FIRSTREGULARSESSION
HOUSEBILLNO.404
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVECLEMENS.
1454H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection169.490,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
contributionratesforthepublicschoolretirementsystemofthecityofSt.Louis,with
anemergencyclause.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section169.490,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection169.490,toreadasfollows:
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.
11 (4)Theamountssodeductedshallbetransferredtotheboardoftrusteesandcredited
12totheindividualaccountofeachmemberfromwhosecompensationthedeductionwasmade.
13Indeterminingtheamountearnablebyamemberinanypayrollperiod,theboardoftrustees
14mayconsidertherateofearnablecompensationpayabletosuchmemberonthefirstdayof
15thepayrollperiodascontinuingthroughoutsuchpayrollperiod;itmayomitdeductionfrom
16compensationforanyperiodlessthanafullpayrollperiodiftheemployeewasnotamember
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 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
47nottoexceedthirtyyears.TheprovisionsofthissubsectionshallexpireonDecember31,
482017;thereaftersubsection5ofthissectionshallapply.
49 5.(1)Forcalendaryear2018,therateofcontributionpayablebyeachemployershall
50equalsixteenpercentofthetotalcompensationofallmembersemployedbythatemployer.
51Foreachcalendaryearthereafter,thepercentagerateofcontributionpayablebyeach
52employerofthetotalcompensationofallmembersemployedbythatemployershalldecrease
53one-halfofonepercentannuallyuntilcalendaryear[2032] 2025whentherateofcontribution
HB404 2 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.
SectionB.Becauseimmediateactionisnecessarytoensurethefinancialstabilityof
2theretirementsystemandprovideforthewelfareofthemembers,sectionAofthisactis
3deemednecessaryfortheimmediatepreservationofthepublichealth,welfare,peace,and
4safety,andisherebydeclaredtobeanemergencyactwithinthemeaningoftheconstitution,
5andsectionAofthisactshallbeinfullforceandeffectuponthefirstdayofthenextmonth
6immediatelyfollowingitspassageandapproval.
âś”
HB404 3