HCS/SB 180 - This act revises benefits to the Public School Retirement System (PSRS) and the Non-Teachers Retirement System (NTRS).

PUBLIC SCHOOL RETIREMENT SYSTEM (PSRS):

1) Minimum and maximum survivor benefits are increased. Minimum benefits are raised from $400 to $575 and maximums are raised from $600 to $860. Also, the additional payment for each dependent child under age 18 (now one-half of the survivor's base payment) shall be at least $300 per month, but the total payment to spouse including payments for dependents shall not exceed $2160;

2) Survivor and dependent child benefits shall continue until the child is age 24 years if still in college. Currently, such benefits end at age 22 years;

3) The act expands the option for a beneficiary, other than a spouse, to select Option 2 survivor benefits if the member dies prior to retirement. The act expands this to include any beneficiary with an insurable interest in the member;

4) Adds a $2 times years of creditable service increase to monthly payments to beneficiaries of deceased retirees and, as of September 1, 1999, to beneficiaries of deceased members;

5) Applies the current minimum retiree benefits to the beneficiaries of deceased retirees;

6) Adds a $5,000 single-sum, death benefit for retired members;

7) Revises final average salary to be determined on final three years rather than final five years of service;

8) Adds a "Rule of 80" clause to allow full retirement when a member's age plus creditable service equals 80 years or more; and

9) Adds an additional $5 times years of creditable service to the monthly benefit for those retiring by the effective date of this act and the beneficiaries of retired members who die prior to the effective date of this act.

10) Allows a retired teacher to earn up to 50% of the annual compensation payable under the district's salary schedule for the position filled by the retiree and also provides means for determining salary for a position not on the schedule, for newly created positions, and for retirees filling multiple positions.

This portion of the act is similar to SB 331.

NON-TEACHERS RETIREMENT SYSTEM (NTRS):

The act corrects a technical difference in the new "level- payment" provision as enacted separately in the 1998 regular session in SB 501 and in SB 733.

The new provisions in the act include:

1) An increase of the formula factor from 1.35% to 1.45%;

2) An increase of the formula factor of 0.1% for those electing to take the "25 and out" option;

3) A one-time increase for current retirees of 7.4% which will not be subject to the cost of living adjustment (COLA) cap;

4) Expanding the option for a beneficiary to select option 2 benefits if the member dies prior to retirement. Currently, this option is only available for the member's spouse (if named as the beneficiary) and the bill expands this option to any person who has an insurable interest in the member, if named as beneficiary; and

5) Changing NTRS requirements for certain members who were certified as vocational-technical teachers by making the basis for certification a degree or work experience instead of a degree and work experience, making these provisions identical to the PSRS requirements.

PROVISIONS APPLICABLE TO BOTH SYSTEMS:

The act permits retired members of both systems, except those retired on disability, to establish a second or subsequent membership in the system after a one-year vesting period. Such membership is separate and not combinable for service credit or benefits with a previous membership. Such members will not draw a benefit from their first membership while in covered employment.

This act is the same as HCS/HBs 736, 515 & 508.

The act includes an emergency clause and will become effective upon passage and approval or July 1, 1999, whichever is later.
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