FIRSTREGULARSESSION
[PERFECTED]
HOUSEBILLNO.147
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEHOVIS.
0295H.01P JOSEPHENGLER,ChiefClerk
ANACT
Torepealsections70.630,70.655,70.680,70.690,70.745,70.746,70.747,86.200,87.140,
87.145,87.155,87.260,87.350,105.688,143.124,and169.490,RSMo,andtoenact
inlieuthereofnineteennewsectionsrelatingtoretirement.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections70.630,70.655,70.680,70.690,70.745,70.746,70.747,86.200,
287.140,87.145,87.155,87.260,87.350,105.688,143.124,and169.490,RSMo,arerepealed
3andnineteennewsectionsenactedinlieuthereof,tobeknownassections70.630,70.655,
470.680,70.690,70.745,70.746,70.747,70.748,86.200,87.140,87.145,87.155,87.260,
587.350,105.688,105.692,105.693,143.124,and169.490,toreadasfollows:
70.630.1.Themembershipofthesystemshallincludethefollowingpersons:
2 (1)Allemployeeswhoareneitherpolicemennorfiremenwhoareintheemployofa
3politicalsubdivisionthedayprecedingthedatesuchpoliticalsubdivisionbecomesan
4employerandwhocontinueinsuchemployonandaftersuchdateshallbecomemembersof
5thesystem.
6 (2)Allpersonswhobecomeemployedbyapoliticalsubdivisionasneitherpolicemen
7norfiremenonorafterthedatesuchpoliticalsubdivisionbecomesanemployershallbecome
8membersofthesystem.
9 (3)Ifhisemployingpoliticalsubdivisionhaselectedtocoverpresentandfuture
10policemen,allpolicemenwhoareintheemployofapoliticalsubdivisionthedaypreceding
11thedatesuchpoliticalsubdivisioncoverspolicemenhereunderandwhocontinueinsuch
12employasapolicemanonandaftersuchdate,andallpersonswhobecomeemployedbya
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 13politicalsubdivisionasapolicemanonorafterthedatethepoliticalsubdivisioncovers
14policemenshallbecomemembersofthesystem.
15 (4)Ifhisemployingpoliticalsubdivisionhaselectedtocoveronlyfuturepolicemen,
16allpersonswhobecomeemployedbyapoliticalsubdivisionasapolicemanonorafterthe
17datesuchpoliticalsubdivisioncoverspolicemenhereundershallbecomemembersofthe
18system.
19 (5)Ifhisemployingpoliticalsubdivisionhaselectedtocoverpresentandfuture
20firemen,allfiremenwhoareintheemployofapoliticalsubdivisionthedayprecedingthe
21datesuchpoliticalsubdivisioncoversfiremenhereunderandwhocontinueinsuchemployas
22afiremanonandaftersuchdate,andallpersonswhobecomeemployedbyapolitical
23subdivisionasafiremanonorafterthedatethepoliticalsubdivisioncoversfiremen
24hereundershallbecomemembersofthesystem.
25 (6)Ifhisemployingpoliticalsubdivisionhaselectedtocoveronlyfuturefiremen,all
26personswhobecomeemployedbyapoliticalsubdivisionasafiremanonorafterthedate
27suchpoliticalsubdivisioncoversfiremenhereundershallbecomemembersofthesystem.
28 2.[Innoeventshallanemployeebecomeamemberifcontinuousemploymentto
29timeofretirementwillleavetheemployeewithlessthanminimumnumberofyearsof
30creditedservicespecifiedinsection70.645.
31 3.]Inanycaseofquestionastothesystemmembershipstatusofanyperson,the
32boardshalldecidethequestion.
70.655.1.Uponamember'sretirementheorsheshallreceiveanallowanceforlifein
2accordancewiththeapplicablebenefitprogramelectedbythemember'semployer,as
3follows:
4 (1)BenefitprogramL-1.Amemberwithcreditedservicecoveredbybenefit
5programL-1shallreceiveanallowanceforlifeequaltoonepercentofthemember'sfinal
6averagesalarymultipliedbythenumberofyearsofsuchcreditedservice;
7 (2)BenefitprogramL-3.Amemberwithcreditedservicecoveredbybenefit
8programL-3shallreceiveanallowanceforlifeequaltooneandone-quarterpercentofthe
9member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
10 (3)BenefitprogramLT-4.Amemberwithcreditedservicecoveredbybenefit
11programLT-4shallreceiveanallowanceforlifeequaltoonepercentofthemember'sfinal
12averagesalarymultipliedbythenumberofyearsofsuchcreditedservice.Inaddition,ifsuch
13memberisretiringasprovidedinsection70.645orsection70.650orsection70.670,andif
14suchmember'sageatretirementisyoungerthanagesixty-two,thensuchmembershall
15receiveatemporaryallowanceequaltoonepercentofthemember'sfinalaveragesalary
16multipliedbythenumberofyearsofsuchcreditedservice.Suchtemporaryallowanceshall
HB147 2 17terminateattheendofthecalendarmonthinwhichtheearlierofthefollowingeventsoccurs:
18suchmember'sdeath;orthemember'sattainmentofagesixty-two;
19 (4)BenefitprogramLT-5.Amemberwithcreditedservicecoveredbybenefit
20programLT-5shallreceiveanallowanceforlifeequaltooneandone-quarterpercentofthe
21member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.In
22addition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650orsection
2370.670,andifsuchmember'sageatretirementisyoungerthanagesixty-two,thensuch
24membershallreceiveatemporaryallowanceequaltothree-quartersofonepercentofthe
25member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
26Suchtemporaryallowanceshallterminateattheendofthecalendarmonthinwhichthe
27earlierofthefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentof
28agesixty-two;
29 (5)BenefitprogramL-6.Amemberwithcreditedservicecoveredbybenefit
30programL-6shallreceiveanallowanceforlifeequaltotwopercentofthemember'sfinal
31averagesalarymultipliedbythenumberofyearsofsuchcreditedservice;
32 (6)BenefitprogramL-7.Amemberwithcreditedservicecoveredbybenefit
33programL-7shallreceiveanallowanceforlifeequaltooneandone-halfpercentofthe
34member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
35 (7)BenefitprogramLT-8.Amemberwithcreditedservicecoveredbybenefit
36programLT-8shallreceiveanallowanceforlifeequaltooneandone-halfpercentofthe
37member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.In
38addition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650orsection
3970.670,andifsuchmember'sageatretirementisyoungerthanagesixty-two,thensuch
40membershallreceiveatemporaryallowanceequaltoone-halfofonepercentofthemember's
41finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.Such
42temporaryallowanceshallterminateattheendofthecalendarmonthinwhichtheearlierof
43thefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentofagesixty-
44two;
45 (8)BenefitprogramLT-4(65).Amemberwithcreditedservicecoveredbybenefit
46programLT-4(65)shallreceiveanallowanceforlifeequaltoonepercentofthemember's
47finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.Inaddition,if
48suchmemberisretiringasprovidedinsection70.645orsection70.650orsection70.670,and
49ifsuchmember'sageatretirementisyoungerthanagesixty-five,thensuchmembershall
50receiveatemporaryallowanceequaltoonepercentofthemember'sfinalaveragesalary
51multipliedbythenumberofyearsofsuchcreditedservice.Suchtemporaryallowanceshall
52terminateattheendofthecalendarmonthinwhichtheearlierofthefollowingeventsoccurs:
53suchmember'sdeath;orthemember'sattainmentofagesixty-five;
HB147 3 54 (9)BenefitprogramLT-5(65).Amemberwithcreditedservicecoveredbybenefit
55programLT-5(65)shallreceiveanallowanceforlifeequaltooneandone-quarterpercentof
56themember'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
57Inaddition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650or
58section70.670,andifsuchmember'sageatretirementisyoungerthanagesixty-five,then
59suchmembershallreceiveatemporaryallowanceequaltothree-quartersofonepercentof
60themember'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
61Suchtemporaryallowanceshallterminateattheendofthecalendarmonthinwhichthe
62earlierofthefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentof
63agesixty-five;
64 (10)BenefitprogramLT-8(65).Amemberwithcreditedservicecoveredbybenefit
65programLT-8(65)shallreceiveanallowanceforlifeequaltooneandone-halfpercentofthe
66member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.In
67addition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650orsection
6870.670,andifsuchmember'sageatretirementisyoungerthanagesixty-five,thensuch
69membershallreceiveatemporaryallowanceequaltoone-halfofonepercentofthemember's
70finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.Such
71temporaryallowanceshallterminateattheendofthecalendarmonthinwhichtheearlierof
72thefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentofagesixty-
73five;
74 (11)BenefitprogramL-9.Amemberwithcreditedservicecoveredbybenefit
75programL-9shallreceiveanallowanceforlifeequaltooneandsix-tenthspercentofthe
76member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
77 (12)BenefitprogramLT-10(65).Amemberwithcreditedservicecoveredbybenefit
78programLT-10(65)shallreceiveanallowanceforlifeequaltooneandsix-tenthspercentof
79themembers'finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
80Inaddition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650or
81section70.670,andifsuchmember'sageatretirementisyoungerthanagesixty-five,then
82suchmembershallreceiveatemporaryallowanceequaltofour-tenthsofonepercentofthe
83member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
84Suchtemporaryallowanceshallterminateattheendofthecalendarmonthinwhichthe
85earlierofthefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentof
86agesixty-five;
87 (13)BenefitprogramL-11.BenefitprogramL-11maycoveremploymentina
88positiononlyifsuchpositionisnotconcurrentlycoveredbyfederalSocialSecurity;in
89addition,ifsuchpositionwaspreviouslycoveredbyfederalSocialSecurity,benefitprogram
90L-11maycoveronlyemploymentrenderedaftercessationoffederalSocialSecurity
HB147 4 91coverage.AmemberwithcreditedservicecoveredbybenefitprogramL-11shallreceivean
92allowanceforlifeequaltotwoandone-halfpercentofthemember'sfinalaveragesalary
93multipliedbythenumberofyearsofsuchcreditedservice;
94 (14)BenefitprogramL-12.Amemberwithcreditedservicecoveredbybenefit
95programL-12shallreceiveanallowanceforlifeequaltooneandthree-quarterpercentofthe
96member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
97 (15)BenefitprogramLT-14(65).Amemberwithcreditedservicecoveredbybenefit
98programLT-14(65)shallreceiveanallowanceforlifeequaltooneandthree-quarterpercent
99ofthemember'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcredited
100service.Inaddition,ifsuchmemberisretiringasprovidedinsection70.645,70.650,or
10170.670,thensuchmembershallreceiveatemporaryallowanceequaltoone-quarterofone
102percentofthemember'sfinalaveragesalarymultipliedbythenumberofyearsofsuch
103creditedservice.Suchtemporaryallowanceshallterminateattheendofthecalendarmonth
104inwhichtheearlierofthefollowingeventsoccurs:suchmember'sdeathorthemember's
105attainmentofagesixty-five.
106 2.Ifeachportionofamember'screditedserviceisnotcoveredbythesamebenefit
107program,thenthemember'stotalallowanceforlifeshallbethetotaloftheallowanceforlife
108determinedundereachapplicablebenefitprogram.
109 3.Eachemployershallhavethecreditedserviceofeachofitsmemberscoveredby
110benefitprogramL-1providedforinthissectionunlesssuchemployershallhaveelected
111anotherbenefitprogramprovidedforinthissection.
112 4.Exceptasotherwiseprovidedinthissubsection,eachpoliticalsubdivision,by
113majorityvoteofitsgoverningbody,mayelectfromtimetotimetocoveritsmembers,whose
114politicalsubdivisionemploymentisconcurrentlycoveredbyfederalSocialSecurity,under
115oneofthebenefitprogramsprovidedforinthissection.Eachpoliticalsubdivision,by
116majorityvoteofitsgoverningbody,mayelectfromtimetotimetocoveritsmembers,whose
117politicalsubdivisionemploymentisnotconcurrentlycoveredbyfederalSocialSecurity,
118underoneofthebenefitprogramsprovidedforinthissection.Theclerkorsecretaryofthe
119politicalsubdivisionshallcertifytheelectionofthebenefitprogramtotheboardwithinten
120daysaftersuchvote.Theeffectivedateofthepoliticalsubdivision'sbenefitprogramisthe
121firstdayofthecalendarmonthspecifiedbysuchgoverningbody,orthefirstdayofthe
122calendarmonthnextfollowingreceiptbytheboardofthecertificationofelectionofbenefit
123program,ortheeffectivedateofthepoliticalsubdivisionbecominganemployer,whichever
124isthelatest.Suchelectionofbenefitprogrammaybechangedfromtimetotimebysuch
125vote,butnotmoreoftenthanbiennially.Ifsuchchangedbenefitprogramprovideslarger
126allowancesthanthebenefitprogrampreviouslyineffect,thensuchlargerbenefitprogram
127shallbeapplicabletothepastandfutureemploymentwiththeemployerbypresentandfuture
HB147 5 128employees.Ifsuchchangedbenefitprogramprovidessmallerallowancesthanthebenefit
129programpreviouslyineffect,thensuchchangedbenefitprogramshallbeapplicableonlyto
130creditedserviceforemploymentrenderedfromandaftertheeffectivedateofsuchchange.
131AfterAugust28,1994,politicalsubdivisionsshallnotelectcoverageunderbenefitprogram
132LT-4,benefitprogramLT-5,orbenefitprogramLT-8.AfterAugust28,2005,political
133subdivisionsshallnotelectcoverageunderbenefitprogramL-9orbenefitprogramLT-10
134(65).
135 5.Shouldanemployerchangeitselectionofbenefitprogramasprovidedinthis
136section,theemployercontributionsshallbecorrespondinglychangedeffectivethesamedate
137asthebenefitprogramchange.
138 6.Thelimitationonincreasesinanemployer'scontributionprovidedbysubsection6
139ofsection70.730shallnotapplytoanycontributionincreaseresultingfromanemployer
140electingabenefitprogramwhichprovideslargerallowances.
141 7.Subjecttotheprovisionsofsubsections8and9[and10]ofthissection,foran
142allowancebecomingeffectiveonSeptember28,1975,orlater,andbeginningwiththe
143Octoberfirstwhichisatleasttwelvefullmonthsaftertheeffectivedateoftheallowance,the
144amountoftheallowanceshallberedeterminedeffectiveeachOctoberfirstandsuch
145redeterminedamountshallbepayablefortheensuingyear.Subjecttothelimitationsstated
146inthenextsentence,suchredeterminedamountshallbetheamountoftheallowance
147otherwisepayablemultipliedbythefollowingpercent:onehundredpercent,plustwopercent
148foreachfullyear(excludinganyfractionofayear)intheperiodfromtheeffectivedateofthe
149allowancetothecurrentOctoberfirst.Innoeventshallsuchredeterminedamount(1)beless
150thantheamountoftheallowanceotherwisepayablenor(2)bemorethantheamountofthe
151allowanceotherwisepayablemultipliedbythefollowingfraction:thenumeratorshallbethe
152ConsumerPriceIndexforthemonthofJuneimmediatelyprecedingsuchOctoberfirst(butin
153noeventanamountlessthanthedenominatorbelow)andthedenominatorshallbethe
154ConsumerPriceIndexforthemonthofJuneimmediatelyprecedingtheeffectivedateofthe
155allowance.Asusedherein,"ConsumerPriceIndex"meansameasureoftheConsumerPrice
156Index[forUrbanWageEarnersandClericalWorkers,] asdeterminedbytheUnitedStates
157DepartmentofLaborandadoptedbytheboardoftrustees[ineffectJanuary1,1975;
158provided,shouldsuchConsumerPriceIndexberestructuredsubsequentto1974inamanner
159materiallychangingitscharacter,theboardshallchangetheapplicationoftheConsumer
160PriceIndexsothatasfarasispracticablethe1975intentoftheuseoftheConsumerPrice
161Indexshallbecontinued]. Asusedherein"theamountoftheallowanceotherwisepayable"
162meanstheamountoftheallowancewhichwouldbepayablewithoutregardtothese
163provisionsredeterminingallowanceamountsafterretirement.
HB147 6 164 8.[Subjecttotheprovisionsofsubsections9and10ofthissection,foranallowance
165becomingeffectiveonSeptember28,1975,orlater,themaximumallowancepayableunder
166theprovisionsofsection70.685shallberedeterminedeachOctoberfirstinthesamemanner
167asanallowanceisredeterminedundertheprovisionsofsubsection7ofthissection.
168 9.](1)Thesystemestablishesreservesforthepaymentoffutureallowancesto
169retirantsandbeneficiaries.Shouldtheboarddetermine,afterconsultingwiththeactuary,that
170theestablishedreservesaremorethansufficienttoprovidesuchallowances,theboardmay
171increasetheannualincreaserateprovidedforin[subsections] subsection7[and8]ofthis
172section,asitappliestoanyallowancepayable,butinnoeventshallthetotalofall
173redeterminedamountsasofOctoberfirstofanyyearbegreaterthanonehundredfourpercent
174oftheallowanceswhichwouldhavebeenpayablethatOctoberfirstwithoutsuch
175redeterminations;provided,asofanyredeterminationdatethesameannualincreaserateshall
176beappliedtoallallowanceswitheffectivedatesintherangeofNovemberfirsttoOctober
177firstofthefollowingyear.Theboardmayextendtheprovisionsof[subsections] subsection
1787[and8]ofthissectiontoallowanceswhichbecameeffectivebeforeSeptember28,1975;
179providedsuchanactionbytheboardshallnotincreaseanemployercontributionratethenin
180effect;
181 (2)AfterAugust28,1993,theannualincreaserateestablishedbythissubsection
182shallbeacompoundrate,compoundedannually,andthefourpercentannualmaximumrate
183shallalsobeacompoundrate,compoundedannually;provided,theuseofsuchcompounding
184shallnotbeginuntilOctober1,1993,andshallnotaffectredeterminationsmadepriortothat
185date.
186 [10.]9.Shouldtheboarddeterminethattheprovisionsofsubsections7[,8]and[9]8
187ofthissectionarejeopardizingthefinancialsolvencyofthesystem,theboardshallsuspend
188theseprovisionsredeterminingallowanceamountsafterretirementforsuchperiodsoftimeas
189theboarddeemsappropriate.
70.680.1.Anymemberinservicewithfiveormoreyearsofcreditedservicewho
2hasnotattainedtheageandservicerequirementsofsection70.645andwhobecomestotally
3andpermanentlyphysicallyormentallyincapacitatedforhisdutyasanemployee,asthe
4resultofapersonalinjuryordisease,mayberetiredbytheboarduponwrittenapplication
5filedwiththeboardbyoronbehalfofthemember;provided,thatafteramedicalexamination
6ofsuchmembermadebyorunderthedirectionofamedicalcommitteeconsistingofthree
7physicians,oneofwhomshallbeselectedbytheboard,onebyoronbehalfofsuchmember,
8andthethirdbythefirsttwophysicianssonamed,themedicalcommitteereportstothe
9board,bymajorityopinioninwriting,thatsuchmemberisphysicallyormentallytotally
10incapacitatedforthefurtherperformanceofduty,thatsuchincapacitywillprobablybe
11permanentandthatsuchmembershouldberetired.
HB147 7 12 2.Upondisabilityretirement,asprovidedinsubsection1ofthissection,amember
13shallreceiveanallowanceforlifeprovidedforinsection70.655andshallhavetherightto
14electanoptionprovidedforinsection70.660.Hisorherdisabilityretirementandallowance
15shallbesubjecttotheprovisionsofsubsection5ofthissection[andtotheprovisionsof
16section70.685].
17 3.Anymemberinservicewhobecomestotallyandpermanentlyphysicallyor
18mentallyincapacitatedforhisdutyasanemployee,asthenaturalandproximateresultofa
19personalinjuryordiseasewhichtheboardfindstohavearisenoutofandinthecourseofhis
20actualperformanceofdutyasanemployee,mayberetiredbytheboarduponwritten
21applicationfiledwiththeboardbyoronbehalfofthemember;provided,thatafteramedical
22examinationofsuchmembermadebyorunderthedirectionofamedicalcommittee
23consistingofthreephysicians,oneofwhomshallbeselectedbytheboard,onebyoron
24behalfofsuchmember,andthethirdbythefirsttwophysicianssonamed,themedical
25committeereportstotheboard,bymajorityopinioninwriting,thatsuchmemberis
26physicallyormentallytotallyincapacitatedforthefurtherperformanceofduty,thatsuch
27incapacitywillprobablybepermanent,andthatsuchmembershouldberetired.
28 4.Upondisabilityretirementasprovidedinsubsection3ofthissection,amember
29shallreceiveanallowanceforlifeprovidedforinsection70.655;provided,thatforthesole
30purposeofcomputingtheamountofsuchallowance,heorsheshallbegivencreditedservice
31fortheperiodfromthedateofhisorherdisabilityretirementtothedateheorshewould
32attainagesixty.Heorsheshallhavetherighttoelectanoptionprovidedforinsection
3370.660.Hisorherdisabilityretirementandallowanceshallbesubjecttotheprovisionsof
34subsection5ofthissection[andtotheprovisionsofsection70.685].
35 5.Atleastonceeachyearduringthefirstfiveyearsfollowingamember'sretirement
36onaccountofdisability,andatleastonceineachthree-yearperiodthereafter,theboardshall
37requireanydisabilityretirantwhohasnotattainedhisminimumserviceretirementageto
38undergoamedicalexaminationtobemadebyaphysiciandesignatedbytheboard.Ifthe
39retirantrefusestosubmittomedicalexaminationinanysuchperiod,hisdisabilityallowance
40shallbesuspendedbytheboarduntilhiswithdrawalofsuchrefusal.Ifsuchrefusalcontinues
41foroneyear,allhisrightsinandtoadisabilityallowanceshallberevokedbytheboard.If,
42uponmedicalexaminationoftheretirant,thephysicianreportstotheboardthattheretirantis
43physicallyandmentallyableandcapableofresuminghisdutyasanemployeeintheposition
44heldbyhimatthetimeofhisdisabilityretirement,thentheboardshall,ifdemandedbythe
45retirant,arrangeafurthermedicalexaminationofsuchmembermadebyorunderthe
46directionofamedicalcommitteeconsistingofthreephysicians,oneofwhomshallbe
47selectedbytheboard,onebyoronbehalfofthemember,andthethirdbythefirsttwo
48physiciansnamed.Shouldthemedicalcommitteeconcur,bymajorityopinioninwritingto
HB147 8 49theboard,thedisabilityretirantiscapableofresumptionofduty,hisdisabilityretirement
50shallterminateandheshallbereturnedtodutyandheshallimmediatelyagainbecomea
51memberofthesystem,hiscreditedserviceatthetimeofdisabilityretirementshallbe
52restoredtohiscredit,andtheamountofhisaccumulatedcontributionsatthetimeofhis
53disabilityretirementshallberestoredtohiscreditinthemembersdepositfund.Ifhewasin
54receiptofadutydisabilityallowanceprovidedforinsubsection3ofthissection,heshallalso
55begivenservicecreditfortheperiodhewasinreceiptofthedutydisabilityallowance.
70.690.1.Intheeventamemberceasestobeamemberotherthanbydeathbefore
2thedatehebecomesentitledtoretirewithanallowancepayablebythesystem,heshallbe
3paid,uponhiswrittenapplicationfiledwiththeboard,hisaccumulatedcontributionsstanding
4tohiscreditinthemembersdepositfund.
5 2.Intheeventamemberdies,andnoallowancebecomesorwillbecomepayableby
6thesystemonaccountofhisdeath,hisaccumulatedcontributionsstandingtohiscreditinthe
7membersdepositfundatthetimeofhisdeathshallbepaidtosuchpersonorpersonsashe
8shallhavenominatedbywrittendesignationdulyexecutedandfiledwiththeboard.Ifthere
9benosuchdesignatedpersonorpersonssurvivingsuchmember,suchaccumulated
10contributionsshallbepaidtohissurvivingspouse,ortohisestateifthereisnosurviving
11spouse.
12 3.Intheeventamember'smembershipinthesystemterminates,andnoallowance
13becomesorwillbecomepayableonhisaccount,anyaccumulatedcontributionsstandingto
14hiscreditinthemembersdepositfundunclaimedbysuchmemberorhislegalrepresentative
15within[three] tenyearsafterthedatehismembershipterminated,shallbetransferredtothe
16income-expensefund.Ifthereafterproperapplicationismadeforsuchaccumulated
17contributions,theboardshallpaythemfromtheincome-expensefund,butwithoutinterest
18afterthedatepaymentwasfirstdue.
70.745.1.Theboardshallbethetrusteesofthefundsofthesystem.Subjecttothe
2provisionsofanyapplicablefederalorstatelaws,theboardshallhavefullpowertoinvest
3andreinvestthemoneysofthesystem,andtohold,purchase,sell,assign,transferordispose
4ofanyofthesecuritiesandinvestmentsinwhichsuchmoneysshallhavebeeninvested,as
5wellastheproceedsofsuchinvestmentsandsuchmoneys.
6 2.Theboardoftrusteesmaydeliberateabout,ormaketentativeorfinal
7decisionson,investmentsorotherfinancialmattersinaclosedmeetingunderchapter
8610ifdisclosureofthedeliberationsordecisionswouldjeopardizetheabilityto
9implementadecisionortoachieveinvestmentobjectives.Arecordoftheretirement
10systemthatdisclosesdeliberationsabout,oratentativedecisionon,investmentsor
11otherfinancialmattersisnotapublicrecordunderchapter610totheextentandsolong
HB147 9 12asitsdisclosurewouldjeopardizetheabilitytoimplementadecisionortoachieve
13investmentobjectives.
70.746.Notwithstandinganyotherprovisionoflawtothecontrary,theboardof
2trusteesmaydelegatetoitsdulyappointedinvestmentcounselorauthoritytoactinplaceof
3theboardintheinvestmentandreinvestmentofallorpartofthemoneysofthesystem,and
4mayalsodelegatetosuchcounselortheauthoritytoactinplaceoftheboardintheholding,
5purchasing,selling,assigning,transferring,ordisposingofanyorallofthesecuritiesand
6investmentsinwhichsuchmoneysshallhavebeeninvested,aswellastheproceedsofsuch
7investmentsandsuchmoneys.[Suchinvestmentcounselorshallberegisteredasan
8investmentadvisorwiththeUnitedStatesSecuritiesandExchangeCommission.] In
9exercisingordelegatingitsinvestmentpowersandauthority,membersoftheboardshall
10exerciseordinarybusinesscareandprudenceunderthefactsandcircumstancesprevailingat
11thetimeoftheactionordecision.Insodoing,theboardshallconsiderthelong-andshort-
12termneedsofthesystemincarryingoutitspurposes,thesystem'spresentandanticipated
13financialrequirements,theexpectedtotalreturnonthesystem'sinvestment,general
14economicconditions,income,growth,long-termnetappreciation,andprobablesafetyof
15funds.Nomemberoftheboardshallbeliableforanyactiontakenoromittedwithrespectto
16theexerciseofordelegationofthesepowersandauthorityifsuchmembershallhave
17dischargedthedutiesofhisorherpositioningoodfaithandwiththatdegreeofdiligence,
18care,andskillwhichprudentmenandwomenwouldordinarilyexerciseundersimilar
19circumstancesinalikeposition.
70.747.Notwithstandinganyotherprovisionoflawtothecontrary,theboardshall
2havefullpowertoinvestandreinvestthefundsandmoneysofthesysteminimprovedreal
3estate,includingcollectiverealestatefundsandrealestateinvestmenttrusts,wherever
4situated[; provided,however,thatnotmorethanone-tenthofthefundsandmoneysofthe
5systematthetimeofsuchinvestmentshallbesoinvested].
70.748.1.Notwithstandingtheprovisionsofsection105.662tothecontrary,the
2boardmaysetupandmaintainalocalgovernmentemployeeretirementsystemsof
3Missouriinvestmentfundaccountinwhichinvestmentandreinvestmentofallorpart
4ofthemoneysoftheretirementsystemmaybeplacedandbeavailableforinvestment
5purposes.
6 2.Forthepurposeofinvestingthefundsoftheretirementsystem,thefundsmay
7becombinedwiththefundsofanyretirementplanthatisadministeredbythe
8retirementsystemundersection70.621andanyretirementplanestablishedforthe
9purposeofprovidingbenefitsforemployeesofthesystem,butthefundsofeachplan
10shallbeaccountedforseparatelyandforallotherreportingpurposesshallbeseparate.
HB147 10 11 3.Theboardoftrusteesmaypromulgatesuchrulesandregulationsconsistent
12withtheprovisionsofthissectionasdeemednecessaryforitsproperadministration,
13pursuanttotheprovisionsofthissectionandthischapter.Anyruleorportionofarule,
14asthattermisdefinedinsection536.010,thatiscreatedundertheauthoritydelegated
15inthissectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
16provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter
17536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
18pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
19arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
20andanyruleproposedoradoptedafterAugust28,2025,shallbeinvalidandvoid.
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
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
HB147 11 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;
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
HB147 12 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;
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;
HB147 13 101 (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.
87.140.1.Thegeneraladministrationandtheresponsibilityfortheproperoperation
2oftheretirementsystemshallbevestedinaboardoftrusteesofninepersons.Theboardshall
3beconstitutedasfollows:
4 (1)Thechiefofthefiredepartmentofthecity,exofficio;
5 (2)Thecomptrollerordeputycomptrollerofthecity,exofficio;
6 (3)Twomemberstobeappointedbythemayorofthecitytoserveforatermoftwo
7years;
8 (4)Threememberstobeelectedbythemembersoftheretirementsystemforaterm
9ofthreeyearswhoshallbemembersofthesystemandholdofficeonlywhilemembersofthe
10system;
11 (5)Twomemberswhoshallberetiredfirementobeelectedbytheretiredfiremenof
12thecityandwhoshallholdofficeforatermofthreeyears.
13 2.Ifavacancyoccursintheofficeoftrustee,thevacancyshallbefilledforthe
14unexpiredterminthesamemannerastheofficewaspreviouslyfilled.
15 3.Thetrusteesshallservewithoutcompensation,buttheyshallbereimbursedfrom
16theexpensefundforallnecessaryexpenseswhichtheymayincurthroughserviceonthe
17board.
18 4.Eachtrusteeshall,withintendaysafterhisappointmentorelection,takeanoathof
19officebeforetheclerkofcircuitcourtofthecity,that,sofarasitdevolvesuponhim,hewill
HB147 14 20diligentlyandhonestlyadministertheaffairsoftheboardandthathewillnotknowingly
21violateorwillinglypermittobeviolatedanyoftheprovisionsofthelawapplicabletothe
22retirementsystem.Theoathshallbesubscribedtobythemembermakingitandcertifiedby
23theclerkofcircuitcourtandfiledinhisoffice.
24 5.Eachtrusteeshallbeentitledtoonevoteontheboard.Fivevotesshallbe
25necessaryforadecisionbythetrusteesatanymeetingoftheboard.
26 6.Notwithstandinganyprovisionofsections87.120to87.371tothecontrary,the
27boardoftrusteesoftheretirementsystemshallnotbepreventedfromsimultaneously
28actingasthetrusteesofanyotherpensionplanthatprovidesretirement,disability,and
29deathbenefitsforfirefightersemployedbyanycitynotwithinacountyandthe
30firefighters'covereddependents.Theadministrationoftheotherpensionplanshallbe
31inaccordancewiththetermsofsuchpensionplan.Nothinginthissubsectionshall
32preventtheboardofaldermenofacitynotwithinacountyfromadoptingordinancesto
33governthepensioningoffirefightersandsuchfirefighters'covereddependentsinany
34otherpensionplansimultaneouslyadministeredbytheboardoftrusteesofthe
35retirementsystem.
87.145.Theboardoftrusteesshallhaveexclusiveoriginaljurisdictioninallmatters
2relatingtooraffectingthefundshereinprovidedfor,including,inadditiontoallother
3matters,allclaimsforbenefitsandrefundsunderthislaw,anditsaction,decisionor
4determinationinanymattershallbereviewableunderchapter536only,andanypartytothe
5proceedingsshallhavearightofappealfromthedecisionofthereviewingcourt.Subjectto
6thelimitationsofsections87.120to87.370,theboardoftrusteesshall,fromtimetotime,
7establishrulesandregulationsfortheadministrationoffundscreatedbythislaw,forthe
8transactionofitsbusiness,andforthelimitationofthetimewithinwhichclaimsmaybefiled.
9Theadministrationofanypensionplanotherthantheretirementsystemincludesthe
10abilityoftheboardoftrustees,fromtimetotime,toestablishrulesandregulationsfor
11theadministrationoffundsofsuchotherpensionplanandforthetransactionofsuch
12otherpensionplan'sbusiness.Nothinginthissectionshallpreventtheboardof
13aldermenofacitynotwithinacountyfromadoptingordinancestogovernthe
14pensioningoffirefightersandsuchfirefighters'covereddependentsinanyotherpension
15plansimultaneouslyadministeredbytheboardoftrusteesoftheretirementsystem.
87.155.1.Theboardoftrusteesshallkeepinconvenientformsuchdataasis
2necessaryforactuarialvaluationofthefundsoftheretirementsystemandforcheckingthe
3experienceofthesystem.
4 2.Theboardoftrusteesshallkeeparecordofallitsproceedingswhichshallbeopen
5topublicinspection.Itshallpublishannuallyareportshowingthefiscaltransactionsofthe
6retirementsystemfortheprecedingfiscalyear,theamountoftheaccumulatedcashand
HB147 15 7securitiesofthesystem,andthelastbalancesheetshowingthefinancialconditionofthe
8systembymeansofanactuarialvaluationoftheassetsandliabilitiesoftheretirement
9system.
10 3.Totheextenttheboardoftrusteesadministersapensionplanotherthanthe
11retirementsystem,theboardoftrusteesshallmaintainseparaterecordsofall
12proceedingsofsuchotherpensionplan.
87.260.Theboardoftrusteesofthefirefighters'retirementsystemshallhavethe
2exclusiveauthorityanddiscretiontoinvestandreinvestthefundsinpropertyofanykind,real
3orpersonal.Theboardoftrusteesshallinvestandmanagethefundasaprudentinvestor
4would,byconsideringthepurposes,terms,distributionrequirements,andothercircumstances
5ofthefirefighters'retirementsystem.Insatisfyingthisstandard,theboardoftrusteesshall
6exercisereasonablecare,skill,andcaution.Notrusteeshallhaveanyinterestasatrusteein
7thegainsorprofitsmadeonanyinvestment,exceptbenefitsfrominterestininvestments
8commontoallmembersoftheplan,ifentitledthereto.Totheextenttheboardoftrustees
9administersapensionplanotherthantheretirementsystem,theboardoftrusteesshall
10alsohavetheauthorityanddiscretiontoinvestandreinvestthefundsofsuchother
11pensionplaninpropertyofanykind,realorpersonal.Theboardoftrusteesmay
12choosetoinvestthefundsoftheretirementsystemandthefundsoftheotherpension
13planinthesameinvestmentssolongastheamountsinvestedandthegains,profits,or
14lossesonsuchinvestmentsareaccountedforseparately.Nobenefitsduetothe
15firefightersorsuchfirefighters'covereddependentsfromtheotherpensionplanshall
16bepaidfromthefundsoftheretirementsystem.Nothinginthissectionshallprevent
17theboardofaldermenofacitynotwithinacountyfromadoptingordinancestogovern
18thepensioningoffirefightersandsuchfirefighters'covereddependentsinanyother
19pensionplansimultaneouslyadministeredbytheboardoftrusteesoftheretirement
20system.
87.350.Theexpensefundshallbethefundtowhichshallbecreditedallmoney
2providedtopaytheadministrationexpensesoftheretirementsystemandfromwhichshallbe
3paidalltheexpensesnecessaryinconnectionwiththeadministrationandoperationofthe
4system.Annuallytheboardoftrusteesshallestimatetheamountofmoneynecessarytobe
5paidintotheexpensefundduringtheensuingyeartoprovidefortheexpenseofoperationof
6theretirementsystem.Suchestimateshallbeprovidedbytheboardoftrusteesfrominterest
7andotherearningsonassetsoftheretirementsystem.Innoeventshallanyexpenses,
8includingadministrativeexpenses,incurredbytheboardoftrusteesinthe
9administrationofanypensionplanotherthantheretirementsystemorinthe
10investmentofanyfundsofanypensionplanotherthantheretirementsystembepaid
HB147 16 11fromthefundsoftheretirementsystem.Suchexpensesshallbepaidentirelyfromthe
12fundsoftheotherpensionplan.
105.688.Theassetsofasystemmaybeinvested,reinvestedandmanagedbyan
2investmentfiduciarysubjecttotheterms,conditionsandlimitationsprovidedinsections
3105.687to105.689.Aninvestmentfiduciaryshalldischargehisorherdutiesintheinterest
4oftheparticipantsinthesystemandtheirbeneficiariesandshall:
5 (1)Actwiththesamecare,skill,prudence,anddiligenceunderthecircumstances
6thenprevailingthataprudentpersonactinginasimilarcapacityandfamiliarwiththose
7matterswoulduseintheconductofasimilarenterprisewithsimilaraims;
8 (2)Actwithdueregardforthemanagement,reputation,andstabilityoftheissuerand
9thecharacteroftheparticularinvestmentsbeingconsidered;
10 (3)Makeinvestmentsforthepurposesofprovidingbenefitstoparticipantsand
11participants'beneficiaries,andofdefrayingreasonableexpensesofinvestingtheassetsofthe
12system;
13 (4)Giveappropriateconsiderationtothosefactsandcircumstancesthatthe
14investmentfiduciaryknowsorshouldknowarerelevanttotheparticularinvestmentor
15investmentcourseofactioninvolved,includingtheroleoftheinvestmentorinvestment
16courseofactionplaysinthatportionofthesystem'sinvestmentsforwhichtheinvestment
17fiduciaryhasresponsibility.Forpurposesofthissubdivision,"appropriateconsideration"
18shallinclude,butisnotnecessarilylimitedtoadeterminationbytheinvestmentfiduciarythat
19aparticularinvestmentorinvestmentcourseofactionisreasonablydesigned,aspartofthe
20investmentsofthesystem,tofurtherthepurposesofthesystem,takingintoconsiderationthe
21riskoflossandtheopportunityforgainorotherreturnassociatedwiththeinvestmentor
22investmentcourseofaction;andconsiderationofthefollowingfactorsastheyrelatetothe
23investmentorinvestmentcourseofaction:
24 (a)Thediversificationoftheinvestmentsofthesystem;
25 (b)Theliquidityandcurrentreturnoftheinvestmentsofthesystemrelativetothe
26anticipatedcashflowrequirementsofthesystem;and
27 (c)Theprojectedreturnoftheinvestmentsofthesystemrelativetothefunding
28objectivesofthesystem;
29 (5)Giveappropriateconsiderationtoinvestmentswhichwouldenhancethegeneral
30welfareofthisstateanditscitizensifthoseinvestmentsofferthesafetyandrateofreturn
31comparabletootherinvestmentsavailabletotheinvestmentfiduciaryatthetimethe
32investmentdecisionismade;
33 (6)Notbeprohibitedfromclosingrecordstotheextentthatsuchrecordsrelate
34toinformationsubmittedbyanindividual,corporation,orotherbusinessentityin
HB147 17 35connectionwithinvestmentsinorfinancialtransactionswithbusinessentitiesfor
36investmentpurposes;
37 (7)Notconsiderenvironmental,social,orgovernancecharacteristicsina
38mannerthatwouldoverridehisorherfiduciarydutiesasdefinedinthissection;
39 (8)Notbesubjecttoanylegislative,regulatory,orothermandatestoinvestwith
40environmentally,socially,orothernoneconomicallymotivatedinfluenceunlesstheyare
41consistentwiththefiduciary'sresponsibilityasprovidedinthissectionorasprovidedin
42thesystem’sgoverningstatuteswithrespecttotheinvestmentofsystemassetsorother
43dutiesimposedbylawrelatingtotheinvestment,management,deposit,orcustodyof
44systemassets;and
45 (9)Notbesubjecttoanylegislative,regulatory,orothermandatesfor
46divestmentfromanyindirectholdingsinactivelyorpassivelymanagedinvestment
47fundsorinprivateassets.
105.692.1.Allsharesofcommonstockhelddirectlybyasystem,asdefined
2undersection105.687,shallbevotedsolelyintheeconomicinterestofplanparticipants.
3Votingsharesforthepurposesoffurtheringnoneconomicenvironmental,social,
4political,ideological,orothergoalsisprohibited.
5 2.Asystemshallvoteallproxiesassociatedwithitsdirectlyheldsharesof
6commonstockbyoneofthefollowingmethods:
7 (1)Byinternalsystemstaff;or
8 (2)Byaninvestmentmanagerorproxyvotingserviceproviderwhohas
9committedinwritingtovotethesharespursuanttoproxyvotingguidelineschosenby
10thesystemorhascommittedinwritingtovotethesharesinamannerconsistentwith
11theobligationtoactsolelyintheeconomicinterestofplanparticipants.
105.693.1.Asusedinthissection,thefollowingtermsmean:
2 (1)"Board",thegoverningboardordecision-makingbodyofasystemthatis
3authorizedbylawtoadministerthesystem;
4 (2)"Control":
5 (a)ThesamemeaningassuchtermisdefinedintheInvestmentCompanyActof
61940,15U.S.C.Section80a–2(a);or
7 (b)Involvementinanentity'sgovernancestructure,monitoring,orinternal
8humanresourcesdecisionsconsistentwiththeobjectivessetoutintheOpinionon
9StrengtheningtheUnitedFrontWorkofthePrivateEconomyintheNewEraissuedby
10theGeneralOfficeoftheCentralCommitteeoftheChineseCommunistParty(2020)or
11asuccessororsimilardocument;
12 (3)"Divest",asale,redemption,replacement,oranyotheractivitythat
13terminatesaninvestment;
HB147 18 14 (4)"Fund",theretirementbenefitfundofasystem;
15 (5)"Investment",anyinvestment,assuchtermisdefinedinsection105.687,
16thattheboardorsystemisauthorizedtomake;
17 (6)"Person",anindividualorentity;
18 (7)"Restrictedentity",thefollowing,includingwholly-ownedsubsidiaries,
19majority-ownedsubsidiaries,parentcompanies,andaffiliatesthatexistforprofit-
20makingpurposes:
21 (a)Anyperson,otherthanaU.S.person,astheterm"U.S.person"isdefinedin
2215CFR772.1,thatisidentifiedforthePeople'sRepublicofChinaontheEntityList,
23SupplementNo.4to15CFR744,asapersonreasonablybelievedtobeinvolved,orto
24poseasignificantriskofbeingorbecominginvolved,inactivitiescontrarytothe
25nationalsecurityorforeignpolicyinterestsoftheUnitedStatesuntiltheEnd-User
26ReviewCommitteeoftheBureauofIndustryandSecurityintheUnitedStates
27DepartmentofCommercedeterminesthatthepersonnolongermeetsthatcriteriaand
28removesthepersonfromthelist;
29 (b)Anypersonthat:
30 a.TheUnitedStatesSecretaryofDefensehaslistedasaCommunistChinese
31militarycompanyoperatingdirectlyorindirectlyintheUnitedStatesorinanyofits
32territoriesorpossessionsunderSection1237oftheStromThurmondNationalDefense
33AuthorizationActofFiscalYear1999,P.L.105-261,asamendedbySection1233ofP.L.
34106-398andSection1222ofP.L.108-375,50U.S.C.Section1701note,untilsuchtimeas
35theUnitedStatesSecretaryofDefenseremovesthepersonfromsuchlist;
36 b.TheUnitedStatesSecretaryofDefense,inconsultationwiththeUnitedStates
37SecretaryoftheTreasury,determinesisaCommunistChinesemilitarycompany
38operatingdirectlyorindirectlyintheUnitedStatesorinanyofitsterritoriesor
39possessionsandthereforelistsassuchunderSection1237oftheStromThurmond
40NationalDefenseAuthorizationActofFiscalYear1999,P.L.105-261,asamendedby
41Section1233ofP.L.106-398andSection1222ofP.L.108-375,50U.S.C.Section1701
42note,untilsuchtimeastheUnitedStatesSecretaryofDefenseremovesthepersonfrom
43suchlist;or
44 c.TheUnitedStatesSecretaryoftheTreasurypubliclylistsasmeetingthe
45criteriainSection1237(b)(4)(B)oftheStromThurmondNationalDefense
46AuthorizationActofFiscalYear1999,P.L.105-261,asamendedbySection1222of
47P.L.108-375,50U.S.C.Section1701note,orpubliclylistsasasubsidiaryofaperson
48alreadydeterminedtobeaCommunistChinesemilitarycompany,untiltheUnited
49StatesSecretaryoftheTreasurydeterminesthatthepersonnolongermeetsthatcriteria
50andremovesthepersonfromsuchlist;
HB147 19 51 (c)Anyorganizationorcitizenthatisidentifiedbytheappropriategovernment
52agenciestoberequiredbytheNationalIntelligenceLawofthePeople'sRepublicof
53China(2017),asamendedin2018,oranysuccessortosupport,assist,andcooperate
54withthestateintelligenceworkofthePeople'sRepublicofChinaandkeepthesecretsof
55thenationalintelligenceworkofthePeople'sRepublicofChina;or
56 (d)AnypersonthatislistedontheSpeciallyDesignatedNationalsandBlocked
57PersonsListpublishedbytheOfficeofForeignAssetsControlofUnitedStates
58DepartmentoftheTreasury;
59 (8)"Restrictedinvestmentproduct",aninvestmentproductthat:
60 (a)Ismanagedbyoneormorepersons:
61 a.Thatarenotemployedbythesystem;and
62 b.Inwhichthesystemonbehalfofthefundownsinvestmentstogetherwith
63investorsotherthanthesystem;and
64 (b)Holdsinvestmentsinarestrictedentity;
65 (9)"System",anystateorlocalpublicretirementsystemorplanestablishedby
66thestateoranypoliticalsubdivisionorinstrumentalityofthestateforthepurposeof
67providingplanbenefitsforelectedorappointedpublicofficialsoremployeesofthestate
68oranypoliticalsubdivisionorinstrumentalityofthestate.
69 2.AfterAugust28,2025,asystemshallnotknowinglyinvestinarestricted
70entityorarestrictedinvestmentproductandshalldivestanyinvestmentthatthesystem
71hasonbehalfofafundinaccordancewiththissection.
72 3.BeforeDecember1,2025,andatleastannuallyonorbeforeDecemberfirstof
73eachsubsequentyear,theboardshallmakeagoodfaithefforttoidentifyallrestricted
74entitiesandrestrictedinvestmentproductsinwhichthesystemholdsaninvestment.
75Theboardmayuseanindependentresearchfirmtoassisttheboard.
76 4.(1)Iftheboarddeterminesafterareviewundersubsection3ofthissection
77thatthesystemhasinvestmentsinarestrictedentityorarestrictedinvestmentproduct,
78theboardshallestablishaplantodivesttheinvestmentandcompletethedivestmentas
79soonasfinanciallyprudent.Exceptasprovidedinsubdivision(2)ofthissubsection,the
80investmentshallbedivestednolaterthanAugust28,2026.
81 (2)TheinvestmentmaybedivestedafterAugust28,2026,butshallbedivested
82nolaterthanAugust28,2028,iftheboardfindsthatthefollowingconditionsexist:
83 (a)ThedivestmentoftheinvestmentbyAugust28,2026,wouldresultinthe
84systemincurringaggregatetransactioncostsinexcessoffivehundredthousanddollars;
85 (b)Thesellingofglobalpublicequityinterestswouldresultinalosson
86secondarymarkets;or
HB147 20 87 (c)ThedivestmentoftheinvestmentbyAugust28,2026,wouldotherwisefailto
88complywithfederalorstatelaworotherlegalobligations.
89 5.Priortodivestinganycommingledfundrequiredbythissectioninwhichthe
90divestmentwouldresultinarealizedloss,thestaffofthesystemshallnotifytheboard
91andif,withintwobusinessdays,amajorityofthetrusteesoftheboardobject,no
92furtheractionshallbetakenuntilaspecialorregularmeetingoftheboard.
93 6.Theboardshalldeterminewhethertoceaseordeferdivestmentintheentity
94orproductinitiatedunderthissectionandresumeinvestmentintheentityorproduct
95duringanyperiodinwhichtheentityorproducthasnotreturnedtobeingarestricted
96entityorrestrictedinvestmentproductifanyofthefollowingconditionsaremet:
97 (1)TheentityorproductmeetsorexceedstherulesandstandardsofthePublic
98CompanyAccountingOversightBoardandtheSarbanes-OxleyActof2002,P.L.107-
99204,116Stat.745;or
100 (2)Theboarddeterminesthatafundhasholdingsinapassivelymanaged
101commingledfundthatincludesarestrictedentityandtheestimatedcostofdivestment
102ofthecommingledfundisgreaterthantenpercentofthetotalvalueoftherestricted
103entitiesheldinthecommingledfund.
104 7.(1)OnorbeforeDecember31,2025,andannuallyonorbeforeDecember
105thirty-firstofeachsubsequentyear,theboardshallsubmitareporttothegeneral
106assembly.
107 (2)Thereportshallincludeatleastthefollowinginformation,asofthedateof
108thereport:
109 (a)Acopyoftherestrictedentitylist;
110 (b)Allpubliclytradedsecuritiessold,redeemed,divested,orwithdrawnin
111compliancewiththissection;
112 (c)Allcommingledfundsthatareexemptedfromdivestmentundersubsection5
113or6ofthissection;and
114 (d)Anyprogressmadeundersubsection6ofthissection.
115 8.Withrespecttoactionstakenincompliancewiththissection,includingall
116goodfaithdeterminationsregardingrestrictedentitiesandrestrictedinvestment
117products,theboardandthesystemareexemptfromanyconflictingstatutoryor
118commonlawobligations,includinganyobligationswithrespecttochoiceofasset
119managers,investmentfiduciaries,investmentfunds,orinvestmentsforfundinvestment
120portfolios.
121 9.Thestateandanypoliticalsubdivisionofthestate;itsofficers,agents,and
122employees;andtheboardandemployeesofasystemshallbeimmunefromcivilliability
123foranyactoromissionrelatedtotheremovalofanassetfromafundunderthissection
HB147 21 124andareentitledtoindemnificationfromthesystemforalllosses,costs,andexpenses,
125includingreasonableattorney'sfees,associatedwithdefendingagainstanyclaimorsuit
126relatingtoanactauthorizedundersection.
127 10.(1)Notwithstandinganyprovisionoflawtothecontrary,theprovisionsof
128thissectiondonotapplytoinvestmentsinprivatemarketfunds.
129 (2)Notwithstandinganyprovisionoflawtothecontrary,theprovisionsofthis
130sectiondonotapplytoindirectholdingsinactivelymanagedinvestmentfunds.
131 (3)Ifamanagerorinvestmentfiduciarycreatesasimilaractivelymanaged
132investmentfundwithouttherestrictedentities,theboardshallreplaceallapplicable
133investmentswiththeinvestmentsinthesimilaractivelymanagedinvestmentfund
134withinaperiodconsistentwithprudentinvestingstandards.
143.124.1.Otherprovisionsoflawtothecontrarynotwithstanding,fortaxyears
2endingonorbeforeDecember31,2006,thetotalamountofallannuities,pensions,or
3retirementallowancesabovetheamountofsixthousanddollarsannuallyprovidedbyanylaw
4ofthisstate,theUnitedStates,oranyotherstatetoanypersonexceptasprovidedin
5subsection4ofthissection,shallbesubjecttotaxpursuanttotheprovisionsofthischapter,
6inthesamemanner,tothesameextentandunderthesameconditionsasanyothertaxable
7incomereceivedbythepersonreceivingit.Forpurposesofthissection,"annuity,pension,
8retirementbenefit,orretirementallowance"shallbedefinedasanannuity,pensionor
9retirementallowanceprovidedbytheUnitedStates,thisstate,anyotherstateoranypolitical
10subdivisionoragencyorinstitutionofthisoranyotherstate.Foralltaxyearsbeginningon
11orafterJanuary1,1998,forpurposesofthissection,annuity,pensionorretirementallowance
12shallbedefinedtoinclude401(k)plans,deferredcompensationplans,self-employed
13retirementplans,alsoknownasKeoghplans,annuitiesfromadefinedpensionplanand
14individualretirementarrangements,alsoknownasIRAs,asdescribedintheInternalRevenue
15Code,butnotincludingRothIRAs,aswellasanannuity,pensionorretirementallowance
16providedbytheUnitedStates,thisstate,anyotherstateoranypoliticalsubdivisionoragency
17orinstitutionofthisoranyotherstate.Anindividualtaxpayershallonlybealloweda
18maximumdeductionequaltotheamountsprovidedunderthissectionforeachtaxpayeron
19thecombinedreturn.
20 2.FortheperiodbeginningJuly1,1989,andendingDecember31,1989,thereshall
21besubtractedfromMissouriadjustedgrossincomeforthatperiod,determinedpursuantto
22section143.121,thefirstthreethousanddollarsofretirementbenefitsreceivedbyeach
23taxpayer:
24 (1)Ifthetaxpayer'sfilingstatusissingle,headofhouseholdorqualifyingwidow(er)
25andthetaxpayer'sMissouriadjustedgrossincomeislessthantwelvethousandfivehundred
26dollars;or
HB147 22 27 (2)Ifthetaxpayer'sfilingstatusismarriedfilingcombinedandtheircombined
28Missouriadjustedgrossincomeislessthansixteenthousanddollars;or
29 (3)Ifthetaxpayer'sfilingstatusismarriedfilingseparatelyandthetaxpayer's
30Missouriadjustedgrossincomeislessthaneightthousanddollars.
31 3.[ForthetaxyearsbeginningonorafterJanuary1,1990,butendingonorbefore
32December31,2006,] ThereshallbesubtractedfromMissouriadjustedgrossincome,
33determinedpursuanttosection143.121,[amaximumofthefirstsixthousanddollarsof
34retirementbenefitsreceivedbyeachtaxpayerfromsourcesotherthanprivatelyfunded
35sources,andfortaxyearsbeginningonorafterJanuary1,1998,thereshallbesubtracted
36fromMissouriadjustedgrossincome,determinedpursuanttosection143.121,amaximumof
37thefirstonethousanddollarsofanyretirementallowancereceivedfromanyprivatelyfunded
38sourcefortaxyearsbeginningonorafterJanuary1,1998,butbeforeJanuary1,1999,anda
39maximumofthefirstthreethousanddollarsofanyretirementallowancereceivedfromany
40privatelyfundedsourcefortaxyearsbeginningonorafterJanuary1,1999,butbefore
41January1,2000,andamaximumofthefirstfourthousanddollarsofanyretirement
42allowancereceivedfromanyprivatelyfundedsourcefortaxyearsbeginningonorafter
43January1,2000,butbeforeJanuary1,2001,andamaximumofthefirstfivethousanddollars
44ofanyretirementallowancereceivedfromanyprivatelyfundedsourcefortaxyears
45beginningonorafterJanuary1,2001,butbeforeJanuary1,2002,and]amaximumofthe
46firstsixthousanddollarsofanyretirementallowancereceivedbyeachtaxpayerfromany
47privatelyfundedsourcesfortaxyearsbeginningonorafterJanuary1,2002, butbefore
48January1,2026,andamaximumofthefirsttwelvethousanddollarsofanyretirement
49allowancereceivedfromanyprivatelyfundedsourcesfortaxyearsbeginningonor
50afterJanuary1,2026. Ataxpayershallbeentitledtothemaximumexemptionprovidedby
51thissubsection:
52 (1)Ifthetaxpayer'sfilingstatusissingle,headofhouseholdorqualifyingwidow(er)
53andthetaxpayer'sMissouriadjustedgrossincomeislessthantwenty-fivethousanddollars
54foralltaxyearsendingonorbeforeDecember31,2025,andlessthanfiftythousand
55dollarsforalltaxyearsbeginningonorafterJanuary1,2026; or
56 (2)Ifthetaxpayer'sfilingstatusismarriedfilingcombinedandtheircombined
57Missouriadjustedgrossincomeislessthanthirty-twothousanddollarsforalltaxyears
58endingonorbeforeDecember31,2025,andlessthansixty-fourthousanddollarsforall
59taxyearsbeginningonorafterJanuary1,2026; or
60 (3)Ifthetaxpayer'sfilingstatusismarriedfilingseparatelyandthetaxpayer's
61Missouriadjustedgrossincomeislessthansixteenthousanddollarsforalltaxyearsending
62onorbeforeDecember31,2025,andlessthanthirty-twothousandsixhundreddollars
63foralltaxyearsbeginningonorafterJanuary1,2026.
HB147 23 64 4.Ifataxpayer'sadjustedgrossincomeexceedstheadjustedgrossincomeceilingfor
65suchtaxpayer'sfilingstatus,asprovidedinsubdivisions(1),(2)and(3)ofsubsection3ofthis
66section,suchtaxpayershallbeentitledtoanexemptionequaltothegreaterofzeroorthe
67maximumexemptionprovidedinsubsection3ofthissectionreducedbyonedollarforevery
68dollarsuchtaxpayer'sincomeexceedstheceilingforhisorherfilingstatus.
69 5.Forpurposesofthissubsection,theterm"maximumSocialSecuritybenefit
70available"shallmeanthirty-twothousandfivehundreddollarsforthetaxyearbeginningon
71orafterJanuary1,2007,andforeachsubsequenttaxyearsuchamountshallbeincreasedby
72thepercentageincreaseintheConsumerPriceIndexforAllUrbanConsumers,orits
73successorindex,assuchindexisdefinedandofficiallyreportedbytheUnitedStates
74DepartmentofLabor,oritssuccessoragency.ForthetaxyearbeginningonorafterJanuary
751,2007,butendingonorbeforeDecember31,2007,thereshallbesubtractedfromMissouri
76adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount
77equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother
78thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal
79adjustedgrossincome;ortwentypercentoftheretirementbenefitsreceivedfromsources
80otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial
81Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1,
822008,butendingonorbeforeDecember31,2008,thereshallbesubtractedfromMissouri
83adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount
84equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother
85thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal
86adjustedgrossincome;orthirty-fivepercentoftheretirementbenefitsreceivedfromsources
87otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial
88Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1,
892009,butendingonorbeforeDecember31,2009,thereshallbesubtractedfromMissouri
90adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount
91equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother
92thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal
93adjustedgrossincome;orfiftypercentoftheretirementbenefitsreceivedfromsourcesother
94thanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocialSecurity
95benefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1,2010,but
96endingonorbeforeDecember31,2010,thereshallbesubtractedfromMissouriadjusted
97grossincome,determinedpursuanttosection143.121,amaximumofanamountequaltothe
98greaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesotherthan
99privatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal
100adjustedgrossincome;orsixty-fivepercentoftheretirementbenefitsreceivedfromsources
HB147 24 101otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial
102Securitybenefitavailableforsuchtaxyear.ForthetaxyearbeginningonorafterJanuary1,
1032011,butendingonorbeforeDecember31,2011,thereshallbesubtractedfromMissouri
104adjustedgrossincome,determinedpursuanttosection143.121,amaximumofanamount
105equaltothegreaterof:sixthousanddollarsinretirementbenefitsreceivedfromsourcesother
106thanprivatelyfundedsources,totheextentsuchbenefitsareincludedinthetaxpayer'sfederal
107adjustedgrossincome;oreightypercentoftheretirementbenefitsreceivedfromsources
108otherthanprivatelyfundedsourcesinthetaxyear,butnottoexceedthemaximumSocial
109Securitybenefitavailableforsuchtaxyear.ForalltaxyearsbeginningonorafterJanuary1,
1102012,thereshallbesubtractedfromMissouriadjustedgrossincome,determinedpursuantto
111section143.121,amaximumofanamountequaltoonehundredpercentoftheretirement
112benefitsreceivedfromsourcesotherthanprivatelyfundedsourcesinthetaxyear,butnotto
113exceedthemaximumSocialSecuritybenefitavailableforsuchtaxyear.Foralltaxyears
114beginningonorbeforeDecember31,2023,ataxpayershallbeentitledtothemaximum
115exemptionprovidedbythissubsection:
116 (1)Ifthetaxpayer'sfilingstatusismarriedfilingcombined,andtheircombined
117Missouriadjustedgrossincomeisequaltoorlessthanonehundredthousanddollars;or
118 (2)Ifthetaxpayer'sfilingstatusissingle,headofhousehold,qualifyingwidow(er),
119ormarriedfilingseparately,andthetaxpayer'sMissouriadjustedgrossincomeisequaltoor
120lessthaneighty-fivethousanddollars.
121
122ForalltaxyearsbeginningonorafterJanuary1,2024,ataxpayershallbeentitledtothe
123maximumexemptionprovidedbythissubsectionregardlessofthetaxpayer'sfilingstatusor
124theamountofthetaxpayer'sMissouriadjustedgrossincome.
125 6.ForalltaxyearsbeginningonorbeforeDecember31,2023,ifataxpayer's
126adjustedgrossincomeexceedstheadjustedgrossincomeceilingforsuchtaxpayer'sfiling
127status,asprovidedinsubdivisions(1)and(2)ofsubsection5ofthissection,suchtaxpayer
128shallbeentitledtoanexemption,lessanyapplicablereductionprovidedundersubsection7
129ofthissection,equaltothegreaterofzeroorthemaximumexemptionprovidedinsubsection
1305ofthissectionreducedbyonedollarforeverydollarsuchtaxpayer'sincomeexceedsthe
131ceilingforhisorherfilingstatus.
132 7.Forpurposesofcalculatingthesubtractionprovidedinsubsection5ofthissection,
133suchsubtractionshallbedecreasedbyanamountequaltoanySocialSecuritybenefit
134exemptionprovidedundersection143.125.
135 8.Forpurposesofthissection,anySocialSecuritybenefitsotherwiseincludedin
136Missouriadjustedgrossincomeshallbesubtracted;butSocialSecuritybenefitsshallnotbe
HB147 25 137subtractedforpurposesofothercomputationspursuanttothischapter,andarenottobe
138consideredasretirementbenefitsforpurposesofthissection.
139 9.Theprovisionsofsubdivisions(1)and(2)ofsubsection3ofthissectionshall
140applyduringalltaxyearsinwhichthefederalInternalRevenueCodeprovidesexemption
141levelsforcalculationofthetaxabilityofSocialSecuritybenefitsthatarethesameasthe
142levelsinsubdivisions(1)and(2)ofsubsection3ofthissection.Iftheexemptionlevelsfor
143thecalculationofthetaxabilityofSocialSecuritybenefitsareadjustedbyapplicablefederal
144laworregulation,theexemptionlevelsinsubdivisions(1)and(2)ofsubsection3ofthis
145sectionshallbeaccordinglyadjustedtothesameexemptionlevels.
146 10.Theportionofataxpayer'slumpsumdistributionfromanannuityorother
147retirementplannototherwiseincludedinMissouriadjustedgrossincomeascalculated
148pursuanttothischapterbutsubjecttotaxationunderInternalRevenueCodeSection402shall
149betaxedinanamountequaltotenpercentofthetaxpayer'sfederalliabilityonsuch
150distributionforthesametaxyear.
151 11.Forpurposesofthissection,retirementbenefitsreceivedshallnotincludeany
152withdrawalsfromqualifiedretirementplanswhicharesubsequentlyrolledoverintoanother
153retirementplan.
154 12.Theexemptionsprovidedforinthissectionshallnotaffectthecalculationofthe
155incometobeusedtodeterminethepropertytaxcreditprovidedinsections135.010to
156135.035.
157 13.Theexemptionsprovidedforinthissectionshallapplytoanyannuity,pension,or
158retirementallowanceasdefinedinsubsection1ofthissectiontotheextentthatsuchamounts
159areincludedinthetaxpayer'sfederaladjustedgrossincomeandnototherwisedeductedfrom
160thetaxpayer'sfederaladjustedgrossincomeinthecalculationofMissouritaxableincome.
161Thissubsectionshallnotapplytoanyindividualwhoqualifiesunderfederalguidelinestobe
162onehundredpercentdisabled.
169.490.1.Alltheassetsoftheretirementsystemshallbeheldasonefund.
2 2.(1)ForanymemberhiredbeforeJanuary1,2018,theemployingboardshallcause
3tobedeductedfromthecompensationofeachmemberateverypayrollperiodfivepercentof
4hisorhercompensation.
5 (2)BeginningJanuary1,2018,thepercentageinsubdivision(1)ofthissubsection
6shallincreaseone-halfofonepercentannuallyuntilsuchtimeasthepercentageequalsnine
7percent.
8 (3)ForanymemberhiredforthefirsttimeonorafterJanuary1,2018,theemploying
9boardshallcausetobedeductedfromthecompensationofeachmemberateverypayroll
10periodninepercentofsuchmember'scompensation.
HB147 26 11 (4)Theamountssodeductedshallbetransferredtotheboardoftrusteesandcredited
12totheindividualaccountofeachmemberfromwhosecompensationthedeductionwasmade.
13Indeterminingtheamountearnablebyamemberinanypayrollperiod,theboardoftrustees
14mayconsidertherateofearnablecompensationpayabletosuchmemberonthefirstdayof
15thepayrollperiodascontinuingthroughoutsuchpayrollperiod;itmayomitdeductionfrom
16compensationforanyperiodlessthanafullpayrollperiodiftheemployeewasnotamember
17onthefirstdayofthepayrollperiod;andtofacilitatethemakingofthedeductions,itmay
18modifythedeductionrequiredofanymemberbysuchamountasshallnotexceedone-tenth
19ofonepercentofthecompensationuponthebasisofwhichsuchdeductionwasmade.
20 (5)Thedeductionsprovidedforhereinaredeclaredtobeapartofthesalaryofthe
21memberandthemakingofsuchdeductionsshallconstitutepaymentsbythememberoutof
22hisorhersalaryorearningsandsuchdeductionsshallbemadenotwithstandingthatthe
23minimumcompensationprovidedbylawforanymembershallbereducedthereby.Every
24membershallbedeemedtoconsenttothedeductionsmadeandprovidedforherein,andshall
25receiptforhisorherfullsalaryorcompensation,andthemakingofsaiddeductionsandthe
26paymentofsalaryorcompensationlesssaiddeductionshallbeafullandcompletedischarge
27andacquittanceofallclaimsanddemandswhatsoeverforservicesrenderedduringtheperiod
28coveredbythepaymentexceptastobenefitsprovidedbysections169.410to169.540.
29 (6)Theemployingboardmayelecttopaymembercontributionsrequiredbythis
30sectionasanemployerpickupofemployeecontributionsunderSection414(h)(2)ofthe
31InternalRevenueCodeof1986,asamended,andsuchcontributionspickedupbythe
32employingboardshallbetreatedascontributionsmadebymembersforallpurposesof
33sections169.410to169.540.
34 3.Ifaretiredmemberreceivingapensionpursuanttosections169.410to169.540is
35restoredtoactiveserviceandagainbecomesanactivememberoftheretirementsystem,there
36shallbecreditedtohisorherindividualaccountanamountequaltotheexcess,ifany,ofhis
37orheraccumulatedcontributionsatretirementoverthetotalpensionbenefitspaidtohimor
38her.
39 4.Annually,theactuaryfortheretirementsystemshallcalculateeachemployer's
40contributionasanamountequaltoacertainpercentageofthetotalcompensationofall
41membersemployedbythatemployer.Thepercentageshallbefixedonthebasisofthe
42liabilitiesoftheretirementsystemasshownbytheannualactuarialvaluation.Theannual
43actuarialvaluationshallbemadeonthebasisofsuchactuarialassumptionsandtheactuarial
44costmethodadoptedbytheboardoftrustees,providedthattheactuarialcostmethodadopted
45shallbeinaccordancewithgenerallyacceptedactuarialstandardsandthattheunfunded
46actuarialaccruedliability,ifany,shallbeamortizedbylevelannualpaymentsoveraperiod
HB147 27 47nottoexceedthirtyyears.TheprovisionsofthissubsectionshallexpireonDecember31,
482017;thereaftersubsection5ofthissectionshallapply.
49 5.(1)Forcalendaryear2018,therateofcontributionpayablebyeachemployershall
50equalsixteenpercentofthetotalcompensationofallmembersemployedbythatemployer.
51Foreachcalendaryearthereafter,thepercentagerateofcontributionpayablebyeach
52employerofthetotalcompensationofallmembersemployedbythatemployershalldecrease
53one-halfofonepercentannuallyuntilcalendaryear[2032] 2025whentherateofcontribution
54payablebyeachemployershallequal[nine] twelveandone-halfpercentofthetotal
55compensationofallmembersemployedbythatemployer[. Forsubsequentcalendaryears
56after2032], exceptasprovidedundersubdivision(2)ofthissubsection.
57 (2)Beginningontheeffectivedateofthissectionandforallsubsequentcalendar
58yearsafter,therateofcontributionpayablebyeachemployershallequal[nine] fourteen
59percentofthetotalcompensationofallmembersemployedbythatemployer.
60 6.Theexpenseandcontingencyreserveshallbeareserveforinvestment
61contingenciesandestimatedexpensesofadministrationoftheretirementsystemas
62determinedannuallybytheboardoftrustees.
63 7.Gifts,devises,bequestsandlegaciesmaybeacceptedbytheboardoftrusteestobe
64heldandinvestedasapartoftheassetsoftheretirementsystemandshallnotbeseparately
65accountedforexceptwherespecificdirectionfortheuseofagiftismadebyadonor.
✔
HB147 28