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Missouri House Bill HB559

Missouri 2025 Regular Session

Missouri House Bill HB559 Compare Versions

Only one version of the bill is available at this time.
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11 FIRSTREGULARSESSION
22 HOUSEBILLNO.559
33 103RDGENERALASSEMBLY
44 INTRODUCEDBYREPRESENTATIVEHOVIS.
55 0330H.01I DANARADEMANMILLER,ChiefClerk
66 ANACT
77 Torepealsections70.605,70.630,70.655,70.680,70.690,70.745,70.746,70.747,86.200,
88 and105.688,RSMo,andtoenactinlieuthereofelevennewsectionsrelatingtopublic
99 employeeretirementsystems.
1010 BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
1111 SectionA.Sections70.605,70.630,70.655,70.680,70.690,70.745,70.746,70.747,
1212 286.200,and105.688,RSMo,arerepealedandelevennewsectionsenactedinlieuthereof,to
1313 3beknownassections70.605,70.630,70.655,70.680,70.690,70.745,70.746,70.747,
1414 470.748,86.200,and105.688,toreadasfollows:
1515 70.605.1.Forthepurposeofprovidingfortheretirementorpensioningofthe
1616 2officersandemployeesandthewidowsandchildrenofdeceasedofficersandemployeesof
1717 3anypoliticalsubdivisionofthestate,thereisherebycreatedandestablishedaretirement
1818 4systemwhichshallbeabodycorporate,whichshallbeunderthemanagementofaboardof
1919 5trusteeshereindescribed,andshallbeknownasthe"MissouriLocalGovernmentEmployees'
2020 6RetirementSystem".Suchsystemmaysueandbesued,transactbusiness,investfunds,and
2121 7holdcash,securities,andotherproperty.Allsuitsorproceedingsdirectlyorindirectlyagainst
2222 8thesystemshallbebroughtinColeCounty.Thesystemshallbeginoperationsonthefirst
2323 9dayofthecalendarmonthnextfollowingsixtydaysafterthedatetheboardoftrusteeshas
2424 10receivedcertificationfromtenpoliticalsubdivisionsthattheyhaveelectedtobecome
2525 11employers.
2626 12 2.Thegeneraladministrationandtheresponsibilityfortheproperoperationofthe
2727 13systemisvestedinaboardoftrusteesofsevenpersons:threepersonstobeelectedastrustees
2828 14bythemembersofthesystem;threepersonstobeelectedtrusteesbythegoverningbodiesof
2929 EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
3030 intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 15employers;andoneperson,tobeappointedbythegovernor,whoisnotamember,retirant,or
3131 16beneficiaryofthesystemandwhoisnotamemberofthegoverningbodyofanypolitical
3232 17subdivision.BeginningonJanuary1,2026,upontheexpirationofthetermofthe
3333 18employertrusteeelectedtotheboardwithatermendingonDecember31,2025,the
3434 19positionofsuchemployertrusteeshallthereafterbereplacedbyapersontobeelected
3535 20astrusteebytheretirantsofthesystem.
3636 21 3.TrusteesshallbechosenfortermsoffouryearsfromthefirstdayofJanuarynext
3737 22followingtheirelectionorappointment[, exceptthatofthefirstboardshallallbeappointed
3838 23bythegovernorbyandwiththeconsentofthesenate,asfollows:
3939 24 (1)Threepersonswhoareofficersorofficialsofpoliticalsubdivisions,oneforaterm
4040 25ofthreeyears,oneforatermoftwoyears,andoneforatermofoneyear;and
4141 26 (2)Threepersonswhoareemployeesofpoliticalsubdivisionsandwhowould,ifthe
4242 27subdivisionbywhichtheyareemployedbecomesanemployer,beeligibleasmembers,one
4343 28foratermofthreeyears,oneforatermoftwoyears,andoneforatermofoneyear;and
4444 29 (3)Thatpersonappointedbythegovernorundertheprovisionsofsubsection2ofthis
4545 30section.Allthemembersofthefirstboardshalltakeofficeassoonasappointedbythe
4646 31governor,buttheirtermsshallbecomputedfromthefirstdayofJanuarynextfollowingtheir
4747 32appointment,andonlyonemembermaybefromanypoliticalsubdivisionorbeapoliceman
4848 33orfireman].
4949 34 4.Successortrusteeselectedorappointedasmembertrusteesshallbemembersofthe
5050 35retirementsystem;provided,thatnotmorethanone[member] trusteeshallbeemployedby
5151 36anyoneemployer,andnotmorethanone[member] trusteeshallbea[policeman] police
5252 37officer, andnotmorethanone[member] trusteeshallbea[fireman] firefighter,andnot
5353 38morethanonetrusteeshallbepublicsafetypersonnelasdescribedinsection70.631.
5454 39 5.FortermsbeginningonorafterJanuary1,2026,successortrusteeselectedas
5555 40employertrusteesshallbeelectedorappointedofficialsofthegoverningbodiesofthe
5656 41employers[andshallnotbemembersoftheretirementsystem] orexecutivelevelemployees
5757 42certifiedbythegoverningbodiesoftheemployers; provided,thatnotmorethanone
5858 43[employer] trusteeshallbefromanyoneemployer, andnotmorethanonetrusteeshallbe
5959 44apoliceofficer,andnotmorethanonetrusteeshallbeafirefighter,andnotmorethan
6060 45onetrusteeshallbepublicsafetypersonnelasdescribedinsection70.631.
6161 46 6.[Anannualmeetingoftheretirementsystemshallbecalledbytheboardinthelast
6262 47calendarquarterofeachyearinJeffersonCity,oratsuchplaceastheboardshalldetermine,
6363 48forthepurposeofelectingtrusteesandtotransactsuchotherbusinessasmayberequiredfor
6464 49theproperoperationofthesystem.Noticeofsuchmeetingshallbesentbyregisteredmailto
6565 50theclerkorsecretaryofeachemployernotlessthanthirtydayspriortothedateofsuch
6666 51meeting.Thegoverningbodyofeachemployershallcertifytotheboardthenameofone
6767 HB559 2 52delegatewhoshallbeanofficeroftheemployer,andthemembersoftheemployershall
6868 53certifytotheboardamemberoftheemployertorepresentsuchemployeratsuchmeeting.
6969 54Thedelegatecertifiedasmemberdelegateshallbeelectedbysecretballotbythemembersof
7070 55suchemployer,andtheclerkorsecretaryofeachemployershallbechargedwiththedutyof
7171 56conductingsuchelectioninamannerwhichwillpermiteachmembertovoteinsuchelection.
7272 57Undersuchrulesandregulationsastheboardshalladopt,approvedbythedelegates,the
7373 58memberdelegatesshallelectamembertrusteeforeachsuchpositionontheboardtobe
7474 59filled,andtheofficerdelegatesshallelectanemployertrusteeforeachsuchpositiononthe
7575 60boardtobefilled] Successortrusteeselectedasretireetrusteesshallberetirantsofthe
7676 61systempursuanttosections70.600to70.755.
7777 62 7.Theelectionsofthetrusteesshallbearrangedforandmanagedand
7878 63conductedbytheboardoftrusteesoftheretirementsystem.
7979 64 8.Intheeventany[membertrusteeceasestobeamemberoftheretirementsystem,
8080 65oranyemployertrusteeceasestobeanappointedorelectedofficialofanemployer,or
8181 66becomesamemberoftheretirementsystem,orifthetrusteeappointedbythegovernor
8282 67becomesamemberoftheretirementsystemoranelectedorappointedofficialofapolitical
8383 68subdivision] trusteeceasestomeettheeligibilityrequirementspursuanttothissection,
8484 69orifanytrusteefailstoattendthreeconsecutivemeetingsoftheboard,unlessineachcase
8585 70excusedforcausebytheremainingtrusteesattendingsuchmeetingormeetings,heorshe
8686 71shallbeconsideredashavingresignedfromtheboardandtheboardshall,byresolution,
8787 72declarehisorherofficeoftrusteevacated.Ifavacancyoccursintheofficeoftrustee,the
8888 73vacancyshallbefilledfortheunexpiredterminthesamemannerastheofficewaspreviously
8989 74filled;provided,however,thattheremainingtrusteesmayfillemployerandmembertrustee
9090 75vacanciesontheboarduntilthenext[annualmeeting] election.
9191 76 [8.]9.Eachtrusteeshallbecommissionedbythegovernor,andbeforeenteringupon
9292 77thedutiesofhisoffice,shalltakeandsubscribetoanoathoraffirmationtosupportthe
9393 78ConstitutionoftheUnitedStates,andofthestateofMissouri,andtodemeanhimself
9494 79faithfullyinhisorheroffice.Suchoathassubscribedtoshallbefiledintheofficeofthe
9595 80secretaryofstateofthisstate.
9696 81 [9.]10.Eachtrusteeshallbeentitledtoonevoteintheboardoftrustees.Fourvotes
9797 82shallbenecessaryforadecisionbythetrusteesatanymeetingoftheboardoftrustees.Four
9898 83trustees[, ofwhomatleasttwoshallbemembertrusteesandatleasttwoshallbeemployer
9999 84trustees,] shallconstituteaquorumatanymeetingoftheboard.Unlessotherwiseexpressly
100100 85providedherein,ameetingneednotbecalledorheldtomakeanydecisiononamatterbefore
101101 86theboard.Eachmembermustbesentbytheexecutivesecretaryacopyofthemattertobe
102102 87decidedwithfullinformationfromthefilesoftheboard.Theconcurringdecisionsoffour
103103 88trusteesmaydecidetheissuebysigningadocumentdeclaringtheirdecisionandsendingthe
104104 HB559 3 89writteninstrumenttotheexecutivesecretary,providedthatnoothertrusteeshallsenda
105105 90dissentingdecisiontotheexecutivesecretarywithinfifteendaysafterthedocumentand
106106 91informationwasmailedtohimorher.Ifanytrusteeisnotinagreementwiththefourtrustees,
107107 92thematteristobepassedonataregularboardmeetingoraspecialmeetingcalledforthat
108108 93purpose.Theboardshallholdregularmeetingsatleastonceeachquarter,thedatesofthese
109109 94meetingstobedesignatedintherulesandregulationsadoptedbytheboard.Othermeetings
110110 95asdeemednecessarymaybecalledbythe[chairman] chairpersonorbyanyfourtrustees
111111 96actingjointly.
112112 97 [10.]11.Theboardoftrusteesshallelectoneoftheirnumberas[chairman]
113113 98chairperson, andoneoftheirnumberasvice[chairman] chairperson, andshallemployan
114114 99executivesecretary,notoneoftheirnumber,whoshallbetheexecutiveofficeroftheboard.
115115 100Otheremployeesoftheboardshallbechosenonlyupontherecommendationoftheexecutive
116116 101secretary.
117117 102 [11.]12.Theboardshallappointanactuaryorafirmofactuariesastechnicaladvisor
118118 103totheboardonmattersregardingtheoperationofthesystemonanactuarialbasis.The
119119 104actuaryoractuariesshallperformsuchdutiesasarerequiredofhimorherundersections
120120 10570.600to70.755,andasarefromtimetotimerequiredbytheboard.
121121 106 [12.]13.Theboardmayappointanattorney-at-laworfirmofattorneys-at-lawtobe
122122 107thelegaladvisoroftheboardandtorepresenttheboardinalllegalproceedings.
123123 108 [13.]14.Theboardmayappointaninvestmentcounselortobetheinvestmentadvisor
124124 109oftheboard.
125125 110 [14.]15.Theboardshallfromtimetotime,afterreceivingtheadviceofitsactuary,
126126 111adoptsuchmortalityandothertablesofexperience,andarateorratesofregularinterest,as
127127 112shallbenecessaryfortheactuarialrequirementsofthesystem,andshallrequireitsexecutive
128128 113secretarytokeepinconvenientformsuchdataasshallbenecessaryforactuarial
129129 114investigationsoftheexperienceofthesystem,andsuchdataasshallbenecessaryforthe
130130 115annualactuarialvaluationsofthesystem.
131131 116 [15.]16.Theboardshallkeeparecordofitsproceedings,whichshallbeopento
132132 117publicinspection.Itshallprepareannuallyandrendertoeachemployerareportshowingthe
133133 118financialconditionofthesystemasoftheprecedingJunethirtieth.Thereportshallcontain,
134134 119butshallnotbelimitedto,afinancialbalancesheet;astatementofincomeand
135135 120disbursements;adetailedstatementofinvestmentsacquiredanddisposedofduringthe
136136 121year,togetherwithadetailedstatementoftheannualratesofinvestmentincomefromall
137137 122assetsandfromeachtypeofinvestment;anactuarialbalancesheetpreparedbymeansofthe
138138 123lastvaluationofthesystem,andsuchotherdataastheboardshalldeemnecessaryor
139139 124desirableforaproperunderstandingoftheconditionofthesystem.
140140 HB559 4 125 [16.]17.Theboardoftrusteesshall,afterreasonablenoticetoallinterestedparties,
141141 126conductadministrativehearingstohearanddecidequestionsarisingfromtheadministration
142142 127ofsections70.600to70.755;except,thatsuchhearingsmaybeconductedbyahearing
143143 128officerwhoshallbeappointedbytheboard.Thehearingofficershallpresideatthehearing
144144 129andhearallevidenceandruleontheadmissibilityofevidence.Thehearingofficershall
145145 130makerecommendedfindingsoffactandmaymakerecommendedconclusionsoflawtothe
146146 131board.Allfinalordersordeterminationsorotherfinalactionsbytheboardshallbeapproved
147147 132inwritingbyatleastfourmembersoftheboard.Anyboardmemberapprovinginwriting
148148 133anyfinalorder,determinationorotherfinalaction,whodidnotattendthehearing,shalldoso
149149 134onlyaftercertifyingthatheorshereviewedallexhibitsandreadtheentiretranscriptofthe
150150 135hearing.Withinthirtydaysafteradecisionororderorfinalactionoftheboard,anymember,
151151 136retirant,beneficiaryorpoliticalsubdivisionadverselyaffectedbythatdeterminationororder
152152 137orfinalactionmaytakeanappealundertheprovisionsofchapter536.Jurisdictionoverany
153153 138disputeregardingtheinterpretationofsections70.600to70.755andthedeterminations
154154 139requiredthereundershalllieinthecircuitcourtofColeCounty.
155155 140 [17.]18.Theboardshallarrangeforadequatesuretybondscoveringtheexecutive
156156 141secretaryandanyothercustodianofthefundsorinvestmentsoftheboard.Whenapproved
157157 142bytheboard,saidbondsshallbedepositedintheofficeofthesecretaryofstate.
158158 143 [18.]19.Theboardshallarrangeforannualauditsoftherecordsandaccountsofthe
159159 144systembyacertifiedpublicaccountantorbyafirmofcertifiedpublicaccountants.
160160 145 [19.]20.TheheadquartersoftheretirementsystemshallbeinJeffersonCity.
161161 146 [20.]21.Theboardoftrusteesshallserveastrusteeswithoutcompensationfortheir
162162 147servicesassuch;exceptthateachtrusteeshallbepaidforanynecessaryexpensesincurredin
163163 148attendingmeetingsoftheboardorintheperformanceofotherdutiesauthorizedbytheboard.
164164 149 [21.]22.Subjecttothelimitationsofsections70.600to70.755,theboardshall
165165 150formulateandadoptrulesandregulationsforthegovernmentofitsownproceedingsandfor
166166 151theadministrationoftheretirementsystem.
167167 70.630.1.Themembershipofthesystemshallincludethefollowingpersons:
168168 2 (1)Allemployeeswhoareneitherpolicemennorfiremenwhoareintheemployofa
169169 3politicalsubdivisionthedayprecedingthedatesuchpoliticalsubdivisionbecomesan
170170 4employerandwhocontinueinsuchemployonandaftersuchdateshallbecomemembersof
171171 5thesystem.
172172 6 (2)Allpersonswhobecomeemployedbyapoliticalsubdivisionasneitherpolicemen
173173 7norfiremenonorafterthedatesuchpoliticalsubdivisionbecomesanemployershallbecome
174174 8membersofthesystem.
175175 9 (3)Ifhisemployingpoliticalsubdivisionhaselectedtocoverpresentandfuture
176176 10policemen,allpolicemenwhoareintheemployofapoliticalsubdivisionthedaypreceding
177177 HB559 5 11thedatesuchpoliticalsubdivisioncoverspolicemenhereunderandwhocontinueinsuch
178178 12employasapolicemanonandaftersuchdate,andallpersonswhobecomeemployedbya
179179 13politicalsubdivisionasapolicemanonorafterthedatethepoliticalsubdivisioncovers
180180 14policemenshallbecomemembersofthesystem.
181181 15 (4)Ifhisemployingpoliticalsubdivisionhaselectedtocoveronlyfuturepolicemen,
182182 16allpersonswhobecomeemployedbyapoliticalsubdivisionasapolicemanonorafterthe
183183 17datesuchpoliticalsubdivisioncoverspolicemenhereundershallbecomemembersofthe
184184 18system.
185185 19 (5)Ifhisemployingpoliticalsubdivisionhaselectedtocoverpresentandfuture
186186 20firemen,allfiremenwhoareintheemployofapoliticalsubdivisionthedayprecedingthe
187187 21datesuchpoliticalsubdivisioncoversfiremenhereunderandwhocontinueinsuchemployas
188188 22afiremanonandaftersuchdate,andallpersonswhobecomeemployedbyapolitical
189189 23subdivisionasafiremanonorafterthedatethepoliticalsubdivisioncoversfiremen
190190 24hereundershallbecomemembersofthesystem.
191191 25 (6)Ifhisemployingpoliticalsubdivisionhaselectedtocoveronlyfuturefiremen,all
192192 26personswhobecomeemployedbyapoliticalsubdivisionasafiremanonorafterthedate
193193 27suchpoliticalsubdivisioncoversfiremenhereundershallbecomemembersofthesystem.
194194 28 2.[Innoeventshallanemployeebecomeamemberifcontinuousemploymentto
195195 29timeofretirementwillleavetheemployeewithlessthanminimumnumberofyearsof
196196 30creditedservicespecifiedinsection70.645.
197197 31 3.]Inanycaseofquestionastothesystemmembershipstatusofanyperson,the
198198 32boardshalldecidethequestion.
199199 70.655.1.Uponamember'sretirementheorsheshallreceiveanallowanceforlifein
200200 2accordancewiththeapplicablebenefitprogramelectedbythemember'semployer,as
201201 3follows:
202202 4 (1)BenefitprogramL-1.Amemberwithcreditedservicecoveredbybenefit
203203 5programL-1shallreceiveanallowanceforlifeequaltoonepercentofthemember'sfinal
204204 6averagesalarymultipliedbythenumberofyearsofsuchcreditedservice;
205205 7 (2)BenefitprogramL-3.Amemberwithcreditedservicecoveredbybenefit
206206 8programL-3shallreceiveanallowanceforlifeequaltooneandone-quarterpercentofthe
207207 9member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
208208 10 (3)BenefitprogramLT-4.Amemberwithcreditedservicecoveredbybenefit
209209 11programLT-4shallreceiveanallowanceforlifeequaltoonepercentofthemember'sfinal
210210 12averagesalarymultipliedbythenumberofyearsofsuchcreditedservice.Inaddition,ifsuch
211211 13memberisretiringasprovidedinsection70.645orsection70.650orsection70.670,andif
212212 14suchmember'sageatretirementisyoungerthanagesixty-two,thensuchmembershall
213213 15receiveatemporaryallowanceequaltoonepercentofthemember'sfinalaveragesalary
214214 HB559 6 16multipliedbythenumberofyearsofsuchcreditedservice.Suchtemporaryallowanceshall
215215 17terminateattheendofthecalendarmonthinwhichtheearlierofthefollowingeventsoccurs:
216216 18suchmember'sdeath;orthemember'sattainmentofagesixty-two;
217217 19 (4)BenefitprogramLT-5.Amemberwithcreditedservicecoveredbybenefit
218218 20programLT-5shallreceiveanallowanceforlifeequaltooneandone-quarterpercentofthe
219219 21member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.In
220220 22addition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650orsection
221221 2370.670,andifsuchmember'sageatretirementisyoungerthanagesixty-two,thensuch
222222 24membershallreceiveatemporaryallowanceequaltothree-quartersofonepercentofthe
223223 25member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
224224 26Suchtemporaryallowanceshallterminateattheendofthecalendarmonthinwhichthe
225225 27earlierofthefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentof
226226 28agesixty-two;
227227 29 (5)BenefitprogramL-6.Amemberwithcreditedservicecoveredbybenefit
228228 30programL-6shallreceiveanallowanceforlifeequaltotwopercentofthemember'sfinal
229229 31averagesalarymultipliedbythenumberofyearsofsuchcreditedservice;
230230 32 (6)BenefitprogramL-7.Amemberwithcreditedservicecoveredbybenefit
231231 33programL-7shallreceiveanallowanceforlifeequaltooneandone-halfpercentofthe
232232 34member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
233233 35 (7)BenefitprogramLT-8.Amemberwithcreditedservicecoveredbybenefit
234234 36programLT-8shallreceiveanallowanceforlifeequaltooneandone-halfpercentofthe
235235 37member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.In
236236 38addition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650orsection
237237 3970.670,andifsuchmember'sageatretirementisyoungerthanagesixty-two,thensuch
238238 40membershallreceiveatemporaryallowanceequaltoone-halfofonepercentofthemember's
239239 41finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.Such
240240 42temporaryallowanceshallterminateattheendofthecalendarmonthinwhichtheearlierof
241241 43thefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentofagesixty-
242242 44two;
243243 45 (8)BenefitprogramLT-4(65).Amemberwithcreditedservicecoveredbybenefit
244244 46programLT-4(65)shallreceiveanallowanceforlifeequaltoonepercentofthemember's
245245 47finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.Inaddition,if
246246 48suchmemberisretiringasprovidedinsection70.645orsection70.650orsection70.670,and
247247 49ifsuchmember'sageatretirementisyoungerthanagesixty-five,thensuchmembershall
248248 50receiveatemporaryallowanceequaltoonepercentofthemember'sfinalaveragesalary
249249 51multipliedbythenumberofyearsofsuchcreditedservice.Suchtemporaryallowanceshall
250250 HB559 7 52terminateattheendofthecalendarmonthinwhichtheearlierofthefollowingeventsoccurs:
251251 53suchmember'sdeath;orthemember'sattainmentofagesixty-five;
252252 54 (9)BenefitprogramLT-5(65).Amemberwithcreditedservicecoveredbybenefit
253253 55programLT-5(65)shallreceiveanallowanceforlifeequaltooneandone-quarterpercentof
254254 56themember'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
255255 57Inaddition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650or
256256 58section70.670,andifsuchmember'sageatretirementisyoungerthanagesixty-five,then
257257 59suchmembershallreceiveatemporaryallowanceequaltothree-quartersofonepercentof
258258 60themember'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
259259 61Suchtemporaryallowanceshallterminateattheendofthecalendarmonthinwhichthe
260260 62earlierofthefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentof
261261 63agesixty-five;
262262 64 (10)BenefitprogramLT-8(65).Amemberwithcreditedservicecoveredbybenefit
263263 65programLT-8(65)shallreceiveanallowanceforlifeequaltooneandone-halfpercentofthe
264264 66member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.In
265265 67addition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650orsection
266266 6870.670,andifsuchmember'sageatretirementisyoungerthanagesixty-five,thensuch
267267 69membershallreceiveatemporaryallowanceequaltoone-halfofonepercentofthemember's
268268 70finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.Such
269269 71temporaryallowanceshallterminateattheendofthecalendarmonthinwhichtheearlierof
270270 72thefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentofagesixty-
271271 73five;
272272 74 (11)BenefitprogramL-9.Amemberwithcreditedservicecoveredbybenefit
273273 75programL-9shallreceiveanallowanceforlifeequaltooneandsix-tenthspercentofthe
274274 76member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
275275 77 (12)BenefitprogramLT-10(65).Amemberwithcreditedservicecoveredbybenefit
276276 78programLT-10(65)shallreceiveanallowanceforlifeequaltooneandsix-tenthspercentof
277277 79themembers'finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
278278 80Inaddition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650or
279279 81section70.670,andifsuchmember'sageatretirementisyoungerthanagesixty-five,then
280280 82suchmembershallreceiveatemporaryallowanceequaltofour-tenthsofonepercentofthe
281281 83member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
282282 84Suchtemporaryallowanceshallterminateattheendofthecalendarmonthinwhichthe
283283 85earlierofthefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentof
284284 86agesixty-five;
285285 87 (13)BenefitprogramL-11.BenefitprogramL-11maycoveremploymentina
286286 88positiononlyifsuchpositionisnotconcurrentlycoveredbyfederalSocialSecurity;in
287287 HB559 8 89addition,ifsuchpositionwaspreviouslycoveredbyfederalSocialSecurity,benefitprogram
288288 90L-11maycoveronlyemploymentrenderedaftercessationoffederalSocialSecurity
289289 91coverage.AmemberwithcreditedservicecoveredbybenefitprogramL-11shallreceivean
290290 92allowanceforlifeequaltotwoandone-halfpercentofthemember'sfinalaveragesalary
291291 93multipliedbythenumberofyearsofsuchcreditedservice;
292292 94 (14)BenefitprogramL-12.Amemberwithcreditedservicecoveredbybenefit
293293 95programL-12shallreceiveanallowanceforlifeequaltooneandthree-quarterpercentofthe
294294 96member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
295295 97 (15)BenefitprogramLT-14(65).Amemberwithcreditedservicecoveredbybenefit
296296 98programLT-14(65)shallreceiveanallowanceforlifeequaltooneandthree-quarterpercent
297297 99ofthemember'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcredited
298298 100service.Inaddition,ifsuchmemberisretiringasprovidedinsection70.645,70.650,or
299299 10170.670,thensuchmembershallreceiveatemporaryallowanceequaltoone-quarterofone
300300 102percentofthemember'sfinalaveragesalarymultipliedbythenumberofyearsofsuch
301301 103creditedservice.Suchtemporaryallowanceshallterminateattheendofthecalendarmonth
302302 104inwhichtheearlierofthefollowingeventsoccurs:suchmember'sdeathorthemember's
303303 105attainmentofagesixty-five.
304304 106 2.Ifeachportionofamember'screditedserviceisnotcoveredbythesamebenefit
305305 107program,thenthemember'stotalallowanceforlifeshallbethetotaloftheallowanceforlife
306306 108determinedundereachapplicablebenefitprogram.
307307 109 3.Eachemployershallhavethecreditedserviceofeachofitsmemberscoveredby
308308 110benefitprogramL-1providedforinthissectionunlesssuchemployershallhaveelected
309309 111anotherbenefitprogramprovidedforinthissection.
310310 112 4.Exceptasotherwiseprovidedinthissubsection,eachpoliticalsubdivision,by
311311 113majorityvoteofitsgoverningbody,mayelectfromtimetotimetocoveritsmembers,whose
312312 114politicalsubdivisionemploymentisconcurrentlycoveredbyfederalSocialSecurity,under
313313 115oneofthebenefitprogramsprovidedforinthissection.Eachpoliticalsubdivision,by
314314 116majorityvoteofitsgoverningbody,mayelectfromtimetotimetocoveritsmembers,whose
315315 117politicalsubdivisionemploymentisnotconcurrentlycoveredbyfederalSocialSecurity,
316316 118underoneofthebenefitprogramsprovidedforinthissection.Theclerkorsecretaryofthe
317317 119politicalsubdivisionshallcertifytheelectionofthebenefitprogramtotheboardwithinten
318318 120daysaftersuchvote.Theeffectivedateofthepoliticalsubdivision'sbenefitprogramisthe
319319 121firstdayofthecalendarmonthspecifiedbysuchgoverningbody,orthefirstdayofthe
320320 122calendarmonthnextfollowingreceiptbytheboardofthecertificationofelectionofbenefit
321321 123program,ortheeffectivedateofthepoliticalsubdivisionbecominganemployer,whichever
322322 124isthelatest.Suchelectionofbenefitprogrammaybechangedfromtimetotimebysuch
323323 125vote,butnotmoreoftenthanbiennially.Ifsuchchangedbenefitprogramprovideslarger
324324 HB559 9 126allowancesthanthebenefitprogrampreviouslyineffect,thensuchlargerbenefitprogram
325325 127shallbeapplicabletothepastandfutureemploymentwiththeemployerbypresentandfuture
326326 128employees.Ifsuchchangedbenefitprogramprovidessmallerallowancesthanthebenefit
327327 129programpreviouslyineffect,thensuchchangedbenefitprogramshallbeapplicableonlyto
328328 130creditedserviceforemploymentrenderedfromandaftertheeffectivedateofsuchchange.
329329 131AfterAugust28,1994,politicalsubdivisionsshallnotelectcoverageunderbenefitprogram
330330 132LT-4,benefitprogramLT-5,orbenefitprogramLT-8.AfterAugust28,2005,political
331331 133subdivisionsshallnotelectcoverageunderbenefitprogramL-9orbenefitprogramLT-10
332332 134(65).
333333 135 5.Shouldanemployerchangeitselectionofbenefitprogramasprovidedinthis
334334 136section,theemployercontributionsshallbecorrespondinglychangedeffectivethesamedate
335335 137asthebenefitprogramchange.
336336 138 6.Thelimitationonincreasesinanemployer'scontributionprovidedbysubsection6
337337 139ofsection70.730shallnotapplytoanycontributionincreaseresultingfromanemployer
338338 140electingabenefitprogramwhichprovideslargerallowances.
339339 141 7.Subjecttotheprovisionsofsubsections8and9[and10]ofthissection,foran
340340 142allowancebecomingeffectiveonSeptember28,1975,orlater,andbeginningwiththe
341341 143Octoberfirstwhichisatleasttwelvefullmonthsaftertheeffectivedateoftheallowance,the
342342 144amountoftheallowanceshallberedeterminedeffectiveeachOctoberfirstandsuch
343343 145redeterminedamountshallbepayablefortheensuingyear.Subjecttothelimitationsstated
344344 146inthenextsentence,suchredeterminedamountshallbetheamountoftheallowance
345345 147otherwisepayablemultipliedbythefollowingpercent:onehundredpercent,plustwopercent
346346 148foreachfullyear(excludinganyfractionofayear)intheperiodfromtheeffectivedateofthe
347347 149allowancetothecurrentOctoberfirst.Innoeventshallsuchredeterminedamount(1)beless
348348 150thantheamountoftheallowanceotherwisepayablenor(2)bemorethantheamountofthe
349349 151allowanceotherwisepayablemultipliedbythefollowingfraction:thenumeratorshallbethe
350350 152ConsumerPriceIndexforthemonthofJuneimmediatelyprecedingsuchOctoberfirst(butin
351351 153noeventanamountlessthanthedenominatorbelow)andthedenominatorshallbethe
352352 154ConsumerPriceIndexforthemonthofJuneimmediatelyprecedingtheeffectivedateofthe
353353 155allowance.Asusedherein,"ConsumerPriceIndex"meansameasureoftheConsumerPrice
354354 156Index[forUrbanWageEarnersandClericalWorkers,] asdeterminedbytheUnitedStates
355355 157DepartmentofLaborandadoptedbytheboardoftrustees[ineffectJanuary1,1975;
356356 158provided,shouldsuchConsumerPriceIndexberestructuredsubsequentto1974inamanner
357357 159materiallychangingitscharacter,theboardshallchangetheapplicationoftheConsumer
358358 160PriceIndexsothatasfarasispracticablethe1975intentoftheuseoftheConsumerPrice
359359 161Indexshallbecontinued]. Asusedherein"theamountoftheallowanceotherwisepayable"
360360 HB559 10 162meanstheamountoftheallowancewhichwouldbepayablewithoutregardtothese
361361 163provisionsredeterminingallowanceamountsafterretirement.
362362 164 8.[Subjecttotheprovisionsofsubsections9and10ofthissection,foranallowance
363363 165becomingeffectiveonSeptember28,1975,orlater,themaximumallowancepayableunder
364364 166theprovisionsofsection70.685shallberedeterminedeachOctoberfirstinthesamemanner
365365 167asanallowanceisredeterminedundertheprovisionsofsubsection7ofthissection.
366366 168 9.](1)Thesystemestablishesreservesforthepaymentoffutureallowancesto
367367 169retirantsandbeneficiaries.Shouldtheboarddetermine,afterconsultingwiththeactuary,that
368368 170theestablishedreservesaremorethansufficienttoprovidesuchallowances,theboardmay
369369 171increasetheannualincreaserateprovidedforin[subsections] subsection7[and8]ofthis
370370 172section,asitappliestoanyallowancepayable,butinnoeventshallthetotalofall
371371 173redeterminedamountsasofOctoberfirstofanyyearbegreaterthanonehundredfourpercent
372372 174oftheallowanceswhichwouldhavebeenpayablethatOctoberfirstwithoutsuch
373373 175redeterminations;provided,asofanyredeterminationdatethesameannualincreaserateshall
374374 176beappliedtoallallowanceswitheffectivedatesintherangeofNovemberfirsttoOctober
375375 177firstofthefollowingyear.Theboardmayextendtheprovisionsof[subsections] subsection
376376 1787[and8]ofthissectiontoallowanceswhichbecameeffectivebeforeSeptember28,1975;
377377 179providedsuchanactionbytheboardshallnotincreaseanemployercontributionratethenin
378378 180effect;
379379 181 (2)AfterAugust28,1993,theannualincreaserateestablishedbythissubsection
380380 182shallbeacompoundrate,compoundedannually,andthefourpercentannualmaximumrate
381381 183shallalsobeacompoundrate,compoundedannually;provided,theuseofsuchcompounding
382382 184shallnotbeginuntilOctober1,1993,andshallnotaffectredeterminationsmadepriortothat
383383 185date.
384384 186 [10.]9.Shouldtheboarddeterminethattheprovisionsofsubsections7[,8]and[9]8
385385 187ofthissectionarejeopardizingthefinancialsolvencyofthesystem,theboardshallsuspend
386386 188theseprovisionsredeterminingallowanceamountsafterretirementforsuchperiodsoftimeas
387387 189theboarddeemsappropriate.
388388 70.680.1.Anymemberinservicewithfiveormoreyearsofcreditedservicewho
389389 2hasnotattainedtheageandservicerequirementsofsection70.645andwhobecomestotally
390390 3andpermanentlyphysicallyormentallyincapacitatedforhisdutyasanemployee,asthe
391391 4resultofapersonalinjuryordisease,mayberetiredbytheboarduponwrittenapplication
392392 5filedwiththeboardbyoronbehalfofthemember;provided,thatafteramedicalexamination
393393 6ofsuchmembermadebyorunderthedirectionofamedicalcommitteeconsistingofthree
394394 7physicians,oneofwhomshallbeselectedbytheboard,onebyoronbehalfofsuchmember,
395395 8andthethirdbythefirsttwophysicianssonamed,themedicalcommitteereportstothe
396396 9board,bymajorityopinioninwriting,thatsuchmemberisphysicallyormentallytotally
397397 HB559 11 10incapacitatedforthefurtherperformanceofduty,thatsuchincapacitywillprobablybe
398398 11permanentandthatsuchmembershouldberetired.
399399 12 2.Upondisabilityretirement,asprovidedinsubsection1ofthissection,amember
400400 13shallreceiveanallowanceforlifeprovidedforinsection70.655andshallhavetherightto
401401 14electanoptionprovidedforinsection70.660.Hisorherdisabilityretirementandallowance
402402 15shallbesubjecttotheprovisionsofsubsection5ofthissection[andtotheprovisionsof
403403 16section70.685].
404404 17 3.Anymemberinservicewhobecomestotallyandpermanentlyphysicallyor
405405 18mentallyincapacitatedforhisdutyasanemployee,asthenaturalandproximateresultofa
406406 19personalinjuryordiseasewhichtheboardfindstohavearisenoutofandinthecourseofhis
407407 20actualperformanceofdutyasanemployee,mayberetiredbytheboarduponwritten
408408 21applicationfiledwiththeboardbyoronbehalfofthemember;provided,thatafteramedical
409409 22examinationofsuchmembermadebyorunderthedirectionofamedicalcommittee
410410 23consistingofthreephysicians,oneofwhomshallbeselectedbytheboard,onebyoron
411411 24behalfofsuchmember,andthethirdbythefirsttwophysicianssonamed,themedical
412412 25committeereportstotheboard,bymajorityopinioninwriting,thatsuchmemberis
413413 26physicallyormentallytotallyincapacitatedforthefurtherperformanceofduty,thatsuch
414414 27incapacitywillprobablybepermanent,andthatsuchmembershouldberetired.
415415 28 4.Upondisabilityretirementasprovidedinsubsection3ofthissection,amember
416416 29shallreceiveanallowanceforlifeprovidedforinsection70.655;provided,thatforthesole
417417 30purposeofcomputingtheamountofsuchallowance,heorsheshallbegivencreditedservice
418418 31fortheperiodfromthedateofhisorherdisabilityretirementtothedateheorshewould
419419 32attainagesixty.Heorsheshallhavetherighttoelectanoptionprovidedforinsection
420420 3370.660.Hisorherdisabilityretirementandallowanceshallbesubjecttotheprovisionsof
421421 34subsection5ofthissection[andtotheprovisionsofsection70.685].
422422 35 5.Atleastonceeachyearduringthefirstfiveyearsfollowingamember'sretirement
423423 36onaccountofdisability,andatleastonceineachthree-yearperiodthereafter,theboardshall
424424 37requireanydisabilityretirantwhohasnotattainedhisminimumserviceretirementageto
425425 38undergoamedicalexaminationtobemadebyaphysiciandesignatedbytheboard.Ifthe
426426 39retirantrefusestosubmittomedicalexaminationinanysuchperiod,hisdisabilityallowance
427427 40shallbesuspendedbytheboarduntilhiswithdrawalofsuchrefusal.Ifsuchrefusalcontinues
428428 41foroneyear,allhisrightsinandtoadisabilityallowanceshallberevokedbytheboard.If,
429429 42uponmedicalexaminationoftheretirant,thephysicianreportstotheboardthattheretirantis
430430 43physicallyandmentallyableandcapableofresuminghisdutyasanemployeeintheposition
431431 44heldbyhimatthetimeofhisdisabilityretirement,thentheboardshall,ifdemandedbythe
432432 45retirant,arrangeafurthermedicalexaminationofsuchmembermadebyorunderthe
433433 46directionofamedicalcommitteeconsistingofthreephysicians,oneofwhomshallbe
434434 HB559 12 47selectedbytheboard,onebyoronbehalfofthemember,andthethirdbythefirsttwo
435435 48physiciansnamed.Shouldthemedicalcommitteeconcur,bymajorityopinioninwritingto
436436 49theboard,thedisabilityretirantiscapableofresumptionofduty,hisdisabilityretirement
437437 50shallterminateandheshallbereturnedtodutyandheshallimmediatelyagainbecomea
438438 51memberofthesystem,hiscreditedserviceatthetimeofdisabilityretirementshallbe
439439 52restoredtohiscredit,andtheamountofhisaccumulatedcontributionsatthetimeofhis
440440 53disabilityretirementshallberestoredtohiscreditinthemembersdepositfund.Ifhewasin
441441 54receiptofadutydisabilityallowanceprovidedforinsubsection3ofthissection,heshallalso
442442 55begivenservicecreditfortheperiodhewasinreceiptofthedutydisabilityallowance.
443443 70.690.1.Intheeventamemberceasestobeamemberotherthanbydeathbefore
444444 2thedatehebecomesentitledtoretirewithanallowancepayablebythesystem,heshallbe
445445 3paid,uponhiswrittenapplicationfiledwiththeboard,hisaccumulatedcontributionsstanding
446446 4tohiscreditinthemembersdepositfund.
447447 5 2.Intheeventamemberdies,andnoallowancebecomesorwillbecomepayableby
448448 6thesystemonaccountofhisdeath,hisaccumulatedcontributionsstandingtohiscreditinthe
449449 7membersdepositfundatthetimeofhisdeathshallbepaidtosuchpersonorpersonsashe
450450 8shallhavenominatedbywrittendesignationdulyexecutedandfiledwiththeboard.Ifthere
451451 9benosuchdesignatedpersonorpersonssurvivingsuchmember,suchaccumulated
452452 10contributionsshallbepaidtohissurvivingspouse,ortohisestateifthereisnosurviving
453453 11spouse.
454454 12 3.Intheeventamember'smembershipinthesystemterminates,andnoallowance
455455 13becomesorwillbecomepayableonhisaccount,anyaccumulatedcontributionsstandingto
456456 14hiscreditinthemembersdepositfundunclaimedbysuchmemberorhislegalrepresentative
457457 15within[three] tenyearsafterthedatehismembershipterminated,shallbetransferredtothe
458458 16income-expensefund.Ifthereafterproperapplicationismadeforsuchaccumulated
459459 17contributions,theboardshallpaythemfromtheincome-expensefund,butwithoutinterest
460460 18afterthedatepaymentwasfirstdue.
461461 70.745.1.Theboardshallbethetrusteesofthefundsofthesystem.Subjecttothe
462462 2provisionsofanyapplicablefederalorstatelaws,theboardshallhavefullpowertoinvest
463463 3andreinvestthemoneysofthesystem,andtohold,purchase,sell,assign,transferordispose
464464 4ofanyofthesecuritiesandinvestmentsinwhichsuchmoneysshallhavebeeninvested,as
465465 5wellastheproceedsofsuchinvestmentsandsuchmoneys.
466466 6 2.Theboardoftrusteesmaydeliberateabout,ormaketentativeorfinal
467467 7decisionson,investmentsorotherfinancialmattersinaclosedmeetingunderchapter
468468 8610ifdisclosureofthedeliberationsordecisionswouldjeopardizetheabilityto
469469 9implementadecisionortoachieveinvestmentobjectives.Arecordoftheretirement
470470 10systemthatdisclosesdeliberationsabout,oratentativedecisionon,investmentsor
471471 HB559 13 11otherfinancialmattersisnotapublicrecordunderchapter610totheextentandsolong
472472 12asitsdisclosurewouldjeopardizetheabilitytoimplementadecisionortoachieve
473473 13investmentobjectives.
474474 14 3.Theboardoftrusteesshallnotbeprohibitedfromclosingrecordstothe
475475 15extentthatsuchrecordsrelatetoinformationsubmittedbyanindividual,corporation,
476476 16orotherbusinessentityinconnectionwithinvestmentsinorfinancialtransactionswith
477477 17businessentitiesforinvestmentpurposes.
478478 70.746.Notwithstandinganyotherprovisionoflawtothecontrary,theboardof
479479 2trusteesmaydelegatetoitsdulyappointedinvestmentcounselorauthoritytoactinplaceof
480480 3theboardintheinvestmentandreinvestmentofallorpartofthemoneysofthesystem,and
481481 4mayalsodelegatetosuchcounselortheauthoritytoactinplaceoftheboardintheholding,
482482 5purchasing,selling,assigning,transferring,ordisposingofanyorallofthesecuritiesand
483483 6investmentsinwhichsuchmoneysshallhavebeeninvested,aswellastheproceedsofsuch
484484 7investmentsandsuchmoneys.[Suchinvestmentcounselorshallberegisteredasan
485485 8investmentadvisorwiththeUnitedStatesSecuritiesandExchangeCommission.] In
486486 9exercisingordelegatingitsinvestmentpowersandauthority,membersoftheboardshall
487487 10exerciseordinarybusinesscareandprudenceunderthefactsandcircumstancesprevailingat
488488 11thetimeoftheactionordecision.Insodoing,theboardshallconsiderthelong-andshort-
489489 12termneedsofthesystemincarryingoutitspurposes,thesystem'spresentandanticipated
490490 13financialrequirements,theexpectedtotalreturnonthesystem'sinvestment,general
491491 14economicconditions,income,growth,long-termnetappreciation,andprobablesafetyof
492492 15funds.Nomemberoftheboardshallbeliableforanyactiontakenoromittedwithrespectto
493493 16theexerciseofordelegationofthesepowersandauthorityifsuchmembershallhave
494494 17dischargedthedutiesofhisorherpositioningoodfaithandwiththatdegreeofdiligence,
495495 18care,andskillwhichprudentmenandwomenwouldordinarilyexerciseundersimilar
496496 19circumstancesinalikeposition.
497497 70.747.Notwithstandinganyotherprovisionoflawtothecontrary,theboardshall
498498 2havefullpowertoinvestandreinvestthefundsandmoneysofthesysteminimprovedreal
499499 3estate,includingcollectiverealestatefundsandrealestateinvestmenttrusts,wherever
500500 4situated[; provided,however,thatnotmorethanone-tenthofthefundsandmoneysofthe
501501 5systematthetimeofsuchinvestmentshallbesoinvested].
502502 70.748.1.Notwithstandingtheprovisionsofsection105.662,theboardmayset
503503 2upandmaintainalocalgovernmentemployeeretirementsystemofMissouriinvestment
504504 3fundaccountinwhichinvestmentandreinvestmentofallorpartofthemoneysofthe
505505 4systemmaybeplacedandbeavailableforinvestmentpurposes.
506506 5 2.Forthepurposeofinvestingthefundsoftheretirementsystem,thefundsmay
507507 6becombinedwiththefundsofanyretirementplanthatisadministeredbytheMissouri
508508 HB559 14 7localgovernmentemployees’retirementsystemundersection70.621andany
509509 8retirementplanestablishedforthepurposeofprovidingbenefitsforemployeesofthe
510510 9system,butthefundsofeachplanshallbeaccountedforseparatelyandforallother
511511 10reportingpurposesshallbeseparate.
512512 11 3.Theboardoftrusteesmaypromulgatesuchrulesandregulationsconsistent
513513 12withtheprovisionsofthissectionasdeemednecessaryforitsproperadministration,
514514 13undertheprovisionsofthissectionandthischapter.
515515 14 4.Theboardoftrusteesmaypromulgateallnecessaryrulesandregulationsfor
516516 15theadministrationofthissection.Anyruleorportionofarule,asthattermisdefined
517517 16insection536.010,thatiscreatedundertheauthoritydelegatedinthissectionshall
518518 17becomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter
519519 18536and,ifapplicable,section536.028.Thissectionandchapter536arenonseverable
520520 19andifanyofthepowersvestedwiththegeneralassemblypursuanttochapter536to
521521 20review,todelaytheeffectivedate,ortodisapproveandannularulearesubsequently
522522 21heldunconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
523523 22adoptedafterAugust28,2025,shallbeinvalidandvoid.
524524 86.200.Thefollowingwordsandphrasesasusedinsections86.200to86.366,unless
525525 2adifferentmeaningisplainlyrequiredbythecontext,shallhavethefollowingmeanings:
526526 3 (1)"Accumulatedcontributions",thesumofallmandatorycontributionsdeducted
527527 4fromthecompensationofamemberandcreditedtothemember'sindividualaccount,
528528 5togetherwithmembers'interestthereon;
529529 6 (2)"Actuarialequivalent",abenefitofequalvaluewhencomputeduponthebasisof
530530 7mortalitytablesandinterestassumptionsadoptedbytheboardoftrustees;
531531 8 (3)"Averagefinalcompensation":
532532 9 (a)WithrespecttoamemberwhoearnsnocreditableserviceonorafterOctober1,
533533 102001,theaverageearnablecompensationofthememberduringthemember'slastthreeyears
534534 11ofcreditableserviceasapoliceofficer,orifthememberhashadlessthanthreeyearsof
535535 12creditableservice,theaverageearnablecompensationofthemember'sentireperiodof
536536 13creditableservice;
537537 14 (b)WithrespecttoamemberwhoisnotparticipatingintheDROPpursuantto
538538 15section86.251onOctober1,2001,whodidnotparticipateintheDROPatanytimebefore
539539 16suchdate,andwhoearnsanycreditableserviceonorafterOctober1,2001,theaverage
540540 17earnablecompensationofthememberduringthemember'slasttwoyearsofcreditable
541541 18serviceasapoliceman,orifthememberhashadlessthantwoyearsofcreditableservice,
542542 19thentheaverageearnablecompensationofthemember'sentireperiodofcreditableservice;
543543 20 (c)WithrespecttoamemberwhoisparticipatingintheDROPpursuanttosection
544544 2186.251onOctober1,2001,orwhoseparticipationinDROPendedbeforesuchdate,who
545545 HB559 15 22returnstoactiveparticipationinthesystempursuanttosection86.251,andwhoterminates
546546 23employmentasapoliceofficerforreasonsotherthandeathordisabilitybeforeearningat
547547 24leasttwoyearsofcreditableserviceaftersuchreturn,theportionofthemember'sbenefit
548548 25attributabletocreditableserviceearnedbeforeDROPentryshallbedeterminedusingaverage
549549 26finalcompensationasdefinedinparagraph(a)ofthissubdivision;andtheportionofthe
550550 27member'sbenefitattributabletocreditableserviceearnedafterreturntoactiveparticipationin
551551 28thesystemshallbedeterminedusingaveragefinalcompensationasdefinedinparagraph(b)
552552 29ofthissubdivision;
553553 30 (d)WithrespecttoamemberwhoisparticipatingintheDROPpursuanttosection
554554 3186.251onOctober1,2001,orwhoseparticipationintheDROPendedbeforesuchdate,who
555555 32returnstoactiveparticipationinthesystempursuanttosection86.251,andwhoterminates
556556 33employmentasapoliceofficerafterearningatleasttwoyearsofcreditableserviceaftersuch
557557 34return,themember'sbenefitattributabletoallofsuchmember'screditableserviceshallbe
558558 35determinedusingthemember'saveragefinalcompensationasdefinedinparagraph(b)ofthis
559559 36subdivision;
560560 37 (e)WithrespecttoamemberwhoisparticipatingintheDROPpursuanttosection
561561 3886.251onOctober1,2001,orwhoseparticipationinDROPendedbeforesuchdate,who
562562 39returnstoactiveparticipationinthesystempursuanttosection86.251,andwhose
563563 40employmentasapoliceofficerterminatesduetodeathordisabilityaftersuchreturn,the
564564 41member'sbenefitattributabletoallofsuchmember'screditableserviceshallbedetermined
565565 42usingthemember'saveragefinalcompensationasdefinedinparagraph(b)ofthis
566566 43subdivision;and
567567 44 (f)Withrespecttothesurvivingspouseorsurvivingdependentchildofamember
568568 45whoearnsanycreditableserviceonorafterOctober1,2001,theaverageearnable
569569 46compensationofthememberduringthemember'slasttwoyearsofcreditableserviceasa
570570 47policeofficeror,ifthememberhashadlessthantwoyearsofcreditableservice,theaverage
571571 48earnablecompensationofthemember'sentireperiodofcreditableservice;
572572 49 (4)"Beneficiary",anypersoninreceiptofaretirementallowanceorotherbenefit;
573573 50 (5)"Boardoftrustees",theboardprovidedinsections86.200to86.366toadminister
574574 51theretirementsystem;
575575 52 (6)"Creditableservice",priorserviceplusmembershipserviceasprovidedin
576576 53sections86.200to86.366;
577577 54 (7)"DROP",thedeferredretirementoptionplanprovidedforinsection86.251;
578578 55 (8)"Earnablecompensation",theannualsalary[establishedundersection84.160
579579 56which] amemberwouldearnduringoneyearonthebasisofthemember'srankorposition
580580 57plusanyadditionalcompensationforacademicworkandshiftdifferential, that[maybe
581581 58provided] issetbyanystateormunicipalbodyorofficial[orboard] noworhereafter
582582 HB559 16 59authorizedbylawtoemployandmanageapermanentpoliceforceinsuchcities.Such
583583 60amountshallincludethemember'sdeferralstoadeferredcompensationplanpursuantto
584584 61Section457oftheInternalRevenueCodeortoacafeteriaplanpursuanttoSection125ofthe
585585 62InternalRevenueCodeor,effectiveOctober1,2001,toatransportationfringebenefit
586586 63programpursuanttoSection132(f)(4)oftheInternalRevenueCode.Earnablecompensation
587587 64shallnotincludeamember'sadditionalcompensationforovertime,standbytime,courttime,
588588 65nonuniformtimeorunusedvacationtime.Further,"earnablecompensation"shallnot
589589 66includeanyfundsreceivedbyamemberthroughajudgmentorsettlementofalegal
590590 67actionorclaimmadeorthreatenedbythememberagainstanycitynotwithinacounty
591591 68ifthefundsareintendedtoretroactivelycompensatethememberforthesalary
592592 69differentialbetweenthemember'sactualrankandtherankthememberclaimsheor
593593 70sheshouldhavereceived.Notwithstandingtheforegoing,theearnablecompensationtaken
594594 71intoaccountundertheplanestablishedpursuanttosections86.200to86.366withrespecttoa
595595 72memberwhoisanoneligibleparticipant,asdefinedinthissubdivision,foranyplanyear
596596 73beginningonorafterOctober1,1996,shallnotexceedtheamountofcompensationthatmay
597597 74betakenintoaccountunderSection401(a)(17)oftheInternalRevenueCode,asadjustedfor
598598 75increasesinthecostofliving,forsuchplanyear.Forpurposesofthissubdivision,a
599599 76"noneligibleparticipant"isanindividualwhofirstbecomesamemberonorafterthefirstday
600600 77ofthefirstplanyearbeginningaftertheearlierof:
601601 78 (a)ThelastdayoftheplanyearthatincludesAugust28,1995;or
602602 79 (b)December31,1995;
603603 80 (9)"InternalRevenueCode",thefederalInternalRevenueCodeof1986,as
604604 81amended;
605605 82 (10)"Mandatorycontributions",thecontributionsrequiredtobedeductedfromthe
606606 83salaryofeachmemberwhoisnotparticipatinginDROPinaccordancewithsection86.320;
607607 84 (11)"Medicalboard",thehealthcareorganizationappointedbythetrusteesofthe
608608 85policeretirementboardandresponsibleforarrangingandpassinguponallmedical
609609 86examinationsrequiredundertheprovisionsofsections86.200to86.366,whichshall
610610 87investigateallessentialstatementsandcertificatesmadebyoronbehalfofamemberin
611611 88connectionwithanapplicationfordisabilityretirementandshallreportinwritingtotheboard
612612 89oftrusteesitsconclusionsandrecommendations;
613613 90 (12)"Member",amemberoftheretirementsystemasdefinedbysections86.200to
614614 9186.366;
615615 92 (13)"Members'interest",interestonaccumulatedcontributionsatsuchrateasmaybe
616616 93setfromtimetotimebytheboardoftrustees;
617617 94 (14)"Membershipservice",serviceasapolicemanrenderedsincelastbecominga
618618 95member,exceptinthecaseofamemberwhohasservedintheArmedForcesoftheUnited
619619 HB559 17 96Statesandhassubsequentlybeenreinstatedasapoliceman,inwhichcase"membership
620620 97service"meansserviceasapolicemanrenderedsincelastbecomingamemberpriorto
621621 98enteringsucharmedservice;
622622 99 (15)"Planyear"or"limitationyear",thetwelveconsecutive-monthperiodbeginning
623623 100eachOctoberfirstandendingeachSeptemberthirtieth;
624624 101 (16)"Policeman"or"policeofficer",anymemberofthepoliceforceofsuchcities
625625 102whoholdsarankinsuchpoliceforce;
626626 103 (17)"Priorservice",allserviceasapolicemanrenderedpriortothedatethesystem
627627 104becomesoperativeorpriortomembershipservicewhichiscreditableinaccordancewiththe
628628 105provisionsofsections86.200to86.366;
629629 106 (18)"Reserveofficer",anymemberofthepolicereserveforceofsuchcities,armed
630630 107orunarmed,whoworkslessthanfulltime,withoutcompensation,andwho,byhisorher
631631 108assignedfunctionorasimpliedbyhisorheruniform,performsdutiesassociatedwiththose
632632 109ofapoliceofficerandwhocurrentlyreceivesaserviceretirementasprovidedbysections
633633 11086.200to86.366;
634634 111 (19)"Retirementallowance",annualpaymentsforlifeasprovidedbysections86.200
635635 112to86.366whichshallbepayableinequalmonthlyinstallmentsoranybenefitsinlieuthereof
636636 113grantedtoamemberuponterminationofemploymentasapoliceofficerandactual
637637 114retirement;
638638 115 (20)"Retirementsystem",thepoliceretirementsystemofthecitiesasdefinedin
639639 116sections86.200to86.366;
640640 117 (21)"Survivingspouse",thesurvivingspouseofamemberwhowasthemember's
641641 118spouseatthetimeofthemember'sdeath.
642642 105.688.Theassetsofasystemmaybeinvested,reinvestedandmanagedbyan
643643 2investmentfiduciarysubjecttotheterms,conditionsandlimitationsprovidedinsections
644644 3105.687to105.689.Aninvestmentfiduciaryshalldischargehisorherdutiesintheinterest
645645 4oftheparticipantsinthesystemandtheirbeneficiariesandshall:
646646 5 (1)Actwiththesamecare,skill,prudence,anddiligenceunderthecircumstances
647647 6thenprevailingthataprudentpersonactinginasimilarcapacityandfamiliarwiththose
648648 7matterswoulduseintheconductofasimilarenterprisewithsimilaraims;
649649 8 (2)Actwithdueregardforthemanagement,reputation,andstabilityoftheissuerand
650650 9thecharacteroftheparticularinvestmentsbeingconsidered;
651651 10 (3)Makeinvestmentsforthepurposesofprovidingbenefitstoparticipantsand
652652 11participants'beneficiaries,andofdefrayingreasonableexpensesofinvestingtheassetsofthe
653653 12system;
654654 13 (4)Giveappropriateconsiderationtothosefactsandcircumstancesthatthe
655655 14investmentfiduciaryknowsorshouldknowarerelevanttotheparticularinvestmentor
656656 HB559 18 15investmentcourseofactioninvolved,includingtheroleoftheinvestmentorinvestment
657657 16courseofactionplaysinthatportionofthesystem'sinvestmentsforwhichtheinvestment
658658 17fiduciaryhasresponsibility.Forpurposesofthissubdivision,"appropriateconsideration"
659659 18shallinclude,butisnotnecessarilylimitedtoadeterminationbytheinvestmentfiduciarythat
660660 19aparticularinvestmentorinvestmentcourseofactionisreasonablydesigned,aspartofthe
661661 20investmentsofthesystem,tofurtherthepurposesofthesystem,takingintoconsiderationthe
662662 21riskoflossandtheopportunityforgainorotherreturnassociatedwiththeinvestmentor
663663 22investmentcourseofaction;andconsiderationofthefollowingfactorsastheyrelatetothe
664664 23investmentorinvestmentcourseofaction:
665665 24 (a)Thediversificationoftheinvestmentsofthesystem;
666666 25 (b)Theliquidityandcurrentreturnoftheinvestmentsofthesystemrelativetothe
667667 26anticipatedcashflowrequirementsofthesystem;and
668668 27 (c)Theprojectedreturnoftheinvestmentsofthesystemrelativetothefunding
669669 28objectivesofthesystem;
670670 29 (5)Giveappropriateconsiderationtoinvestmentswhichwouldenhancethegeneral
671671 30welfareofthisstateanditscitizensifthoseinvestmentsofferthesafetyandrateofreturn
672672 31comparabletootherinvestmentsavailabletotheinvestmentfiduciaryatthetimethe
673673 32investmentdecisionismade; and
674674 33 (6)Notbeprohibitedfromclosingrecordstotheextentthatsuchrecordsrelate
675675 34toinformationsubmittedbyanindividual,corporation,orotherbusinessentityin
676676 35connectionwithinvestmentsinorfinancialtransactionswithbusinessentitiesfor
677677 36investmentpurposes.
678678 âś”
679679 HB559 19