HCS/SB 309 - This is an omnibus school retirement act, as it modifies provisions in the Public School Retirement System (PSRS), St. Louis Teachers' Retirement System, the Kansas City Public School Retirement System, the Nonteachers Retirement System (NTRS) and provisions applying to all public school retirement systems.
PROVISIONS APPLICABLE TO BOTH PSRS AND NTRS - The act allows the Board of Trustees to set a maximum percentage of year-to-year increase during the final average salary period.
For allowances and payments first made on or after January 1, 1998 and for all payments on or after January 1, 1999, all retirement allowances and other periodic payments made by the Board of Trustees shall be made by electronic funds transfer or such other method determined by the Board of Trustees. Each recipient shall designate a financial institution or other agent for receiving the electronic fund transfers.
Retirement options 5 and 6, for both systems, currently provide that if the member dies prior to receiving a specified number of monthly payments, the remainder of those payments shall be made to the member's beneficiary or to the member's estate. The act provides that such remainder shall be paid to the beneficiary, or to the estate of the last person to receive monthly payments.
Current law provides that if total retirement payments to the member prior to death plus subsequent payments to the member's beneficiary prior to the beneficiary's death are less than the member's contributions, then the difference shall be paid to the member's estate. The act provides that such difference shall be paid to the estate of the beneficiary or the estate of another person designated by the member at or after retirement.
Current law provides that if a member dies before receiving an allowance and the beneficiary dies before receiving an amount equal to the contributions of the member under Option 2, then the difference shall be paid to the estate of the member. The act provides that such difference shall be paid to the estate of the beneficiary.
This act would modify "salary", "salary rate" and "compensation", as those terms are defined for the purposes of the public school retirement system and the nonteacher school retirement system, to include dental and vision medical benefits paid by the employer.
PROVISIONS APPLICABLE TO PSRS - Certain minimum monthly benefit provisions which were supplanted by higher minimum benefits in SB 378 from 1995 are removed from the law.
Persons eligible to purchase service credit under subsection 1 of section 169.055, also known as the out of state service purchase provision, may elect to purchase such credit prior to July 1, 1998.
Current law provides for payment of an allowance in the month in which a retired member dies. The act provides that such allowance shall be paid in the month a retired member, beneficiary or survivor dies.
PROVISIONS APPLICABLE TO NTRS - Current law provides for payment of an allowance in the month in which a retired member dies. The act provides that such allowance shall be paid in the month a retired member or beneficiary dies.
The act eliminates certain deadlines regarding the election to purchase credit for service to a junior college, providing that such election may be made at any time prior to retirement.
The act allows retired NTRS members to be employed on a part-time basis by a school district and still receive benefits. Currently, retired NTRS members may only be employed on a temporary or substitute basis and still receive benefits.
Currently, a certificated teacher employed in a position covered by NTRS may elect to be a PSRS member and receive service credit from PSRS for certificated services creditable under NTRS. The act provides that any certificated teacher first employed after August 28, 1997 in a position covered by NTRS shall be a PSRS member and receive service credit from PSRS unless the person elects, within ninety days of such employment, to be a member of NTRS.
PROVISIONS APPLICABLE TO KANSAS CITY. This act modifies certain provisions relating to the Kansas City Public School Retirement System:
This act removes a provision requiring rules regarding the purchase of creditable service to be consistent with section 105.270, RSMo, which contains a provision requiring a leave of absence for members of the National Guard during periods of military service;
A distinction is made between active and inactive members for the purposes of determining payments to a beneficiary under the full-payment option and specifies that a dependent child must be 19 or younger to receive payments (not a lifetime payment); and
Provisions are modified regarding employee accumulated contributions with regard to the member's status as active or inactive.
PROVISIONS APPLICABLE TO ST. LOUIS. This act makes the following changes to the St. Louis Teachers' Retirement System:
Currently members are allowed to reinstate creditable service by paying back the withdrawn contributions, with interest, and teaching at least seven more years in the district. This act provides that a member must have at least five years of creditable service to make the reinstatement, allows repayment over up to five years and requires continuous employment totalling at least seven years creditable service.
Currently, retired members with at least 15 years service and who are receiving retirement benefits on August 28, 1996, receive Consumer Price Index increases, and the total increases shall not exceed 10% of benefits the member was receiving on that same date. This bill provides that retired members with at least 15 years service and who are receiving retirement benefits on August 28, 1997, receive the Consumer Price Index increases above, and that the total increases shall not exceed 10% of the annual retirement benefits received during the year preceding January 1 of the first year the retired member is entitled to receive an increase.
PROVISIONS APPLICABLE TO ALL SCHOOL RETIREMENT SYSTEMS. The general public school retirement provisions are modified with regard to the purchase of creditable service for previous membership under a different public school retirement system. The amount of payment for purchase of creditable service shall be determined by rule, or in the absence of rules, with interest, as is currently done. In addition, rule language also is added to a current provision regarding the ability of members on sick leave or workers' compensation to receive creditable service credit.
This act contains provisions from SB 309 & HB 482, HB 169, HB 827, SB 201 & HB 612, and SB 152.
MARGARET J. TOALSON