FIRSTREGULARSESSION
HOUSECOMMITTEESUBSTITUTEFOR
HOUSEBILLNO.976
103RDGENERALASSEMBLY
2097H.02C JOSEPHENGLER,ChiefClerk
ANACT
Torepealsections70.630,70.655,70.680,70.690,70.745,70.746,70.747,and105.688,
RSMo,andtoenactinlieuthereofninenewsectionsrelatingtoMissouriretirement
systems.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Sections70.630,70.655,70.680,70.690,70.745,70.746,70.747,and
2105.688,RSMo,arerepealedandninenewsectionsenactedinlieuthereof,tobeknownas
3sections70.630,70.655,70.680,70.690,70.745,70.746,70.747,70.748,and105.688,toread
4asfollows:
70.630.1.Themembershipofthesystemshallincludethefollowingpersons:
2 (1)Allemployeeswhoareneitherpolicemennorfiremenwhoareintheemployofa
3politicalsubdivisionthedayprecedingthedatesuchpoliticalsubdivisionbecomesan
4employerandwhocontinueinsuchemployonandaftersuchdateshallbecomemembersof
5thesystem.
6 (2)Allpersonswhobecomeemployedbyapoliticalsubdivisionasneitherpolicemen
7norfiremenonorafterthedatesuchpoliticalsubdivisionbecomesanemployershallbecome
8membersofthesystem.
9 (3)Ifhisemployingpoliticalsubdivisionhaselectedtocoverpresentandfuture
10policemen,allpolicemenwhoareintheemployofapoliticalsubdivisionthedaypreceding
11thedatesuchpoliticalsubdivisioncoverspolicemenhereunderandwhocontinueinsuch
12employasapolicemanonandaftersuchdate,andallpersonswhobecomeemployedbya
13politicalsubdivisionasapolicemanonorafterthedatethepoliticalsubdivisioncovers
14policemenshallbecomemembersofthesystem.
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 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
16multipliedbythenumberofyearsofsuchcreditedservice.Suchtemporaryallowanceshall
17terminateattheendofthecalendarmonthinwhichtheearlierofthefollowingeventsoccurs:
18suchmember'sdeath;orthemember'sattainmentofagesixty-two;
HCSHB976 2 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
52terminateattheendofthecalendarmonthinwhichtheearlierofthefollowingeventsoccurs:
53suchmember'sdeath;orthemember'sattainmentofagesixty-five;
54 (9)BenefitprogramLT-5(65).Amemberwithcreditedservicecoveredbybenefit
55programLT-5(65)shallreceiveanallowanceforlifeequaltooneandone-quarterpercentof
HCSHB976 3 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
89addition,ifsuchpositionwaspreviouslycoveredbyfederalSocialSecurity,benefitprogram
90L-11maycoveronlyemploymentrenderedaftercessationoffederalSocialSecurity
91coverage.AmemberwithcreditedservicecoveredbybenefitprogramL-11shallreceivean
HCSHB976 4 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
126allowancesthanthebenefitprogrampreviouslyineffect,thensuchlargerbenefitprogram
127shallbeapplicabletothepastandfutureemploymentwiththeemployerbypresentandfuture
128employees.Ifsuchchangedbenefitprogramprovidessmallerallowancesthanthebenefit
HCSHB976 5 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"
162meanstheamountoftheallowancewhichwouldbepayablewithoutregardtothese
163provisionsredeterminingallowanceamountsafterretirement.
164 8.[Subjecttotheprovisionsofsubsections9and10ofthissection,foranallowance
165becomingeffectiveonSeptember28,1975,orlater,themaximumallowancepayableunder
HCSHB976 6 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
10incapacitatedforthefurtherperformanceofduty,thatsuchincapacitywillprobablybe
11permanentandthatsuchmembershouldberetired.
12 2.Upondisabilityretirement,asprovidedinsubsection1ofthissection,amember
13shallreceiveanallowanceforlifeprovidedforinsection70.655andshallhavetherightto
HCSHB976 7 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
47selectedbytheboard,onebyoronbehalfofthemember,andthethirdbythefirsttwo
48physiciansnamed.Shouldthemedicalcommitteeconcur,bymajorityopinioninwritingto
49theboard,thedisabilityretirantiscapableofresumptionofduty,hisdisabilityretirement
50shallterminateandheshallbereturnedtodutyandheshallimmediatelyagainbecomea
HCSHB976 8 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
11otherfinancialmattersisnotapublicrecordunderchapter610totheextentandsolong
12asitsdisclosurewouldjeopardizetheabilitytoimplementadecisionortoachieve
13investmentobjectives.
HCSHB976 9 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.Notwithstandingtheprovisionsofsection105.662tothecontrary,the
2boardmaysetupandmaintainalocalgovernmentemployeeretirementsystemsof
3Missouriinvestmentfundaccountinwhichinvestmentandreinvestmentofallorpart
4ofthemoneysoftheretirementsystemmaybeplacedandbeavailableforinvestment
5purposes.
6 2.Forthepurposeofinvestingthefundsoftheretirementsystem,thefundsmay
7becombinedwiththefundsofanyretirementplanthatisadministeredbythe
8retirementsystemundersection70.621andanyretirementplanestablishedforthe
9purposeofprovidingbenefitsforemployeesofthesystem,butthefundsofeachplan
10shallbeaccountedforseparatelyandforallotherreportingpurposesshallbeseparate.
11 3.Theboardoftrusteesmaypromulgatesuchrulesandregulationsconsistent
12withtheprovisionsofthissectionasdeemednecessaryforitsproperadministration,
13pursuanttotheprovisionsofthissectionandthischapter.Anyruleorportionofarule,
HCSHB976 10 14asthattermisdefinedinsection536.010,thatiscreatedundertheauthoritydelegated
15inthissectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe
16provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter
17536arenonseverableandifanyofthepowersvestedwiththegeneralassembly
18pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul
19arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority
20andanyruleproposedoradoptedafterAugust28,2025,shallbeinvalidandvoid.
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
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
HCSHB976 11 31comparabletootherinvestmentsavailabletotheinvestmentfiduciaryatthetimethe
32investmentdecisionismade; and
33 (6)Notbeprohibitedfromclosingrecordstotheextentthatsuchrecordsrelate
34toinformationsubmittedbyanindividual,corporation,orotherbusinessentityin
35connectionwithinvestmentsinorfinancialtransactionswithbusinessentitiesfor
36investmentpurposes.
âś”
HCSHB976 12