FIRST REGULAR SESSION
SENATE BILL NO. 474
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR NURRENBERN.
0379S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 169.070, RSMo, and to enact in lieu thereof one new section relating to public
school retirement systems.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 169.070, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 169.070, 2
to read as follows:3
169.070. 1. The retirement allowance of a member 1
whose age at retirement is sixty years or more and whose 2
creditable service is five years o r more, or whose sum of 3
age and creditable service equals eighty years or more, or 4
who has attained age fifty -five and whose creditable service 5
is twenty-five years or more or whose creditable service is 6
thirty years or more regardless of age, may be t he sum of 7
the following items, not to exceed one hundred percent of 8
the member's final average salary: 9
(1) Two and five-tenths percent of the member's final 10
average salary for each year of membership service; 11
(2) Six-tenths of the amount pay able for a year of 12
membership service for each year of prior service not 13
exceeding thirty years. 14
In lieu of the retirement allowance otherwise provided in 15
subdivisions (1) and (2) of this subsection, a member may 16
elect to receive a retirement allowance of: 17 SB 474 2
(3) Two and four-tenths percent of the member's final 18
average salary for each year of membership service, if the 19
member's creditable service is twenty -nine years or more but 20
less than thirty years, and the member has not attained age 21
fifty-five; 22
(4) Two and thirty-five-hundredths percent of the 23
member's final average salary for each year of membership 24
service, if the member's creditable service is twenty -eight 25
years or more but less than twenty -nine years, and the 26
member has not attained age fifty-five; 27
(5) Two and three-tenths percent of the member's final 28
average salary for each year of membership service, if the 29
member's creditable service is twenty -seven years or more 30
but less than twenty -eight years, and the member has not 31
attained age fifty-five; 32
(6) Two and twenty-five-hundredths percent of the 33
member's final average salary for each year of membership 34
service, if the member's creditable service is twenty -six 35
years or more but less than twenty -seven years, and the 36
member has not attained age fifty -five; 37
(7) Two and two-tenths percent of the member's final 38
average salary for each year of membership service, if the 39
member's creditable service is twenty -five years or more but 40
less than twenty-six years, and the member has not attained 41
age fifty-five; 42
(8) Two and fifty-five hundredths percent of the 43
member's final average salary for each year of membership 44
service, if the member's creditable service is thirty -two 45
years or more regardless of age ; 46
(9) Two and six-tenths percent of the member's final 47
average salary for each year of membership service, if the 48 SB 474 3
member's creditable service is thirty -three years or more 49
regardless of age. 50
2. In lieu of the retirement allowance provided in 51
subsection 1 of this section, a member whose age is sixty 52
years or more on September 28, 1975, may elect to have the 53
member's retirement allowance calculated as a sum of the 54
following items: 55
(1) Sixty cents plus one and five -tenths percent of 56
the member's final average salary for each year of 57
membership service; 58
(2) Six-tenths of the amount payable for a year of 59
membership service for each year of prior service not 60
exceeding thirty years; 61
(3) Three-fourths of one percent of the sum of 62
subdivisions (1) and (2) of this subsection for each month 63
of attained age in excess of sixty years but not in excess 64
of age sixty-five. 65
3. (1) In lieu of the retirement allowance provided 66
either in subsection 1 or 2 of this section, collecti vely 67
called "option 1", a member whose creditable service is 68
twenty-five years or more or who has attained the age of 69
fifty-five with five or more years of creditable service may 70
elect in the member's application for retirement to receive 71
the actuarial equivalent of the member's retirement 72
allowance in reduced monthly payments for life during 73
retirement with the provision that: 74
Option 2. 75
Upon the member's death the reduced retirement 76
allowance shall be continued throughout the life of and paid 77
to such person as has an insurable interest in the life of 78
the member as the member shall have nominated in the 79
member's election of the option, and provided further that 80 SB 474 4
if the person so nominated dies before the retired member, 81
the retirement allowa nce will be increased to the amount the 82
retired member would be receiving had the retired member 83
elected option 1; or 84
Option 3. 85
Upon the death of the member three -fourths of the 86
reduced retirement allowance shall be continued throughout 87
the life of and paid to such person as has an insurable 88
interest in the life of the member and as the member shall 89
have nominated in an election of the option, and provided 90
further that if the person so nominated dies before the 91
retired member, the retirement al lowance will be increased 92
to the amount the retired member would be receiving had the 93
member elected option 1; or 94
Option 4. 95
Upon the death of the member one -half of the reduced 96
retirement allowance shall be continued throughout the life 97
of, and paid to, such person as has an insurable interest in 98
the life of the member and as the member shall have 99
nominated in an election of the option, and provided further 100
that if the person so nominated dies before the retired 101
member, the retirement allowance shall be increased to the 102
amount the retired member would be receiving had the member 103
elected option 1; or 104
Option 5. 105
Upon the death of the member prior to the member having 106
received one hundred twenty monthly payments of the member's 107
reduced allowance, the remainder of the one hundred twenty 108
monthly payments of the reduced allowance shall be paid to 109
such beneficiary as the member shall have nominated in the 110
member's election of the option or in a subsequent 111
nomination. If there is no beneficia ry so nominated who 112 SB 474 5
survives the member for the remainder of the one hundred 113
twenty monthly payments, the total of the remainder of such 114
one hundred twenty monthly payments shall be paid to the 115
surviving spouse, surviving children in equal shares, 116
surviving parents in equal shares, or estate of the last 117
person, in that order of precedence, to receive a monthly 118
allowance in a lump sum payment. If the total of the one 119
hundred twenty payments paid to the retired individual and 120
the beneficiary of the retired individual is less than the 121
total of the member's accumulated contributions, the 122
difference shall be paid to the beneficiary in a lump sum; or 123
Option 6. 124
Upon the death of the member prior to the member having 125
received sixty monthly payments of the member's reduced 126
allowance, the remainder of the sixty monthly payments of 127
the reduced allowance shall be paid to such beneficiary as 128
the member shall have nominated in the member's election of 129
the option or in a subsequent nomination. If there is no 130
beneficiary so nominated who survives the member for the 131
remainder of the sixty monthly payments, the total of the 132
remainder of such sixty monthly payments shall be paid to 133
the surviving spouse, surviving children in equal shares, 134
surviving parents in equal shares, or estate of the last 135
person, in that order of precedence, to receive a monthly 136
allowance in a lump sum payment. If the total of the sixty 137
payments paid to the retired individual and the beneficiary 138
of the retired individual is less than the total of the 139
member's accumulated contributions, the difference shall be 140
paid to the beneficiary in a lump sum. 141
(2) The election of an option may be made only in the 142
application for retirement and such application must be 143
filed prior to the date on which the retirement of the 144 SB 474 6
member is to be effective. If either the member or the 145
person nominated to receive the survivorship payments dies 146
before the effective date of retirement, the option shall 147
not be effective, provided that: 148
(a) If the member or a person retired on disability 149
retirement dies after acquiring twenty -five or more years of 150
creditable service or after attaining the age of fifty -five 151
years and acquiring five or more years of creditable service 152
and before retirement, except retirement with disability 153
benefits, and the person named by the member as the member's 154
beneficiary has an insurable interest in the life of the 155
deceased member, the designated beneficiary may elect to 156
receive either survivorship benef its under option 2 or a 157
payment of the accumulated contributions of the member. If 158
survivorship benefits under option 2 are elected and the 159
member at the time of death would have been eligible to 160
receive an actuarial equivalent of the member's retirem ent 161
allowance, the designated beneficiary may further elect to 162
defer the option 2 payments until the date the member would 163
have been eligible to receive the retirement allowance 164
provided in subsection 1 or 2 of this section; 165
(b) If the member or a person retired on disability 166
retirement dies before attaining age fifty -five but after 167
acquiring five but fewer than twenty -five years of 168
creditable service, and the person named as the member's 169
beneficiary has an insurable interest in the life of th e 170
deceased member, the designated beneficiary may elect to 171
receive either a payment of the member's accumulated 172
contributions, or survivorship benefits under option 2 to 173
begin on the date the member would first have been eligible 174
to receive an actuari al equivalent of the member's 175
retirement allowance, or to begin on the date the member 176 SB 474 7
would first have been eligible to receive the retirement 177
allowance provided in subsection 1 or 2 of this section. 178
4. If the total of the retirement or disabilit y 179
allowance paid to an individual before the death of the 180
individual is less than the accumulated contributions at the 181
time of retirement, the difference shall be paid to the 182
beneficiary of the individual, or to the surviving spouse, 183
surviving children in equal shares, surviving parents in 184
equal shares, or estate of the individual in that order of 185
precedence. If an optional benefit as provided in option 2, 186
3 or 4 in subsection 3 of this section had been elected, and 187
the beneficiary dies after rece iving the optional benefit, 188
and if the total retirement allowance paid to the retired 189
individual and the beneficiary of the retired individual is 190
less than the total of the contributions, the difference 191
shall be paid to the surviving spouse, surviving children in 192
equal shares, surviving parents in equal shares, or estate 193
of the beneficiary, in that order of precedence, unless the 194
retired individual designates a different recipient with the 195
board at or after retirement. 196
5. If a member dies and his or her financial 197
institution is unable to accept the final payment or 198
payments due to the member, the final payment or payments 199
shall be paid to the beneficiary of the member or, if there 200
is no beneficiary, to the surviving spouse, surviving 201
children in equal shares, surviving parents in equal shares, 202
or estate of the member, in that order of precedence, unless 203
otherwise stated. If the beneficiary of a deceased member 204
dies and his or her financial institution is unable to 205
accept the final paym ent or payments, the final payment or 206
payments shall be paid to the surviving spouse, surviving 207
children in equal shares, surviving parents in equal shares, 208 SB 474 8
or estate of the member, in that order of precedence, unless 209
otherwise stated. 210
6. If a member dies before receiving a retirement 211
allowance, the member's accumulated contributions at the 212
time of the death of the member shall be paid to the 213
beneficiary of the member or, if there is no beneficiary, to 214
the surviving spouse, surviving children in equal shares, 215
surviving parents in equal shares, or to the estate of the 216
member, in that order of precedence; except that, no such 217
payment shall be made if the beneficiary elects option 2 in 218
subsection 3 of this section, unless the beneficiary dies 219
before having received benefits pursuant to that subsection 220
equal to the accumulated contributions of the member, in 221
which case the amount of accumulated contributions in excess 222
of the total benefits paid pursuant to that subsection shall 223
be paid to the surviving spouse, surviving children in equal 224
shares, surviving parents in equal shares, or estate of the 225
beneficiary, in that order of precedence. 226
7. If a member ceases to be a public school employee 227
as herein defined and certifies to the boar d of trustees 228
that such cessation is permanent, or if the membership of 229
the person is otherwise terminated, the member shall be paid 230
the member's accumulated contributions with interest. 231
8. Notwithstanding any provisions of sections 169.010 232
to 169.141 to the contrary, if a member ceases to be a 233
public school employee after acquiring five or more years of 234
membership service in Missouri, the member may at the option 235
of the member leave the member's contributions with the 236
retirement system and cl aim a retirement allowance any time 237
after reaching the minimum age for voluntary retirement. 238
When the member's claim is presented to the board, the 239
member shall be granted an allowance as provided in sections 240 SB 474 9
169.010 to 169.141 on the basis of the mem ber's age, years 241
of service, and the provisions of the law in effect at the 242
time the member requests the member's retirement to become 243
effective. 244
9. The retirement allowance of a member retired 245
because of disability shall be nine -tenths of the allowance 246
to which the member's creditable service would entitle the 247
member if the member's age were sixty, or fifty percent of 248
one-twelfth of the annual salary rate used in determining 249
the member's contributions during the last school year for 250
which the member received a year of creditable service 251
immediately prior to the member's disability, whichever is 252
greater, except that no such allowance shall exceed the 253
retirement allowance to which the member would have been 254
entitled upon retirement at age s ixty if the member had 255
continued to teach from the date of disability until age 256
sixty at the same salary rate. 257
10. Notwithstanding any provisions of sections 169.010 258
to 169.141 to the contrary, from October 13, 1961, the 259
contribution rate pursuan t to sections 169.010 to 169.141 260
shall be multiplied by the factor of two -thirds for any 261
member of the system for whom federal Old Age and Survivors 262
Insurance tax is paid from state or local tax funds on 263
account of the member's employment entitling the person to 264
membership in the system. The monetary benefits for a 265
member who elected not to exercise an option to pay into the 266
system a retroactive contribution of four percent on that 267
part of the member's annual salary rate which was in excess 268
of four thousand eight hundred dollars but not in excess of 269
eight thousand four hundred dollars for each year of 270
employment in a position covered by this system between July 271
1, 1957, and July 1, 1961, as provided in subsection 10 of 272 SB 474 10
this section as it appear s in RSMo, 1969, shall be the sum 273
of: 274
(1) For years of service prior to July 1, 1946, six - 275
tenths of the full amount payable for years of membership 276
service; 277
(2) For years of membership service after July 1, 278
1946, in which the full contribut ion rate was paid, full 279
benefits under the formula in effect at the time of the 280
member's retirement; 281
(3) For years of membership service after July 1, 282
1957, and prior to July 1, 1961, the benefits provided in 283
this section as it appears in RSMo, 1 959; except that if the 284
member has at least thirty years of creditable service at 285
retirement the member shall receive the benefit payable 286
pursuant to that section as though the member's age were 287
sixty-five at retirement; 288
(4) For years of membersh ip service after July 1, 289
1961, in which the two -thirds contribution rate was paid, 290
two-thirds of the benefits under the formula in effect at 291
the time of the member's retirement. 292
11. The monetary benefits for each other member for 293
whom federal Old Age and Survivors Insurance tax is or was 294
paid at any time from state or local funds on account of the 295
member's employment entitling the member to membership in 296
the system shall be the sum of: 297
(1) For years of service prior to July 1, 1946, six - 298
tenths of the full amount payable for years of membership 299
service; 300
(2) For years of membership service after July 1, 301
1946, in which the full contribution rate was paid, full 302
benefits under the formula in effect at the time of the 303
member's retirement; 304 SB 474 11
(3) For years of membership service after July 1, 305
1957, in which the two -thirds contribution rate was paid, 306
two-thirds of the benefits under the formula in effect at 307
the time of the member's retirement. 308
12. Any retired member of the sys tem who was retired 309
prior to September 1, 1972, or beneficiary receiving 310
payments under option 1 or option 2 of subsection 3 of this 311
section, as such option existed prior to September 1, 1972, 312
will be eligible to receive an increase in the retirement 313
allowance of the member of two percent for each year, or 314
major fraction of more than one -half of a year, which the 315
retired member has been retired prior to July 1, 1975. This 316
increased amount shall be payable commencing with January, 317
1976, and shall thereafter be referred to as the member's 318
retirement allowance. The increase provided for in this 319
subsection shall not affect the retired member's eligibility 320
for compensation provided for in section 169.580 or 169.585, 321
nor shall the amount being paid pursuant to these sections 322
be reduced because of any increases provided for in this 323
section. 324
13. If the board of trustees determines that the cost 325
of living, as measured by generally accepted standards, 326
increases two percent or more in the preced ing fiscal year, 327
the board shall increase the retirement allowances which the 328
retired members or beneficiaries are receiving by two 329
percent of the amount being received by the retired member 330
or the beneficiary at the time the annual increase is 331
granted by the board with the provision that the increases 332
provided for in this subsection shall not become effective 333
until the fourth January first following the member's 334
retirement or January 1, 1977, whichever later occurs, or in 335
the case of any member re tiring on or after July 1, 2000, 336 SB 474 12
the increase provided for in this subsection shall not 337
become effective until the third January first following the 338
member's retirement, or in the case of any member retiring 339
on or after July 1, 2001, the increase provi ded for in this 340
subsection shall not become effective until the second 341
January first following the member's retirement. Commencing 342
with January 1, 1992, if the board of trustees determines 343
that the cost of living has increased five percent or more 344
in the preceding fiscal year, the board shall increase the 345
retirement allowances by five percent. The total of the 346
increases granted to a retired member or the beneficiary 347
after December 31, 1976, may not exceed eighty percent of 348
the retirement allowanc e established at retirement or as 349
previously adjusted by other subsections. If the cost of 350
living increases less than five percent, the board of 351
trustees may determine the percentage of increase to be made 352
in retirement allowances, but at no time can the increase 353
exceed five percent per year. If the cost of living 354
decreases in a fiscal year, there will be no increase in 355
allowances for retired members on the following January 356
first. 357
14. The board of trustees may reduce the amounts which 358
have been granted as increases to a member pursuant to 359
subsection 13 of this section if the cost of living, as 360
determined by the board and as measured by generally 361
accepted standards, is less than the cost of living was at 362
the time of the first increase gr anted to the member; except 363
that, the reductions shall not exceed the amount of 364
increases which have been made to the member's allowance 365
after December 31, 1976. 366
15. Any application for retirement shall include a 367
sworn statement by the member cer tifying that the spouse of 368 SB 474 13
the member at the time the application was completed was 369
aware of the application and the plan of retirement elected 370
in the application. 371
16. Notwithstanding any other provision of law, any 372
person retired prior to Septem ber 28, 1983, who is receiving 373
a reduced retirement allowance under option 1 or option 2 of 374
subsection 3 of this section, as such option existed prior 375
to September 28, 1983, and whose beneficiary nominated to 376
receive continued retirement allowance paym ents under the 377
elected option dies or has died, shall upon application to 378
the board of trustees have his or her retirement allowance 379
increased to the amount he or she would have been receiving 380
had the option not been elected, actuarially adjusted to 381
recognize any excessive benefits which would have been paid 382
to him or her up to the time of application. 383
17. Benefits paid pursuant to the provisions of the 384
public school retirement system of Missouri shall not exceed 385
the limitations of Section 415 of Title 26 of the United 386
States Code except as provided pursuant to this subsection. 387
Notwithstanding any other law to the contrary, the board of 388
trustees may establish a benefit plan pursuant to Section 389
415(m) of Title 26 of the United States Code. Such plan 390
shall be created solely for the purpose described in Section 391
415(m)(3)(A) of Title 26 of the United States Code. The 392
board of trustees may promulgate regulations necessary to 393
implement the provisions of this subsection and to create 394
and administer such benefit plan. 395
18. Notwithstanding any other provision of law to the 396
contrary, any person retired before, on, or after May 26, 397
1994, shall be made, constituted, appointed and employed by 398
the board as a special consultant on the matter s of 399
education, retirement and aging, and upon request shall give 400 SB 474 14
written or oral opinions to the board in response to such 401
requests. As compensation for such duties the person shall 402
receive an amount based on the person's years of service so 403
that the total amount received pursuant to sections 169.010 404
to 169.141 shall be at least the minimum amounts specified 405
in subdivisions (1) to (4) of this subsection. In 406
determining the minimum amount to be received, the amounts 407
in subdivisions (3) and (4) of this subsection shall be 408
adjusted in accordance with the actuarial adjustment, if 409
any, that was applied to the person's retirement allowance. 410
In determining the minimum amount to be received, beginning 411
September 1, 1996, the amounts in subdivisions ( 1) and (2) 412
of this subsection shall be adjusted in accordance with the 413
actuarial adjustment, if any, that was applied to the 414
person's retirement allowance due to election of an optional 415
form of retirement having a continued monthly payment after 416
the person's death. Notwithstanding any other provision of 417
law to the contrary, no person retired before, on, or after 418
May 26, 1994, and no beneficiary of such a person, shall 419
receive a retirement benefit pursuant to sections 169.010 to 420
169.141 based on the person's years of service less than the 421
following amounts: 422
(1) Thirty or more years of service, one thousand two 423
hundred dollars; 424
(2) At least twenty-five years but less than thirty 425
years, one thousand dollars; 426
(3) At least twenty years but less than twenty -five 427
years, eight hundred dollars; 428
(4) At least fifteen years but less than twenty years, 429
six hundred dollars. 430
19. Notwithstanding any other provisions of law to the 431
contrary, any person retired prior to May 26, 1994 , and any 432 SB 474 15
designated beneficiary of such a retired member who was 433
deceased prior to July 1, 1999, shall be made, constituted, 434
appointed and employed by the board as a special consultant 435
on the matters of education, retirement or aging and upon 436
request shall give written or oral opinions to the board in 437
response to such requests. Beginning September 1, 1996, as 438
compensation for such service, the member shall have added, 439
pursuant to this subsection, to the member's monthly annuity 440
as provided by this section a dollar amount equal to the 441
lesser of sixty dollars or the product of two dollars 442
multiplied by the member's number of years of creditable 443
service. Beginning September 1, 1999, the designated 444
beneficiary of the deceased member shall as comp ensation for 445
such service have added, pursuant to this subsection, to the 446
monthly annuity as provided by this section a dollar amount 447
equal to the lesser of sixty dollars or the product of two 448
dollars multiplied by the member's number of years of 449
creditable service. The total compensation provided by this 450
section including the compensation provided by this 451
subsection shall be used in calculating any future cost -of- 452
living adjustments provided by subsection 13 of this section. 453
20. Any member who has retired prior to July 1, 1998, 454
and the designated beneficiary of a deceased retired member 455
shall be made, constituted, appointed and employed by the 456
board as a special consultant on the matters of education, 457
retirement and aging, and upon request shall give written or 458
oral opinions to the board in response to such requests. As 459
compensation for such duties the person shall receive a 460
payment equivalent to eight and seven -tenths percent of the 461
previous month's benefit, which shall be added to th e 462
member's or beneficiary's monthly annuity and which shall 463
not be subject to the provisions of subsections 13 and 14 of 464 SB 474 16
this section for the purposes of the limit on the total 465
amount of increases which may be received. 466
21. Any member who has ret ired shall be made, 467
constituted, appointed and employed by the board as a 468
special consultant on the matters of education, retirement 469
and aging, and upon request shall give written or oral 470
opinions to the board in response to such request. As 471
compensation for such duties, the beneficiary of the retired 472
member, or, if there is no beneficiary, the surviving 473
spouse, surviving children in equal shares, surviving 474
parents in equal shares, or estate of the retired member, in 475
that order of precedence, shal l receive as a part of 476
compensation for these duties a death benefit of five 477
thousand dollars. 478
22. Any member who has retired prior to July 1, 1999, 479
and the designated beneficiary of a retired member who was 480
deceased prior to July 1, 1999, shall be made, constituted, 481
appointed and employed by the board as a special consultant 482
on the matters of education, retirement and aging, and upon 483
request shall give written or oral opinions to the board in 484
response to such requests. As compensation for su ch duties, 485
the person shall have added, pursuant to this subsection, to 486
the monthly annuity as provided by this section a dollar 487
amount equal to five dollars times the member's number of 488
years of creditable service. 489
23. Any member who has retired prior to July 1, 2000, 490
and the designated beneficiary of a deceased retired member 491
shall be made, constituted, appointed and employed by the 492
board as a special consultant on the matters of education, 493
retirement and aging, and upon request shall give w ritten or 494
oral opinions to the board in response to such requests. As 495
compensation for such duties, the person shall receive a 496 SB 474 17
payment equivalent to three and five -tenths percent of the 497
previous month's benefit, which shall be added to the member 498
or beneficiary's monthly annuity and which shall not be 499
subject to the provisions of subsections 13 and 14 of this 500
section for the purposes of the limit on the total amount of 501
increases which may be received. 502
24. Any member who has retired prior to J uly 1, 2001, 503
and the designated beneficiary of a deceased retired member 504
shall be made, constituted, appointed and employed by the 505
board as a special consultant on the matters of education, 506
retirement and aging, and upon request shall give written or 507
oral opinions to the board in response to such requests. As 508
compensation for such duties, the person shall receive a 509
dollar amount equal to three dollars times the member's 510
number of years of creditable service, which shall be added 511
to the member's or beneficiary's monthly annuity and which 512
shall not be subject to the provisions of subsections 13 and 513
14 of this section for the purposes of the limit on the 514
total amount of increases which may be received. 515