FIRSTREGULARSESSION
HOUSEBILLNO.688
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEO'DONNELL.
1670H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsections104.436and104.1066,RSMo,andtoenactinlieuthereoftwonew
sectionsrelatingtotheemployercontributionrateforcertainhighereducation
institutions.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections104.436and104.1066,RSMo,arerepealedandtwonewsections
2enactedinlieuthereof,tobeknownassections104.436and104.1066,toreadasfollows:
104.436.1.Theboardintendstofollowafinancingpatternwhichcomputesand
2requirescontributionamountswhich,expressedaspercentsofactivememberpayroll,will
3remainapproximatelylevelfromyeartoyearandfromonegenerationofcitizenstothenext
4generation.Suchcontributiondeterminationsrequireregularactuarialvaluations,whichshall
5bemadebytheboard'sactuary,usingassumptionsandmethodsadoptedbytheboardafter
6consultingwithitsactuary.Theentryagenormalcostvaluationmethodshallbeusedin
7determiningthenormalcostcalculation.
8 2.Atleastninetydaysbeforeeachregularsessionofthegeneralassembly,theboard
9shallcertifytothedivisionofbudgetthecontributionratenecessarytocovertheliabilitiesof
10theplanadministeredbythesystem,includingcostsofadministration,expectedtoaccrue
11duringthenextappropriationperiod.Thecommissionerofadministrationshallrequest
12appropriationoftheamountcalculatedpursuanttotheprovisionsofthissubsection.
13BeginningAugust28,2025,intheeventtheboardcertifiesacontributionratethat
14exceedstwenty-eightandthree-fourthspercent,thecommissionerofadministration
15shallincludeinhisorherappropriationrequestanamountequaltothedifference
16betweenthegreatercontributionrateandtwenty-eightandthree-fourthspercentof
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17compensationforthemembersofHarris-StoweStateUniversity,LincolnUniversity,
18MissouriStateUniversity,MissouriSouthernStateUniversity,MissouriWesternState
19University,NorthwestMissouriStateUniversity,SoutheastMissouriStateUniversity,
20StateTechnicalCollegeofMissouri,TrumanStateUniversity,andUniversityofCentral
21Missouri.Followingeachpayperiod,thecommissionerofadministrationshallrequisition
22andcertifythepaymenttotheexecutivedirectoroftheMissouristateemployees'retirement
23system.Theexecutivedirectorshallpromptlydeposittheamountscertifiedtothecreditof
24theMissouristateemployees'retirementfund.
25 3.Theemployersofmembersofthesystemwhoarenotpaidoutoffundsthathave
26beendepositedinthestatetreasuryshallremitpromptlytotheexecutivedirectoranamount
27equaltotheamountwhichthestatewouldhavepaidifthosemembershadbeenpaidentirely
28fromstatefunds, exceptasprovidedinsubsection2ofthissection. Theexecutivedirector
29shallpromptlydeposittheamountscertifiedtothecreditoftheMissouristateemployees'
30retirementsystemfund.
31 4.Theseamountsarefundsofthesystem,andshallnotbecommingledwithany
32fundsinthestatetreasury.
104.1066.1.Theyear2000planintendstofollowafinancingpatternwhich
2computesandrequirescontributionamountswhich,expressedaspercentsofactivemember
3payroll,willremainapproximatelylevelfromyeartoyearandfromonegenerationof
4citizenstothenextgeneration.Suchcontributiondeterminationsrequireregularactuarial
5valuations,whichshallbemadebytheboard'sactuary,usingassumptionsandmethods
6adoptedbytheboardafterconsultingwithitsactuary.Theentryage-normalcostvaluation
7methodshallbeusedindeterminingthenormalcostcalculation.Forpurposesofthis
8subsectionandsection104.436,theactuaryshalldetermineasinglecontributionrate
9applicabletobothclosedplanandyear2000planparticipantsand,indeterminingsuchrate,
10makeestimatesoftheprobabilitiesofclosedplanparticipantstransferringtotheyear2000
11plan.
12 2.Atleastninetydaysbeforeeachregularsessionofthegeneralassembly,theboard
13oftheMissouristateemployees'retirementsystemshallcertifytothedivisionofbudgetthe
14contributionratenecessarytocovertheliabilitiesoftheyear2000planadministeredbysuch
15system,includingcostsofadministration,expectedtoaccrueduringthenextappropriation
16period.Thecommissionerofadministrationshallrequestappropriationsbaseduponthe
17contributionratesocertified.BeginningAugust28,2025,intheeventtheboardcertifiesa
18contributionratethatexceedstwenty-eightandthree-fourthspercent,thecommissioner
19ofadministrationshallincludeinhisorherappropriationrequestanamountequalto
20thedifferencebetweenthegreatercontributionrateandtwenty-eightandthree-fourths
21percentofcompensationforthemembersofHarris-StoweStateUniversity,Lincoln
HB688 2 22University,MissouriStateUniversity,MissouriSouthernStateUniversity,Missouri
23WesternStateUniversity,NorthwestMissouriStateUniversity,SoutheastMissouri
24StateUniversity,StateTechnicalCollegeofMissouri,TrumanStateUniversity,and
25UniversityofCentralMissouri.Fromappropriationssomade,thecommissionerof
26administrationshallcertifycontributionamountstothestatetreasurerwhointurnshall
27immediatelypaythecontributionstotheyear2000plan.
28 3.TheemployersofmemberscoveredbytheMissouristateemployees'retirement
29systemwhoarenotpaidoutoffundsthathavebeendepositedinthestatetreasuryshallremit
30followingeachpayperiodtotheyear2000plananamountequaltotheamountwhichthe
31statewouldhavepaidifthosemembershadbeenpaidentirelyfromstatefunds, exceptas
32providedinsubsection2ofthissection. Suchemployersshallmaintainpayrollrecordsfor
33aminimumoffiveyearsandshallproduceallsuchrecordsasrequestedbythesystem.The
34systemisauthorizedtorequestfromthestateofficeofadministrationanappropriationoutof
35theannualbudgetofanysuchemployerintheeventsuchrecordsindicatethatsuchemployer
36hasnotcontributedtheamountsrequiredbythissection.Theofficeofadministrationshall
37requestsuchappropriationwhichshallbeequaltotheamountnecessarytoreplaceany
38shortfallincontributionsasdeterminedbythesystem.Fromappropriationssomade,the
39commissionerofadministrationshallcertifycontributionamountstothestatetreasurerwho
40inturnshallimmediatelypaysuchcontributionstotheyear2000plan.
41 4.Atleastninetydaysbeforeeachregularsessionofthegeneralassembly,theboard
42ofthetransportationdepartmentandhighwaypatrolretirementsystemshallcertifytothe
43departmentoftransportationandthedepartmentofpublicsafetythecontributionrate
44necessarytocovertheliabilitiesoftheyear2000planadministeredbysuchsystem,including
45costsofadministration,expectedtoaccrueduringthenextbiennialorotherappropriation
46period.Eachdepartmentshallincludeinitsbudgetandinitsrequestforappropriationsfor
47personalservicethesumsocertifiedtoitbysuchboard,andshallpresentthesametothe
48generalassemblyforallowance.Thesumssocertifiedandappropriated,whenavailable,
49shallbeimmediatelypaidtothesystemanddepositedinthehighwayandtransportation
50employees'andhighwaypatrolretirementandbenefitfund.
51 5.Theseamountsarefundsoftheyear2000planandshallnotbecommingledwith
52anyfundsinthestatetreasury.
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HB688 3