SCS/HS/HCS/HBs 1455 & 1463 - This act modifies provisions of the Kansas City Police and Civilian Retirement Systems, the St. Louis Police Retirement System and the St. Louis Firefighter's Retirement System and the Missouri State Employee Retirement System.

KANSAS CITY POLICE RETIREMENT - This act modifies the Kansas City Police Retirement System with respect to members, surviving spouses and investment funds.

SURVIVING SPOUSES. Surviving spouses are considered members of the retirement system as long as they are eligible for pension benefits.

MINIMUM PENSION. This act establishes a minimum pension benefit of $600 per month for all members who have at least 25 years of service (normal retirement) or who have been permanently incapacitated as a result of an on-the-job accident or injury. The $600 amount includes any supplemental retirement benefits and cost of-living adjustments (COLAs).

This act also establishes a minimum pension of $600 per month for surviving spouses of members entitled to the same minimum pension pursuant to this act.

If the member dies while in service, the surviving spouse receives a base pension of 40% of the member's final compensation, with COLAs. If the member retires and dies after commencement of benefits, the surviving spouse receives a base pension of 80% of the member's pension amount, with COLAs, but no supplemental retirement benefits.

The surviving spouse loses all benefits under Section 86.447 if the surviving spouse remarries.

"Commencement of Benefits" is defined as the time when all requirements are met which entitle the member to a benefit payment, which may occur before actual payment.

INVESTMENT OF RETIREMENT FUNDS. This act allows the retirement board to designate one or more banks or trust companies to serve as a depository of retirement system funds.

This act prohibits conflicts of interest by board members when conducting investment transactions on behalf of the retirement system.

This act addresses some of the more technical aspects regarding securities and other properties of the retirement system. This act allows a custodian to hold securities or other properties obtained by the retirement board, which may be held in bearer form or in book entry form. Eligible securities may be deposited in a central depository system, clearing corporation, or federal reserve bank under a book entry system. Such eligible securities may be merged and title may be transferred by bookkeeping entry without physical delivery of certificates.

KANSAS CITY CIVILIAN POLICE RETIREMENT SYSTEM - This act modifies provisions of the Kansas City Civilian Police Retirement System with regard to members, surviving spouses and investment funds.

SURVIVING SPOUSES. Surviving spouses are considered members of the retirement system as long as they are eligible for pension benefits.

MEMBERS WITH 5 OR MORE YEARS. Any member with 5 or more years experience who keep his contribution in the fund may elect to receive a pension at his normal retirement date, or before his normal retirement date with a reduction. If the member chooses to receive a pension before his normal retirement date, he may elect to receive it at the same times as for early retirement (with the same reductions), however, creditable service must have been for service before the member left employment.

INVESTMENT FUNDS. This act modifies the investment fund provisions so that it is identical to Kansas City Police Retirement provisions.

ST. LOUIS POLICE RETIREMENT SYSTEM - This act modifies provisions of the St. Louis Police Retirement System.

This act allows the surviving spouse or eligible dependent children of a member who dies in the line of duty and who participated in DROP (Deferred Retirement Option Plan) to elect a monthly survivor annuity (paid from the DROP account) within 30 days of the member's death. Payments shall be calculated based on the actuarial value of the DROP account when payment begins.

The member's maximum annual benefit limit, as provided in the Internal Revenue Code, is modified.

The ordinary disability retirement allowance for eligible dependent children would be modified from 10% to 15% effective October 1, 1998. The widow's pension currently is calculated at 25% of the deceased member's average final compensation plus 10% for each eligible dependent child. This act modifies such calculation to 35% of the average final compensation for the first three years and then to 40%, plus 15% for each eligible dependent child. Where the member died in an accident in the line of duty, the widow's pension currently is 50% of the member's average final compensation plus 10% for each eligible dependent child. This act changes the 10% to 15%. Any widow or eligible dependent child receiving such ordinary disability or widow's benefits prior to October 1, 1998, shall receive an additional monthly compensation of $100 or 5% of the member's average final compensation for each eligible dependent child, for up to three children. The additional compensation payable to the widow shall be adjusted for cost-of-living increases applicable to the benefit received prior to October 1, 1998.

This act allows the widow of a member who died in service and who is over 55 years of age or has 20 or more years of service to receive the same increase of a widow of a member entitled to a service retirement allowance.

ST. LOUIS FIREFIGHTER'S RETIREMENT SYSTEM - This act will allow a member of the St. Louis Firefighter's Retirement System who is participating in the Deferred Retirement Option Program "DROP" established in Section 87.182, RSMo, may elect upon retirement to have a dollar amount equal to the member's accumulated sick leave hours multiplied by the member's hourly rate of pay at the time of retirement placed in the member's DROP account.

The act also changes the date beyond which any credit for sick leave at the rate being earned on June 1, 1998. The previous date was August 28, 1989.

HANCOCK - This act expands the Hancock provision passed in HB 331 (1997) to the entire Chapter 86, RSMo (KC Police & Civilian Retirement Systems, St. Louis Police and Firemen's Retirement Systems). This act allows the Board of Trustees of any police retirement system or the political subdivision funding the retirement system to go to court to determine if there will be a Hancock problem (new or increased activity or service) with Chapter 86, RSMo. If there is a Hancock problem, the act is void from the beginning.

MISSOURI STATE EMPLOYEES RETIREMENT SYSTEM (MOSERS) - This act would allow certain members and survivors of deceased members of the Missouri State Employee Retirement System (MOSERS) the same retirement options as those of members and survivors addressed in HB 356 (1997). The members and survivors addressed in this act were not included in HB 356.

A member who terminated employment on or after October 1, 1984, and who retired and became a special consultant without any annuity in pay status on September 1, 1997, is eligible for additional compensation, and the amount depends on which annuity the member selected at retirement.

A person married to a member of Highway Employees' and Highway Patrol Retirement System or MOSERS shall receive a 50% survivor benefit if the member terminated employment on or after October 1, 1984, but retired before September 1, 1997, and had elected a normal annuity.

Also, any vested member, administrative law judge, legal advisor or judge who received benefits before August 28, 1997, shall, upon application, receive a one-time payment equal to the difference of what he or she received and the amount of benefits he or she would have received if the original benefit payment had been calculated pursuant to the law as in effect August 28, 1997 (from HB 356).

The surviving spouse of a member of MOSERS who terminated employment on or after October 1, 1984 and died prior to September 1, 1997, shall, upon application, receive a one-time payment calculated the same as above. If the member had retired with a normal annuity, the surviving spouse shall, upon application, receive a monthly benefit equal to 50% of the member's monthly annuity, with benefit increases between the member's death and the date of application. Additionally, the surviving spouse is eligible to receive a one-time payment, if necessary, equal to the amount the spouse would have received if the benefit had begun the month after the member's death.

If the member, whose employment terminated on or after October 1, 1997, died before retirement, the surviving spouse shall, upon application, receive a one-time payment equal to the difference of what he or she received and the amount of benefits he or she would have received if the original benefit payment had been calculated pursuant to the law as in effect August 28, 1997 (from HB 356).
MARGARET J. TOALSON