HB 1033 - This act modifies provisions of the Missouri Local Government Employees' Retirement System (LAGERS).

Currently, the base survivor options are 80%, 85% and 90% for surviving spouses, depending upon which option was selected, if any. For first payment due dates occurring on or after October 1, 1998, this act changes such base survivor options to 85%, 90% and 95%, while retaining the current adjustments to the base percentages for the spouse's age relative to that of the retiree. This act also modifies deferred allowance provisions. Currently, a former member is entitled to a deferred allowance if he lives to an age within 5 years of his minimum service retirement age. This act allows an eligible spouse of a former member to receive the deferred allowance if the former member has not received a lump sum payment of the reserve value of the deferred allowance. This act also modifies such lump sum payments by providing that election for such payment may be made by the former member if the credited service is less than 10 years and if the former member is not within 10 years of the minimum retirement age at the time of payment. Currently, LAGERS may pay the reserve value of an allowance benefit if it does not exceed $3,000.
MARGARET J. TOALSON