FIRSTREGULARSESSION
HOUSEBILLNO.1329
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEANDERSON.
2863H.01I JOSEPHENGLER,ChiefClerk
ANACT
Torepealsections105.684and169.540,RSMo,andtoenactinlieuthereofthreenew
sectionsrelatingtoretirementbenefitsforcertainteacherretirementsystems.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections105.684and169.540,RSMo,arerepealedandthreenewsections
2enactedinlieuthereof,tobeknownassections105.684,169.540,and169.542,toreadas
3follows:
105.684.1.Notwithstandinganylawtothecontrary,noplanshalladoptor
2implementanyadditionalbenefitincrease,supplement,enhancement,lumpsumbenefit
3paymentstoparticipants,orcost-of-livingadjustmentbeyondcurrentplanprovisionsineffect
4priortoAugust28,2007,whichwould,inaggregatewithanyotherproposedplanprovisions,
5increasetheplan'sactuarialaccruedliabilitywhenvaluedbyanactuaryusingthesame
6methodsandassumptionsasusedinthemostrecentperiodicvaluation,unlesstheplan's
7actuarydeterminesthatthefundedratioofthemostrecentperiodicactuarialvaluationand
8priortosuchadoptionorimplementationisatleasteightypercentandwillnotbelessthan
9seventy-fivepercentaftersuchadoptionorimplementation, exceptforthesystemgoverned
10bysections169.410to169.542,whichmayadministeraone-timesupplementalpayment
11assetforthinsection169.542,subjecttostateappropriations. Methodsandassumptions
12usedinvaluingsuchproposedchangemaybemodifiedifthenatureissuchthatalternative
13assumptionsareclearlywarranted.
14 2.Theunfundedactuarialaccruedliabilitiesassociatedwithbenefitchanges
15describedinthissectionshallbeamortizedoveraperiodnottoexceedtwentyyearsfor
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 16purposesofdeterminingthecontributionsassociatedwiththeadoptionorimplementationof
17anysuchbenefitincrease,supplement,orenhancement.
18 3.Anyplanwithafundedratiobelowsixtypercentshallhavetheactuarypreparean
19acceleratedcontributionschedulebasedonadescendingamortizationperiodforinclusionin
20theactuarialvaluation.
21 4.Nothinginthissectionshallapplytoanyplanestablishedunderchapter70or
22chapter476.
23 5.Nothinginthissectionshallpreventaplanfromadoptingandimplementingany
24provisionnecessarytomaintainaplan'sstatusasaqualifiedtrustpursuantto26U.S.C.
25Section401(a).
169.540.ThestateofMissourishallcontributenofundsdirectlyorindirectlyto
2financetheplantopaypensionbenefitsbyappropriationbillsorotherwise,except:
3 (1)Thosefundswhichthedistrictmayreceivefromtimetotimeunderalaworlaws
4providingforageneralapportionmentofschoolmoneysthroughoutallthestate[andexcept];
5 (2)Employercontributionsformembersemployedbytheboardofregentswhich
6shallbemadebythestateofMissouri; and
7 (3)Statefundsappropriatedforaone-timesupplementalpaymentassetforthin
8section169.542.
169.542.1.Theboardoftrusteesshalladministeranddistributeaone-time
2supplementalpaymentofapensionbenefit,asdefinedinsection169.410,toaretired
3memberorbeneficiaryasprovidedinthissection.
4 2.Subjecttoappropriations,thesupplementalpaymentshallbepayablenolater
5thanSeptember30,2026,andtotheextentpracticable,onadateordatesthatcoincide
6withtheregularpensionbenefitpayabletoeachretiredmemberorbeneficiary.
7 3.Theamountofthesupplementalpaymentshallbeequaltothelesserof:
8 (1)Thegrossamountoftheregularpensionbenefittowhichtheretiredmember
9orbeneficiaryisotherwiseentitledforthecalendarmonthimmediatelypriortothe
10calendarmonthinwhichthesupplementalpaymentisissued;or
11 (2)Twothousanddollars.
12 4.Theboardoftrusteesshallmakeapplicabletaxwithholdingandanyother
13legallyrequireddeductionsbeforedisbursingthesupplementarypayment.
14 5.Asupplementarypaymentunderthissectionshallbeinadditionto,andnotin
15lieuof,aregularmonthlypensionbenefittowhichtheeligibleretiredmemberor
16beneficiaryisotherwiseentitled.
17 6.Inordertobeeligibleforasupplementalpayment,apersonshallbe,forthe
18calendarmonthimmediatelypriortothecalendarmonthinwhichtheboardoftrustees
HB1329 2 19issuestheone-timesupplementalpayment,eligibletoreceiveastandardretirement
20pensionbenefitundersections169.410to169.542.
21 7.Theboardoftrusteesshalldeterminetheeligibilityfor,andtheamountand
22timingof,asupplementalpaymentandthemannerinwhichthepaymentshallbemade.
23 8.Thestateshallappropriatetotheretirementsystemgovernedbysections
24169.410to169.542anamountequaltothecostoftheone-timesupplementalpayment
25requiredbythissection.Ifthestatedoesnottransfertheappropriatedamount
26describedbythissubsection,theboardoftrusteesshallnotissuetheone-time
27supplementalpaymentrequiredbythissection.
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HB1329 3