse if such spouse survives the member shall be the same amount as the annuity paid the member and shall be paid to such surviving spouse for the lifetime of such spouse without regard to remarriage. An election for an optional annuity shall be void if the member dies within thirty days after filing such election with the retirement system or if the member dies before the due date of the first payment of such member's pension.

     3. All payments of a normal pension or of an optional annuity shall be paid on the first day of each month. The first payment shall be paid on the normal retirement date, if the member retires on such normal retirement date; or if such member retires upon any other date, the first payment shall be paid on the first day of the month coinciding with or next following the date provided herein for the commencement of such member's retirement benefits. The final payment due a retired member shall be the payment due on the first day of the month in which such member's death occurs, and the final payment due any surviving beneficiary shall be the payment due on the first day of the month in which such beneficiary dies or otherwise ceases to be entitled to benefits hereunder.

     86.670. A member who becomes totally and permanently disabled, as defined in this section, shall be entitled to retire on the first day of the month following termination of employment arising from such disability, provided as follows:

     (1) Members who are eligible and totally and permanently disabled, as defined herein, shall receive a disability pension computed as follows:

     (a) Duty disability: Fifty percent of final compensation at date of disability;

     (b) Nonduty disability: Thirty percent of final compensation, but in no event less than the amount the member would be entitled to as a pension if he retired on the same date with equivalent age and creditable service;

     (c) The annuity shall cease upon the first day of the month following death except that a surviving spouse shall be entitled to death benefits as computed in accordance with subsection 2 of section 86.690.

     (2) (a) "Duty disability" shall mean total and permanent disability directly due to and caused by actual performance of employment with the police department;

     (b) "Nonduty disability" shall mean total and permanent disability arising from any other cause than duty disability. Only members [under age sixty] with ten years or more of creditable service shall be eligible.

     (3) "Total and permanent disability" shall mean a state or condition which presumably prevents for the rest of a member's life his engaging in any occupation or performing any work for remuneration or profit. Such disability, whether duty or nonduty, must not have been contracted, suffered, or incurred while the employee was engaged in or as a result of having been engaged in a criminal act or enterprise, or resulting from habitual drunkenness or addiction to narcotics or from self-inflicted injury, or from disability incurred while in the service of the armed forces of the United States or any foreign country. No benefit shall be payable if the disability results from or is incurred while the member is engaged in self-employment or in any occupation or performing any work for remuneration or profit not in the service of the police department. The retirement board in its sole judgment shall determine whether the status of total and permanent disability exists. Its determination shall be binding and conclusive. The retirement board shall rely upon the findings of a medical board of three physicians. The written opinion of any one shall be required. The medical board shall be appointed by the retirement board and expense for such examinations as required shall be paid from funds of this retirement system. From time to time, the retirement board shall have the right to require proof of continuing disability which may include further examination by the medical board.

     (4) Should the retirement board determine that disability no longer exists, it shall terminate the disability pension. If the member immediately returns to work with the police department, he shall again earn creditable service beginning on the first day of the month following such return. Creditable service prior to disability retirement shall be reinstated. Should the member not return to work with the police department, he shall be deemed to have terminated employment by the police department at the time his disability retirement commenced; but in calculating any benefits due him upon such presumption, the retirement system shall receive credit for all amounts paid such member during his period of disability, except that such member shall not be obligated in any event to repay to the retirement system any amounts properly paid to him during such period of disability.

     86.672. 1. Any member who retires after August 28, 1996, and who is entitled to a pension under section 86.600 to 86.790, shall receive each month, in addition to such member's base pension and any other benefits provided in sections 86.600 to 86.790, a supplemental retirement health insurance benefit in the amount of fifty dollars per month. Any person who receives such a supplemental retirement health insurance benefit may also receive not more frequently than annually, in addition to a base pension as may be adjusted pursuant to section 86.675 and in addition to such supplemental retirement benefit, a cost-of-living adjustment to the supplemental retirement health insurance benefit in monthly adjustment increments to be determined by the retirement board.

     2. Any member[, described in subsection 5 of this section,] who [retires] retired after August 28, 1995, and on or before August 28, 1996, and who met the requirements of subsection 7 of this section on the date of such member's retirement, shall receive each month, in addition to such member's base pension and any other benefits provided in sections 86.600 to 86.790, a supplemental retirement health insurance benefit in the amount of fifty dollars per month payable until the member attains the age of sixty-five years. Any person who receives such a supplemental retirement health insurance benefit may also receive not more frequently than annually, in addition to a base pension as may be adjusted pursuant to section 86.675, and in addition to such supplemental retirement health insurance benefit, a cost-of-living adjustment to the supplemental retirement health insurance benefit in monthly adjustment increments to be determined by the retirement board.

     [2.] 3. Any member[, described in subsection 5 of this section,] who [was] retired after August 28, 1992, and on or before August 28, 1995, and who met the requirements of subsection 7 of this section on the date of such member's retirement, shall receive each month, in addition to the member's base pension and any other benefits provided in sections 86.600 to 86.790, a supplemental retirement health insurance benefit in the amount of fifty dollars per month payable until the member attains the age of sixty-five years. Any member who was retired after August 28, 1992, and on or before August 28, 1995, and who receives a supplemental retirement health insurance benefit, shall upon application to the retirement board, be made, constituted, appointed and employed by the retirement board as a special consultant on the problems of retirement, aging and other matters, until the member attains the age of sixty-five years, and upon request of the retirement board 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 member shall be compensated monthly, in addition to a base pension as may be adjusted pursuant to section 86.675, and in addition to the supplemental retirement health insurance benefit set out in this subsection, by a cost-of-living adjustment to the supplemental retirement health insurance benefit payable in monthly adjustment increments to be determined by the retirement board.

     4. Any member who retired on or before August 28, 1996, who at the time of such retirement was entitled to a pension under sections 86.600 to 86.790 and who either was not eligible for any supplemental retirement health insurance benefits or was eligible for and began receiving supplemental retirement health insurance benefits but ceased eligibility by attaining age sixty-five, shall upon application to the retirement board, be made, constituted, appointed and employed by the retirement board as a special consultant on the problems of retirement board as a special consultant on the problems of retirement, aging and other matters, and upon request of the retirement board 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 member shall, beginning the later of August 28, 1996, or the time of such appointment under this subsection, be compensated monthly, in addition to a base pension as may be adjusted pursuant to section 86.675, by a supplemental retirement health insurance benefit in the amount of fifty dollars per month, for assistance in meeting hospitalization and medical care costs or other expenses, and by a cost-of-living adjustment to the supplemental retirement health insurance benefit, in monthly adjustment increments to be determined by the retirement board.

     [3.] 5. The determination of cost-of-living adjustments under this section shall be based on advice of the plan's actuary that the increase in the benefit will not cause the present value of anticipated future plan benefits calculated on the actuarial assumptions used for the last annual valuation to exceed the sum of the retirement system assets plus the present value of anticipated contributions to the retirement system. The determination of whether an adjustment will satisfy said actuarial standard shall be made at the time an increase is granted. If at any time the retirement system shall cease to satisfy such standard, all benefit payments shall continue as adjusted by increases theretofore granted. A member of the retirement board shall have no personal liability for granting increases under this section if that retirement board member in good faith relied and acted upon advice of a qualified actuary that the retirement system would satisfy such standard at the time an adjustment is made. In determining and granting cost-of-living adjustments under this section, the retirement board shall adopt such rules and regulations as may be necessary to effectuate the purposes of this section, including provisions for the manner of computation of such adjustments and the effective dates thereof. The retirement board shall provide for such adjustments to be determined once each year and granted on a date or dates to be chosen by the board and may apply such adjustments in full to members who have retired during the year prior to such adjustments but who have not been retired for one full year.

     [4.] 6. Any member's employment as a special consultant under subsection [2] 3 or 4 of this section shall in no way affect such member's eligibility for retirement benefits under the provisions of sections 86.600 to 86.790, or in any way have the effect of reducing retirement benefits otherwise payable to such member.

     [5.] 7. Members entitled to the benefits provided in subsections 2 and 3 of this section are those members who:

     (1) Are under the age of sixty-five years [on the date of their retirement]; and

     (2) (a) Have at least twenty-five years of creditable service; or

     (b) Have a total of age and years of creditable service which equals or exceeds eighty; or

     (c) Meet the eligibility requirements for a duty disability pension under the provisions of section 86.670.

     [6. If a member dies before retirement as the direct and proximate result of an accident sustained in the performance of assigned duties, the member's surviving spouse shall become eligible for the supplemental retirement health insurance benefit provided in this section as long as such spouse receives an annuity under the provisions of sections 86.600 to 86.790. No other person shall be eligible to receive the supplemental retirement health insurance benefit provided in this section after a line of duty death of a qualifying member. Any surviving spouse receiving a supplemental retirement health insurance benefit under this subsection shall also be entitled to any cost-of-living adjustments to such benefit to which such recipient's spouse would have been entitled if the spouse were living.]

     8. For purposes of this section, the term member shall include a surviving spouse who is entitled to a pension under sections 86.600 to 86.790. In determining which subsection or subsections are applicable in a given instance, the surviving spouse shall be deemed to have retired on the date of retirement of the member of whom such person is the surviving spouse or on the date of death of such member if such member died prior to retirement. Any such surviving spouse of a member who dies while entitled to payments under this section shall succeed to the full amount of payment under this section to which such member was entitled at the time of such member's death, including any cost-of-living adjustments received by such member in the payment hereunder prior to such member's death.

     86.810. The provisions of any other law notwithstanding, 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. 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 under 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.