HCS/SB 761 - This act modifies provisions of the Public School Retirement System of Kansas City.

This act modifies the minimum total retirement age. Currently, the minimum retirement age is 60, or when the total number of years of age and service equals 80. This act changes the "80 and out" provision to "75 and out".

The employer's contribution is increased from 5.99% to 7.5%, effective 1/1/98 and for all subsequent years.

An application for disability benefits may be made up to 6 months after the member ceases to be an active member, and allows such member to make optional allowances for beneficiaries. The act modifies the calculation of the disability allowance. Currently, there is a minimum benefit of 25% of the final average compensation. This act provides that the allowance is the lesser of 25% of final average compensation, or the service retirement allowance calculated as if the member had worked until age 60.

Effective 6/30/99, the annual service retirement allowance is modified from 1.75% to 2%, subject to a cap of 60% of the average final compensation.

Currently, a member is eligible for a COLA if he is at least 65 years of age and retired for at least 14 months. Under this act a member is eligible for a COLA on the fourth January after retirement.

The act clarifies a provision regarding disabled retirants who can work by limiting the provision only to retirants who have not reached the minimum normal retirement age. Additionally, it clarifies that return of accumulated contributions for members applies to those persons who are unvested.

This act increases the employer's contribution by 1.6%, effective 1/1/99, providing a total employer contribution of 7.5% (currently 5.9%).

The act revises section 169.597 which provides that the Board of Trustees of PSRS or a political subdivision may seek a declaratory judgment that certain benefits added when such section was adopted are in violation of Article X, section 21 of the Missouri Constitution and constitute an unfunded mandate. If the benefits are determined to be unconstitutional, then the obligations of the PSRS to provide such benefits are also terminated. The act extends this provision to any new benefit or increase pursuant to Chapter 169, RSMo. (This language is also contained in Truly Agreed To and Finally Passed HS/HCS/SCS/SB 501.)
MARGARET J. TOALSON