FIRSTREGULARSESSION
HOUSEBILLNO.147
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEHOVIS.
0295H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection86.200,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
policepensions.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section86.200,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection86.200,toreadasfollows:
86.200.Thefollowingwordsandphrasesasusedinsections86.200to86.366,unless
2adifferentmeaningisplainlyrequiredbythecontext,shallhavethefollowingmeanings:
3 (1)"Accumulatedcontributions",thesumofallmandatorycontributionsdeducted
4fromthecompensationofamemberandcreditedtothemember'sindividualaccount,
5togetherwithmembers'interestthereon;
6 (2)"Actuarialequivalent",abenefitofequalvaluewhencomputeduponthebasisof
7mortalitytablesandinterestassumptionsadoptedbytheboardoftrustees;
8 (3)"Averagefinalcompensation":
9 (a)WithrespecttoamemberwhoearnsnocreditableserviceonorafterOctober1,
102001,theaverageearnablecompensationofthememberduringthemember'slastthreeyears
11ofcreditableserviceasapoliceofficer,orifthememberhashadlessthanthreeyearsof
12creditableservice,theaverageearnablecompensationofthemember'sentireperiodof
13creditableservice;
14 (b)WithrespecttoamemberwhoisnotparticipatingintheDROPpursuantto
15section86.251onOctober1,2001,whodidnotparticipateintheDROPatanytimebefore
16suchdate,andwhoearnsanycreditableserviceonorafterOctober1,2001,theaverage
17earnablecompensationofthememberduringthemember'slasttwoyearsofcreditable
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18serviceasapoliceman,orifthememberhashadlessthantwoyearsofcreditableservice,
19thentheaverageearnablecompensationofthemember'sentireperiodofcreditableservice;
20 (c)WithrespecttoamemberwhoisparticipatingintheDROPpursuanttosection
2186.251onOctober1,2001,orwhoseparticipationinDROPendedbeforesuchdate,who
22returnstoactiveparticipationinthesystempursuanttosection86.251,andwhoterminates
23employmentasapoliceofficerforreasonsotherthandeathordisabilitybeforeearningat
24leasttwoyearsofcreditableserviceaftersuchreturn,theportionofthemember'sbenefit
25attributabletocreditableserviceearnedbeforeDROPentryshallbedeterminedusingaverage
26finalcompensationasdefinedinparagraph(a)ofthissubdivision;andtheportionofthe
27member'sbenefitattributabletocreditableserviceearnedafterreturntoactiveparticipationin
28thesystemshallbedeterminedusingaveragefinalcompensationasdefinedinparagraph(b)
29ofthissubdivision;
30 (d)WithrespecttoamemberwhoisparticipatingintheDROPpursuanttosection
3186.251onOctober1,2001,orwhoseparticipationintheDROPendedbeforesuchdate,who
32returnstoactiveparticipationinthesystempursuanttosection86.251,andwhoterminates
33employmentasapoliceofficerafterearningatleasttwoyearsofcreditableserviceaftersuch
34return,themember'sbenefitattributabletoallofsuchmember'screditableserviceshallbe
35determinedusingthemember'saveragefinalcompensationasdefinedinparagraph(b)ofthis
36subdivision;
37 (e)WithrespecttoamemberwhoisparticipatingintheDROPpursuanttosection
3886.251onOctober1,2001,orwhoseparticipationinDROPendedbeforesuchdate,who
39returnstoactiveparticipationinthesystempursuanttosection86.251,andwhose
40employmentasapoliceofficerterminatesduetodeathordisabilityaftersuchreturn,the
41member'sbenefitattributabletoallofsuchmember'screditableserviceshallbedetermined
42usingthemember'saveragefinalcompensationasdefinedinparagraph(b)ofthis
43subdivision;and
44 (f)Withrespecttothesurvivingspouseorsurvivingdependentchildofamember
45whoearnsanycreditableserviceonorafterOctober1,2001,theaverageearnable
46compensationofthememberduringthemember'slasttwoyearsofcreditableserviceasa
47policeofficeror,ifthememberhashadlessthantwoyearsofcreditableservice,theaverage
48earnablecompensationofthemember'sentireperiodofcreditableservice;
49 (4)"Beneficiary",anypersoninreceiptofaretirementallowanceorotherbenefit;
50 (5)"Boardoftrustees",theboardprovidedinsections86.200to86.366toadminister
51theretirementsystem;
52 (6)"Creditableservice",priorserviceplusmembershipserviceasprovidedin
53sections86.200to86.366;
54 (7)"DROP",thedeferredretirementoptionplanprovidedforinsection86.251;
HB147 2 55 (8)"Earnablecompensation",theannualsalary[establishedundersection84.160
56which] amemberwouldearnduringoneyearonthebasisofthemember'srankorposition,
57plusanyadditionalcompensationforacademicworkandshiftdifferential, that[maybe
58provided] issetbyanystateormunicipalbodyorofficial[orboard] noworhereafter
59authorizedbylawtoemployandmanageapermanentpoliceforceinsuchcities.Such
60amountshallincludethemember'sdeferralstoadeferredcompensationplanpursuantto
61Section457oftheInternalRevenueCodeortoacafeteriaplanpursuanttoSection125ofthe
62InternalRevenueCodeor,effectiveOctober1,2001,toatransportationfringebenefit
63programpursuanttoSection132(f)(4)oftheInternalRevenueCode."Earnable
64compensation" shallnotincludeamember'sadditionalcompensationforovertime,standby
65time,courttime,nonuniformtimeorunusedvacationtime.Further,"earnable
66compensation"shallnotincludeanyfundsreceivedbyamemberthrougha
67judgmentorsettlementofalegalactionorclaimmadeorthreatenedbythemember
68againstanycitynotwithinacountyifthefundsareintendedtoretroactively
69compensatethememberforthesalarydifferentialbetweenthemember'sactualrank
70andtherankthememberclaimsheorsheshouldhavereceived.Notwithstandingthe
71foregoing,theearnablecompensationtakenintoaccountundertheplanestablishedpursuant
72tosections86.200to86.366withrespecttoamemberwhoisanoneligibleparticipant,as
73definedinthissubdivision,foranyplanyearbeginningonorafterOctober1,1996,shallnot
74exceedtheamountofcompensationthatmaybetakenintoaccountunderSection401(a)(17)
75oftheInternalRevenueCode,asadjustedforincreasesinthecostofliving,forsuchplan
76year.Forpurposesofthissubdivision,a"noneligibleparticipant"isanindividualwhofirst
77becomesamemberonorafterthefirstdayofthefirstplanyearbeginningaftertheearlierof:
78 (a)ThelastdayoftheplanyearthatincludesAugust28,1995;or
79 (b)December31,1995;
80 (9)"InternalRevenueCode",thefederalInternalRevenueCodeof1986,as
81amended;
82 (10)"Mandatorycontributions",thecontributionsrequiredtobedeductedfromthe
83salaryofeachmemberwhoisnotparticipatinginDROPinaccordancewithsection86.320;
84 (11)"Medicalboard",thehealthcareorganizationappointedbythetrusteesofthe
85policeretirementboardandresponsibleforarrangingandpassinguponallmedical
86examinationsrequiredundertheprovisionsofsections86.200to86.366,whichshall
87investigateallessentialstatementsandcertificatesmadebyoronbehalfofamemberin
88connectionwithanapplicationfordisabilityretirementandshallreportinwritingtotheboard
89oftrusteesitsconclusionsandrecommendations;
90 (12)"Member",amemberoftheretirementsystemasdefinedbysections86.200to
9186.366;
HB147 3 92 (13)"Members'interest",interestonaccumulatedcontributionsatsuchrateasmaybe
93setfromtimetotimebytheboardoftrustees;
94 (14)"Membershipservice",serviceasapolicemanrenderedsincelastbecominga
95member,exceptinthecaseofamemberwhohasservedintheArmedForcesoftheUnited
96Statesandhassubsequentlybeenreinstatedasapoliceman,inwhichcase"membership
97service"meansserviceasapolicemanrenderedsincelastbecomingamemberpriorto
98enteringsucharmedservice;
99 (15)"Planyear"or"limitationyear",thetwelveconsecutive-monthperiodbeginning
100eachOctoberfirstandendingeachSeptemberthirtieth;
101 (16)"Policeman"or"policeofficer",anymemberofthepoliceforceofsuchcities
102whoholdsarankinsuchpoliceforce;
103 (17)"Priorservice",allserviceasapolicemanrenderedpriortothedatethesystem
104becomesoperativeorpriortomembershipservicewhichiscreditableinaccordancewiththe
105provisionsofsections86.200to86.366;
106 (18)"Reserveofficer",anymemberofthepolicereserveforceofsuchcities,armed
107orunarmed,whoworkslessthanfulltime,withoutcompensation,andwho,byhisorher
108assignedfunctionorasimpliedbyhisorheruniform,performsdutiesassociatedwiththose
109ofapoliceofficerandwhocurrentlyreceivesaserviceretirementasprovidedbysections
11086.200to86.366;
111 (19)"Retirementallowance",annualpaymentsforlifeasprovidedbysections86.200
112to86.366whichshallbepayableinequalmonthlyinstallmentsoranybenefitsinlieuthereof
113grantedtoamemberuponterminationofemploymentasapoliceofficerandactual
114retirement;
115 (20)"Retirementsystem",thepoliceretirementsystemofthecitiesasdefinedin
116sections86.200to86.366;
117 (21)"Survivingspouse",thesurvivingspouseofamemberwhowasthemember's
118spouseatthetimeofthemember'sdeath.
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