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Missouri House Bill HB406

Missouri 2025 Regular Session

Missouri House Bill HB406 Compare Versions

Only one version of the bill is available at this time.
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11 FIRSTREGULARSESSION
22 HOUSEBILLNO.406
33 103RDGENERALASSEMBLY
44 INTRODUCEDBYREPRESENTATIVECLEMENS.
55 1383H.01I DANARADEMANMILLER,ChiefClerk
66 ANACT
77 Torepealsections169.410,169.450,and169.490,RSMo,andtoenactinlieuthereofthree
88 newsectionsrelatingtoretirementbenefitsforcertainteacherretirementsystems.
99 BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
1010 SectionA.Sections169.410,169.450,and169.490,RSMo,arerepealedandthree
1111 2newsectionsenactedinlieuthereof,tobeknownassections169.410,169.450,and169.490,
1212 3toreadasfollows:
1313 169.410.Thefollowingwordsandphrasesasusedinsections169.410to169.540,
1414 2unlessadifferentmeaningisplainlyrequiredbythecontext,shallhavethefollowing
1515 3meanings:
1616 4 (1)"Accumulatedcontributions",thesumofallamountsdeductedfromthe
1717 5compensationofamemberandcreditedtothemember'sindividualaccounttogetherwith
1818 6interestallowedonsuchanaccount;
1919 7 (2)"Actuarialequivalent",abenefitofequalvaluewhencomputeduponthebasisof
2020 8interestandsuchmortalitytablesasshallbeadoptedbytheboardoftrustees;
2121 9 (3)"Averagefinalcompensation",thehighestaverageannualcompensationofthe
2222 10memberreceivedforanythreeconsecutiveyearsofcreditedserviceofthemember'slastten
2323 11yearsofcreditedserviceorifthememberhashadlessthanthreeyearsofsuchcredited
2424 12service,duringthemember'sentireperiodofcreditedservice;
2525 13 (4)"Beneficiary",anypersonotherthanaretiredmemberreceivingapensionbenefit,
2626 14optionalpensionbenefitorotherbenefit;
2727 EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
2828 intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 15 (5)"Boardofeducation",theboardofeducationorcorrespondingboardhaving
2929 16chargeofthepublicschoolsoftheschooldistrictotherthanthosepublicschoolswhichare
3030 17operatedbytheboardofregents;
3131 18 (6)"Boardofregents",theboardofregentsorcorrespondingboardhavingchargeof
3232 19apubliccityteachertrainingschoolwithintheschooldistrictwhichwasoperatedbyitsboard
3333 20ofeducationpriortoSeptember1,1978;
3434 21 (7)"Boardoftrustees",theboardwhichadministerstheretirementsystem;
3535 22 (8)"Charterschool",anycharterschoolestablishedpursuanttosections160.400to
3636 23160.420andlocated,atthetimeitisestablished,withintheschooldistrict;
3737 24 (9)"Compensation",theregularcompensationwhichamemberhasearnedasan
3838 25employeeduringanyperiod,excluding,however,anycompensationearnedbyapersonwho
3939 26becameamemberafterDecember31,1995,whichisinexcessofthelimitationsetforthin
4040 27Section401(a)(17)oftheInternalRevenueCode;
4141 28 (10)"Consumerpriceindex",theConsumerPriceIndexforAllUrbanConsumersfor
4242 29theUnitedStates,oritssuccessorindex,asapprovedbytheboardoftrustees,assuchindexis
4343 30definedandofficiallyreportedbytheUnitedStatesDepartmentofLabor,oritssuccessor
4444 31agency;
4545 32 (11)"Creditedservice",priorserviceplusmembershipserviceplusservicepurchased
4646 33pursuanttoapplicableMissouristatute;
4747 34 (12)"Employee",anypersonregularlyemployedby(a)theboardofeducation,or(b)
4848 35theboardoftrustees,or(c)theboardofregentswhowasemployedatapublicteacher
4949 36trainingschoolwithintheschooldistrictpriortoSeptember1,1978,andwhodidnotbecome
5050 37amemberoftheMissouristateemployees'retirementsystempursuanttosection104.342,or
5151 38(d)acharterschool.Incaseofdoubtastowhetheranypersonisanemployee,thedecisionof
5252 39theboardofeducation,ortheboardoftrustees,ortheboardofregentsshallbefinaland
5353 40conclusive;
5454 41 (13)"Employer",theboardofeducation,theboardoftrustees,theboardofregentsor
5555 42acharterschool;
5656 43 (14)"Fundedratio",theratiooftheactuarialvalueofassetsovertheactuarial
5757 44accruedliability,whereastheactuarialaccruedliabilityshallbebasedontheentryage
5858 45normalactuarialcostmethodwithnormalcostexpressedasalevelpercentageof
5959 46coveredcompensation;
6060 47 (15)"Medicalboard",theboardofphysicians;
6161 48 [(15)] (16)"Member",amemberoftheretirementsystemdefinedasan:
6262 49 (a)"Activemember",apersonwhoisanemployee;
6363 50 (b)"Inactivemember",aformeractivememberwhohasaccumulatedcontributions
6464 51withtheretirementsystem;or
6565 HB406 2 52 (c)"Retiredmember",aformeractivememberwhohasretiredandisreceiving
6666 53benefits;
6767 54 [(16)] (17)"Membershipservice",servicerenderedasanemployeeforwhichthe
6868 55employeereceivedcompensation.Forthepurposeofcomputingcreditableserviceat
6969 56retirement,membershipserviceshallincludeamember'saccumulatedandunuseddaysof
7070 57sickleave.Thedecisionoftheemployingboardastothenumberofaccumulatedandunused
7171 58daysofsickleaveheldbyamembershallbefinalandconclusive;
7272 59 [(17)] (18)"Pensionbenefit"or"pension",monthlypaymentsforlifetoaretired
7373 60memberortosuchbeneficiaryasisentitledtothepayments;
7474 61 [(18)] (19)"Priorservice",servicepriortothedatethesystembecameoperative
7575 62whichiscredited;
7676 63 [(19)] (20)"Publicschool",anyschoolforelementary,secondaryorhighereducation,
7777 64openandpublic,whichissupportedandmaintainedfrompublicfundsandwhichisoperated
7878 65bytheboardofeducationoftheschooldistrict,bytheboardofregents,orasacharterschool
7979 66asdefinedpursuanttosections160.400to160.420;
8080 67 [(20)] (21)"Retiredmember",amemberreceivingaretirementbenefitorother
8181 68benefit;
8282 69 [(21)] (22)"Retirementsystem",thepublicschoolretirementsystemofaschool
8383 70district;
8484 71 [(22)] (23)"Schooladministrator",anemployeewhosejobclassificationisincluded
8585 72ontheschooladministrators'positionscheduleoftheemployingboard;
8686 73 [(23)] (24)"Schooldistrict",anymetropolitanschooldistrictasdefinedpursuantto
8787 74section160.011;
8888 75 [(24)] (25)"Teacher",anyteacher,substituteteacher,supervisor,principal,
8989 76supervisingprincipal,superintendentorassistantsuperintendent,whoshallteachorbe
9090 77employedonafull-timebasisinthepublicschoolsofaschooldistrictorcharterschool,
9191 78exceptthoseteacherselectingtobecomemembersoftheMissouristateemployees'
9292 79retirementsystempursuanttosection104.342.Incaseofdoubtastowhetheranypersonisa
9393 80teacher,thedecisionoftheboardofeducation,ortheboardofregentswithrespectto
9494 81individualswithinitscharge,shallbefinalandconclusive;
9595 82 (26)"Totalactuariallyrequiredcontribution",thetotaldollaramountnecessary
9696 83tofinancethecostsofbenefitsearnedbyemployeesandunfundedaccruedliabilitywith
9797 84suchamountdeterminedforacalendaryearbasedontheactuarialvaluationasofthe
9898 85firstdayoftheprecedingcalendaryearandtheactuarialcostmethodandassumptions
9999 86adoptedbytheboardoftrusteesandinaccordancewithactuarialstandardsofpractice
100100 87applicableasofsuchvaluationdate;
101101 HB406 3 88 (27)"Totalactuariallyrequiredcontributionrate",thetotalactuarially
102102 89requiredcontributionexpressedasapercentageofannualizedcompensationof
103103 90retirementsystemmembers,andwhichconsistsofbothamembercontributionand
104104 91employercontribution.
105105 169.450.1.Thegeneraladministrationandresponsibilityfortheproperoperationof
106106 2theretirementsystemandformakingeffectivetheprovisionsofsections169.410to169.540
107107 3areherebyvestedinaboardoftrusteesofelevenpersons,asfollows:
108108 4 (1)Fourtrusteestobeappointedfortermsoffouryearsbytheboardofeducation;
109109 5provided,however,thattheirtermsshallbefixedsothetermsofoneofthetrusteesso
110110 6appointedshallexpireeachyear.Themembersofsuchboardoftrusteesappointedbythe
111111 7boardofeducationmaybemembersoftheboardofeducationorotherindividualsdeemed
112112 8qualifiedtoholdsuchpositionsbytheboardofeducation;
113113 9 (2)Fourtrusteestobeelectedfortermsoffouryearsbyandfromtheactivemembers
114114 10oftheretirementsystemwhoshallholdofficeastrusteesonlywhileactivemembers;
115115 11provided,however,thattheirtermsshallbefixedsothatthetermsofoneofthetrusteesso
116116 12electedshallexpireeachyear;andprovidedfurther,thatnotmorethantwoofsuchpersons
117117 13shallbeteachersandtwoshallbenonteachers.Forthepurposesofthissubsection,aschool
118118 14administratorshallnotbeeligibleforthepositionsestablishedpursuanttothissubdivision
119119 15andshallbeeligibleforthepositionestablishedpursuanttosubdivision(4)ofthissubsection;
120120 16 (3)Twotrustees,whoshallberetiredmembers,tobeelectedfortermsoffouryears
121121 17byandfromtheretiredmembersoftheretirementsystem;provided,however,thattheterms
122122 18ofofficeofthefirsttwotrusteessoelectedshallbeginimmediatelyupontheirelectionand
123123 19shallexpiretwoandfouryearsfromthedateoftheirelection,respectively;andprovided
124124 20further,thatnotmorethanoneofsuchpersonsshallbeateacherandoneshallbea
125125 21nonteacher;
126126 22 (4)Onemember,whoshallbeaschooladministrator,tobeelectedforatermoffour
127127 23yearsbyandfromtheactivemembersoftheretirementsystemwhoshallholdofficeasa
128128 24trusteeonlywhileanactivemember;exceptthat,theinitialtermofofficeofsuchtrusteeshall
129129 25expireonDecember31,1999.
130130 26 2.Ifavacancyoccursintheofficeoftrustee,thevacancyshallbefilledforthe
131131 27unexpiredterminthesamemannerastheofficewaspreviouslyfilled.Novacancyor
132132 28vacanciesontheboardoftrusteesshallimpairthepoweroftheremainingtrusteesto
133133 29administertheretirementsystempendingthefillingofsuchvacancies.
134134 30 3.Intheeventofalapseofaschooldistrict'scorporateorganizationasdescribedin
135135 31subsections1and4ofsection162.081,orforanyotherreason,thegeneraladministrationand
136136 32theresponsibilityfortheproperoperationoftheretirementsystemshallcontinuetobefully
137137 33vestedinthetrusteesthencurrentlyservingandsuchtrusteesshallcontinuetoserveandbe
138138 HB406 4 34electedinthesamemannerassetforthinthisstatuteasifnolapsehadoccurred,exceptthat
139139 35intheeventofvacanciesoccurringintheofficeoftrusteesappointedbytheboardof
140140 36educationpriortothelapse,theboardoftrusteesshallappointaqualifiedpersonorpersonsto
141141 37fillsuchvacancyorvacanciesfortermsofuptofouryears.
142142 38 4.Trusteesshallservewithoutcompensation,andanytrusteeshallbereimbursed
143143 39fromtheexpensefundforallnecessaryexpenseswhichthetrusteemayincurthroughservice
144144 40ontheboardoftrustees.
145145 41 5.Eachtrusteeshall,withintendaysaftersuchtrustee'sappointmentorelection,take
146146 42anoathofofficebeforetheclerkofthecircuitcourtofthejudicialcircuitinwhichtheschool
147147 43districtislocatedthat,sofarasitdevolvesuponthetrustee,thetrusteewilldiligentlyand
148148 44honestlyadministertheaffairsoftheboardoftrusteesandthatthetrusteewillnotknowingly
149149 45violateorwillinglypermittobeviolatedanyoftheprovisionsofthelawapplicabletothe
150150 46retirementsystem.Suchoathshallbesubscribedtobythetrusteemakingitandfiledinthe
151151 47officeoftheclerkofthecircuitcourt.
152152 48 6.Thecircuitcourtofthejudicialcircuitinwhichtheschooldistrictislocatedshall
153153 49havejurisdictionoverthemembersoftheboardoftrusteestorequirethemtoaccountfor
154154 50theirofficialconductinthemanagementanddispositionofthefundsandpropertycommitted
155155 51totheircharge;toorder,decreeandcompelpaymentbythemtothepublicschoolretirement
156156 52systemoftheirschooldistrictofallsumsofmoney,andofthevalueofallpropertywhich
157157 53mayhavebeenimproperlyretainedbythem,ortransferredtoothers,orwhichmayhavebeen
158158 54lostorwastedbyanyviolationoftheirdutiesorabuseoftheirpowersassuchmembersof
159159 55suchboard;toremoveanysuchmemberuponproofthatthetrusteehasabusedthetrustee's
160160 56trustorhasviolatedthedutiesofthetrustee'soffice;torestrainandpreventanyalienationor
161161 57dispositionofpropertyofsuchpublicschoolretirementsystembythemembers,incases
162162 58whereitmaybethreatened,orthereisgoodreasontoapprehendthatitisintendedtobemade
163163 59infraudoftherightsandinterestsofsuchpublicschoolretirementsystem.Thejurisdiction
164164 60conferredbysections169.410to169.540shallbeexercisedasinordinarycasesupon
165165 61petition,filedbytheboardofeducationofsuchschooldistrict,orbyanytwomembersofthe
166166 62boardoftrustees.Suchpetitionshallbeheardinasummarymanneraftertendays'noticein
167167 63writingtothemembercomplainedof,andanappealshallliefromthejudgmentofthecircuit
168168 64courtasinothercausesandbespeedilydetermined,butsuchappealshallnotoperateunder
169169 65anyconditionasasupersedeasofajudgmentofremovalfromoffice.
170170 66 7.Eachtrusteeshallbeentitledtoonevoteintheboardoftrustees.Sixvotesshallbe
171171 67necessaryforadecisionbythetrusteesatanymeetingoftheboardoftrustees.
172172 68 8.Subjecttothelimitationsofsections169.410to169.540,theboardoftrustees
173173 69shall,fromtimetotime,establishrulesandregulationsfortheadministrationofthe
174174 70retirementsystem,foreligibilityforanddeterminationofbenefitsundertheretirement
175175 HB406 5 71system,fortheinvestmentofretirementsystemassets,andforthetransactionofthe
176176 72retirementsystem'sbusiness.
177177 73 9.Theboardoftrusteesshallelectfromitsmembershipachairmanandshall,by
178178 74majorityvoteofitsmembers,appointasecretary,whomaybe,butneednotbe,oneofits
179179 75members.Itshallengagesuchactuarialandotherservicesasshallberequiredtotransactthe
180180 76businessoftheretirementsystem.Itshallalsoengageaninvestmentcounselorwhoshallbe
181181 77experiencedintheinvestmentofmoneystoadvisethetrusteesoninvestmentsofthe
182182 78retirementsystem.Thecompensationofallpersonsengagedbytheboardoftrusteesandall
183183 79otherexpensesoftheboardnecessaryfortheoperationoftheretirementsystemshallbepaid
184184 80atsuchratesandinsuchamountsastheboardoftrusteesshallapprove.
185185 81 10.Theboardoftrusteesshallkeepinconvenientformsuchdataasshallbe
186186 82necessaryforactuarialvaluationsoftheassetsoftheretirementsystemandforcheckingthe
187187 83experienceofthesystem.
188188 84 11.Theboardoftrusteesshallkeeparecordofallitsproceedingswhichshallbe
189189 85opentopublicinspection.Itshallprepareannuallyandsendtotheboardofeducationandto
190190 86eachmemberoftheretirementsystemareportshowingthefiscaltransactionsofthe
191191 87retirementsystemfortheprecedingfiscalyear,adetailedlistingofallsalariesand
192192 88expendituresincurredbythetrusteesforitsoperation,theamountoftheaccumulatedcash
193193 89andsecuritiesofthesystem,andthelastbalancesheetshowingthefinancialconditionofthe
194194 90systembymeansofanactuarialvaluationoftheassetsandliabilitiesoftheretirement
195195 91system.Theboardoftrusteesshallalsoprepareorcausetobepreparedanannualreport
196196 92concerningtheoperationoftheretirementsystemhereinprovidedfor,whichreportshallbe
197197 93sentbythechairmanoftheboardoftrusteestotheboardofeducation.
198198 94 12.Theboardoftrusteesshallarrangefornecessarylegaladvicefortheoperationof
199199 95theretirementsystem.
200200 96 13.Theboardoftrusteesshalldesignateamedicalboardtobecomposedofthree
201201 97physicians,noneofwhomshallbeeligibleforbenefitspursuanttosections169.410to
202202 98169.540,whoshallarrangeforandpassuponallmedicalexaminationsrequiredpursuantto
203203 99theprovisionsofsections169.410to169.540,shallinvestigateallessentialstatementsand
204204 100certificatesmadebyoronbehalfofamemberinconnectionwithanapplicationfordisability
205205 101retirementandshallreportinwritingtotheboardoftrusteesitsconclusionsand
206206 102recommendationsuponallmattersreferredtoit.
207207 103 14.Theactuaryshallbethetechnicaladviseroftheboardoftrusteesonmatters
208208 104regardingtheoperationofthesystemcreatedbysections169.410to169.540andshall
209209 105performsuchotherdutiesasarerequiredinconnectiontherewith.Suchpersonshallbe
210210 106qualifiedasanactuarybymembershipasafellowintheSocietyofActuariesorbyobjective
211211 107standardswhicharenolessstringentthanthoseestablishedbytheSocietyofActuaries.
212212 HB406 6 108 15.Atleastonceineachfive-yearperiodtheactuaryshallmakeaninvestigationinto
213213 109theactuarialexperienceoftheretirementsystem,andtakingintoaccounttheresultsofsuch
214214 110investigationoftheexperience,theboardoftrusteesshalladoptfortheretirementsystem
215215 111suchactuarialassumptionsasshallbedeemednecessary.
216216 112 16.Onthebasisofsuchactuarialassumptionsastheboardoftrusteesshalladopt,the
217217 113actuaryshallmakeanannualvaluationoftheassetsandliabilitiesofthefundsofthe
218218 114retirementsystem.
219219 115 17.Onthebasisofthevaluationandinaccordancewiththeprovisionsofsection
220220 116169.490,theboardoftrusteesshallcertifytheratesofcontributionpayablebytheboardof
221221 117education.
222222 169.490.1.Alltheassetsoftheretirementsystemshallbeheldasonefund.
223223 2 2.(1)ForanymemberhiredbeforeJanuary1,2018,theemployingboardshallcause
224224 3tobedeductedfromthecompensationofeachmemberateverypayrollperiodfivepercentof
225225 4hisorhercompensation.
226226 5 (2)BeginningJanuary1,2018,thepercentageinsubdivision(1)ofthissubsection
227227 6shallincreaseone-halfofonepercentannuallyuntilsuchtimeasthepercentageequalsnine
228228 7percentunlessalowermembercontributionrateappliesforanyperiodinaccordance
229229 8withtheprovisionsofsubdivision(4)ofsubsection5ofthissection.
230230 9 (3)ForanymemberhiredforthefirsttimeonorafterJanuary1,2018,theemploying
231231 10boardshallcausetobedeductedfromthecompensationofeachmemberateverypayroll
232232 11periodninepercentofsuchmember'scompensationunlessalowermembercontribution
233233 12rateappliesforanyperiodinaccordancewiththeprovisionsofsubdivision(4)of
234234 13subsection5ofthissection.
235235 14 (4)Theamountssodeductedshallbetransferredtotheboardoftrusteesandcredited
236236 15totheindividualaccountofeachmemberfromwhosecompensationthedeductionwasmade.
237237 16Indeterminingtheamountearnablebyamemberinanypayrollperiod,theboardoftrustees
238238 17mayconsidertherateofearnablecompensationpayabletosuchmemberonthefirstdayof
239239 18thepayrollperiodascontinuingthroughoutsuchpayrollperiod;itmayomitdeductionfrom
240240 19compensationforanyperiodlessthanafullpayrollperiodiftheemployeewasnotamember
241241 20onthefirstdayofthepayrollperiod;andtofacilitatethemakingofthedeductions,itmay
242242 21modifythedeductionrequiredofanymemberbysuchamountasshallnotexceedone-tenth
243243 22ofonepercentofthecompensationuponthebasisofwhichsuchdeductionwasmade.
244244 23 (5)Thedeductionsprovidedforhereinaredeclaredtobeapartofthesalaryofthe
245245 24memberandthemakingofsuchdeductionsshallconstitutepaymentsbythememberoutof
246246 25hisorhersalaryorearningsandsuchdeductionsshallbemadenotwithstandingthatthe
247247 26minimumcompensationprovidedbylawforanymembershallbereducedthereby.Every
248248 27membershallbedeemedtoconsenttothedeductionsmadeandprovidedforherein,andshall
249249 HB406 7 28receiptforhisorherfullsalaryorcompensation,andthemakingofsaiddeductionsandthe
250250 29paymentofsalaryorcompensationlesssaiddeductionshallbeafullandcompletedischarge
251251 30andacquittanceofallclaimsanddemandswhatsoeverforservicesrenderedduringtheperiod
252252 31coveredbythepaymentexceptastobenefitsprovidedbysections169.410to169.540.
253253 32 (6)Theemployingboardmayelecttopaymembercontributionsrequiredbythis
254254 33sectionasanemployerpickupofemployeecontributionsunderSection414(h)(2)ofthe
255255 34InternalRevenueCodeof1986,asamended,andsuchcontributionspickedupbythe
256256 35employingboardshallbetreatedascontributionsmadebymembersforallpurposesof
257257 36sections169.410to169.540.
258258 37 3.Ifaretiredmemberreceivingapensionpursuanttosections169.410to169.540is
259259 38restoredtoactiveserviceandagainbecomesanactivememberoftheretirementsystem,there
260260 39shallbecreditedtohisorherindividualaccountanamountequaltotheexcess,ifany,ofhis
261261 40orheraccumulatedcontributionsatretirementoverthetotalpensionbenefitspaidtohimor
262262 41her.
263263 42 4.Annually,theactuaryfortheretirementsystemshallcalculateeachemployer's
264264 43contributionasanamountequaltoacertainpercentageofthetotalcompensationofall
265265 44membersemployedbythatemployer.Thepercentageshallbefixedonthebasisofthe
266266 45liabilitiesoftheretirementsystemasshownbytheannualactuarialvaluation.Theannual
267267 46actuarialvaluationshallbemadeonthebasisofsuchactuarialassumptionsandtheactuarial
268268 47costmethodadoptedbytheboardoftrustees,providedthattheactuarialcostmethodadopted
269269 48shallbeinaccordancewithgenerallyacceptedactuarialstandardsandthattheunfunded
270270 49actuarialaccruedliability,ifany,shallbeamortizedbylevelannualpaymentsoveraperiod
271271 50nottoexceedthirtyyears.TheprovisionsofthissubsectionshallexpireonDecember31,
272272 512017;thereaftersubsection5ofthissectionshallapply.
273273 52 5.Forcalendaryear2018,therateofcontributionpayablebyeachemployershall
274274 53equalsixteenpercentofthetotalcompensationofallmembersemployedbythatemployer.
275275 54Foreachcalendaryearthereafter,thepercentagerateofcontributionpayablebyeach
276276 55employerofthetotalcompensationofallmembersemployedbythatemployershalldecrease
277277 56one-halfofonepercentannuallyuntilcalendaryear[2032] 2026whentherateofcontribution
278278 57payablebyeachemployershallequal[nine] fourteenpercentofthetotalcompensationofall
279279 58membersemployedbythatemployer.For[subsequent] calendar[yearsafter2032] year2027
280280 59andeachcalendaryearthereafter, therateofcontributionpayablebyeachemployershall
281281 60[equalninepercentofthetotalcompensationofallmembersemployedbythatemployer] be
282282 61determinedasfollows:
283283 62 (1)Annually,theboardoftrusteesshallinstructtheretirementsystemactuary
284284 63todeterminethetotalactuariallyrequiredcontributionaswellasthetotalactuarially
285285 HB406 8 64requiredcontributionratefortheapplicablecalendaryearbasedonavaluationasof
286286 65thefirstdayoftheprecedingcalendaryear;
287287 66 (2)Iftheretirementsystem'sfundedratioasofthefirstdayofthepreceding
288288 67calendaryearisbelowonehundredpercent,theemployercontributionrateshallbethe
289289 68greateroffourteenpercentorthedifferencebetweenthetotalactuariallyrequired
290290 69contributionrateandthemembercontributionrateorratesineffectundersubsection
291291 70twoofthissection,subjecttothelimitsonannualadjustmentsstatedinsubdivision(6)
292292 71ofthissubsection;
293293 72 (3)Iftheretirementsystem'sfundedratioasofthefirstdayofthepreceding
294294 73calendaryearequalsorexceedsonehundredpercentandthetotalactuariallyrequired
295295 74contributionrateexceedseighteenpercent,theemployercontributionrateshallbethe
296296 75differencebetweenthetotalactuariallyrequiredcontributionrateandthemember
297297 76contributionrateorratesineffectundersubsectiontwoofthissection,subjecttothe
298298 77limitsonannualadjustmentsstatedinsubdivision(6)ofthissubsection;
299299 78 (4)Iftheretirementsystem'sfundedratioasofthefirstdayofthepreceding
300300 79calendaryearequalsorexceedsonehundredpercentandthetotalactuariallyrequired
301301 80contributionratedoesnotexceedeighteenpercent,thetotalactuariallyrequired
302302 81contributionrateshallbeallocatedequallybetweentheemployercontributionrateand
303303 82themembercontributionrate.Ifthetotalactuariallyrequiredcontributionratefalls
304304 83beloweighteenpercentafterbeingaboveeighteenpercentfortheprecedingtwelve-
305305 84monthperiod,themembercontributionrateandtheemployercontributionrateshall
306306 85beadjustedtoone-halfofthetotalactuariallyrequiredcontributionrateforsuch
307307 86period,regardlessofthemagnitudeofthedecreasefromtherateineffectfortheprior
308308 87period,inordertoequalizetheemployerandmembercontributionrates.Otherwise,
309309 88adjustmentsinthecontributionratesshallbelimitedbytheannualadjustmentlimits
310310 89statedinsubdivision(6)ofthissubsection;
311311 90 (5)Iftheretirementsystem'sfundedratioasofthefirstdayofthepreceding
312312 91calendaryearagainfallsbelowonehundredpercent,orifthetotalactuariallyrequired
313313 92contributionraterisesaboveeighteenpercent,theprovisionsofsubdivision(2)or(3)of
314314 93thissubsectionshallapply,asapplicable,subjecttothelimitsonannualadjustments
315315 94statedinsubdivision(6)ofthissubsection;and
316316 95 (6)Exceptasstatedinsubdivision(4)ofthissubsection,intransitioningtothe
317317 96contributionratesprescribedinthissubsectionforperiodsbeginningonorafter
318318 97January1,2027,theemployercontributionrateandthemembercontributionrate,
319319 98respectively,shallnotincreasebymorethanonepercentordecreasebymorethanone-
320320 99halfofonepercentforanyperiodfromthecorrespondingrateineffectimmediately
321321 100beforesuchincreaseordecrease.
322322 HB406 9 101 6.Theexpenseandcontingencyreserveshallbeareserveforinvestment
323323 102contingenciesandestimatedexpensesofadministrationoftheretirementsystemas
324324 103determinedannuallybytheboardoftrustees.
325325 104 7.Gifts,devises,bequestsandlegaciesmaybeacceptedbytheboardoftrusteestobe
326326 105heldandinvestedasapartoftheassetsoftheretirementsystemandshallnotbeseparately
327327 106accountedforexceptwherespecificdirectionfortheuseofagiftismadebyadonor.
328328 âś”
329329 HB406 10