SCS HCS HB 331 -- KANSAS CITY POLICE AND CIVILIAN POLICE
EMPLOYEE, ST. LOUIS POLICE, AND COUNTY EMPLOYEE RETIREMENT
SYSTEMS

This bill changes several provisions relating to the Kansas City
Police and Civilian Police Employee Retirement System and the
St. Louis Police Retirement System.  The boards of trustees of
the retirement systems and the political subdivisions which fund
the systems are given standing to seek a judgment on the
applicability of the constitutional prohibition on unfunded
mandates.  The final judgment of a court finding the
constitutional prohibition applies to any of the bill's
provisions renders void those provisions and therefore payment
of new or increased benefits.  Contributions to deferred
compensation plans are not included in the definition of
compensation as it relates to earnings taxes for St. Louis and
Kansas City.

KANSAS CITY POLICE

Credit for leaves of absence is clarified.  The surviving spouse
is defined as the spouse who is married to the member at the
member's retirement rather than for 2 years preceding
retirement.  The death-in-service benefit is raised from $20,000
to $50,000.  Provisions that terminated death-in-service
benefits of a surviving spouse upon remarriage or death are
deleted.  Certain terminated members will receive a lump-sum
payment of their accumulated member contributions without
interest.

The board of police commissioners determines when a member is
incapacitated and eligible for a duty-related disability
benefit. When a former disability beneficiary returns to active
duty and then retires, such member will be credited with the
years during which he or she received disability benefits.  If a
member is not restored to active service, such former disability
recipient will be entitled to retire as if termination of
service occurred at the cessation of the disability benefit.
Nonduty disability recipients must undergo periodic medical
examinations.  If a member of the medical board certifies that
the nonduty disability recipient is no longer incapacitated and
the retirement board concurs, the beneficiary's nonduty
disability pension will cease.

KANSAS CITY CIVILIAN POLICE EMPLOYEES

Terminated members with 5 or more years of creditable service
currently are permitted to leave their contributions in place;
this bill permits them to receive a lump-sum payment instead.
The bill removes the 1.8% contribution rate for waiver of
spousal benefits, leaving the 2% contribution rate in place.
The age restriction on nonduty disability to those under age 60
is removed, retaining the 10-year creditable service
requirement.  Supplemental health insurance benefits and a cost--
of-living adjustment to those benefits are granted to those who
retired after August 28, 1996, and their surviving spouses, as
well as to those retired on or before August 28, 1996, as
special consultants.

KANSAS CITY POLICE AND CIVILIAN POLICE DEPARTMENT EMPLOYEES

Neither police nor civilian members of the Kansas City police
retirement system may count time when they were suspended with
pay in determining final compensation and creditable service.

ST. LOUIS POLICE

The cap on the cost-of-living adjustment is raised from 25% to
30%.  The limit on a member's annual benefits cannot exceed 100%
of the average taxable compensation for the member's 3 highest
consecutive calendar years rather than the member's 3 highest
plan years.  Members who have previously retired with duty--
related disability qualify as special consultants, receiving a
refund of their contributions to the system.

COUNTY EMPLOYEES

If a member or beneficiary receives an incorrect payment, future
payments will be adjusted to reflect the actuarial equivalent of
the benefit.  Anyone who makes a false statement or falsifies a
record of the system in an attempt to defraud is subject to fine
or imprisonment.  If a survivor or beneficiary is charged with
intentional killing of a member, benefits will be suspended.  If
the survivor or beneficiary is not convicted, benefits will
resume and will include payment for the period of suspension.

HCS HB 331 -- ST. LOUIS POLICE RETIREMENT (O'Toole)

The limit on a member's annual benefits under the St. Louis
Police Retirement System cannot exceed 100% of the average
taxable compensation for the member's 3 highest consecutive
calendar years.  Currently, the limit is calculated on average
compensation for the member's 3 highest plan years.

A member who retires for accidental disability after the
effective date of the substitute will receive, in addition to
any disability annuity or retirement benefit, a refund of the
member's total contribution to the retirement system, without
interest, within 60 days after retiring.  Members who have
previously retired with accidental disability qualify as special
consultants, receiving a refund of contribution on the same
basis.

Effective October 1, 1997, the substitute:

(1) Raises the ordinary disability retirement allowance of 10%
to 15% of the member's average final compensation for each
unmarried dependent child under 18 or permanently disabled
child, regardless of age;

(2) Raises the pension of a widow of a member who died in
service or who retired for service or ordinary or accidental
disability from 25% to 35% of the deceased member's average
final compensation combined with an increase from 10% to 15% of
average final compensation for each unmarried dependent child
under 18 or permanently disabled child.  Widows already
receiving benefits prior to October 1, 1997, may apply to become
special consultants for monthly compensation of 35% of the
deceased member's average final compensation in addition to the
other benefits.  Each unmarried dependent receives the greater
of $100 or 5% of the deceased member's average final
compensation; and

(3) Raises the pension of a widow of a member killed in the line
of duty received for unmarried dependent children under 18 or
permanently disabled children of any age from 10% to 15% of the
deceased member's final compensation. An unmarried dependent
child of a member who was killed in the line of duty receiving
benefits immediately before October 1, 1997, may apply to become
a special consultant and is entitled to additional monthly
compensation of $100 or 5% of the deceased member's average
final compensation, whichever is greater.

The substitute also adds new language rendering void any of its
provisions (and therefore payment of new benefits) that a final
judgment of a court finds to violate the constitutional
prohibition on unfunded mandates in section 21, article X of the
state constitution.

FISCAL NOTE:  No impact on state funds.

HCS HB 331 -- St. Louis Police Retirement System

CO-SPONSORS:  Hagan-Harrell (O'Toole)

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

The limit on a member's annual benefits under the St. Louis
Police Retirement System cannot exceed 100% of the average
taxable compensation for the member's 3 highest consecutive
calendar years.  Currently, the limit is calculated on average
compensation for the member's 3 highest plan years.

A member who retires for accidental disability after the
effective date of the substitute will receive, in addition to
any disability annuity or retirement benefit, a refund of the
member's total contribution to the retirement system, without
interest, within 60 days after retiring.  Members who have
previously retired with accidental disability qualify as special
consultants, receiving a refund of contribution on the same
basis.

Effective October 1, 1997, the substitute:

(1) Raises the ordinary disability retirement allowance of 10%
to 15% of the member's average final compensation for each
unmarried dependent child under 18 or permanently disabled
child, regardless of age;

(2) Raises the pension of a widow of a member who died in
service or who retired for service or ordinary or accidental
disability from 25% to 35% of the deceased member's average
final compensation combined with an increase from 10% to 15% of
average final compensation for each unmarried dependent child
under 18 or permanently disabled child.  Widows already
receiving benefits prior to October 1, 1997, may apply to become
special consultants for monthly compensation of 35% of the
deceased member's average final compensation in addition to the
other benefits.  Each unmarried dependent receives the greater
of $100 or 5% of the deceased member's average final
compensation;

(3) Raises the pension of a widow of a member killed in the line
of duty received for unmarried dependent children under 18 or
permanently disabled children of any age from 10% to 15% of the
deceased member's final compensation. An unmarried dependent
child of a member who was killed in the line of duty receiving
benefits immediately before October 1, 1997, may apply to become
a special consultant and is entitled to additional monthly
compensation of $100 or 5% of the deceased member's average
final compensation, whichever is greater.

The substitute also adds new language rendering void any of its
provisions (and therefore payment of new benefits) that a final
judgment of a court finds to violate the constitutional
prohibition on unfunded mandates in section 21, article X of the
state constitution.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this bill is similar to last
year's bill (HB 1249) which died in the Senate, providing
accelerated benefits for years 20 to 25 to keep officers on the
force and a lump-sum refund for disability.  An actuarial study
is being done, but at this point it appears that it would take
about $2 million yearly to provide the years 20 to 25 benefit.
After the study, changes to the bill may be made if the costs
are too high.  The retirement system has a $12.5 million
surplus.  Each new police officer represents an unfunded
liability of about $70,000, making it more expensive to fund the
unfunded liability on each new class of police recruits than to
pick up the cost on this bill.

Testifying for the bill was Representative O'Toole.

OPPONENTS:  Those who oppose the bill say that the fiscal impact
of the bill is indeterminate.  The board of trustees of the
system does not support the bill. This year's surplus is in the
millions, but last year's was $200,000, so the system is wary of
taking on a large ongoing cost.

Testifying against the bill was the City of St. Louis

Becky DeNeve, Research Analyst

HB 331 -- St. Louis Police Retirement System (Corrected)

Co-Sponsors:  O'Toole, May (108)

This bill raises the St. Louis police service retirement
allowance for members having more than 20 years of service by
adding a new factor into the basis for computation: 1% of the
average final compensation for each additional year after 20
years.  The cap on benefits is raised from 70% to 75% of average
final compensation.  The limit on a member's annual benefits
cannot exceed 100% of the average taxable compensation for the
member's 3 highest consecutive calendar years.  Currently, the
limit is calculated on average compensation for the member's 3
highest plan years.

A member who retires for accidental disability after the
effective date of the bill will receive, in addition to any
disability annuity or retirement benefit, a refund of the
member's total contribution to the retirement system, without
interest, within 60 days after retiring.  Members who have
previously retired with accidental disability qualify as special
consultants, receiving a refund of contribution on the same
basis.

Effective October 1, 1997, the bill:

(1) Raises the ordinary disability retirement allowance of 10%
to 15% of the member's average final compensation for each
unmarried dependent child under 18 or permanently disabled
child, regardless of age;

(2) Raises the pension of a widow of a member who retired for
service or ordinary or accidental disability from 25% to 35% of
the deceased member's average final compensation combined with
an increase from 10% to 15% of average final compensation for
each unmarried dependent child under 18 or permanently disabled
child.  These widows and children may apply to become special
consultants for monthly compensation of 35% of the deceased
member's average final compensation in addition to the other
benefits.  Each unmarried dependent receives the greater of $100
or 5% of the deceased member's average final compensation;

(3) Raises the pension of a widow of a member killed in the line
of duty received for unmarried dependent children under 18 or
permanently disabled children of any age from 10% to 15% of the
deceased member's final compensation. An unmarried dependent
child of a member who was killed in the line of duty receiving
benefits immediately before October 1, 1997, is entitled to
additional monthly compensation of $100 or 5% of the deceased
member's average final compensation, whichever is greater.

The bill also adds new language rendering void any of its
provisions (and therefore payment of new benefits) that a final
judgment of a court finds to violate the constitutional
prohibition on unfunded mandates in section 21, article X.