HB 169 -- PUBLIC SCHOOL RETIREMENT SYSTEMS

The bill clarifies the benefit-payment plans for the Kansas City
public school retirement system by specifying that the lifetime
full-payment option is available to primary beneficiaries of
both active members and inactive members who die before
retirement but after becoming eligible to retire instead of the
beneficiary receiving the member's accumulated contributions to
the system. If an active member's primary beneficiary selects
this option, the benefit will be calculated as if the deceased
member had at least 10 years of creditable service at the time
of death.  The lifetime full-payment option for the primary
beneficiary is payable to a dependent child only until the child
attains the age of 19.  If a member who is no longer a regular
employee and who has not yet retired dies, the member's
accumulated contributions will be paid to the member's estate or
designated beneficiary, unless the provisions relating to the
lifetime full-payment option, described above, are applicable.

In general provisions applicable to the Kansas City, St. Louis
and state public school teacher retirement systems, the bill
revises the purchase of equivalent credit by persons who have
been employed by another Missouri public school retirement
system by adding references to the establishment by rule of
amounts of payment and years of credit.  Members of any
retirement system covered by Chapter 169, RSMo who are within 5
years of eligibility for retirement may purchase up to .4 year
additional creditable service by paying the amount required by
the rules of the respective system. In the absence of such
rules, the current law, which requires payment with interest of
the member's and the employer's contribution, still applies.
Members who are on sick leave or workers' compensation and are
making contributions as though they were on active status
continue to earn credit as though they were in active service,
in accordance with rules established by the member's retirement
system.  Contributions may be made monthly, as the law currently
allows, or on another basis, as provided by the system.

HB 169 -- PUBLIC SCHOOL RETIREMENT SYSTEMS (Skaggs)

The bill clarifies the benefit-payment plans for the Kansas City
public school retirement system by specifying that the lifetime
full-payment option is available to primary beneficiaries of
both active members and inactive members who die before
retirement but after becoming eligible to retire instead of the
beneficiary's receiving the member's accumulated contributions
to the system.  If an active member's primary beneficiary
selects this option, the benefit will be calculated as if the
deceased member had at least 10 years of creditable service at
the time of death.  The lifetime full-payment option for the
primary beneficiary is payable to a dependent child only until
the child attains the age of 19.  If a member who is no longer a
regular employee and who has not yet retired dies, the member's
accumulated contributions will be paid to the member's estate or
designated beneficiary, unless the provisions relating to the
lifetime full-payment option, described above, are applicable.

In general provisions applicable to the Kansas City, St. Louis
and state public school teacher retirement systems, the bill
revises the purchase of equivalent credit by persons who have
been employed by another Missouri public school retirement
system by adding references to the establishment by rule of
amounts of payment and years of credit.  Members of any
retirement system covered by Chapter 169 RSMo who are within 5
years of eligibility for retirement may purchase additional
creditable service by paying the amount required by the rules of
the respective system. In the absence of such rules, the current
law, which requires payment with interest of the member's and
the employer's contribution, still applies.  Members who are on
sick leave or workers' compensation continue to earn credit as
though they were in active service, in accordance with rules
established by the member's retirement system.  Contributions
may be made monthly, as the law currently allows, or on another
basis, as provided by the system.

FISCAL NOTE:  No impact on state funds.

HB 169 -- PUBLIC SCHOOL RETIREMENT SYSTEMS

SPONSOR:  Skaggs

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Retirement by a vote of 9 to 0.

The bill clarifies the benefit-payment plans for the Kansas City
public school retirement system by specifying that the lifetime
full-payment option is available to primary beneficiaries of
both active members and inactive members who die before
retirement but after becoming eligible to retire instead of the
beneficiary's receiving the member's accumulated contributions
to the system.  If an active member's primary beneficiary
selects this option, the benefit will be calculated as if the
deceased member had at least 10 years of creditable service at
the time of death.  The lifetime full-payment option for the
primary beneficiary is payable to a dependent child only until
the child attains the age of 19.  If a member who is no longer a
regular employee and who has not yet retired dies, the member's
accumulated contributions will be paid to the member's estate or
designated beneficiary, unless the provisions relating to the
lifetime full-payment option, described above, are applicable.

In general provisions applicable to the Kansas City, St. Louis
and state public school teacher retirement systems, the bill
revises the purchase of equivalent credit by persons who have
been employed by another Missouri public school retirement
system by adding references to the establishment by rule of
amounts of payment and years of credit.  Members of any
retirement system covered by Chapter 169 RSMo who are within 5
years of eligibility for retirement may purchase additional
creditable service by paying the amount required by the rules of
the respective system. In the absence of such rules, the current
law, which requires payment with interest of the member's and
the employer's contribution, still applies.  Members who are on
sick leave or workers' compensation continue to earn credit as
though they were in active service, in accordance with rules
established by the member's retirement system.  Contributions
may be made monthly, as the law currently allows, or on another
basis, as provided by the system.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill in its substantive
provisions applies to Kansas City; some of the general
provisions have been clarified to bring the systems into
conformity with each other; it is, essentially, a housekeeping
bill.  The bill allows members to purchase creditable service
and brings benefits in line with Social Security.  The purpose
is to make the system asset-neutral, so that members pay the
cost of benefits and nobody over- or underpays. The definitions
about minor children bring the system in line with Social
Security law.  The changes to survivors' benefits and the
purchase of .4 year of creditable service have the support of
the Kansas City educational community.

Testifying for the bill were Representative Skaggs; Public
School Retirement System of Kansas City; and Missouri State
Teachers Association--KCEA.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Research Analyst

HB 169 -- Public School Retirement Systems

Sponsor:  Skaggs

The bill clarifies the benefit-payment plans for the Kansas City
public school retirement system by specifying that the lifetime
full-payment option is available to primary beneficiaries of
both active members and inactive members who die before
retirement but after becoming eligible to retire instead of the
beneficiary's receiving the member's accumulated contributions
to the system.  If an active member's primary beneficiary
selects this option, the benefit will be calculated as if the
deceased member had at least 10 years of creditable service at
the time of death.  The lifetime full-payment option for the
primary beneficiary is payable to a dependent child only until
the child attains the age of 19.  If a member who is no longer a
regular employee and who has not yet retired dies, the member's
accumulated contributions will be paid to the member's estate or
designated beneficiary, unless the provisions relating to the
lifetime full-payment option, described above, are applicable.

In general provisions applicable to the Kansas City, St. Louis
and state public school teacher retirement systems, the bill
revises the purchase of equivalent credit by persons who have
been employed by another Missouri public school retirement
system by adding references to the establishment by rule of
amounts of payment and years of credit.  Members of any
retirement system covered by Chapter 169 RSMo who are within 5
years of eligibility for retirement may purchase additional
creditable service by paying the amount required by the rules of
the respective system. In the absence of such rules, the current
law, which requires payment with interest of the member's and
the employer's contribution, still applies.  Members who are on
sick leave or workers' compensation continue to earn credit as
though they were in active service, in accordance with rules
established by the member's retirement system.  Contributions
may be made monthly, as the law currently allows, or on another
basis, as provided by the system.