FIRSTREGULARSESSION
HOUSEBILLNO.559
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEHOVIS.
0330H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections70.605,70.630,70.655,70.680,70.690,70.745,70.746,70.747,86.200,
and105.688,RSMo,andtoenactinlieuthereofelevennewsectionsrelatingtopublic
employeeretirementsystems.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections70.605,70.630,70.655,70.680,70.690,70.745,70.746,70.747,
286.200,and105.688,RSMo,arerepealedandelevennewsectionsenactedinlieuthereof,to
3beknownassections70.605,70.630,70.655,70.680,70.690,70.745,70.746,70.747,
470.748,86.200,and105.688,toreadasfollows:
70.605.1.Forthepurposeofprovidingfortheretirementorpensioningofthe
2officersandemployeesandthewidowsandchildrenofdeceasedofficersandemployeesof
3anypoliticalsubdivisionofthestate,thereisherebycreatedandestablishedaretirement
4systemwhichshallbeabodycorporate,whichshallbeunderthemanagementofaboardof
5trusteeshereindescribed,andshallbeknownasthe"MissouriLocalGovernmentEmployees'
6RetirementSystem".Suchsystemmaysueandbesued,transactbusiness,investfunds,and
7holdcash,securities,andotherproperty.Allsuitsorproceedingsdirectlyorindirectlyagainst
8thesystemshallbebroughtinColeCounty.Thesystemshallbeginoperationsonthefirst
9dayofthecalendarmonthnextfollowingsixtydaysafterthedatetheboardoftrusteeshas
10receivedcertificationfromtenpoliticalsubdivisionsthattheyhaveelectedtobecome
11employers.
12 2.Thegeneraladministrationandtheresponsibilityfortheproperoperationofthe
13systemisvestedinaboardoftrusteesofsevenpersons:threepersonstobeelectedastrustees
14bythemembersofthesystem;threepersonstobeelectedtrusteesbythegoverningbodiesof
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 15employers;andoneperson,tobeappointedbythegovernor,whoisnotamember,retirant,or
16beneficiaryofthesystemandwhoisnotamemberofthegoverningbodyofanypolitical
17subdivision.BeginningonJanuary1,2026,upontheexpirationofthetermofthe
18employertrusteeelectedtotheboardwithatermendingonDecember31,2025,the
19positionofsuchemployertrusteeshallthereafterbereplacedbyapersontobeelected
20astrusteebytheretirantsofthesystem.
21 3.TrusteesshallbechosenfortermsoffouryearsfromthefirstdayofJanuarynext
22followingtheirelectionorappointment[, exceptthatofthefirstboardshallallbeappointed
23bythegovernorbyandwiththeconsentofthesenate,asfollows:
24 (1)Threepersonswhoareofficersorofficialsofpoliticalsubdivisions,oneforaterm
25ofthreeyears,oneforatermoftwoyears,andoneforatermofoneyear;and
26 (2)Threepersonswhoareemployeesofpoliticalsubdivisionsandwhowould,ifthe
27subdivisionbywhichtheyareemployedbecomesanemployer,beeligibleasmembers,one
28foratermofthreeyears,oneforatermoftwoyears,andoneforatermofoneyear;and
29 (3)Thatpersonappointedbythegovernorundertheprovisionsofsubsection2ofthis
30section.Allthemembersofthefirstboardshalltakeofficeassoonasappointedbythe
31governor,buttheirtermsshallbecomputedfromthefirstdayofJanuarynextfollowingtheir
32appointment,andonlyonemembermaybefromanypoliticalsubdivisionorbeapoliceman
33orfireman].
34 4.Successortrusteeselectedorappointedasmembertrusteesshallbemembersofthe
35retirementsystem;provided,thatnotmorethanone[member] trusteeshallbeemployedby
36anyoneemployer,andnotmorethanone[member] trusteeshallbea[policeman] police
37officer, andnotmorethanone[member] trusteeshallbea[fireman] firefighter,andnot
38morethanonetrusteeshallbepublicsafetypersonnelasdescribedinsection70.631.
39 5.FortermsbeginningonorafterJanuary1,2026,successortrusteeselectedas
40employertrusteesshallbeelectedorappointedofficialsofthegoverningbodiesofthe
41employers[andshallnotbemembersoftheretirementsystem] orexecutivelevelemployees
42certifiedbythegoverningbodiesoftheemployers; provided,thatnotmorethanone
43[employer] trusteeshallbefromanyoneemployer, andnotmorethanonetrusteeshallbe
44apoliceofficer,andnotmorethanonetrusteeshallbeafirefighter,andnotmorethan
45onetrusteeshallbepublicsafetypersonnelasdescribedinsection70.631.
46 6.[Anannualmeetingoftheretirementsystemshallbecalledbytheboardinthelast
47calendarquarterofeachyearinJeffersonCity,oratsuchplaceastheboardshalldetermine,
48forthepurposeofelectingtrusteesandtotransactsuchotherbusinessasmayberequiredfor
49theproperoperationofthesystem.Noticeofsuchmeetingshallbesentbyregisteredmailto
50theclerkorsecretaryofeachemployernotlessthanthirtydayspriortothedateofsuch
51meeting.Thegoverningbodyofeachemployershallcertifytotheboardthenameofone
HB559 2 52delegatewhoshallbeanofficeroftheemployer,andthemembersoftheemployershall
53certifytotheboardamemberoftheemployertorepresentsuchemployeratsuchmeeting.
54Thedelegatecertifiedasmemberdelegateshallbeelectedbysecretballotbythemembersof
55suchemployer,andtheclerkorsecretaryofeachemployershallbechargedwiththedutyof
56conductingsuchelectioninamannerwhichwillpermiteachmembertovoteinsuchelection.
57Undersuchrulesandregulationsastheboardshalladopt,approvedbythedelegates,the
58memberdelegatesshallelectamembertrusteeforeachsuchpositionontheboardtobe
59filled,andtheofficerdelegatesshallelectanemployertrusteeforeachsuchpositiononthe
60boardtobefilled] Successortrusteeselectedasretireetrusteesshallberetirantsofthe
61systempursuanttosections70.600to70.755.
62 7.Theelectionsofthetrusteesshallbearrangedforandmanagedand
63conductedbytheboardoftrusteesoftheretirementsystem.
64 8.Intheeventany[membertrusteeceasestobeamemberoftheretirementsystem,
65oranyemployertrusteeceasestobeanappointedorelectedofficialofanemployer,or
66becomesamemberoftheretirementsystem,orifthetrusteeappointedbythegovernor
67becomesamemberoftheretirementsystemoranelectedorappointedofficialofapolitical
68subdivision] trusteeceasestomeettheeligibilityrequirementspursuanttothissection,
69orifanytrusteefailstoattendthreeconsecutivemeetingsoftheboard,unlessineachcase
70excusedforcausebytheremainingtrusteesattendingsuchmeetingormeetings,heorshe
71shallbeconsideredashavingresignedfromtheboardandtheboardshall,byresolution,
72declarehisorherofficeoftrusteevacated.Ifavacancyoccursintheofficeoftrustee,the
73vacancyshallbefilledfortheunexpiredterminthesamemannerastheofficewaspreviously
74filled;provided,however,thattheremainingtrusteesmayfillemployerandmembertrustee
75vacanciesontheboarduntilthenext[annualmeeting] election.
76 [8.]9.Eachtrusteeshallbecommissionedbythegovernor,andbeforeenteringupon
77thedutiesofhisoffice,shalltakeandsubscribetoanoathoraffirmationtosupportthe
78ConstitutionoftheUnitedStates,andofthestateofMissouri,andtodemeanhimself
79faithfullyinhisorheroffice.Suchoathassubscribedtoshallbefiledintheofficeofthe
80secretaryofstateofthisstate.
81 [9.]10.Eachtrusteeshallbeentitledtoonevoteintheboardoftrustees.Fourvotes
82shallbenecessaryforadecisionbythetrusteesatanymeetingoftheboardoftrustees.Four
83trustees[, ofwhomatleasttwoshallbemembertrusteesandatleasttwoshallbeemployer
84trustees,] shallconstituteaquorumatanymeetingoftheboard.Unlessotherwiseexpressly
85providedherein,ameetingneednotbecalledorheldtomakeanydecisiononamatterbefore
86theboard.Eachmembermustbesentbytheexecutivesecretaryacopyofthemattertobe
87decidedwithfullinformationfromthefilesoftheboard.Theconcurringdecisionsoffour
88trusteesmaydecidetheissuebysigningadocumentdeclaringtheirdecisionandsendingthe
HB559 3 89writteninstrumenttotheexecutivesecretary,providedthatnoothertrusteeshallsenda
90dissentingdecisiontotheexecutivesecretarywithinfifteendaysafterthedocumentand
91informationwasmailedtohimorher.Ifanytrusteeisnotinagreementwiththefourtrustees,
92thematteristobepassedonataregularboardmeetingoraspecialmeetingcalledforthat
93purpose.Theboardshallholdregularmeetingsatleastonceeachquarter,thedatesofthese
94meetingstobedesignatedintherulesandregulationsadoptedbytheboard.Othermeetings
95asdeemednecessarymaybecalledbythe[chairman] chairpersonorbyanyfourtrustees
96actingjointly.
97 [10.]11.Theboardoftrusteesshallelectoneoftheirnumberas[chairman]
98chairperson, andoneoftheirnumberasvice[chairman] chairperson, andshallemployan
99executivesecretary,notoneoftheirnumber,whoshallbetheexecutiveofficeroftheboard.
100Otheremployeesoftheboardshallbechosenonlyupontherecommendationoftheexecutive
101secretary.
102 [11.]12.Theboardshallappointanactuaryorafirmofactuariesastechnicaladvisor
103totheboardonmattersregardingtheoperationofthesystemonanactuarialbasis.The
104actuaryoractuariesshallperformsuchdutiesasarerequiredofhimorherundersections
10570.600to70.755,andasarefromtimetotimerequiredbytheboard.
106 [12.]13.Theboardmayappointanattorney-at-laworfirmofattorneys-at-lawtobe
107thelegaladvisoroftheboardandtorepresenttheboardinalllegalproceedings.
108 [13.]14.Theboardmayappointaninvestmentcounselortobetheinvestmentadvisor
109oftheboard.
110 [14.]15.Theboardshallfromtimetotime,afterreceivingtheadviceofitsactuary,
111adoptsuchmortalityandothertablesofexperience,andarateorratesofregularinterest,as
112shallbenecessaryfortheactuarialrequirementsofthesystem,andshallrequireitsexecutive
113secretarytokeepinconvenientformsuchdataasshallbenecessaryforactuarial
114investigationsoftheexperienceofthesystem,andsuchdataasshallbenecessaryforthe
115annualactuarialvaluationsofthesystem.
116 [15.]16.Theboardshallkeeparecordofitsproceedings,whichshallbeopento
117publicinspection.Itshallprepareannuallyandrendertoeachemployerareportshowingthe
118financialconditionofthesystemasoftheprecedingJunethirtieth.Thereportshallcontain,
119butshallnotbelimitedto,afinancialbalancesheet;astatementofincomeand
120disbursements;adetailedstatementofinvestmentsacquiredanddisposedofduringthe
121year,togetherwithadetailedstatementoftheannualratesofinvestmentincomefromall
122assetsandfromeachtypeofinvestment;anactuarialbalancesheetpreparedbymeansofthe
123lastvaluationofthesystem,andsuchotherdataastheboardshalldeemnecessaryor
124desirableforaproperunderstandingoftheconditionofthesystem.
HB559 4 125 [16.]17.Theboardoftrusteesshall,afterreasonablenoticetoallinterestedparties,
126conductadministrativehearingstohearanddecidequestionsarisingfromtheadministration
127ofsections70.600to70.755;except,thatsuchhearingsmaybeconductedbyahearing
128officerwhoshallbeappointedbytheboard.Thehearingofficershallpresideatthehearing
129andhearallevidenceandruleontheadmissibilityofevidence.Thehearingofficershall
130makerecommendedfindingsoffactandmaymakerecommendedconclusionsoflawtothe
131board.Allfinalordersordeterminationsorotherfinalactionsbytheboardshallbeapproved
132inwritingbyatleastfourmembersoftheboard.Anyboardmemberapprovinginwriting
133anyfinalorder,determinationorotherfinalaction,whodidnotattendthehearing,shalldoso
134onlyaftercertifyingthatheorshereviewedallexhibitsandreadtheentiretranscriptofthe
135hearing.Withinthirtydaysafteradecisionororderorfinalactionoftheboard,anymember,
136retirant,beneficiaryorpoliticalsubdivisionadverselyaffectedbythatdeterminationororder
137orfinalactionmaytakeanappealundertheprovisionsofchapter536.Jurisdictionoverany
138disputeregardingtheinterpretationofsections70.600to70.755andthedeterminations
139requiredthereundershalllieinthecircuitcourtofColeCounty.
140 [17.]18.Theboardshallarrangeforadequatesuretybondscoveringtheexecutive
141secretaryandanyothercustodianofthefundsorinvestmentsoftheboard.Whenapproved
142bytheboard,saidbondsshallbedepositedintheofficeofthesecretaryofstate.
143 [18.]19.Theboardshallarrangeforannualauditsoftherecordsandaccountsofthe
144systembyacertifiedpublicaccountantorbyafirmofcertifiedpublicaccountants.
145 [19.]20.TheheadquartersoftheretirementsystemshallbeinJeffersonCity.
146 [20.]21.Theboardoftrusteesshallserveastrusteeswithoutcompensationfortheir
147servicesassuch;exceptthateachtrusteeshallbepaidforanynecessaryexpensesincurredin
148attendingmeetingsoftheboardorintheperformanceofotherdutiesauthorizedbytheboard.
149 [21.]22.Subjecttothelimitationsofsections70.600to70.755,theboardshall
150formulateandadoptrulesandregulationsforthegovernmentofitsownproceedingsandfor
151theadministrationoftheretirementsystem.
70.630.1.Themembershipofthesystemshallincludethefollowingpersons:
2 (1)Allemployeeswhoareneitherpolicemennorfiremenwhoareintheemployofa
3politicalsubdivisionthedayprecedingthedatesuchpoliticalsubdivisionbecomesan
4employerandwhocontinueinsuchemployonandaftersuchdateshallbecomemembersof
5thesystem.
6 (2)Allpersonswhobecomeemployedbyapoliticalsubdivisionasneitherpolicemen
7norfiremenonorafterthedatesuchpoliticalsubdivisionbecomesanemployershallbecome
8membersofthesystem.
9 (3)Ifhisemployingpoliticalsubdivisionhaselectedtocoverpresentandfuture
10policemen,allpolicemenwhoareintheemployofapoliticalsubdivisionthedaypreceding
HB559 5 11thedatesuchpoliticalsubdivisioncoverspolicemenhereunderandwhocontinueinsuch
12employasapolicemanonandaftersuchdate,andallpersonswhobecomeemployedbya
13politicalsubdivisionasapolicemanonorafterthedatethepoliticalsubdivisioncovers
14policemenshallbecomemembersofthesystem.
15 (4)Ifhisemployingpoliticalsubdivisionhaselectedtocoveronlyfuturepolicemen,
16allpersonswhobecomeemployedbyapoliticalsubdivisionasapolicemanonorafterthe
17datesuchpoliticalsubdivisioncoverspolicemenhereundershallbecomemembersofthe
18system.
19 (5)Ifhisemployingpoliticalsubdivisionhaselectedtocoverpresentandfuture
20firemen,allfiremenwhoareintheemployofapoliticalsubdivisionthedayprecedingthe
21datesuchpoliticalsubdivisioncoversfiremenhereunderandwhocontinueinsuchemployas
22afiremanonandaftersuchdate,andallpersonswhobecomeemployedbyapolitical
23subdivisionasafiremanonorafterthedatethepoliticalsubdivisioncoversfiremen
24hereundershallbecomemembersofthesystem.
25 (6)Ifhisemployingpoliticalsubdivisionhaselectedtocoveronlyfuturefiremen,all
26personswhobecomeemployedbyapoliticalsubdivisionasafiremanonorafterthedate
27suchpoliticalsubdivisioncoversfiremenhereundershallbecomemembersofthesystem.
28 2.[Innoeventshallanemployeebecomeamemberifcontinuousemploymentto
29timeofretirementwillleavetheemployeewithlessthanminimumnumberofyearsof
30creditedservicespecifiedinsection70.645.
31 3.]Inanycaseofquestionastothesystemmembershipstatusofanyperson,the
32boardshalldecidethequestion.
70.655.1.Uponamember'sretirementheorsheshallreceiveanallowanceforlifein
2accordancewiththeapplicablebenefitprogramelectedbythemember'semployer,as
3follows:
4 (1)BenefitprogramL-1.Amemberwithcreditedservicecoveredbybenefit
5programL-1shallreceiveanallowanceforlifeequaltoonepercentofthemember'sfinal
6averagesalarymultipliedbythenumberofyearsofsuchcreditedservice;
7 (2)BenefitprogramL-3.Amemberwithcreditedservicecoveredbybenefit
8programL-3shallreceiveanallowanceforlifeequaltooneandone-quarterpercentofthe
9member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
10 (3)BenefitprogramLT-4.Amemberwithcreditedservicecoveredbybenefit
11programLT-4shallreceiveanallowanceforlifeequaltoonepercentofthemember'sfinal
12averagesalarymultipliedbythenumberofyearsofsuchcreditedservice.Inaddition,ifsuch
13memberisretiringasprovidedinsection70.645orsection70.650orsection70.670,andif
14suchmember'sageatretirementisyoungerthanagesixty-two,thensuchmembershall
15receiveatemporaryallowanceequaltoonepercentofthemember'sfinalaveragesalary
HB559 6 16multipliedbythenumberofyearsofsuchcreditedservice.Suchtemporaryallowanceshall
17terminateattheendofthecalendarmonthinwhichtheearlierofthefollowingeventsoccurs:
18suchmember'sdeath;orthemember'sattainmentofagesixty-two;
19 (4)BenefitprogramLT-5.Amemberwithcreditedservicecoveredbybenefit
20programLT-5shallreceiveanallowanceforlifeequaltooneandone-quarterpercentofthe
21member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.In
22addition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650orsection
2370.670,andifsuchmember'sageatretirementisyoungerthanagesixty-two,thensuch
24membershallreceiveatemporaryallowanceequaltothree-quartersofonepercentofthe
25member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
26Suchtemporaryallowanceshallterminateattheendofthecalendarmonthinwhichthe
27earlierofthefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentof
28agesixty-two;
29 (5)BenefitprogramL-6.Amemberwithcreditedservicecoveredbybenefit
30programL-6shallreceiveanallowanceforlifeequaltotwopercentofthemember'sfinal
31averagesalarymultipliedbythenumberofyearsofsuchcreditedservice;
32 (6)BenefitprogramL-7.Amemberwithcreditedservicecoveredbybenefit
33programL-7shallreceiveanallowanceforlifeequaltooneandone-halfpercentofthe
34member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
35 (7)BenefitprogramLT-8.Amemberwithcreditedservicecoveredbybenefit
36programLT-8shallreceiveanallowanceforlifeequaltooneandone-halfpercentofthe
37member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.In
38addition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650orsection
3970.670,andifsuchmember'sageatretirementisyoungerthanagesixty-two,thensuch
40membershallreceiveatemporaryallowanceequaltoone-halfofonepercentofthemember's
41finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.Such
42temporaryallowanceshallterminateattheendofthecalendarmonthinwhichtheearlierof
43thefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentofagesixty-
44two;
45 (8)BenefitprogramLT-4(65).Amemberwithcreditedservicecoveredbybenefit
46programLT-4(65)shallreceiveanallowanceforlifeequaltoonepercentofthemember's
47finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.Inaddition,if
48suchmemberisretiringasprovidedinsection70.645orsection70.650orsection70.670,and
49ifsuchmember'sageatretirementisyoungerthanagesixty-five,thensuchmembershall
50receiveatemporaryallowanceequaltoonepercentofthemember'sfinalaveragesalary
51multipliedbythenumberofyearsofsuchcreditedservice.Suchtemporaryallowanceshall
HB559 7 52terminateattheendofthecalendarmonthinwhichtheearlierofthefollowingeventsoccurs:
53suchmember'sdeath;orthemember'sattainmentofagesixty-five;
54 (9)BenefitprogramLT-5(65).Amemberwithcreditedservicecoveredbybenefit
55programLT-5(65)shallreceiveanallowanceforlifeequaltooneandone-quarterpercentof
56themember'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
57Inaddition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650or
58section70.670,andifsuchmember'sageatretirementisyoungerthanagesixty-five,then
59suchmembershallreceiveatemporaryallowanceequaltothree-quartersofonepercentof
60themember'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
61Suchtemporaryallowanceshallterminateattheendofthecalendarmonthinwhichthe
62earlierofthefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentof
63agesixty-five;
64 (10)BenefitprogramLT-8(65).Amemberwithcreditedservicecoveredbybenefit
65programLT-8(65)shallreceiveanallowanceforlifeequaltooneandone-halfpercentofthe
66member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.In
67addition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650orsection
6870.670,andifsuchmember'sageatretirementisyoungerthanagesixty-five,thensuch
69membershallreceiveatemporaryallowanceequaltoone-halfofonepercentofthemember's
70finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.Such
71temporaryallowanceshallterminateattheendofthecalendarmonthinwhichtheearlierof
72thefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentofagesixty-
73five;
74 (11)BenefitprogramL-9.Amemberwithcreditedservicecoveredbybenefit
75programL-9shallreceiveanallowanceforlifeequaltooneandsix-tenthspercentofthe
76member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
77 (12)BenefitprogramLT-10(65).Amemberwithcreditedservicecoveredbybenefit
78programLT-10(65)shallreceiveanallowanceforlifeequaltooneandsix-tenthspercentof
79themembers'finalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
80Inaddition,ifsuchmemberisretiringasprovidedinsection70.645orsection70.650or
81section70.670,andifsuchmember'sageatretirementisyoungerthanagesixty-five,then
82suchmembershallreceiveatemporaryallowanceequaltofour-tenthsofonepercentofthe
83member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice.
84Suchtemporaryallowanceshallterminateattheendofthecalendarmonthinwhichthe
85earlierofthefollowingeventsoccurs:suchmember'sdeath;orthemember'sattainmentof
86agesixty-five;
87 (13)BenefitprogramL-11.BenefitprogramL-11maycoveremploymentina
88positiononlyifsuchpositionisnotconcurrentlycoveredbyfederalSocialSecurity;in
HB559 8 89addition,ifsuchpositionwaspreviouslycoveredbyfederalSocialSecurity,benefitprogram
90L-11maycoveronlyemploymentrenderedaftercessationoffederalSocialSecurity
91coverage.AmemberwithcreditedservicecoveredbybenefitprogramL-11shallreceivean
92allowanceforlifeequaltotwoandone-halfpercentofthemember'sfinalaveragesalary
93multipliedbythenumberofyearsofsuchcreditedservice;
94 (14)BenefitprogramL-12.Amemberwithcreditedservicecoveredbybenefit
95programL-12shallreceiveanallowanceforlifeequaltooneandthree-quarterpercentofthe
96member'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcreditedservice;
97 (15)BenefitprogramLT-14(65).Amemberwithcreditedservicecoveredbybenefit
98programLT-14(65)shallreceiveanallowanceforlifeequaltooneandthree-quarterpercent
99ofthemember'sfinalaveragesalarymultipliedbythenumberofyearsofsuchcredited
100service.Inaddition,ifsuchmemberisretiringasprovidedinsection70.645,70.650,or
10170.670,thensuchmembershallreceiveatemporaryallowanceequaltoone-quarterofone
102percentofthemember'sfinalaveragesalarymultipliedbythenumberofyearsofsuch
103creditedservice.Suchtemporaryallowanceshallterminateattheendofthecalendarmonth
104inwhichtheearlierofthefollowingeventsoccurs:suchmember'sdeathorthemember's
105attainmentofagesixty-five.
106 2.Ifeachportionofamember'screditedserviceisnotcoveredbythesamebenefit
107program,thenthemember'stotalallowanceforlifeshallbethetotaloftheallowanceforlife
108determinedundereachapplicablebenefitprogram.
109 3.Eachemployershallhavethecreditedserviceofeachofitsmemberscoveredby
110benefitprogramL-1providedforinthissectionunlesssuchemployershallhaveelected
111anotherbenefitprogramprovidedforinthissection.
112 4.Exceptasotherwiseprovidedinthissubsection,eachpoliticalsubdivision,by
113majorityvoteofitsgoverningbody,mayelectfromtimetotimetocoveritsmembers,whose
114politicalsubdivisionemploymentisconcurrentlycoveredbyfederalSocialSecurity,under
115oneofthebenefitprogramsprovidedforinthissection.Eachpoliticalsubdivision,by
116majorityvoteofitsgoverningbody,mayelectfromtimetotimetocoveritsmembers,whose
117politicalsubdivisionemploymentisnotconcurrentlycoveredbyfederalSocialSecurity,
118underoneofthebenefitprogramsprovidedforinthissection.Theclerkorsecretaryofthe
119politicalsubdivisionshallcertifytheelectionofthebenefitprogramtotheboardwithinten
120daysaftersuchvote.Theeffectivedateofthepoliticalsubdivision'sbenefitprogramisthe
121firstdayofthecalendarmonthspecifiedbysuchgoverningbody,orthefirstdayofthe
122calendarmonthnextfollowingreceiptbytheboardofthecertificationofelectionofbenefit
123program,ortheeffectivedateofthepoliticalsubdivisionbecominganemployer,whichever
124isthelatest.Suchelectionofbenefitprogrammaybechangedfromtimetotimebysuch
125vote,butnotmoreoftenthanbiennially.Ifsuchchangedbenefitprogramprovideslarger
HB559 9 126allowancesthanthebenefitprogrampreviouslyineffect,thensuchlargerbenefitprogram
127shallbeapplicabletothepastandfutureemploymentwiththeemployerbypresentandfuture
128employees.Ifsuchchangedbenefitprogramprovidessmallerallowancesthanthebenefit
129programpreviouslyineffect,thensuchchangedbenefitprogramshallbeapplicableonlyto
130creditedserviceforemploymentrenderedfromandaftertheeffectivedateofsuchchange.
131AfterAugust28,1994,politicalsubdivisionsshallnotelectcoverageunderbenefitprogram
132LT-4,benefitprogramLT-5,orbenefitprogramLT-8.AfterAugust28,2005,political
133subdivisionsshallnotelectcoverageunderbenefitprogramL-9orbenefitprogramLT-10
134(65).
135 5.Shouldanemployerchangeitselectionofbenefitprogramasprovidedinthis
136section,theemployercontributionsshallbecorrespondinglychangedeffectivethesamedate
137asthebenefitprogramchange.
138 6.Thelimitationonincreasesinanemployer'scontributionprovidedbysubsection6
139ofsection70.730shallnotapplytoanycontributionincreaseresultingfromanemployer
140electingabenefitprogramwhichprovideslargerallowances.
141 7.Subjecttotheprovisionsofsubsections8and9[and10]ofthissection,foran
142allowancebecomingeffectiveonSeptember28,1975,orlater,andbeginningwiththe
143Octoberfirstwhichisatleasttwelvefullmonthsaftertheeffectivedateoftheallowance,the
144amountoftheallowanceshallberedeterminedeffectiveeachOctoberfirstandsuch
145redeterminedamountshallbepayablefortheensuingyear.Subjecttothelimitationsstated
146inthenextsentence,suchredeterminedamountshallbetheamountoftheallowance
147otherwisepayablemultipliedbythefollowingpercent:onehundredpercent,plustwopercent
148foreachfullyear(excludinganyfractionofayear)intheperiodfromtheeffectivedateofthe
149allowancetothecurrentOctoberfirst.Innoeventshallsuchredeterminedamount(1)beless
150thantheamountoftheallowanceotherwisepayablenor(2)bemorethantheamountofthe
151allowanceotherwisepayablemultipliedbythefollowingfraction:thenumeratorshallbethe
152ConsumerPriceIndexforthemonthofJuneimmediatelyprecedingsuchOctoberfirst(butin
153noeventanamountlessthanthedenominatorbelow)andthedenominatorshallbethe
154ConsumerPriceIndexforthemonthofJuneimmediatelyprecedingtheeffectivedateofthe
155allowance.Asusedherein,"ConsumerPriceIndex"meansameasureoftheConsumerPrice
156Index[forUrbanWageEarnersandClericalWorkers,] asdeterminedbytheUnitedStates
157DepartmentofLaborandadoptedbytheboardoftrustees[ineffectJanuary1,1975;
158provided,shouldsuchConsumerPriceIndexberestructuredsubsequentto1974inamanner
159materiallychangingitscharacter,theboardshallchangetheapplicationoftheConsumer
160PriceIndexsothatasfarasispracticablethe1975intentoftheuseoftheConsumerPrice
161Indexshallbecontinued]. Asusedherein"theamountoftheallowanceotherwisepayable"
HB559 10 162meanstheamountoftheallowancewhichwouldbepayablewithoutregardtothese
163provisionsredeterminingallowanceamountsafterretirement.
164 8.[Subjecttotheprovisionsofsubsections9and10ofthissection,foranallowance
165becomingeffectiveonSeptember28,1975,orlater,themaximumallowancepayableunder
166theprovisionsofsection70.685shallberedeterminedeachOctoberfirstinthesamemanner
167asanallowanceisredeterminedundertheprovisionsofsubsection7ofthissection.
168 9.](1)Thesystemestablishesreservesforthepaymentoffutureallowancesto
169retirantsandbeneficiaries.Shouldtheboarddetermine,afterconsultingwiththeactuary,that
170theestablishedreservesaremorethansufficienttoprovidesuchallowances,theboardmay
171increasetheannualincreaserateprovidedforin[subsections] subsection7[and8]ofthis
172section,asitappliestoanyallowancepayable,butinnoeventshallthetotalofall
173redeterminedamountsasofOctoberfirstofanyyearbegreaterthanonehundredfourpercent
174oftheallowanceswhichwouldhavebeenpayablethatOctoberfirstwithoutsuch
175redeterminations;provided,asofanyredeterminationdatethesameannualincreaserateshall
176beappliedtoallallowanceswitheffectivedatesintherangeofNovemberfirsttoOctober
177firstofthefollowingyear.Theboardmayextendtheprovisionsof[subsections] subsection
1787[and8]ofthissectiontoallowanceswhichbecameeffectivebeforeSeptember28,1975;
179providedsuchanactionbytheboardshallnotincreaseanemployercontributionratethenin
180effect;
181 (2)AfterAugust28,1993,theannualincreaserateestablishedbythissubsection
182shallbeacompoundrate,compoundedannually,andthefourpercentannualmaximumrate
183shallalsobeacompoundrate,compoundedannually;provided,theuseofsuchcompounding
184shallnotbeginuntilOctober1,1993,andshallnotaffectredeterminationsmadepriortothat
185date.
186 [10.]9.Shouldtheboarddeterminethattheprovisionsofsubsections7[,8]and[9]8
187ofthissectionarejeopardizingthefinancialsolvencyofthesystem,theboardshallsuspend
188theseprovisionsredeterminingallowanceamountsafterretirementforsuchperiodsoftimeas
189theboarddeemsappropriate.
70.680.1.Anymemberinservicewithfiveormoreyearsofcreditedservicewho
2hasnotattainedtheageandservicerequirementsofsection70.645andwhobecomestotally
3andpermanentlyphysicallyormentallyincapacitatedforhisdutyasanemployee,asthe
4resultofapersonalinjuryordisease,mayberetiredbytheboarduponwrittenapplication
5filedwiththeboardbyoronbehalfofthemember;provided,thatafteramedicalexamination
6ofsuchmembermadebyorunderthedirectionofamedicalcommitteeconsistingofthree
7physicians,oneofwhomshallbeselectedbytheboard,onebyoronbehalfofsuchmember,
8andthethirdbythefirsttwophysicianssonamed,themedicalcommitteereportstothe
9board,bymajorityopinioninwriting,thatsuchmemberisphysicallyormentallytotally
HB559 11 10incapacitatedforthefurtherperformanceofduty,thatsuchincapacitywillprobablybe
11permanentandthatsuchmembershouldberetired.
12 2.Upondisabilityretirement,asprovidedinsubsection1ofthissection,amember
13shallreceiveanallowanceforlifeprovidedforinsection70.655andshallhavetherightto
14electanoptionprovidedforinsection70.660.Hisorherdisabilityretirementandallowance
15shallbesubjecttotheprovisionsofsubsection5ofthissection[andtotheprovisionsof
16section70.685].
17 3.Anymemberinservicewhobecomestotallyandpermanentlyphysicallyor
18mentallyincapacitatedforhisdutyasanemployee,asthenaturalandproximateresultofa
19personalinjuryordiseasewhichtheboardfindstohavearisenoutofandinthecourseofhis
20actualperformanceofdutyasanemployee,mayberetiredbytheboarduponwritten
21applicationfiledwiththeboardbyoronbehalfofthemember;provided,thatafteramedical
22examinationofsuchmembermadebyorunderthedirectionofamedicalcommittee
23consistingofthreephysicians,oneofwhomshallbeselectedbytheboard,onebyoron
24behalfofsuchmember,andthethirdbythefirsttwophysicianssonamed,themedical
25committeereportstotheboard,bymajorityopinioninwriting,thatsuchmemberis
26physicallyormentallytotallyincapacitatedforthefurtherperformanceofduty,thatsuch
27incapacitywillprobablybepermanent,andthatsuchmembershouldberetired.
28 4.Upondisabilityretirementasprovidedinsubsection3ofthissection,amember
29shallreceiveanallowanceforlifeprovidedforinsection70.655;provided,thatforthesole
30purposeofcomputingtheamountofsuchallowance,heorsheshallbegivencreditedservice
31fortheperiodfromthedateofhisorherdisabilityretirementtothedateheorshewould
32attainagesixty.Heorsheshallhavetherighttoelectanoptionprovidedforinsection
3370.660.Hisorherdisabilityretirementandallowanceshallbesubjecttotheprovisionsof
34subsection5ofthissection[andtotheprovisionsofsection70.685].
35 5.Atleastonceeachyearduringthefirstfiveyearsfollowingamember'sretirement
36onaccountofdisability,andatleastonceineachthree-yearperiodthereafter,theboardshall
37requireanydisabilityretirantwhohasnotattainedhisminimumserviceretirementageto
38undergoamedicalexaminationtobemadebyaphysiciandesignatedbytheboard.Ifthe
39retirantrefusestosubmittomedicalexaminationinanysuchperiod,hisdisabilityallowance
40shallbesuspendedbytheboarduntilhiswithdrawalofsuchrefusal.Ifsuchrefusalcontinues
41foroneyear,allhisrightsinandtoadisabilityallowanceshallberevokedbytheboard.If,
42uponmedicalexaminationoftheretirant,thephysicianreportstotheboardthattheretirantis
43physicallyandmentallyableandcapableofresuminghisdutyasanemployeeintheposition
44heldbyhimatthetimeofhisdisabilityretirement,thentheboardshall,ifdemandedbythe
45retirant,arrangeafurthermedicalexaminationofsuchmembermadebyorunderthe
46directionofamedicalcommitteeconsistingofthreephysicians,oneofwhomshallbe
HB559 12 47selectedbytheboard,onebyoronbehalfofthemember,andthethirdbythefirsttwo
48physiciansnamed.Shouldthemedicalcommitteeconcur,bymajorityopinioninwritingto
49theboard,thedisabilityretirantiscapableofresumptionofduty,hisdisabilityretirement
50shallterminateandheshallbereturnedtodutyandheshallimmediatelyagainbecomea
51memberofthesystem,hiscreditedserviceatthetimeofdisabilityretirementshallbe
52restoredtohiscredit,andtheamountofhisaccumulatedcontributionsatthetimeofhis
53disabilityretirementshallberestoredtohiscreditinthemembersdepositfund.Ifhewasin
54receiptofadutydisabilityallowanceprovidedforinsubsection3ofthissection,heshallalso
55begivenservicecreditfortheperiodhewasinreceiptofthedutydisabilityallowance.
70.690.1.Intheeventamemberceasestobeamemberotherthanbydeathbefore
2thedatehebecomesentitledtoretirewithanallowancepayablebythesystem,heshallbe
3paid,uponhiswrittenapplicationfiledwiththeboard,hisaccumulatedcontributionsstanding
4tohiscreditinthemembersdepositfund.
5 2.Intheeventamemberdies,andnoallowancebecomesorwillbecomepayableby
6thesystemonaccountofhisdeath,hisaccumulatedcontributionsstandingtohiscreditinthe
7membersdepositfundatthetimeofhisdeathshallbepaidtosuchpersonorpersonsashe
8shallhavenominatedbywrittendesignationdulyexecutedandfiledwiththeboard.Ifthere
9benosuchdesignatedpersonorpersonssurvivingsuchmember,suchaccumulated
10contributionsshallbepaidtohissurvivingspouse,ortohisestateifthereisnosurviving
11spouse.
12 3.Intheeventamember'smembershipinthesystemterminates,andnoallowance
13becomesorwillbecomepayableonhisaccount,anyaccumulatedcontributionsstandingto
14hiscreditinthemembersdepositfundunclaimedbysuchmemberorhislegalrepresentative
15within[three] tenyearsafterthedatehismembershipterminated,shallbetransferredtothe
16income-expensefund.Ifthereafterproperapplicationismadeforsuchaccumulated
17contributions,theboardshallpaythemfromtheincome-expensefund,butwithoutinterest
18afterthedatepaymentwasfirstdue.
70.745.1.Theboardshallbethetrusteesofthefundsofthesystem.Subjecttothe
2provisionsofanyapplicablefederalorstatelaws,theboardshallhavefullpowertoinvest
3andreinvestthemoneysofthesystem,andtohold,purchase,sell,assign,transferordispose
4ofanyofthesecuritiesandinvestmentsinwhichsuchmoneysshallhavebeeninvested,as
5wellastheproceedsofsuchinvestmentsandsuchmoneys.
6 2.Theboardoftrusteesmaydeliberateabout,ormaketentativeorfinal
7decisionson,investmentsorotherfinancialmattersinaclosedmeetingunderchapter
8610ifdisclosureofthedeliberationsordecisionswouldjeopardizetheabilityto
9implementadecisionortoachieveinvestmentobjectives.Arecordoftheretirement
10systemthatdisclosesdeliberationsabout,oratentativedecisionon,investmentsor
HB559 13 11otherfinancialmattersisnotapublicrecordunderchapter610totheextentandsolong
12asitsdisclosurewouldjeopardizetheabilitytoimplementadecisionortoachieve
13investmentobjectives.
14 3.Theboardoftrusteesshallnotbeprohibitedfromclosingrecordstothe
15extentthatsuchrecordsrelatetoinformationsubmittedbyanindividual,corporation,
16orotherbusinessentityinconnectionwithinvestmentsinorfinancialtransactionswith
17businessentitiesforinvestmentpurposes.
70.746.Notwithstandinganyotherprovisionoflawtothecontrary,theboardof
2trusteesmaydelegatetoitsdulyappointedinvestmentcounselorauthoritytoactinplaceof
3theboardintheinvestmentandreinvestmentofallorpartofthemoneysofthesystem,and
4mayalsodelegatetosuchcounselortheauthoritytoactinplaceoftheboardintheholding,
5purchasing,selling,assigning,transferring,ordisposingofanyorallofthesecuritiesand
6investmentsinwhichsuchmoneysshallhavebeeninvested,aswellastheproceedsofsuch
7investmentsandsuchmoneys.[Suchinvestmentcounselorshallberegisteredasan
8investmentadvisorwiththeUnitedStatesSecuritiesandExchangeCommission.] In
9exercisingordelegatingitsinvestmentpowersandauthority,membersoftheboardshall
10exerciseordinarybusinesscareandprudenceunderthefactsandcircumstancesprevailingat
11thetimeoftheactionordecision.Insodoing,theboardshallconsiderthelong-andshort-
12termneedsofthesystemincarryingoutitspurposes,thesystem'spresentandanticipated
13financialrequirements,theexpectedtotalreturnonthesystem'sinvestment,general
14economicconditions,income,growth,long-termnetappreciation,andprobablesafetyof
15funds.Nomemberoftheboardshallbeliableforanyactiontakenoromittedwithrespectto
16theexerciseofordelegationofthesepowersandauthorityifsuchmembershallhave
17dischargedthedutiesofhisorherpositioningoodfaithandwiththatdegreeofdiligence,
18care,andskillwhichprudentmenandwomenwouldordinarilyexerciseundersimilar
19circumstancesinalikeposition.
70.747.Notwithstandinganyotherprovisionoflawtothecontrary,theboardshall
2havefullpowertoinvestandreinvestthefundsandmoneysofthesysteminimprovedreal
3estate,includingcollectiverealestatefundsandrealestateinvestmenttrusts,wherever
4situated[; provided,however,thatnotmorethanone-tenthofthefundsandmoneysofthe
5systematthetimeofsuchinvestmentshallbesoinvested].
70.748.1.Notwithstandingtheprovisionsofsection105.662,theboardmayset
2upandmaintainalocalgovernmentemployeeretirementsystemofMissouriinvestment
3fundaccountinwhichinvestmentandreinvestmentofallorpartofthemoneysofthe
4systemmaybeplacedandbeavailableforinvestmentpurposes.
5 2.Forthepurposeofinvestingthefundsoftheretirementsystem,thefundsmay
6becombinedwiththefundsofanyretirementplanthatisadministeredbytheMissouri
HB559 14 7localgovernmentemployees’retirementsystemundersection70.621andany
8retirementplanestablishedforthepurposeofprovidingbenefitsforemployeesofthe
9system,butthefundsofeachplanshallbeaccountedforseparatelyandforallother
10reportingpurposesshallbeseparate.
11 3.Theboardoftrusteesmaypromulgatesuchrulesandregulationsconsistent
12withtheprovisionsofthissectionasdeemednecessaryforitsproperadministration,
13undertheprovisionsofthissectionandthischapter.
14 4.Theboardoftrusteesmaypromulgateallnecessaryrulesandregulationsfor
15theadministrationofthissection.Anyruleorportionofarule,asthattermisdefined
16insection536.010,thatiscreatedundertheauthoritydelegatedinthissectionshall
17becomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsofchapter
18536and,ifapplicable,section536.028.Thissectionandchapter536arenonseverable
19andifanyofthepowersvestedwiththegeneralassemblypursuanttochapter536to
20review,todelaytheeffectivedate,ortodisapproveandannularulearesubsequently
21heldunconstitutional,thenthegrantofrulemakingauthorityandanyruleproposedor
22adoptedafterAugust28,2025,shallbeinvalidandvoid.
86.200.Thefollowingwordsandphrasesasusedinsections86.200to86.366,unless
2adifferentmeaningisplainlyrequiredbythecontext,shallhavethefollowingmeanings:
3 (1)"Accumulatedcontributions",thesumofallmandatorycontributionsdeducted
4fromthecompensationofamemberandcreditedtothemember'sindividualaccount,
5togetherwithmembers'interestthereon;
6 (2)"Actuarialequivalent",abenefitofequalvaluewhencomputeduponthebasisof
7mortalitytablesandinterestassumptionsadoptedbytheboardoftrustees;
8 (3)"Averagefinalcompensation":
9 (a)WithrespecttoamemberwhoearnsnocreditableserviceonorafterOctober1,
102001,theaverageearnablecompensationofthememberduringthemember'slastthreeyears
11ofcreditableserviceasapoliceofficer,orifthememberhashadlessthanthreeyearsof
12creditableservice,theaverageearnablecompensationofthemember'sentireperiodof
13creditableservice;
14 (b)WithrespecttoamemberwhoisnotparticipatingintheDROPpursuantto
15section86.251onOctober1,2001,whodidnotparticipateintheDROPatanytimebefore
16suchdate,andwhoearnsanycreditableserviceonorafterOctober1,2001,theaverage
17earnablecompensationofthememberduringthemember'slasttwoyearsofcreditable
18serviceasapoliceman,orifthememberhashadlessthantwoyearsofcreditableservice,
19thentheaverageearnablecompensationofthemember'sentireperiodofcreditableservice;
20 (c)WithrespecttoamemberwhoisparticipatingintheDROPpursuanttosection
2186.251onOctober1,2001,orwhoseparticipationinDROPendedbeforesuchdate,who
HB559 15 22returnstoactiveparticipationinthesystempursuanttosection86.251,andwhoterminates
23employmentasapoliceofficerforreasonsotherthandeathordisabilitybeforeearningat
24leasttwoyearsofcreditableserviceaftersuchreturn,theportionofthemember'sbenefit
25attributabletocreditableserviceearnedbeforeDROPentryshallbedeterminedusingaverage
26finalcompensationasdefinedinparagraph(a)ofthissubdivision;andtheportionofthe
27member'sbenefitattributabletocreditableserviceearnedafterreturntoactiveparticipationin
28thesystemshallbedeterminedusingaveragefinalcompensationasdefinedinparagraph(b)
29ofthissubdivision;
30 (d)WithrespecttoamemberwhoisparticipatingintheDROPpursuanttosection
3186.251onOctober1,2001,orwhoseparticipationintheDROPendedbeforesuchdate,who
32returnstoactiveparticipationinthesystempursuanttosection86.251,andwhoterminates
33employmentasapoliceofficerafterearningatleasttwoyearsofcreditableserviceaftersuch
34return,themember'sbenefitattributabletoallofsuchmember'screditableserviceshallbe
35determinedusingthemember'saveragefinalcompensationasdefinedinparagraph(b)ofthis
36subdivision;
37 (e)WithrespecttoamemberwhoisparticipatingintheDROPpursuanttosection
3886.251onOctober1,2001,orwhoseparticipationinDROPendedbeforesuchdate,who
39returnstoactiveparticipationinthesystempursuanttosection86.251,andwhose
40employmentasapoliceofficerterminatesduetodeathordisabilityaftersuchreturn,the
41member'sbenefitattributabletoallofsuchmember'screditableserviceshallbedetermined
42usingthemember'saveragefinalcompensationasdefinedinparagraph(b)ofthis
43subdivision;and
44 (f)Withrespecttothesurvivingspouseorsurvivingdependentchildofamember
45whoearnsanycreditableserviceonorafterOctober1,2001,theaverageearnable
46compensationofthememberduringthemember'slasttwoyearsofcreditableserviceasa
47policeofficeror,ifthememberhashadlessthantwoyearsofcreditableservice,theaverage
48earnablecompensationofthemember'sentireperiodofcreditableservice;
49 (4)"Beneficiary",anypersoninreceiptofaretirementallowanceorotherbenefit;
50 (5)"Boardoftrustees",theboardprovidedinsections86.200to86.366toadminister
51theretirementsystem;
52 (6)"Creditableservice",priorserviceplusmembershipserviceasprovidedin
53sections86.200to86.366;
54 (7)"DROP",thedeferredretirementoptionplanprovidedforinsection86.251;
55 (8)"Earnablecompensation",theannualsalary[establishedundersection84.160
56which] amemberwouldearnduringoneyearonthebasisofthemember'srankorposition
57plusanyadditionalcompensationforacademicworkandshiftdifferential, that[maybe
58provided] issetbyanystateormunicipalbodyorofficial[orboard] noworhereafter
HB559 16 59authorizedbylawtoemployandmanageapermanentpoliceforceinsuchcities.Such
60amountshallincludethemember'sdeferralstoadeferredcompensationplanpursuantto
61Section457oftheInternalRevenueCodeortoacafeteriaplanpursuanttoSection125ofthe
62InternalRevenueCodeor,effectiveOctober1,2001,toatransportationfringebenefit
63programpursuanttoSection132(f)(4)oftheInternalRevenueCode.Earnablecompensation
64shallnotincludeamember'sadditionalcompensationforovertime,standbytime,courttime,
65nonuniformtimeorunusedvacationtime.Further,"earnablecompensation"shallnot
66includeanyfundsreceivedbyamemberthroughajudgmentorsettlementofalegal
67actionorclaimmadeorthreatenedbythememberagainstanycitynotwithinacounty
68ifthefundsareintendedtoretroactivelycompensatethememberforthesalary
69differentialbetweenthemember'sactualrankandtherankthememberclaimsheor
70sheshouldhavereceived.Notwithstandingtheforegoing,theearnablecompensationtaken
71intoaccountundertheplanestablishedpursuanttosections86.200to86.366withrespecttoa
72memberwhoisanoneligibleparticipant,asdefinedinthissubdivision,foranyplanyear
73beginningonorafterOctober1,1996,shallnotexceedtheamountofcompensationthatmay
74betakenintoaccountunderSection401(a)(17)oftheInternalRevenueCode,asadjustedfor
75increasesinthecostofliving,forsuchplanyear.Forpurposesofthissubdivision,a
76"noneligibleparticipant"isanindividualwhofirstbecomesamemberonorafterthefirstday
77ofthefirstplanyearbeginningaftertheearlierof:
78 (a)ThelastdayoftheplanyearthatincludesAugust28,1995;or
79 (b)December31,1995;
80 (9)"InternalRevenueCode",thefederalInternalRevenueCodeof1986,as
81amended;
82 (10)"Mandatorycontributions",thecontributionsrequiredtobedeductedfromthe
83salaryofeachmemberwhoisnotparticipatinginDROPinaccordancewithsection86.320;
84 (11)"Medicalboard",thehealthcareorganizationappointedbythetrusteesofthe
85policeretirementboardandresponsibleforarrangingandpassinguponallmedical
86examinationsrequiredundertheprovisionsofsections86.200to86.366,whichshall
87investigateallessentialstatementsandcertificatesmadebyoronbehalfofamemberin
88connectionwithanapplicationfordisabilityretirementandshallreportinwritingtotheboard
89oftrusteesitsconclusionsandrecommendations;
90 (12)"Member",amemberoftheretirementsystemasdefinedbysections86.200to
9186.366;
92 (13)"Members'interest",interestonaccumulatedcontributionsatsuchrateasmaybe
93setfromtimetotimebytheboardoftrustees;
94 (14)"Membershipservice",serviceasapolicemanrenderedsincelastbecominga
95member,exceptinthecaseofamemberwhohasservedintheArmedForcesoftheUnited
HB559 17 96Statesandhassubsequentlybeenreinstatedasapoliceman,inwhichcase"membership
97service"meansserviceasapolicemanrenderedsincelastbecomingamemberpriorto
98enteringsucharmedservice;
99 (15)"Planyear"or"limitationyear",thetwelveconsecutive-monthperiodbeginning
100eachOctoberfirstandendingeachSeptemberthirtieth;
101 (16)"Policeman"or"policeofficer",anymemberofthepoliceforceofsuchcities
102whoholdsarankinsuchpoliceforce;
103 (17)"Priorservice",allserviceasapolicemanrenderedpriortothedatethesystem
104becomesoperativeorpriortomembershipservicewhichiscreditableinaccordancewiththe
105provisionsofsections86.200to86.366;
106 (18)"Reserveofficer",anymemberofthepolicereserveforceofsuchcities,armed
107orunarmed,whoworkslessthanfulltime,withoutcompensation,andwho,byhisorher
108assignedfunctionorasimpliedbyhisorheruniform,performsdutiesassociatedwiththose
109ofapoliceofficerandwhocurrentlyreceivesaserviceretirementasprovidedbysections
11086.200to86.366;
111 (19)"Retirementallowance",annualpaymentsforlifeasprovidedbysections86.200
112to86.366whichshallbepayableinequalmonthlyinstallmentsoranybenefitsinlieuthereof
113grantedtoamemberuponterminationofemploymentasapoliceofficerandactual
114retirement;
115 (20)"Retirementsystem",thepoliceretirementsystemofthecitiesasdefinedin
116sections86.200to86.366;
117 (21)"Survivingspouse",thesurvivingspouseofamemberwhowasthemember's
118spouseatthetimeofthemember'sdeath.
105.688.Theassetsofasystemmaybeinvested,reinvestedandmanagedbyan
2investmentfiduciarysubjecttotheterms,conditionsandlimitationsprovidedinsections
3105.687to105.689.Aninvestmentfiduciaryshalldischargehisorherdutiesintheinterest
4oftheparticipantsinthesystemandtheirbeneficiariesandshall:
5 (1)Actwiththesamecare,skill,prudence,anddiligenceunderthecircumstances
6thenprevailingthataprudentpersonactinginasimilarcapacityandfamiliarwiththose
7matterswoulduseintheconductofasimilarenterprisewithsimilaraims;
8 (2)Actwithdueregardforthemanagement,reputation,andstabilityoftheissuerand
9thecharacteroftheparticularinvestmentsbeingconsidered;
10 (3)Makeinvestmentsforthepurposesofprovidingbenefitstoparticipantsand
11participants'beneficiaries,andofdefrayingreasonableexpensesofinvestingtheassetsofthe
12system;
13 (4)Giveappropriateconsiderationtothosefactsandcircumstancesthatthe
14investmentfiduciaryknowsorshouldknowarerelevanttotheparticularinvestmentor
HB559 18 15investmentcourseofactioninvolved,includingtheroleoftheinvestmentorinvestment
16courseofactionplaysinthatportionofthesystem'sinvestmentsforwhichtheinvestment
17fiduciaryhasresponsibility.Forpurposesofthissubdivision,"appropriateconsideration"
18shallinclude,butisnotnecessarilylimitedtoadeterminationbytheinvestmentfiduciarythat
19aparticularinvestmentorinvestmentcourseofactionisreasonablydesigned,aspartofthe
20investmentsofthesystem,tofurtherthepurposesofthesystem,takingintoconsiderationthe
21riskoflossandtheopportunityforgainorotherreturnassociatedwiththeinvestmentor
22investmentcourseofaction;andconsiderationofthefollowingfactorsastheyrelatetothe
23investmentorinvestmentcourseofaction:
24 (a)Thediversificationoftheinvestmentsofthesystem;
25 (b)Theliquidityandcurrentreturnoftheinvestmentsofthesystemrelativetothe
26anticipatedcashflowrequirementsofthesystem;and
27 (c)Theprojectedreturnoftheinvestmentsofthesystemrelativetothefunding
28objectivesofthesystem;
29 (5)Giveappropriateconsiderationtoinvestmentswhichwouldenhancethegeneral
30welfareofthisstateanditscitizensifthoseinvestmentsofferthesafetyandrateofreturn
31comparabletootherinvestmentsavailabletotheinvestmentfiduciaryatthetimethe
32investmentdecisionismade; and
33 (6)Notbeprohibitedfromclosingrecordstotheextentthatsuchrecordsrelate
34toinformationsubmittedbyanindividual,corporation,orotherbusinessentityin
35connectionwithinvestmentsinorfinancialtransactionswithbusinessentitiesfor
36investmentpurposes.
âś”
HB559 19