EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 357
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR SCHROER.
0440S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 86.200, RSMo, and to enact in lieu thereof one new section relating to the police
retirement system of St. Louis.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 86.200, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 86.200, 2
to read as follows:3
86.200. The following words and phrases as used in 1
sections 86.200 to 86.366, unless a different meaning is 2
plainly required by the context, shall have the following 3
meanings: 4
(1) "Accumulated contributions", the sum of all 5
mandatory contributions deducted fro m the compensation of a 6
member and credited to the member's individual account, 7
together with members' interest thereon; 8
(2) "Actuarial equivalent", a benefit of equal value 9
when computed upon the basis of mortality tables and 10
interest assumptions adopted by the board of trustees; 11
(3) "Average final compensation": 12
(a) With respect to a member who earns no creditable 13
service on or after October 1, 2001, the average earnable 14
compensation of the member during the member's last three 15
years of creditable service as a police officer, or if the 16
member has had less than three years of creditable service, 17 SB 357 2
the average earnable compensation of the member's entire 18
period of creditable service; 19
(b) With respect to a member who is not par ticipating 20
in the DROP pursuant to section 86.251 on October 1, 2001, 21
who did not participate in the DROP at any time before such 22
date, and who earns any creditable service on or after 23
October 1, 2001, the average earnable compensation of the 24
member during the member's last two years of creditable 25
service as a policeman, or if the member has had less than 26
two years of creditable service, then the average earnable 27
compensation of the member's entire period of creditable 28
service; 29
(c) With respect to a member who is participating in 30
the DROP pursuant to section 86.251 on October 1, 2001, or 31
whose participation in DROP ended before such date, who 32
returns to active participation in the system pursuant to 33
section 86.251, and who terminates emplo yment as a police 34
officer for reasons other than death or disability before 35
earning at least two years of creditable service after such 36
return, the portion of the member's benefit attributable to 37
creditable service earned before DROP entry shall be 38
determined using average final compensation as defined in 39
paragraph (a) of this subdivision; and the portion of the 40
member's benefit attributable to creditable service earned 41
after return to active participation in the system shall be 42
determined using average final compensation as defined in 43
paragraph (b) of this subdivision; 44
(d) With respect to a member who is participating in 45
the DROP pursuant to section 86.251 on October 1, 2001, or 46
whose participation in the DROP ended before such date, who 47
returns to active participation in the system pursuant to 48
section 86.251, and who terminates employment as a police 49 SB 357 3
officer after earning at least two years of creditable 50
service after such return, the member's benefit attributable 51
to all of such membe r's creditable service shall be 52
determined using the member's average final compensation as 53
defined in paragraph (b) of this subdivision; 54
(e) With respect to a member who is participating in 55
the DROP pursuant to section 86.251 on October 1, 2001, or 56
whose participation in DROP ended before such date, who 57
returns to active participation in the system pursuant to 58
section 86.251, and whose employment as a police officer 59
terminates due to death or disability after such return, the 60
member's benefit attributable to all of such member's 61
creditable service shall be determined using the member's 62
average final compensation as defined in paragraph (b) of 63
this subdivision; and 64
(f) With respect to the surviving spouse or surviving 65
dependent child of a member who earns any creditable service 66
on or after October 1, 2001, the average earnable 67
compensation of the member during the member's last two 68
years of creditable service as a police officer or, if the 69
member has had less than two years of cred itable service, 70
the average earnable compensation of the member's entire 71
period of creditable service; 72
(4) "Beneficiary", any person in receipt of a 73
retirement allowance or other benefit; 74
(5) "Board of trustees", the board provided in 75
sections 86.200 to 86.366 to administer the retirement 76
system; 77
(6) "Creditable service", prior service plus 78
membership service as provided in sections 86.200 to 86.366; 79
(7) "DROP", the deferred retirement option plan 80
provided for in section 86.25 1; 81 SB 357 4
(8) "Earnable compensation", the annual salary 82
[established under section 84.160 ] which a member would earn 83
during one year on the basis of the member's rank or 84
position, plus any additional compensation for academic work 85
and shift differentia l, that [may be provided] is set by any 86
state or municipal body or official [or board] now or 87
hereafter authorized by law to employ and manage a permanent 88
police force in such cities. Such amount shall include the 89
member's deferrals to a deferred comp ensation plan pursuant 90
to Section 457 of the Internal Revenue Code or to a 91
cafeteria plan pursuant to Section 125 of the Internal 92
Revenue Code or, effective October 1, 2001, to a 93
transportation fringe benefit program pursuant to Section 94
132(f)(4) of the Internal Revenue Code. Earnable 95
compensation shall not include a member's additional 96
compensation for overtime, standby time, court time, 97
nonuniform time or unused vacation time. The term "earnable 98
compensation" shall not include any funds receive d by a 99
member through a judgment or settlement of a legal action or 100
claim made or threatened by the member against any city not 101
within a county, if the funds are intended to retroactively 102
compensate the member for the salary differential between 103
the member's actual rank and the rank the member claims he 104
or she should have received. Notwithstanding the foregoing, 105
the earnable compensation taken into account under the plan 106
established pursuant to sections 86.200 to 86.366 with 107
respect to a member wh o is a noneligible participant, as 108
defined in this subdivision, for any plan year beginning on 109
or after October 1, 1996, shall not exceed the amount of 110
compensation that may be taken into account under Section 111
401(a)(17) of the Internal Revenue Code, a s adjusted for 112
increases in the cost of living, for such plan year. For 113 SB 357 5
purposes of this subdivision, a "noneligible participant" is 114
an individual who first becomes a member on or after the 115
first day of the first plan year beginning after the earlier 116
of: 117
(a) The last day of the plan year that includes August 118
28, 1995; or 119
(b) December 31, 1995; 120
(9) "Internal Revenue Code", the federal Internal 121
Revenue Code of 1986, as amended; 122
(10) "Mandatory contributions", the contributions 123
required to be deducted from the salary of each member who 124
is not participating in DROP in accordance with section 125
86.320; 126
(11) "Medical board", the health care organization 127
appointed by the trustees of the police retirement board and 128
responsible for arranging and passing upon all medical 129
examinations required under the provisions of sections 130
86.200 to 86.366, which shall investigate all essential 131
statements and certificates made by or on behalf of a member 132
in connection with an application f or disability retirement 133
and shall report in writing to the board of trustees its 134
conclusions and recommendations; 135
(12) "Member", a member of the retirement system as 136
defined by sections 86.200 to 86.366; 137
(13) "Members' interest", interest o n accumulated 138
contributions at such rate as may be set from time to time 139
by the board of trustees; 140
(14) "Membership service", service as a policeman 141
rendered since last becoming a member, except in the case of 142
a member who has served in the Armed Forces of the United 143
States and has subsequently been reinstated as a policeman, 144
in which case "membership service" means service as a 145 SB 357 6
policeman rendered since last becoming a member prior to 146
entering such armed service; 147
(15) "Plan year" or "limitation year", the twelve 148
consecutive-month period beginning each October first and 149
ending each September thirtieth; 150
(16) "Policeman" or "police officer", any member of 151
the police force of such cities who holds a rank in such 152
police force; 153
(17) "Prior service", all service as a policeman 154
rendered prior to the date the system becomes operative or 155
prior to membership service which is creditable in 156
accordance with the provisions of sections 86.200 to 86.366; 157
(18) "Reserve officer", any member of the police 158
reserve force of such cities, armed or unarmed, who works 159
less than full time, without compensation, and who, by his 160
or her assigned function or as implied by his or her 161
uniform, performs duties associated with those of a police 162
officer and who currently receives a service retirement as 163
provided by sections 86.200 to 86.366; 164
(19) "Retirement allowance", annual payments for life 165
as provided by sections 86.200 to 86.366 which shall be 166
payable in equal monthly installments o r any benefits in 167
lieu thereof granted to a member upon termination of 168
employment as a police officer and actual retirement; 169
(20) "Retirement system", the police retirement system 170
of the cities as defined in sections 86.200 to 86.366; 171
(21) "Surviving spouse", the surviving spouse of a 172
member who was the member's spouse at the time of the 173
member's death. 174