HB 612 -- ST. LOUIS SCHOOL RETIREMENT

This bill clarifies the conditions under which a member of the
St. Louis public school retirement system may purchase
creditable service.  Any member with 5 or more years of
creditable service who left employment and received a refund of
contributions to the system and becomes a member of the system
again may reinstate creditable service forfeited at the time of
the refund. Currently, the law does not specify a minimum number
of years of service.  New provisions specify that members must
complete the repayment of their contribution and interest in no
more than 5 years, and repayment must be completed before
retirement.  Such members must be continuously employed in the
district for an additional 7 years of creditable service before
they retire.   Members electing to reinstate creditable service
must not receive benefits for the period of reinstated service
from any other retirement system.

The bill also makes an adjustment in the period on which the
aggregate cost-of-living adjustment (COLA) cap is figured.
Beginning January 1, 1998, the COLA for retired members with 15
or more years of service receiving benefits on August 28, 1997,
will not exceed 10% in the aggregate of benefits the member
received during the year preceding January first of the first
year the member is eligible for such an increase, instead of
being limited to 10% of the benefits the member was receiving on
August 28, 1996.

HB 612 -- ST. LOUIS SCHOOL RETIREMENT SYSTEM (Auer)

This bill clarifies the conditions under which a member of the
St. Louis public school retirement system may purchase
creditable service.  Any member with 5 or more years of
creditable service who left employment and received a refund of
contributions to the system and becomes a member of the system
again may reinstate creditable service forfeited at the time of
the refund. Currently, the law does not specify a minimum number
of years of service.  New provisions specify that members must
complete the repayment of their contribution and interest in no
more than 5 years, and repayment must be completed before
retirement.  Such members must be employed in the district for
an additional 7 years of creditable service before they
retire.   Members electing to reinstate creditable service must
not receive benefits for the period of reinstated service from
any other retirement system.

The bill also makes an adjustment in the period on which the
aggregate cost-of-living adjustment (COLA) cap is figured.
Beginning January 1, 1998, the COLA for retired members with 15
or more years of service receiving benefits on August 28, 1997,
will not exceed 10% in the aggregate of benefits the member
received during the year preceding January first of the first
year the member is eligible for such an increase, instead of
being limited to 10% of the benefits the member was receiving on
August 28, 1996.

FISCAL NOTE:  No impact on state funds.

HB 612 -- ST. LOUIS SCHOOL RETIREMENT SYSTEM

SPONSOR:  Auer

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

This bill clarifies the conditions under which a member of the
St. Louis public school retirement system may purchase
creditable service.  Any member with 5 or more years of
creditable service who left employment and received a refund of
contributions to the system and becomes a member of the system
again may reinstate creditable service forfeited at the time of
the refund. Currently, the law does not specify a minimum number
of years of service.  New provisions specify that members must
complete the repayment of their contribution and interest in no
more than 5 years, and repayment must be completed before
retirement.  Such members must be employed in the district for
an additional 7 years of creditable service before they
retire.   Members electing to reinstate creditable service must
not receive benefits for the period of reinstated service from
any other retirement system.

The bill also makes an adjustment in the period on which the
aggregate cost-of-living adjustment (COLA) cap is figured.
Beginning January 1, 1998, the COLA for retired members with 15
or more years of service receiving benefits on August 28, 1997,
will not exceed 10% in the aggregate of benefits the member
received during the year preceding January first of the first
year the member is eligible for such an increase, instead of
being limited to 10% of the benefits the member was receiving on
August 28, 1996.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this bill makes corrections to
a 1996 bill.  It clarifies buy-back provisions by creating a 5--
year repayment period and requiring that repayment be completed
before retirement.  An affidavit of intent to repay is
required.  The bill also clarifies the cost-of-living adjustment
eligibility.

Testifying for the bill was Representative Auer.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Research Analyst

HB 612 -- St. Louis School Retirement

Sponsor:  Auer

This bill clarifies the conditions under which a member of the
St. Louis public school retirement system may purchase
creditable service.  Any member with 5 or more years of
creditable service who left employment and received a refund of
contributions to the system and becomes a member of the system
again may reinstate creditable service forfeited at the time of
the refund. Currently, the law does not specify a minimum number
of years of service.  New provisions specify that members must
complete the repayment of their contribution and interest in no
more than 5 years, and repayment must be completed before
retirement.  Such members must be employed in the district for
an additional 7 years of creditable service before they
retire.   Members electing to reinstate creditable service must
not receive benefits for the period of reinstated service from
any other retirement system.

The bill also makes an adjustment in the period on which the
aggregate cost-of-living adjustment (COLA) cap is figured.
Beginning January 1, 1998, the COLA for retired members with 15
or more years of service receiving benefits on August 28, 1997,
will not exceed 10% in the aggregate of benefits the member
received during the year preceding January first of the first
year the member is eligible for such an increase, instead of
being limited to 10% of the benefits the member was receiving on
August 28, 1996.