FIRST REGULAR SESSION
SENATE BILL NO. 257
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR ROBERTS.
0577S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 169.450, RSMo, and to enact in lieu thereof one new section relating to the board
of trustees of the public school retirement system of the city of St. Louis.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 169.450, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 169.450, 2
to read as follows:3
169.450. 1. The general administration and 1
responsibility for the proper operation of the retirement 2
system and for making effective the provisions of sections 3
169.410 to 169.540 are hereby vested in a board of trustees 4
of eleven persons, as follows: 5
(1) Four trustees to be appointed for terms of four 6
years by the board of educ ation; provided, however, that 7
their terms shall be fixed so the terms of one of the 8
trustees so appointed shall expire each year. The members 9
of such board of trustees appointed by the board of 10
education may be members of the board of education or ot her 11
individuals deemed qualified to hold such positions by the 12
board of education; 13
(2) Four trustees to be elected for terms of four 14
years by and from the active members of the retirement 15
system who shall hold office as trustees only while active 16
members; provided, however, that their terms shall be fixed 17
so that the terms of one of the trustees so elected shall 18 SB 257 2
expire each year; and provided further, that not more than 19
two of such persons shall be teachers and two shall be 20
nonteachers. For the purposes of this subsection, a school 21
administrator shall not be eligible for the positions 22
established pursuant to this subdivision and shall be 23
eligible for the position established pursuant to 24
subdivision (4) of this subsection; 25
(3) Two trustees, who shall be retired members, to be 26
elected for terms of four years by and from the retired 27
members of the retirement system; provided, however, that 28
the terms of office of the first two trustees so elected 29
shall begin immediately upon their el ection and shall expire 30
two and four years from the date of their election, 31
respectively; and provided further, that not more than one 32
of such persons shall be a teacher and one shall be a 33
nonteacher; 34
(4) One member, who shall be a school adminis trator, 35
to be elected for a term of four years by and from the 36
active members of the retirement system who shall hold 37
office as a trustee only while an active member; except 38
that, the initial term of office of such trustee shall 39
expire on December 31, 1999; 40
(5) Two trustees to be appointed for terms of four 41
years by the Missouri Public Charter School Association; 42
provided, however, that the terms of office of the first two 43
trustees so elected shall begin immediately upon their 44
election and shall expire two and four years from the date 45
of their election, respectively. The members of such board 46
of trustees appointed by the Missouri Public Charter School 47
Association shall have experience or qualifications relevant 48
to public charter schools a nd the retirement system. The 49
appointment of the trustees shall be subject to the same 50 SB 257 3
rules and regulations applicable to other trustees, 51
including, but not limited to, taking an oath of office as 52
provided in subsection 5 of this section . 53
2. If a vacancy occurs in the office of trustee, the 54
vacancy shall be filled for the unexpired term in the same 55
manner as the office was previously filled. No vacancy or 56
vacancies on the board of trustees shall impair the power of 57
the remaining trustees to administer the retirement system 58
pending the filling of such vacancies. 59
3. In the event of a lapse of a school district's 60
corporate organization as described in subsections 1 and 4 61
of section 162.081, or for any other reason, the general 62
administration and the responsibility for the proper 63
operation of the retirement system shall continue to be 64
fully vested in the trustees then currently serving and such 65
trustees shall continue to serve and be elected in the same 66
manner as set forth in this s tatute as if no lapse had 67
occurred, except that in the event of vacancies occurring in 68
the office of trustees appointed by the board of education 69
prior to the lapse, the board of trustees shall appoint a 70
qualified person or persons to fill such vacancy or 71
vacancies for terms of up to four years. 72
4. Trustees shall serve without compensation, and any 73
trustee shall be reimbursed from the expense fund for all 74
necessary expenses which the trustee may incur through 75
service on the board of trustees. 76
5. Each trustee shall, within ten days after such 77
trustee's appointment or election, take an oath of office 78
before the clerk of the circuit court of the judicial 79
circuit in which the school district is located that, so far 80
as it devolves upon the trustee, the trustee will diligently 81
and honestly administer the affairs of the board of trustees 82 SB 257 4
and that the trustee will not knowingly violate or willingly 83
permit to be violated any of the provisions of the law 84
applicable to the retirement system. Such oath shall be 85
subscribed to by the trustee making it and filed in the 86
office of the clerk of the circuit court. 87
6. The circuit court of the judicial circuit in which 88
the school district is located shall have jurisdiction over 89
the members of the board of trustees to require them to 90
account for their official conduct in the management and 91
disposition of the funds and property committed to their 92
charge; to order, decree and compel payment by them to the 93
public school retirement system of th eir school district of 94
all sums of money, and of the value of all property which 95
may have been improperly retained by them, or transferred to 96
others, or which may have been lost or wasted by any 97
violation of their duties or abuse of their powers as suc h 98
members of such board; to remove any such member upon proof 99
that the trustee has abused the trustee's trust or has 100
violated the duties of the trustee's office; to restrain and 101
prevent any alienation or disposition of property of such 102
public school retirement system by the members, in cases 103
where it may be threatened, or there is good reason to 104
apprehend that it is intended to be made in fraud of the 105
rights and interests of such public school retirement 106
system. The jurisdiction conferred by secti ons 169.410 to 107
169.540 shall be exercised as in ordinary cases upon 108
petition, filed by the board of education of such school 109
district, or by any two members of the board of trustees. 110
Such petition shall be heard in a summary manner after ten 111
days' notice in writing to the member complained of, and an 112
appeal shall lie from the judgment of the circuit court as 113
in other causes and be speedily determined, but such appeal 114 SB 257 5
shall not operate under any condition as a supersedeas of a 115
judgment of removal f rom office. 116
7. Each trustee shall be entitled to one vote in the 117
board of trustees. Six votes shall be necessary for a 118
decision by the trustees at any meeting of the board of 119
trustees. 120
8. Subject to the limitations of sections 169.410 to 121
169.540, the board of trustees shall, from time to time, 122
establish rules and regulations for the administration of 123
the retirement system, for eligibility for and determination 124
of benefits under the retirement system, for the investment 125
of retirement system assets, and for the transaction of the 126
retirement system's business. 127
9. The board of trustees shall elect from its 128
membership a chairman and shall, by majority vote of its 129
members, appoint a secretary, who may be, but need not be, 130
one of its members. It shall engage such actuarial and 131
other services as shall be required to transact the business 132
of the retirement system. It shall also engage an 133
investment counselor who shall be experienced in the 134
investment of moneys to advise the trustees on investments 135
of the retirement system. The compensation of all persons 136
engaged by the board of trustees and all other expenses of 137
the board necessary for the operation of the retirement 138
system shall be paid at such rates and in such amounts as 139
the board of trustees shall approve. 140
10. The board of trustees shall keep in convenient 141
form such data as shall be necessary for actuarial 142
valuations of the assets of the retirement system and for 143
checking the experience of the system. 144
11. The board of trustees shall keep a record of all 145
its proceedings which shall be open to public inspection. 146 SB 257 6
It shall prepare annually and send to the board of education 147
and to each member of the retirement system a report showing 148
the fiscal transactions of the retirement system for the 149
preceding fiscal year, a detailed listing of all salaries 150
and expenditures incurred by the trustees for its operation, 151
the amount of the accumulated cash and securities of the 152
system, and the last balance sheet showing th e financial 153
condition of the system by means of an actuarial valuation 154
of the assets and liabilities of the retirement system. The 155
board of trustees shall also prepare or cause to be prepared 156
an annual report concerning the operation of the retirement 157
system herein provided for, which report shall be sent by 158
the chairman of the board of trustees to the board of 159
education. 160
12. The board of trustees shall arrange for necessary 161
legal advice for the operation of the retirement system. 162
13. The board of trustees shall designate a medical 163
board to be composed of three physicians, none of whom shall 164
be eligible for benefits pursuant to sections 169.410 to 165
169.540, who shall arrange for and pass upon all medical 166
examinations required pursuant to the provisions of sections 167
169.410 to 169.540, shall investigate all essential 168
statements and certificates made by or on behalf of a member 169
in connection with an application for disability retirement 170
and shall report in writing to the board of trus tees its 171
conclusions and recommendations upon all matters referred to 172
it. 173
14. The actuary shall be the technical adviser of the 174
board of trustees on matters regarding the operation of the 175
system created by sections 169.410 to 169.540 and shall 176
perform such other duties as are required in connection 177
therewith. Such person shall be qualified as an actuary by 178 SB 257 7
membership as a fellow in the Society of Actuaries or by 179
objective standards which are no less stringent than those 180
established by the So ciety of Actuaries. 181
15. At least once in each five -year period the actuary 182
shall make an investigation into the actuarial experience of 183
the retirement system, and taking into account the results 184
of such investigation of the experience, the board o f 185
trustees shall adopt for the retirement system such 186
actuarial assumptions as shall be deemed necessary. 187
16. On the basis of such actuarial assumptions as the 188
board of trustees shall adopt, the actuary shall make an 189
annual valuation of the asset s and liabilities of the funds 190
of the retirement system. 191
17. On the basis of the valuation the board of 192
trustees shall certify the rates of contribution payable by 193
the board of education. 194