SECONDREGULARSESSION
HOUSEBILLNO.2816
101STGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEVEIT.
5819H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection104.1091,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
stateemployeeretirementsystems.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section104.1091,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection104.1091,toreadasfollows:
104.1091.1.Notwithstandinganyprovisionoftheyear2000plantothecontrary,
2eachpersonwhofirstbecomesanemployeeonorafterJanuary1,2011,shallbeamemberof
3theyear2000plansubjecttotheprovisionsofthissection.
4 2.Amember'snormalretirementeligibilityshallbeasfollows:
5 (1)Themember'sattainmentofatleastagesixty-sevenandthecompletionofatleast
6tenyearsofcreditedservice;orthemember'sattainmentofatleastagefifty-fivewiththesum
7ofthemember'sageandcreditedserviceequalingatleastninety;or,inthecaseofamember
8whoisservingasauniformedmemberofthehighwaypatrolandsubjecttothemandatory
9retirementprovisionsofsection104.081,suchmember'sattainmentofatleastagesixtyorthe
10attainmentofatleastagefifty-fivewithtenyearsofcreditedservice;
11 (2)Formembersofthegeneralassembly,themember'sattainmentofatleastage
12sixty-twoandthecompletionofatleastthreefullbiennialassemblies;orthemember's
13attainmentofatleastagefifty-fivewiththesumofthemember'sageandcreditedservice
14equalingatleastninety;
15 (3)Forstatewideelectedofficials,theofficial'sattainmentofatleastagesixty-two
16andthecompletionofatleastfouryearsofcreditedservice;ortheofficial'sattainmentofat
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17leastagefifty-fivewiththesumoftheofficial'sageandcreditedserviceequalingatleast
18ninety.
19 3.Avestedformermember'snormalretirementeligibilityshallbebasedonthe
20attainmentofatleastagesixty-sevenandthecompletionofatleasttenyearsofcredited
21service.
22 4.Atemporaryannuitypaidpursuanttosubsection4ofsection104.1024shallbe
23payableifthememberhasattainedatleastagefifty-fivewiththesumofthemember'sage
24andcreditedserviceequalingatleastninety;orinthecaseofamemberwhoisservingasa
25uniformedmemberofthehighwaypatrolandsubjecttothemandatoryretirementprovisions
26ofsection104.081,thetemporaryannuityshallbepayableifthememberhasattainedatleast
27agesixty,oratleastagefifty-fivewithtenyearsofcreditedservice.
28 5.Amember,otherthanamemberwhoisservingasauniformedmemberofthe
29highwaypatrolandsubjecttothemandatoryretirementprovisionsofsection104.081,shall
30beeligibleforanearlyretirementannuityupontheattainmentofatleastagesixty-twoand
31thecompletionofatleasttenyearsofcreditedservice.Avestedformermembershallnotbe
32eligibleforearlyretirement.
33 6.Theprovisionsofsubsection6ofsection104.1021andsection104.344asapplied
34pursuanttosubsection7ofsection104.1021andsection104.1090shallnotapplytomembers
35coveredbythissection.
36 7.Theminimumcreditedservicerequirementsoffiveyearscontainedinsections
37104.1018,104.1030,104.1036,and104.1051shallbetenyearsformemberscoveredbythis
38section.Thenormalandearlyretirementeligibilityrequirementsinthissectionshallapply
39forpurposesofadministeringsection104.1087.
40 8.Amembershallberequiredtocontributefourpercentofthemember'spaytothe
41retirementsystem,whichshallstandtothemember'screditinhisorherindividualaccount
42withthesystem,togetherwithinvestmentcreditsthereon,forpurposesoffundingretirement
43benefitspayableundertheyear2000plan,subjecttothefollowingprovisions:
44 (1)ThestateofMissouriemployer,pursuanttotheprovisionsof26U.S.C.Section
45414(h)(2),shallpickupandpaythecontributionsthatwouldotherwisebepayablebythe
46memberunderthissection.Thecontributionssopickedupshallbetreatedasemployer
47contributionsforpurposesofdeterminingthemember'spaythatisincludableinthemember's
48grossincomeforfederalincometaxpurposes;
49 (2)Membercontributionspickedupbytheemployershallbepaidfromthesame
50sourceoffundsusedforthepaymentofpaytoamember.Adeductionshallbemadefrom
51eachmember'spayequaltotheamountofthemember'scontributionspickedupbythe
52employer.Thisdeduction,however,shallnotreducethemember'spayforpurposesof
53computingbenefitsundertheretirementsystempursuanttothischapter;
HB2816 2 54 (3)Membercontributionssopickedupshallbecreditedtoaseparateaccountwithin
55themember'sindividualaccountsothattheamountscontributedpursuanttothissectionmay
56bedistinguishedfromtheamountscontributedonanafter-taxbasis;
57 (4)Thecontributions,althoughdesignatedasemployeecontributions,shallbepaid
58bytheemployerinlieuofthecontributionsbythemember.Themembershallnothavethe
59optionofchoosingtoreceivethecontributedamountsdirectlyinsteadofhavingthempaidby
60theemployertotheretirementsystem;
61 (5)InterestshallbecreditedannuallyonJunethirtiethbasedonthevalueinthe
62accountasofJulyfirstoftheimmediatelyprecedingyearatarateoffourpercent.Effective
63June30,2014,andeachJunethirtieththereafter,theinterestcreditingrateshallbeequalto
64theinvestmentratethatispublishedbytheUnitedStatesDepartmentofTreasury,orits
65successoragency,forfifty-twoweektreasurybillsfortherelevantauctionthatisnearestto
66theprecedingJulyfirst,orasuccessortreasurybillinvestmentrateasapprovedbytheboard
67ifthefifty-twoweektreasurybillisnolongerissued.Interestcreditsshallceaseupon
68terminationofemploymentifthememberisnotavestedformermember.Otherwise,interest
69creditsshallceaseuponretirementordeath;
70 (6)Avestedformermemberoraformermemberwhoisnotvestedmayrequesta
71refundofhisorhercontributionsandinterestcreditedthereon.Ifsuchmemberismarriedat
72thetimeofsuchrequest,suchrequestshallnotbeprocessedwithoutconsentfromthespouse.
73Suchmemberisnoteligibletorequestarefundifsuchmember'sretirementbenefitissubject
74toadivisionofbenefitorderpursuanttosection104.1051.Suchrefundshallbepaidbythe
75systemafterninetydaysfromthedateofterminationofemploymentortherequest,
76whicheverislater,andshallincludeallcontributionsmadetoanyretirementplan
77administeredbythesystemandinterestcreditedthereon.Avestedformermembermaynot
78requestarefundaftersuchmemberbecomeseligiblefornormalretirement.Avestedformer
79memberoraformermemberwhoisnotvestedwhoreceivesarefundshallforfeitallthe
80member'screditedserviceandfuturerightstoreceivebenefitsfromthesystemandshallnot
81beeligibletoreceiveanylong-termdisabilitybenefits;providedthatanymemberorvested
82formermemberreceivinglong-termdisabilitybenefitsshallnotbeeligibleforarefund.If
83suchmembersubsequentlybecomesanemployeeandworkscontinuouslyforatleastone
84year,thecreditedservicepreviouslyforfeitedshallberestoredifthememberreturnstothe
85systemtheamountpreviouslyrefundedplusinterestatarateestablishedbytheboard;
86 (7)Thebeneficiaryofanymemberwhomadecontributionsshallreceivearefund
87uponthemember'sdeathequaltotheamount,ifany,ofsuchcontributionsandinterest
88creditedthereonlessanyretirementbenefitsreceivedbythememberunlessanannuityis
89payabletoasurvivororbeneficiaryasaresultofthemember'sdeath.Inthatevent,the
90beneficiaryofthesurvivororbeneficiarywhoreceivedtheannuityshallreceivearefund
HB2816 3 91uponthesurvivor'sorbeneficiary'sdeathequaltotheamount,ifany,ofthemember's
92contributionslessanyannuityamountsreceivedbythememberandthesurvivoror
93beneficiary.
94 9.Theemployeecontributionrate,thebenefitsprovidedundertheyear2000planto
95memberscoveredunderthissection,andanyotherprovisionoftheyear2000planwith
96regardtomemberscoveredunderthissectionmaybealtered,amended,increased,decreased,
97orrepealed,butonlywithrespecttoservicesrenderedbythememberaftertheeffectivedate
98ofsuchalteration,amendment,increase,decrease,orrepeal,or,withrespecttointerest
99credits,forperiodsoftimeaftertheeffectivedateofsuchalteration,amendment,increase,
100decrease,orrepeal.
101 10.Forpurposesofmemberscoveredbythissection,theoptionsundersection
102104.1027shallbeasfollows:
103 Option1.
104 Aretiree'slifeannuityshallbereducedtoacertainpercentoftheannuityotherwise
105payable.Suchpercentshallbeeighty-eightandonehalfpercentadjustedasfollows:ifthe
106retiree'sageontheannuitystartingdateisyoungerthansixty-sevenyears,anincreaseof
107three-tenthsofonepercentforeachyeartheretiree'sageisyoungerthanagesixty-seven
108years;andifthebeneficiary'sageisyoungerthantheretiree'sageontheannuitystartingdate,
109adecreaseofthree-tenthsofonepercentforeachyearofagedifference;andiftheretiree's
110ageisyoungerthanthebeneficiary'sageontheannuitystartingdate,anincreaseofthree-
111tenthsofonepercentforeachyearofagedifference;provided,afteralladjustmentsthe
112option1percentcannotexceedninety-fourandonequarterpercent.Upontheretiree'sdeath,
113fiftypercentoftheretiree'sreducedannuityshallbepaidtosuchbeneficiarywhowasthe
114retiree'sspouseontheannuitystartingdateorasotherwiseprovidedbysubsection5ofthis
115section.
116 Option2.
117 Aretiree'slifeannuityshallbereducedtoacertainpercentoftheannuityotherwise
118payable.Suchpercentshallbeeighty-onepercentadjustedasfollows:iftheretiree'sageon
119theannuitystartingdateisyoungerthansixty-sevenyears,anincreaseoffour-tenthsofone
120percentforeachyeartheretiree'sageisyoungerthansixty-sevenyears;andifthe
121beneficiary'sageisyoungerthantheretiree'sageontheannuitystartingdate,adecreaseof
122five-tenthsofonepercentforeachyearofagedifference;andiftheretiree'sageisyounger
123thanthebeneficiary'sageontheannuitystartingdate,anincreaseoffive-tenthsofone
124percentforeachyearofagedifference;provided,afteralladjustmentstheoption2percent
125cannotexceedeighty-sevenandthreequarterpercent.Upontheretiree'sdeathonehundred
126percentoftheretiree'sreducedannuityshallbepaidtosuchbeneficiarywhowastheretiree's
127spouseontheannuitystartingdateorasotherwiseprovidedbysubsection5ofthissection.
HB2816 4 128 Option3.
129 Aretiree'slifeannuityshallbereducedtoninety-threepercentoftheannuity
130otherwisepayable.Iftheretireediesbeforehavingreceivedonehundredtwentymonthly
131payments,thereducedannuityshallbecontinuedfortheremainderoftheonehundred
132twenty-monthperiodtotheretiree'sdesignatedbeneficiaryprovidedthatifthereisno
133beneficiarysurvivingtheretiree,thepresentvalueoftheremainingannuitypaymentsshallbe
134paidasprovidedundersubsection3ofsection104.620.Ifthebeneficiarysurvivestheretiree
135butdiesbeforereceivingtheremainderofsuchonehundredtwentymonthlypayments,the
136presentvalueoftheremainingannuitypaymentsshallbepaidasprovidedundersubsection3
137ofsection104.620.
138 Option4.
139 Aretiree'slifeannuityshallbereducedtoeighty-sixpercentoftheannuityotherwise
140payable.Iftheretireediesbeforehavingreceivedonehundredeightymonthlypayments,the
141reducedannuityshallbecontinuedfortheremainderoftheonehundredeighty-monthperiod
142totheretiree'sdesignatedbeneficiaryprovidedthatifthereisnobeneficiarysurvivingthe
143retiree,thepresentvalueoftheremainingannuitypaymentsshallbepaidasprovidedunder
144subsection3ofsection104.620.Ifthebeneficiarysurvivestheretireebutdiesbefore
145receivingtheremainderofsuchonehundredeightymonthlypayments,thepresentvalueof
146theremainingannuitypaymentsshallbepaidasprovidedundersubsection3ofsection
147104.620.
148 11.Theprovisionsofsubsection6ofsection104.1024shallnotapplytomembers
149coveredbythissection.
150 12.EffectiveJanuary1,2018,amemberwhoisnotastatewideelectedofficialora
151memberofthegeneralassemblyshallbeeligibleforretirementunderthissubsectionsubject
152tothefollowingconditions:
153 (1)Amember'snormalretirementeligibilityshallbebasedontheattainmentofat
154leastagesixty-sevenandthecompletionofatleastfiveyearsofcreditedservice;orthe
155member'sattainmentofatleastagefifty-fivewiththesumofthemember'sageandcredited
156serviceequalingatleastninety; orthemember'sattainmentofatleastagefiftywiththe
157sumofthemember'sageandcreditedserviceequalingatleasteightyafterthesystem
158firstattainsafundedratioofatleasteightypercent,asdefinedinsection105.660andas
159determinedbythesystem'sannualactuarialvaluation,withtheprovisionnotbeing
160incorporatedintheannualactuarialvaluationofthesystemuntilthefundedratioisat
161leasteightypercentandthereafter; orinthecaseofamemberwhoisservingasa
162uniformedmemberofthehighwaypatrolandsubjecttothemandatoryretirementprovisions
163ofsection104.081,suchmember'sattainmentofatleastagesixtyortheattainmentofatleast
164agefifty-fivewithfiveyearsofcreditedservice;
HB2816 5 165 (2)Avestedformermember'snormalretirementeligibilityshallbebasedonthe
166attainmentofatleastagesixty-sevenandthecompletionofatleastfiveyearsofcredited
167service;
168 (3)Atemporaryannuitypaidundersubsection4ofsection104.1024shallbepayable
169ifthememberhasattainedatleastagefifty-fivewiththesumofthemember'sageand
170creditedserviceequalingatleastninety;orinthecaseofamemberwhoisservingasa
171uniformedmemberofthehighwaypatrolandsubjecttothemandatoryretirementprovisions
172ofsection104.081,thetemporaryannuityshallbepayableifthememberhasattainedatleast
173agesixty,oratleastagefifty-fivewithfiveyearsofcreditedservice;
174 (4)Amember,otherthanamemberwhoisservingasauniformedmemberofthe
175highwaypatrolandsubjecttothemandatoryretirementprovisionsofsection104.081,shall
176beeligibleforanearlyretirementannuityupontheattainmentofatleastagesixty-twoand
177thecompletionofatleastfiveyearsofcreditedservice.Avestedformermembershallnotbe
178eligibleforearlyretirement;
179 (5)Thenormalandearlyretirementeligibilityrequirementsinthissubsectionshall
180applyforpurposesofadministeringsection104.1087;
181 (6)Thesurvivorannuitypayableundersection104.1030forvestedformermembers
182coveredbythissectionshallnotbepayableuntilthedeceasedmemberwouldhavereached
183hisorhernormalretirementeligibilityunderthissubsection;
184 (7)Theannualcost-of-livingadjustmentpayableundersection104.1045shallnot
185commenceuntilthesecondanniversaryofavestedformermember'sannuitystartingdatefor
186memberscoveredbythissubsection;
187 (8)Theunusedsickleavecreditgrantedundersubsection2ofsection104.1021shall
188notapplytomemberscoveredbythissubsectionunlessthememberterminatesemployment
189afterreachingnormalretirementeligibilityorbecomingeligibleforanearlyretirement
190annuityunderthissubsection;and
191 (9)Theminimumcreditedservicerequirementsoffiveyearscontainedinsections
192104.1018,104.1030,104.1036,and104.1051shallbefiveyearsformemberscoveredbythis
193subsection.
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HB2816 6