FIRSTREGULARSESSION
HOUSEBILLNO.406
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVECLEMENS.
1383H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections169.410,169.450,and169.490,RSMo,andtoenactinlieuthereofthree
newsectionsrelatingtoretirementbenefitsforcertainteacherretirementsystems.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections169.410,169.450,and169.490,RSMo,arerepealedandthree
2newsectionsenactedinlieuthereof,tobeknownassections169.410,169.450,and169.490,
3toreadasfollows:
169.410.Thefollowingwordsandphrasesasusedinsections169.410to169.540,
2unlessadifferentmeaningisplainlyrequiredbythecontext,shallhavethefollowing
3meanings:
4 (1)"Accumulatedcontributions",thesumofallamountsdeductedfromthe
5compensationofamemberandcreditedtothemember'sindividualaccounttogetherwith
6interestallowedonsuchanaccount;
7 (2)"Actuarialequivalent",abenefitofequalvaluewhencomputeduponthebasisof
8interestandsuchmortalitytablesasshallbeadoptedbytheboardoftrustees;
9 (3)"Averagefinalcompensation",thehighestaverageannualcompensationofthe
10memberreceivedforanythreeconsecutiveyearsofcreditedserviceofthemember'slastten
11yearsofcreditedserviceorifthememberhashadlessthanthreeyearsofsuchcredited
12service,duringthemember'sentireperiodofcreditedservice;
13 (4)"Beneficiary",anypersonotherthanaretiredmemberreceivingapensionbenefit,
14optionalpensionbenefitorotherbenefit;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 15 (5)"Boardofeducation",theboardofeducationorcorrespondingboardhaving
16chargeofthepublicschoolsoftheschooldistrictotherthanthosepublicschoolswhichare
17operatedbytheboardofregents;
18 (6)"Boardofregents",theboardofregentsorcorrespondingboardhavingchargeof
19apubliccityteachertrainingschoolwithintheschooldistrictwhichwasoperatedbyitsboard
20ofeducationpriortoSeptember1,1978;
21 (7)"Boardoftrustees",theboardwhichadministerstheretirementsystem;
22 (8)"Charterschool",anycharterschoolestablishedpursuanttosections160.400to
23160.420andlocated,atthetimeitisestablished,withintheschooldistrict;
24 (9)"Compensation",theregularcompensationwhichamemberhasearnedasan
25employeeduringanyperiod,excluding,however,anycompensationearnedbyapersonwho
26becameamemberafterDecember31,1995,whichisinexcessofthelimitationsetforthin
27Section401(a)(17)oftheInternalRevenueCode;
28 (10)"Consumerpriceindex",theConsumerPriceIndexforAllUrbanConsumersfor
29theUnitedStates,oritssuccessorindex,asapprovedbytheboardoftrustees,assuchindexis
30definedandofficiallyreportedbytheUnitedStatesDepartmentofLabor,oritssuccessor
31agency;
32 (11)"Creditedservice",priorserviceplusmembershipserviceplusservicepurchased
33pursuanttoapplicableMissouristatute;
34 (12)"Employee",anypersonregularlyemployedby(a)theboardofeducation,or(b)
35theboardoftrustees,or(c)theboardofregentswhowasemployedatapublicteacher
36trainingschoolwithintheschooldistrictpriortoSeptember1,1978,andwhodidnotbecome
37amemberoftheMissouristateemployees'retirementsystempursuanttosection104.342,or
38(d)acharterschool.Incaseofdoubtastowhetheranypersonisanemployee,thedecisionof
39theboardofeducation,ortheboardoftrustees,ortheboardofregentsshallbefinaland
40conclusive;
41 (13)"Employer",theboardofeducation,theboardoftrustees,theboardofregentsor
42acharterschool;
43 (14)"Fundedratio",theratiooftheactuarialvalueofassetsovertheactuarial
44accruedliability,whereastheactuarialaccruedliabilityshallbebasedontheentryage
45normalactuarialcostmethodwithnormalcostexpressedasalevelpercentageof
46coveredcompensation;
47 (15)"Medicalboard",theboardofphysicians;
48 [(15)] (16)"Member",amemberoftheretirementsystemdefinedasan:
49 (a)"Activemember",apersonwhoisanemployee;
50 (b)"Inactivemember",aformeractivememberwhohasaccumulatedcontributions
51withtheretirementsystem;or
HB406 2 52 (c)"Retiredmember",aformeractivememberwhohasretiredandisreceiving
53benefits;
54 [(16)] (17)"Membershipservice",servicerenderedasanemployeeforwhichthe
55employeereceivedcompensation.Forthepurposeofcomputingcreditableserviceat
56retirement,membershipserviceshallincludeamember'saccumulatedandunuseddaysof
57sickleave.Thedecisionoftheemployingboardastothenumberofaccumulatedandunused
58daysofsickleaveheldbyamembershallbefinalandconclusive;
59 [(17)] (18)"Pensionbenefit"or"pension",monthlypaymentsforlifetoaretired
60memberortosuchbeneficiaryasisentitledtothepayments;
61 [(18)] (19)"Priorservice",servicepriortothedatethesystembecameoperative
62whichiscredited;
63 [(19)] (20)"Publicschool",anyschoolforelementary,secondaryorhighereducation,
64openandpublic,whichissupportedandmaintainedfrompublicfundsandwhichisoperated
65bytheboardofeducationoftheschooldistrict,bytheboardofregents,orasacharterschool
66asdefinedpursuanttosections160.400to160.420;
67 [(20)] (21)"Retiredmember",amemberreceivingaretirementbenefitorother
68benefit;
69 [(21)] (22)"Retirementsystem",thepublicschoolretirementsystemofaschool
70district;
71 [(22)] (23)"Schooladministrator",anemployeewhosejobclassificationisincluded
72ontheschooladministrators'positionscheduleoftheemployingboard;
73 [(23)] (24)"Schooldistrict",anymetropolitanschooldistrictasdefinedpursuantto
74section160.011;
75 [(24)] (25)"Teacher",anyteacher,substituteteacher,supervisor,principal,
76supervisingprincipal,superintendentorassistantsuperintendent,whoshallteachorbe
77employedonafull-timebasisinthepublicschoolsofaschooldistrictorcharterschool,
78exceptthoseteacherselectingtobecomemembersoftheMissouristateemployees'
79retirementsystempursuanttosection104.342.Incaseofdoubtastowhetheranypersonisa
80teacher,thedecisionoftheboardofeducation,ortheboardofregentswithrespectto
81individualswithinitscharge,shallbefinalandconclusive;
82 (26)"Totalactuariallyrequiredcontribution",thetotaldollaramountnecessary
83tofinancethecostsofbenefitsearnedbyemployeesandunfundedaccruedliabilitywith
84suchamountdeterminedforacalendaryearbasedontheactuarialvaluationasofthe
85firstdayoftheprecedingcalendaryearandtheactuarialcostmethodandassumptions
86adoptedbytheboardoftrusteesandinaccordancewithactuarialstandardsofpractice
87applicableasofsuchvaluationdate;
HB406 3 88 (27)"Totalactuariallyrequiredcontributionrate",thetotalactuarially
89requiredcontributionexpressedasapercentageofannualizedcompensationof
90retirementsystemmembers,andwhichconsistsofbothamembercontributionand
91employercontribution.
169.450.1.Thegeneraladministrationandresponsibilityfortheproperoperationof
2theretirementsystemandformakingeffectivetheprovisionsofsections169.410to169.540
3areherebyvestedinaboardoftrusteesofelevenpersons,asfollows:
4 (1)Fourtrusteestobeappointedfortermsoffouryearsbytheboardofeducation;
5provided,however,thattheirtermsshallbefixedsothetermsofoneofthetrusteesso
6appointedshallexpireeachyear.Themembersofsuchboardoftrusteesappointedbythe
7boardofeducationmaybemembersoftheboardofeducationorotherindividualsdeemed
8qualifiedtoholdsuchpositionsbytheboardofeducation;
9 (2)Fourtrusteestobeelectedfortermsoffouryearsbyandfromtheactivemembers
10oftheretirementsystemwhoshallholdofficeastrusteesonlywhileactivemembers;
11provided,however,thattheirtermsshallbefixedsothatthetermsofoneofthetrusteesso
12electedshallexpireeachyear;andprovidedfurther,thatnotmorethantwoofsuchpersons
13shallbeteachersandtwoshallbenonteachers.Forthepurposesofthissubsection,aschool
14administratorshallnotbeeligibleforthepositionsestablishedpursuanttothissubdivision
15andshallbeeligibleforthepositionestablishedpursuanttosubdivision(4)ofthissubsection;
16 (3)Twotrustees,whoshallberetiredmembers,tobeelectedfortermsoffouryears
17byandfromtheretiredmembersoftheretirementsystem;provided,however,thattheterms
18ofofficeofthefirsttwotrusteessoelectedshallbeginimmediatelyupontheirelectionand
19shallexpiretwoandfouryearsfromthedateoftheirelection,respectively;andprovided
20further,thatnotmorethanoneofsuchpersonsshallbeateacherandoneshallbea
21nonteacher;
22 (4)Onemember,whoshallbeaschooladministrator,tobeelectedforatermoffour
23yearsbyandfromtheactivemembersoftheretirementsystemwhoshallholdofficeasa
24trusteeonlywhileanactivemember;exceptthat,theinitialtermofofficeofsuchtrusteeshall
25expireonDecember31,1999.
26 2.Ifavacancyoccursintheofficeoftrustee,thevacancyshallbefilledforthe
27unexpiredterminthesamemannerastheofficewaspreviouslyfilled.Novacancyor
28vacanciesontheboardoftrusteesshallimpairthepoweroftheremainingtrusteesto
29administertheretirementsystempendingthefillingofsuchvacancies.
30 3.Intheeventofalapseofaschooldistrict'scorporateorganizationasdescribedin
31subsections1and4ofsection162.081,orforanyotherreason,thegeneraladministrationand
32theresponsibilityfortheproperoperationoftheretirementsystemshallcontinuetobefully
33vestedinthetrusteesthencurrentlyservingandsuchtrusteesshallcontinuetoserveandbe
HB406 4 34electedinthesamemannerassetforthinthisstatuteasifnolapsehadoccurred,exceptthat
35intheeventofvacanciesoccurringintheofficeoftrusteesappointedbytheboardof
36educationpriortothelapse,theboardoftrusteesshallappointaqualifiedpersonorpersonsto
37fillsuchvacancyorvacanciesfortermsofuptofouryears.
38 4.Trusteesshallservewithoutcompensation,andanytrusteeshallbereimbursed
39fromtheexpensefundforallnecessaryexpenseswhichthetrusteemayincurthroughservice
40ontheboardoftrustees.
41 5.Eachtrusteeshall,withintendaysaftersuchtrustee'sappointmentorelection,take
42anoathofofficebeforetheclerkofthecircuitcourtofthejudicialcircuitinwhichtheschool
43districtislocatedthat,sofarasitdevolvesuponthetrustee,thetrusteewilldiligentlyand
44honestlyadministertheaffairsoftheboardoftrusteesandthatthetrusteewillnotknowingly
45violateorwillinglypermittobeviolatedanyoftheprovisionsofthelawapplicabletothe
46retirementsystem.Suchoathshallbesubscribedtobythetrusteemakingitandfiledinthe
47officeoftheclerkofthecircuitcourt.
48 6.Thecircuitcourtofthejudicialcircuitinwhichtheschooldistrictislocatedshall
49havejurisdictionoverthemembersoftheboardoftrusteestorequirethemtoaccountfor
50theirofficialconductinthemanagementanddispositionofthefundsandpropertycommitted
51totheircharge;toorder,decreeandcompelpaymentbythemtothepublicschoolretirement
52systemoftheirschooldistrictofallsumsofmoney,andofthevalueofallpropertywhich
53mayhavebeenimproperlyretainedbythem,ortransferredtoothers,orwhichmayhavebeen
54lostorwastedbyanyviolationoftheirdutiesorabuseoftheirpowersassuchmembersof
55suchboard;toremoveanysuchmemberuponproofthatthetrusteehasabusedthetrustee's
56trustorhasviolatedthedutiesofthetrustee'soffice;torestrainandpreventanyalienationor
57dispositionofpropertyofsuchpublicschoolretirementsystembythemembers,incases
58whereitmaybethreatened,orthereisgoodreasontoapprehendthatitisintendedtobemade
59infraudoftherightsandinterestsofsuchpublicschoolretirementsystem.Thejurisdiction
60conferredbysections169.410to169.540shallbeexercisedasinordinarycasesupon
61petition,filedbytheboardofeducationofsuchschooldistrict,orbyanytwomembersofthe
62boardoftrustees.Suchpetitionshallbeheardinasummarymanneraftertendays'noticein
63writingtothemembercomplainedof,andanappealshallliefromthejudgmentofthecircuit
64courtasinothercausesandbespeedilydetermined,butsuchappealshallnotoperateunder
65anyconditionasasupersedeasofajudgmentofremovalfromoffice.
66 7.Eachtrusteeshallbeentitledtoonevoteintheboardoftrustees.Sixvotesshallbe
67necessaryforadecisionbythetrusteesatanymeetingoftheboardoftrustees.
68 8.Subjecttothelimitationsofsections169.410to169.540,theboardoftrustees
69shall,fromtimetotime,establishrulesandregulationsfortheadministrationofthe
70retirementsystem,foreligibilityforanddeterminationofbenefitsundertheretirement
HB406 5 71system,fortheinvestmentofretirementsystemassets,andforthetransactionofthe
72retirementsystem'sbusiness.
73 9.Theboardoftrusteesshallelectfromitsmembershipachairmanandshall,by
74majorityvoteofitsmembers,appointasecretary,whomaybe,butneednotbe,oneofits
75members.Itshallengagesuchactuarialandotherservicesasshallberequiredtotransactthe
76businessoftheretirementsystem.Itshallalsoengageaninvestmentcounselorwhoshallbe
77experiencedintheinvestmentofmoneystoadvisethetrusteesoninvestmentsofthe
78retirementsystem.Thecompensationofallpersonsengagedbytheboardoftrusteesandall
79otherexpensesoftheboardnecessaryfortheoperationoftheretirementsystemshallbepaid
80atsuchratesandinsuchamountsastheboardoftrusteesshallapprove.
81 10.Theboardoftrusteesshallkeepinconvenientformsuchdataasshallbe
82necessaryforactuarialvaluationsoftheassetsoftheretirementsystemandforcheckingthe
83experienceofthesystem.
84 11.Theboardoftrusteesshallkeeparecordofallitsproceedingswhichshallbe
85opentopublicinspection.Itshallprepareannuallyandsendtotheboardofeducationandto
86eachmemberoftheretirementsystemareportshowingthefiscaltransactionsofthe
87retirementsystemfortheprecedingfiscalyear,adetailedlistingofallsalariesand
88expendituresincurredbythetrusteesforitsoperation,theamountoftheaccumulatedcash
89andsecuritiesofthesystem,andthelastbalancesheetshowingthefinancialconditionofthe
90systembymeansofanactuarialvaluationoftheassetsandliabilitiesoftheretirement
91system.Theboardoftrusteesshallalsoprepareorcausetobepreparedanannualreport
92concerningtheoperationoftheretirementsystemhereinprovidedfor,whichreportshallbe
93sentbythechairmanoftheboardoftrusteestotheboardofeducation.
94 12.Theboardoftrusteesshallarrangefornecessarylegaladvicefortheoperationof
95theretirementsystem.
96 13.Theboardoftrusteesshalldesignateamedicalboardtobecomposedofthree
97physicians,noneofwhomshallbeeligibleforbenefitspursuanttosections169.410to
98169.540,whoshallarrangeforandpassuponallmedicalexaminationsrequiredpursuantto
99theprovisionsofsections169.410to169.540,shallinvestigateallessentialstatementsand
100certificatesmadebyoronbehalfofamemberinconnectionwithanapplicationfordisability
101retirementandshallreportinwritingtotheboardoftrusteesitsconclusionsand
102recommendationsuponallmattersreferredtoit.
103 14.Theactuaryshallbethetechnicaladviseroftheboardoftrusteesonmatters
104regardingtheoperationofthesystemcreatedbysections169.410to169.540andshall
105performsuchotherdutiesasarerequiredinconnectiontherewith.Suchpersonshallbe
106qualifiedasanactuarybymembershipasafellowintheSocietyofActuariesorbyobjective
107standardswhicharenolessstringentthanthoseestablishedbytheSocietyofActuaries.
HB406 6 108 15.Atleastonceineachfive-yearperiodtheactuaryshallmakeaninvestigationinto
109theactuarialexperienceoftheretirementsystem,andtakingintoaccounttheresultsofsuch
110investigationoftheexperience,theboardoftrusteesshalladoptfortheretirementsystem
111suchactuarialassumptionsasshallbedeemednecessary.
112 16.Onthebasisofsuchactuarialassumptionsastheboardoftrusteesshalladopt,the
113actuaryshallmakeanannualvaluationoftheassetsandliabilitiesofthefundsofthe
114retirementsystem.
115 17.Onthebasisofthevaluationandinaccordancewiththeprovisionsofsection
116169.490,theboardoftrusteesshallcertifytheratesofcontributionpayablebytheboardof
117education.
169.490.1.Alltheassetsoftheretirementsystemshallbeheldasonefund.
2 2.(1)ForanymemberhiredbeforeJanuary1,2018,theemployingboardshallcause
3tobedeductedfromthecompensationofeachmemberateverypayrollperiodfivepercentof
4hisorhercompensation.
5 (2)BeginningJanuary1,2018,thepercentageinsubdivision(1)ofthissubsection
6shallincreaseone-halfofonepercentannuallyuntilsuchtimeasthepercentageequalsnine
7percentunlessalowermembercontributionrateappliesforanyperiodinaccordance
8withtheprovisionsofsubdivision(4)ofsubsection5ofthissection.
9 (3)ForanymemberhiredforthefirsttimeonorafterJanuary1,2018,theemploying
10boardshallcausetobedeductedfromthecompensationofeachmemberateverypayroll
11periodninepercentofsuchmember'scompensationunlessalowermembercontribution
12rateappliesforanyperiodinaccordancewiththeprovisionsofsubdivision(4)of
13subsection5ofthissection.
14 (4)Theamountssodeductedshallbetransferredtotheboardoftrusteesandcredited
15totheindividualaccountofeachmemberfromwhosecompensationthedeductionwasmade.
16Indeterminingtheamountearnablebyamemberinanypayrollperiod,theboardoftrustees
17mayconsidertherateofearnablecompensationpayabletosuchmemberonthefirstdayof
18thepayrollperiodascontinuingthroughoutsuchpayrollperiod;itmayomitdeductionfrom
19compensationforanyperiodlessthanafullpayrollperiodiftheemployeewasnotamember
20onthefirstdayofthepayrollperiod;andtofacilitatethemakingofthedeductions,itmay
21modifythedeductionrequiredofanymemberbysuchamountasshallnotexceedone-tenth
22ofonepercentofthecompensationuponthebasisofwhichsuchdeductionwasmade.
23 (5)Thedeductionsprovidedforhereinaredeclaredtobeapartofthesalaryofthe
24memberandthemakingofsuchdeductionsshallconstitutepaymentsbythememberoutof
25hisorhersalaryorearningsandsuchdeductionsshallbemadenotwithstandingthatthe
26minimumcompensationprovidedbylawforanymembershallbereducedthereby.Every
27membershallbedeemedtoconsenttothedeductionsmadeandprovidedforherein,andshall
HB406 7 28receiptforhisorherfullsalaryorcompensation,andthemakingofsaiddeductionsandthe
29paymentofsalaryorcompensationlesssaiddeductionshallbeafullandcompletedischarge
30andacquittanceofallclaimsanddemandswhatsoeverforservicesrenderedduringtheperiod
31coveredbythepaymentexceptastobenefitsprovidedbysections169.410to169.540.
32 (6)Theemployingboardmayelecttopaymembercontributionsrequiredbythis
33sectionasanemployerpickupofemployeecontributionsunderSection414(h)(2)ofthe
34InternalRevenueCodeof1986,asamended,andsuchcontributionspickedupbythe
35employingboardshallbetreatedascontributionsmadebymembersforallpurposesof
36sections169.410to169.540.
37 3.Ifaretiredmemberreceivingapensionpursuanttosections169.410to169.540is
38restoredtoactiveserviceandagainbecomesanactivememberoftheretirementsystem,there
39shallbecreditedtohisorherindividualaccountanamountequaltotheexcess,ifany,ofhis
40orheraccumulatedcontributionsatretirementoverthetotalpensionbenefitspaidtohimor
41her.
42 4.Annually,theactuaryfortheretirementsystemshallcalculateeachemployer's
43contributionasanamountequaltoacertainpercentageofthetotalcompensationofall
44membersemployedbythatemployer.Thepercentageshallbefixedonthebasisofthe
45liabilitiesoftheretirementsystemasshownbytheannualactuarialvaluation.Theannual
46actuarialvaluationshallbemadeonthebasisofsuchactuarialassumptionsandtheactuarial
47costmethodadoptedbytheboardoftrustees,providedthattheactuarialcostmethodadopted
48shallbeinaccordancewithgenerallyacceptedactuarialstandardsandthattheunfunded
49actuarialaccruedliability,ifany,shallbeamortizedbylevelannualpaymentsoveraperiod
50nottoexceedthirtyyears.TheprovisionsofthissubsectionshallexpireonDecember31,
512017;thereaftersubsection5ofthissectionshallapply.
52 5.Forcalendaryear2018,therateofcontributionpayablebyeachemployershall
53equalsixteenpercentofthetotalcompensationofallmembersemployedbythatemployer.
54Foreachcalendaryearthereafter,thepercentagerateofcontributionpayablebyeach
55employerofthetotalcompensationofallmembersemployedbythatemployershalldecrease
56one-halfofonepercentannuallyuntilcalendaryear[2032] 2026whentherateofcontribution
57payablebyeachemployershallequal[nine] fourteenpercentofthetotalcompensationofall
58membersemployedbythatemployer.For[subsequent] calendar[yearsafter2032] year2027
59andeachcalendaryearthereafter, therateofcontributionpayablebyeachemployershall
60[equalninepercentofthetotalcompensationofallmembersemployedbythatemployer] be
61determinedasfollows:
62 (1)Annually,theboardoftrusteesshallinstructtheretirementsystemactuary
63todeterminethetotalactuariallyrequiredcontributionaswellasthetotalactuarially
HB406 8 64requiredcontributionratefortheapplicablecalendaryearbasedonavaluationasof
65thefirstdayoftheprecedingcalendaryear;
66 (2)Iftheretirementsystem'sfundedratioasofthefirstdayofthepreceding
67calendaryearisbelowonehundredpercent,theemployercontributionrateshallbethe
68greateroffourteenpercentorthedifferencebetweenthetotalactuariallyrequired
69contributionrateandthemembercontributionrateorratesineffectundersubsection
70twoofthissection,subjecttothelimitsonannualadjustmentsstatedinsubdivision(6)
71ofthissubsection;
72 (3)Iftheretirementsystem'sfundedratioasofthefirstdayofthepreceding
73calendaryearequalsorexceedsonehundredpercentandthetotalactuariallyrequired
74contributionrateexceedseighteenpercent,theemployercontributionrateshallbethe
75differencebetweenthetotalactuariallyrequiredcontributionrateandthemember
76contributionrateorratesineffectundersubsectiontwoofthissection,subjecttothe
77limitsonannualadjustmentsstatedinsubdivision(6)ofthissubsection;
78 (4)Iftheretirementsystem'sfundedratioasofthefirstdayofthepreceding
79calendaryearequalsorexceedsonehundredpercentandthetotalactuariallyrequired
80contributionratedoesnotexceedeighteenpercent,thetotalactuariallyrequired
81contributionrateshallbeallocatedequallybetweentheemployercontributionrateand
82themembercontributionrate.Ifthetotalactuariallyrequiredcontributionratefalls
83beloweighteenpercentafterbeingaboveeighteenpercentfortheprecedingtwelve-
84monthperiod,themembercontributionrateandtheemployercontributionrateshall
85beadjustedtoone-halfofthetotalactuariallyrequiredcontributionrateforsuch
86period,regardlessofthemagnitudeofthedecreasefromtherateineffectfortheprior
87period,inordertoequalizetheemployerandmembercontributionrates.Otherwise,
88adjustmentsinthecontributionratesshallbelimitedbytheannualadjustmentlimits
89statedinsubdivision(6)ofthissubsection;
90 (5)Iftheretirementsystem'sfundedratioasofthefirstdayofthepreceding
91calendaryearagainfallsbelowonehundredpercent,orifthetotalactuariallyrequired
92contributionraterisesaboveeighteenpercent,theprovisionsofsubdivision(2)or(3)of
93thissubsectionshallapply,asapplicable,subjecttothelimitsonannualadjustments
94statedinsubdivision(6)ofthissubsection;and
95 (6)Exceptasstatedinsubdivision(4)ofthissubsection,intransitioningtothe
96contributionratesprescribedinthissubsectionforperiodsbeginningonorafter
97January1,2027,theemployercontributionrateandthemembercontributionrate,
98respectively,shallnotincreasebymorethanonepercentordecreasebymorethanone-
99halfofonepercentforanyperiodfromthecorrespondingrateineffectimmediately
100beforesuchincreaseordecrease.
HB406 9 101 6.Theexpenseandcontingencyreserveshallbeareserveforinvestment
102contingenciesandestimatedexpensesofadministrationoftheretirementsystemas
103determinedannuallybytheboardoftrustees.
104 7.Gifts,devises,bequestsandlegaciesmaybeacceptedbytheboardoftrusteestobe
105heldandinvestedasapartoftheassetsoftheretirementsystemandshallnotbeseparately
106accountedforexceptwherespecificdirectionfortheuseofagiftismadebyadonor.
âś”
HB406 10