FIRST REGULAR SESSION
SENATE BILL NO. 709
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BLACK.
2888S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 169.070 and 169.670, RSMo, and to enact in lieu thereof two new sections
relating to limitations on cost of living increases on retirement allowances for certain
public school employees.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 169.070 and 169.670, RSMo, are 1
repealed and two new sections enacted in lieu thereof, to be 2
known as sections 169.070 and 169.670, to read as follows:3
169.070. 1. The retirement allowance o f a member 1
whose age at retirement is sixty years or more and whose 2
creditable service is five years or 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 the 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 me mber's final 10
average salary for each year of membership service; 11
(2) Six-tenths of the amount payable for a year of 12
membership service for each year of prior service not 13
exceeding thirty years. 14 SB 709 2
In lieu of the retirement allowance otherwise provide d in 15
subdivisions (1) and (2) of this subsection, a member may 16
elect to receive a retirement allowance of: 17
(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 servic e 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 credit able 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 ser vice, 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 SB 709 3
2. In lieu of the retirement allowance provided in 47
subsection 1 of this section, a member whose age is sixty 48
years or more on September 28, 1975 , may elect to have the 49
member's retirement allowance calculated as a sum of the 50
following items: 51
(1) Sixty cents plus one and five -tenths percent of 52
the member's final average salary for each year of 53
membership service; 54
(2) Six-tenths of the amount payable for a year of 55
membership service for each year of prior service not 56
exceeding thirty years; 57
(3) Three-fourths of one percent of the sum of 58
subdivisions (1) and (2) of this subsection for each month 59
of attained age in excess of s ixty years but not in excess 60
of age sixty-five. 61
3. (1) In lieu of the retirement allowance provided 62
either in subsection 1 or 2 of this section, collectively 63
called "option 1", a member whose creditable service is 64
twenty-five years or more or wh o has attained the age of 65
fifty-five with five or more years of creditable service may 66
elect in the member's application for retirement to receive 67
the actuarial equivalent of the member's retirement 68
allowance in reduced monthly payments for life during 69
retirement with the provision that: 70
Option 2. 71
Upon the member's death the reduced retirement 72
allowance shall be continued throughout the life of and paid 73
to such person as has an insurable interest in the life of 74
the member as the member shall ha ve nominated in the 75
member's election of the option, and provided further that 76
if the person so nominated dies before the retired member, 77
the retirement allowance will be increased to the amount the 78 SB 709 4
retired member would be receiving had the retired mem ber 79
elected option 1; or 80
Option 3. 81
Upon the death of the member three -fourths of the 82
reduced retirement allowance shall be continued throughout 83
the life of and paid to such person as has an insurable 84
interest in the life of the member and as the m ember shall 85
have nominated in an election of the option, and provided 86
further that if the person so nominated dies before the 87
retired member, the retirement allowance will be increased 88
to the amount the retired member would be receiving had the 89
member elected option 1; or 90
Option 4. 91
Upon the death of the member one -half of the reduced 92
retirement allowance shall be continued throughout the life 93
of, and paid to, such person as has an insurable interest in 94
the life of the member and as the member s hall have 95
nominated in an election of the option, and provided further 96
that if the person so nominated dies before the retired 97
member, the retirement allowance shall be increased to the 98
amount the retired member would be receiving had the member 99
elected option 1; or 100
Option 5. 101
Upon the death of the member prior to the member having 102
received one hundred twenty monthly payments of the member's 103
reduced allowance, the remainder of the one hundred twenty 104
monthly payments of the reduced allowance shal l be paid to 105
such beneficiary as the member shall have nominated in the 106
member's election of the option or in a subsequent 107
nomination. If there is no beneficiary so nominated who 108
survives the member for the remainder of the one hundred 109
twenty monthly payments, the total of the remainder of such 110 SB 709 5
one hundred twenty monthly payments shall be paid to the 111
surviving spouse, surviving children in equal shares, 112
surviving parents in equal shares, or estate of the last 113
person, in that order of precedence, to receive a monthly 114
allowance in a lump sum payment. If the total of the one 115
hundred twenty payments paid to the retired individual and 116
the beneficiary of the retired individual is less than the 117
total of the member's accumulated contributions, the 118
difference shall be paid to the beneficiary in a lump sum; or 119
Option 6. 120
Upon the death of the member prior to the member having 121
received sixty monthly payments of the member's reduced 122
allowance, the remainder of the sixty monthly payments of 123
the reduced allowance shall be paid to such beneficiary as 124
the member shall have nominated in the member's election of 125
the option or in a subsequent nomination. If there is no 126
beneficiary so nominated who survives the member for the 127
remainder of the sixty mont hly payments, the total of the 128
remainder of such sixty monthly payments shall be paid to 129
the surviving spouse, surviving children in equal shares, 130
surviving parents in equal shares, or estate of the last 131
person, in that order of precedence, to receive a monthly 132
allowance in a lump sum payment. If the total of the sixty 133
payments paid to the retired individual and the beneficiary 134
of the retired individual is less than the total of the 135
member's accumulated contributions, the difference shall be 136
paid to the beneficiary in a lump sum. 137
(2) The election of an option may be made only in the 138
application for retirement and such application must be 139
filed prior to the date on which the retirement of the 140
member is to be effective. If either the member or the 141
person nominated to receive the survivorship payments dies 142 SB 709 6
before the effective date of retirement, the option shall 143
not be effective, provided that: 144
(a) If the member or a person retired on disability 145
retirement dies after acquiring twen ty-five or more years of 146
creditable service or after attaining the age of fifty -five 147
years and acquiring five or more years of creditable service 148
and before retirement, except retirement with disability 149
benefits, and the person named by the member as t he member's 150
beneficiary has an insurable interest in the life of the 151
deceased member, the designated beneficiary may elect to 152
receive either survivorship benefits under option 2 or a 153
payment of the accumulated contributions of the member. If 154
survivorship benefits under option 2 are elected and the 155
member at the time of death would have been eligible to 156
receive an actuarial equivalent of the member's retirement 157
allowance, the designated beneficiary may further elect to 158
defer the option 2 payments u ntil the date the member would 159
have been eligible to receive the retirement allowance 160
provided in subsection 1 or 2 of this section; 161
(b) If the member or a person retired on disability 162
retirement dies before attaining age fifty -five but after 163
acquiring five but fewer than twenty -five years of 164
creditable service, and the person named as the member's 165
beneficiary has an insurable interest in the life of the 166
deceased member, the designated beneficiary may elect to 167
receive either a payment of the m ember's accumulated 168
contributions, or survivorship benefits under option 2 to 169
begin on the date the member would first have been eligible 170
to receive an actuarial equivalent of the member's 171
retirement allowance, or to begin on the date the member 172
would first have been eligible to receive the retirement 173
allowance provided in subsection 1 or 2 of this section. 174 SB 709 7
4. If the total of the retirement or disability 175
allowance paid to an individual before the death of the 176
individual is less than the accumu lated contributions at the 177
time of retirement, the difference shall be paid to the 178
beneficiary of the individual, or to the surviving spouse, 179
surviving children in equal shares, surviving parents in 180
equal shares, or estate of the individual in that ord er of 181
precedence. If an optional benefit as provided in option 2, 182
3 or 4 in subsection 3 of this section had been elected, and 183
the beneficiary dies after receiving the optional benefit, 184
and if the total retirement allowance paid to the retired 185
individual and the beneficiary of the retired individual is 186
less than the total of the contributions, the difference 187
shall be paid to the surviving spouse, surviving children in 188
equal shares, surviving parents in equal shares, or estate 189
of the beneficiary, i n that order of precedence, unless the 190
retired individual designates a different recipient with the 191
board at or after retirement. 192
5. If a member dies and his or her financial 193
institution is unable to accept the final payment or 194
payments due to the member, the final payment or payments 195
shall be paid to the beneficiary of the member or, if there 196
is no beneficiary, to the surviving spouse, surviving 197
children in equal shares, surviving parents in equal shares, 198
or estate of the member, in that orde r of precedence, unless 199
otherwise stated. If the beneficiary of a deceased member 200
dies and his or her financial institution is unable to 201
accept the final payment or payments, the final payment or 202
payments shall be paid to the surviving spouse, survivi ng 203
children in equal shares, surviving parents in equal shares, 204
or estate of the member, in that order of precedence, unless 205
otherwise stated. 206 SB 709 8
6. If a member dies before receiving a retirement 207
allowance, the member's accumulated contributions at the 208
time of the death of the member shall be paid to the 209
beneficiary of the member or, if there is no beneficiary, to 210
the surviving spouse, surviving children in equal shares, 211
surviving parents in equal shares, or to the estate of the 212
member, in that order of precedence; except that, no such 213
payment shall be made if the beneficiary elects option 2 in 214
subsection 3 of this section, unless the beneficiary dies 215
before having received benefits pursuant to that subsection 216
equal to the accumulated contrib utions of the member, in 217
which case the amount of accumulated contributions in excess 218
of the total benefits paid pursuant to that subsection shall 219
be paid to the surviving spouse, surviving children in equal 220
shares, surviving parents in equal shares, o r estate of the 221
beneficiary, in that order of precedence. 222
7. If a member ceases to be a public school employee 223
as herein defined and certifies to the board of trustees 224
that such cessation is permanent, or if the membership of 225
the person is otherw ise terminated, the member shall be paid 226
the member's accumulated contributions with interest. 227
8. Notwithstanding any provisions of sections 169.010 228
to 169.141 to the contrary, if a member ceases to be a 229
public school employee after acquiring five or more years of 230
membership service in Missouri, the member may at the option 231
of the member leave the member's contributions with the 232
retirement system and claim a retirement allowance any time 233
after reaching the minimum age for voluntary retirement. 234
When the member's claim is presented to the board, the 235
member shall be granted an allowance as provided in sections 236
169.010 to 169.141 on the basis of the member's age, years 237
of service, and the provisions of the law in effect at the 238 SB 709 9
time the member requests the member's retirement to become 239
effective. 240
9. The retirement allowance of a member retired 241
because of disability shall be nine -tenths of the allowance 242
to which the member's creditable service would entitle the 243
member if the member's ag e were sixty, or fifty percent of 244
one-twelfth of the annual salary rate used in determining 245
the member's contributions during the last school year for 246
which the member received a year of creditable service 247
immediately prior to the member's disability, whichever is 248
greater, except that no such allowance shall exceed the 249
retirement allowance to which the member would have been 250
entitled upon retirement at age sixty if the member had 251
continued to teach from the date of disability until age 252
sixty at the same salary rate. 253
10. Notwithstanding any provisions of sections 169.010 254
to 169.141 to the contrary, from October 13, 1961, the 255
contribution rate pursuant to sections 169.010 to 169.141 256
shall be multiplied by the factor of two -thirds for any 257
member of the system for whom federal Old Age and Survivors 258
Insurance tax is paid from state or local tax funds on 259
account of the member's employment entitling the person to 260
membership in the system. The monetary benefits for a 261
member who elected not to exercise an option to pay into the 262
system a retroactive contribution of four percent on that 263
part of the member's annual salary rate which was in excess 264
of four thousand eight hundred dollars but not in excess of 265
eight thousand four hundred dollars for each year of 266
employment in a position covered by this system between July 267
1, 1957, and July 1, 1961, as provided in subsection 10 of 268
this section as it appears in RSMo, 1969, shall be the sum 269
of: 270 SB 709 10
(1) For years of service prior to July 1, 1946, s ix- 271
tenths of the full amount payable for years of membership 272
service; 273
(2) For years of membership service after July 1, 274
1946, in which the full contribution rate was paid, full 275
benefits under the formula in effect at the time of the 276
member's retirement; 277
(3) For years of membership service after July 1, 278
1957, and prior to July 1, 1961, the benefits provided in 279
this section as it appears in RSMo, 1959; except that if the 280
member has at least thirty years of creditable service at 281
retirement the member shall receive the benefit payable 282
pursuant to that section as though the member's age were 283
sixty-five at retirement; 284
(4) For years of membership service after July 1, 285
1961, in which the two -thirds contribution rate was paid, 286
two-thirds of the benefits under the formula in effect at 287
the time of the member's retirement. 288
11. The monetary benefits for each other member for 289
whom federal Old Age and Survivors Insurance tax is or was 290
paid at any time from state or local funds on acco unt of the 291
member's employment entitling the member to membership in 292
the system shall be the sum of: 293
(1) For years of service prior to July 1, 1946, six - 294
tenths of the full amount payable for years of membership 295
service; 296
(2) For years of membership service after July 1, 297
1946, in which the full contribution rate was paid, full 298
benefits under the formula in effect at the time of the 299
member's retirement; 300
(3) For years of membership service after July 1, 301
1957, in which the two -thirds contribution rate was paid, 302 SB 709 11
two-thirds of the benefits under the formula in effect at 303
the time of the member's retirement. 304
12. Any retired member of the system who was retired 305
prior to September 1, 1972, or beneficiary receiving 306
payments under option 1 or option 2 of subsection 3 of this 307
section, as such option existed prior to September 1, 1972, 308
will be eligible to receive an increase in the retirement 309
allowance of the member of two percent for each year, or 310
major fraction of more than one -half of a year, which the 311
retired member has been retired prior to July 1, 1975. This 312
increased amount shall be payable commencing with January, 313
1976, and shall thereafter be referred to as the member's 314
retirement allowance. The increase provided for in this 315
subsection shall not affect the retired member's eligibility 316
for compensation provided for in section 169.580 or 169.585, 317
nor shall the amount being paid pursuant to these sections 318
be reduced because of any increases provided for in this 319
section. 320
13. (1) If the board of trustees determines that the 321
cost of living, as measured by generally accepted standards, 322
increases two percent or more in the preceding fiscal year, 323
the board shall increase the retirement allowances which the 324
retired members or beneficiaries are receiving by two 325
percent of the amount being received by the retired member 326
or the beneficiary at the time the annual increase is 327
granted by the board with the provision that the increases 328
provided for in this subsection sha ll not become effective 329
until the fourth January first following the member's 330
retirement or January 1, 1977, whichever later occurs, or in 331
the case of any member retiring on or after July 1, 2000, 332
the increase provided for in this subsection shall not 333
become effective until the third January first following the 334 SB 709 12
member's retirement, or in the case of any member retiring 335
on or after July 1, 2001, the increase provided for in this 336
subsection shall not become effective until the second 337
January first following the member's retirement. Commencing 338
with January 1, 1992, if the board of trustees determines 339
that the cost of living has increased five percent or more 340
in the preceding fiscal year, the board shall increase the 341
retirement allowances by five p ercent. The total of the 342
increases granted to a retired member or the beneficiary 343
after December 31, 1976, may not exceed eighty percent of 344
the retirement allowance established at retirement or as 345
previously adjusted by other subsections. 346
(2) Notwithstanding any other provision of this 347
chapter to the contrary, the limitation on the total of the 348
increases granted to a retired member or beneficiary as 349
provided by subdivision (1) of this subsection shall be 350
subject to an annual increase approved by the board of 351
trustees beginning on December 31, 2025, and on each 352
December thirty-first thereafter, except that such annual 353
increase shall not exceed one percent per year. Any 354
increase to the limitation shall depend on the performance 355
of the system's investments. If the system's investments 356
earn two percent or greater returns in excess of the 357
investment return rate adopted by the board of trustees in 358
the immediately prior fiscal year, then the percentage of 359
the retirement allowance for the to tal of increases granted 360
to a retired member or beneficiary shall be increased by one 361
percent. The one percent increase shall be incorporated in 362
the calculation applicable to the retirement allowances in 363
the calendar year that immediately follows the fiscal year 364
in which the system's investments met or exceeded by two 365
percent the investment return rate. The total of the 366 SB 709 13
increases granted to a retired member or beneficiary shall 367
not exceed one hundred percent of the retirement allowance 368
established at retirement or as previously adjusted by other 369
sections. The percentage of the retirement allowance for 370
the total of increases granted to a retired member or 371
beneficiary shall not be decreased. Any reference to the 372
limitation on the total of incr eases granted to a retired 373
member or beneficiary in any other section of this chapter 374
shall be construed to be the percentage of the retirement 375
allowance in effect as increased pursuant to this 376
subdivision, unless such increase to the percentage of the 377
retirement allowance is otherwise expressly excluded. 378
(3) If the cost of living increases less than five 379
percent, the board of trustees may determine the percentage 380
of increase to be made in retirement allowances, but at no 381
time can the increase exceed five percent per year. If the 382
cost of living decreases in a fiscal year, there will be no 383
increase in allowances for retired members on the following 384
January first. 385
14. The board of trustees may reduce the amounts which 386
have been granted as increases to a member pursuant to 387
subsection 13 of this section if the cost of living, as 388
determined by the board and as measured by generally 389
accepted standards, is less than the cost of living was at 390
the time of the first increase granted to the member; except 391
that, the reductions shall not exceed the amount of 392
increases which have been made to the member's allowance 393
after December 31, 1976. 394
15. Any application for retirement shall include a 395
sworn statement by the member certifying that the spouse of 396
the member at the time the application was completed was 397 SB 709 14
aware of the application and the plan of retirement elected 398
in the application. 399
16. Notwithstanding any other provision of law, any 400
person retired prior to September 28, 1983, who is receiving 401
a reduced retirement allowance under option 1 or option 2 of 402
subsection 3 of this section, as such option existed prior 403
to September 28, 1983, and whose beneficiary nominated to 404
receive continued retirement allowance payments under th e 405
elected option dies or has died, shall upon application to 406
the board of trustees have his or her retirement allowance 407
increased to the amount he or she would have been receiving 408
had the option not been elected, actuarially adjusted to 409
recognize any excessive benefits which would have been paid 410
to him or her up to the time of application. 411
17. Benefits paid pursuant to the provisions of the 412
public school retirement system of Missouri shall not exceed 413
the limitations of Section 415 of Title 26 of the United 414
States Code except as provided pursuant to this subsection. 415
Notwithstanding any other law to the contrary, the board of 416
trustees may establish a benefit plan pursuant to Section 417
415(m) of Title 26 of the United States Code. Such plan 418
shall be created solely for the purpose described in Section 419
415(m)(3)(A) of Title 26 of the United States Code. The 420
board of trustees may promulgate regulations necessary to 421
implement the provisions of this subsection and to create 422
and administer such benefit plan. 423
18. Notwithstanding any other provision of law to the 424
contrary, any person retired before, on, or after May 26, 425
1994, shall be made, constituted, appointed and employed by 426
the board as a special consultant on the matters of 427
education, retirement and aging, and upon request shall give 428
written or oral opinions to the board in response to such 429 SB 709 15
requests. As compensation for such duties the person shall 430
receive an amount based on the person's years of service so 431
that the total amoun t received pursuant to sections 169.010 432
to 169.141 shall be at least the minimum amounts specified 433
in subdivisions (1) to (4) of this subsection. In 434
determining the minimum amount to be received, the amounts 435
in subdivisions (3) and (4) of this subsect ion shall be 436
adjusted in accordance with the actuarial adjustment, if 437
any, that was applied to the person's retirement allowance. 438
In determining the minimum amount to be received, beginning 439
September 1, 1996, the amounts in subdivisions (1) and (2) 440
of this subsection shall be adjusted in accordance with the 441
actuarial adjustment, if any, that was applied to the 442
person's retirement allowance due to election of an optional 443
form of retirement having a continued monthly payment after 444
the person's death. Notwithstanding any other provision of 445
law to the contrary, no person retired before, on, or after 446
May 26, 1994, and no beneficiary of such a person, shall 447
receive a retirement benefit pursuant to sections 169.010 to 448
169.141 based on the person's ye ars of service less than the 449
following amounts: 450
(1) Thirty or more years of service, one thousand two 451
hundred dollars; 452
(2) At least twenty-five years but less than thirty 453
years, one thousand dollars; 454
(3) At least twenty years but less than twenty-five 455
years, eight hundred dollars; 456
(4) At least fifteen years but less than twenty years, 457
six hundred dollars. 458
19. Notwithstanding any other provisions of law to the 459
contrary, any person retired prior to May 26, 1994, and any 460
designated beneficiary of such a retired member who was 461 SB 709 16
deceased prior to July 1, 1999, shall be made, constituted, 462
appointed and employed by the board as a special consultant 463
on the matters of education, retirement or aging and upon 464
request shall give w ritten or oral opinions to the board in 465
response to such requests. Beginning September 1, 1996, as 466
compensation for such service, the member shall have added, 467
pursuant to this subsection, to the member's monthly annuity 468
as provided by this section a d ollar amount equal to the 469
lesser of sixty dollars or the product of two dollars 470
multiplied by the member's number of years of creditable 471
service. Beginning September 1, 1999, the designated 472
beneficiary of the deceased member shall as compensation for 473
such service have added, pursuant to this subsection, to the 474
monthly annuity as provided by this section a dollar amount 475
equal to the lesser of sixty dollars or the product of two 476
dollars multiplied by the member's number of years of 477
creditable service. The total compensation provided by this 478
section including the compensation provided by this 479
subsection shall be used in calculating any future cost -of- 480
living adjustments provided by subsection 13 of this section. 481
20. Any member who has retired prior to July 1, 1998, 482
and the designated beneficiary of a deceased retired member 483
shall be made, constituted, appointed and employed by the 484
board as a special consultant on the matters of education, 485
retirement and aging, and upon request shall give w ritten or 486
oral opinions to the board in response to such requests. As 487
compensation for such duties the person shall receive a 488
payment equivalent to eight and seven -tenths percent of the 489
previous month's benefit, which shall be added to the 490
member's or beneficiary's monthly annuity and which shall 491
not be subject to the provisions of subsections 13 and 14 of 492 SB 709 17
this section for the purposes of the limit on the total 493
amount of increases which may be received. 494
21. Any member who has retired shall be made, 495
constituted, appointed and employed by the board as a 496
special consultant on the matters of education, retirement 497
and aging, and upon request shall give written or oral 498
opinions to the board in response to such request. As 499
compensation for such duties, the beneficiary of the retired 500
member, or, if there is no beneficiary, the surviving 501
spouse, surviving children in equal shares, surviving 502
parents in equal shares, or estate of the retired member, in 503
that order of precedence, shall receive as a part of 504
compensation for these duties a death benefit of five 505
thousand dollars. 506
22. Any member who has retired prior to July 1, 1999, 507
and the designated beneficiary of a retired member who was 508
deceased prior to July 1, 1999, shall be made, cons tituted, 509
appointed and employed by the board as a special consultant 510
on the matters of education, retirement and aging, and upon 511
request shall give written or oral opinions to the board in 512
response to such requests. As compensation for such duties, 513
the person shall have added, pursuant to this subsection, to 514
the monthly annuity as provided by this section a dollar 515
amount equal to five dollars times the member's number of 516
years of creditable service. 517
23. Any member who has retired prior to Jul y 1, 2000, 518
and the designated beneficiary of a deceased retired member 519
shall be made, constituted, appointed and employed by the 520
board as a special consultant on the matters of education, 521
retirement and aging, and upon request shall give written or 522
oral opinions to the board in response to such requests. As 523
compensation for such duties, the person shall receive a 524 SB 709 18
payment equivalent to three and five -tenths percent of the 525
previous month's benefit, which shall be added to the member 526
or beneficiary's monthly annuity and which shall not be 527
subject to the provisions of subsections 13 and 14 of this 528
section for the purposes of the limit on the total amount of 529
increases which may be received. 530
24. Any member who has retired prior to July 1, 2001, 531
and the designated beneficiary of a deceased retired member 532
shall be made, constituted, appointed and employed by the 533
board as a special consultant on the matters of education, 534
retirement and aging, and upon request shall give written or 535
oral opinions to the board in response to such requests. As 536
compensation for such duties, the person shall receive a 537
dollar amount equal to three dollars times the member's 538
number of years of creditable service, which shall be added 539
to the member's or beneficiary' s monthly annuity and which 540
shall not be subject to the provisions of subsections 13 and 541
14 of this section for the purposes of the limit on the 542
total amount of increases which may be received. 543
169.670. 1. The retirement allowance o f a member 1
whose age at retirement is sixty years or more and whose 2
creditable service is five years or more, or whose sum of 3
age and creditable service equals eighty years or more, or 4
whose creditable service is thirty years or more regardless 5
of age, shall be the sum of the following items: 6
(1) For each year of membership service, one and sixty - 7
one hundredths percent of the member's final average salary; 8
(2) Six-tenths of the amount payable for a year of 9
membership service for each year of prior service; 10
(3) Eighty-five one-hundredths of one percent of any 11
amount by which the member's average compensation for 12
services rendered prior to July 1, 1973, exceeds the average 13 SB 709 19
monthly compensation on which federal Social Security taxes 14
were paid during the period over which such average 15
compensation was computed, for each year of membership 16
service credit for services rendered prior to July 1, 1973, 17
plus six-tenths of the amount payable for a year of 18
membership service for each year of prior service credit; 19
(4) In lieu of the retirement allowance otherwise 20
provided by subdivisions (1) to (3) of this subsection, a 21
member may elect to receive a retirement allowance of: 22
(a) One and fifty-nine 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 -nine 25
years or more but less than thirty years and the member has 26
not attained the age of fifty -five; 27
(b) One and fifty-seven hundredths percent of the 28
member's final average salary for each year of membership 29
service, if the member's creditable service is twenty -eight 30
years or more but less than twenty -nine years, and the 31
member has not attained the age of fifty -five; 32
(c) One and fifty-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 -seven 35
years or more but less than twenty -eight years and the 36
member has not attained the age of fifty -five; 37
(d) One and fifty-three hundredths percent of the 38
member's final average salary for each year of membership 39
service, if the member's creditable service is twenty -six 40
years or more but less than twenty -seven years and the 41
member has not attain ed the age of fifty-five; 42
(e) One and fifty-one hundredths percent of the 43
member's final average salary for each year of membership 44
service, if the member's creditable service is twenty -five 45 SB 709 20
years or more but less than twenty -six years and the mem ber 46
has not attained the age of fifty -five; and 47
(5) In addition to the retirement allowance provided 48
in subdivisions (1) to (3) of this subsection, a member 49
retiring on or after July 1, 2001, whose creditable service 50
is thirty years or more or wh ose sum of age and creditable 51
service is eighty years or more, shall receive a temporary 52
retirement allowance equivalent to eight -tenths of one 53
percent of the member's final average salary multiplied by 54
the member's years of service until such time as the member 55
reaches the minimum age for Social Security retirement 56
benefits. 57
2. (1) If the board of trustees determines that the 58
cost of living, as measured by generally accepted standards, 59
increases five percent or more in the preceding fiscal y ear, 60
the board shall increase the retirement allowances which the 61
retired members or beneficiaries are receiving by five 62
percent of the amount being received by the retired member 63
or the beneficiary at the time the annual increase is 64
granted by the board; provided that, the increase provided 65
in this subsection shall not become effective until the 66
fourth January first following a member's retirement or 67
January 1, 1982, whichever occurs later, and the total of 68
the increases granted to a retired membe r or the beneficiary 69
after December 31, 1981, may not exceed eighty percent of 70
the retirement allowance established at retirement or as 71
previously adjusted by other provisions of law. 72
(2) Notwithstanding any other provision of this 73
chapter to the contrary, the limitation on the total of the 74
increases granted to a retired member or beneficiary as 75
provided by subdivision (1) of this subsection shall be 76
subject to an annual increase approved by the board of 77 SB 709 21
trustees beginning on December 31, 2025 , and on each 78
December thirty-first thereafter, except that such annual 79
increase shall not exceed one percent per year. Any 80
increase to the limitation shall depend on the performance 81
of the system's investments. If the system's investments 82
earn two percent or greater returns in excess of the 83
investment return rate adopted by the board of trustees in 84
the immediately prior fiscal year, then the percentage of 85
the retirement allowance for the total of increases granted 86
to a retired member or benefici ary shall be increased by one 87
percent. The one percent increase shall be incorporated in 88
the calculation applicable to the retirement allowances in 89
the calendar year that immediately follows the fiscal year 90
in which the system's investments met or exc eeded by two 91
percent the investment return rate. The total of the 92
increases granted to a retired member or beneficiary shall 93
not exceed one hundred percent of the retirement allowance 94
established at retirement or as previously adjusted by other 95
sections. The percentage of the retirement allowance for 96
the total of increases granted to a retired member or 97
beneficiary shall not be decreased. Any reference to the 98
limitation on the total of increases granted to a retired 99
member or beneficiary in any other section of this chapter 100
shall be construed to be the percentage of the retirement 101
allowance in effect as increased pursuant to this 102
subdivision, unless such increase to the percentage of the 103
retirement allowance is otherwise expressly excluded. 104
(3) If the cost of living increases less than five 105
percent, the board of trustees may determine the percentage 106
of increase to be made in retirement allowances, but at no 107
time can the increase exceed five percent per year. If the 108
cost of living decreases in a fiscal year, there will be no 109 SB 709 22
increase in allowances for retired members on the following 110
January first. 111
3. The board of trustees may reduce the amounts which 112
have been granted as increases to a member pursuant to 113
subsection 2 of this section if the cost of living, as 114
determined by the board and as measured by generally 115
accepted standards, is less than the cost of living was at 116
the time of the first increase granted to the member; 117
provided that, the reductions shall not exceed the amount of 118
increases which have been made to the member's allowance 119
after December 31, 1981. 120
4. (1) In lieu of the retirement allowance provided 121
in subsection 1 of this section, called option 1, a member 122
whose creditable service is twenty -five years or more or who 123
has attained age fifty -five with five or more years of 124
creditable service may elect, in the application for 125
retirement, to receive the actuarial equivalent of the 126
member's retirement allowance in reduced monthly payments 127
for life during retirement with the provision that: 128
Option 2. 129
Upon the member's death, the reduced retirement 130
allowance shall be continued throughout the life of and paid 131
to such person as has an insurable interest in the life of 132
the member as the member sha ll have nominated in the 133
member's election of the option, and provided further that 134
if the person so nominated dies before the retired member, 135
the retirement allowance will be increased to the amount the 136
retired member would be receiving had the member elected 137
option 1; or 138
Option 3. 139
Upon the death of the member three -fourths of the 140
reduced retirement allowance shall be continued throughout 141 SB 709 23
the life of and paid to such person as has an insurable 142
interest in the life of the member and as the memb er shall 143
have nominated in an election of the option, and provided 144
further that if the person so nominated dies before the 145
retired member, the retirement allowance will be increased 146
to the amount the retired member would be receiving had the 147
member elected option 1; or 148
Option 4. 149
Upon the death of the member one -half of the reduced 150
retirement allowance shall be continued throughout the life 151
of, and paid to, such person as has an insurable interest in 152
the life of the member and as the member shal l have 153
nominated in an election of the option, and provided further 154
that if the person so nominated dies before the retired 155
member, the retirement allowance shall be increased to the 156
amount the retired member would be receiving had the member 157
elected option 1; or 158
Option 5. 159
Upon the death of the member prior to the member having 160
received one hundred twenty monthly payments of the member's 161
reduced allowance, the remainder of the one hundred twenty 162
monthly payments of the reduced allowance shall b e paid to 163
such beneficiary as the member shall have nominated in the 164
member's election of the option or in a subsequent 165
nomination. If there is no beneficiary so nominated who 166
survives the member for the remainder of the one hundred 167
twenty monthly payments, the reserve for the remainder of 168
such one hundred twenty monthly payments shall be paid to 169
the surviving spouse, surviving children in equal shares, 170
surviving parents in equal shares, or estate of the last 171
person, in that order of precedence, to receive a monthly 172
allowance in a lump sum payment. If the total of the one 173 SB 709 24
hundred twenty payments paid to the retired individual and 174
the beneficiary of the retired individual is less than the 175
total of the member's accumulated contributions, the 176
difference shall be paid to the beneficiary in a lump sum; or 177
Option 6. 178
Upon the death of the member prior to the member having 179
received sixty monthly payments of the member's reduced 180
allowance, the remainder of the sixty monthly payments of 181
the reduced allowance shall be paid to such beneficiary as 182
the member shall have nominated in the member's election of 183
the option or in a subsequent nomination. If there is no 184
beneficiary so nominated who survives the member for the 185
remainder of the sixty mon thly payments, the reserve for the 186
remainder of such sixty monthly payments shall be paid to 187
the surviving spouse, surviving children in equal shares, 188
surviving parents in equal shares, or estate of the last 189
person, in that order of precedence, to rece ive a monthly 190
allowance in a lump sum payment. If the total of the sixty 191
payments paid to the retired individual and the beneficiary 192
of the retired individual is less than the total of the 193
member's accumulated contributions, the difference shall be 194
paid to the beneficiary in a lump sum; or 195
Option 7. 196
A plan of variable monthly benefit payments which 197
provides, in conjunction with the member's retirement 198
benefits under the federal Social Security laws, level or 199
near-level retirement benefit payme nts to the member for 200
life during retirement, and if authorized, to an appropriate 201
beneficiary designated by the member. Such a plan shall be 202
actuarially equivalent to the retirement allowance under 203
option 1 and shall be available for election only if 204 SB 709 25
established by the board of trustees under duly adopted 205
rules. 206
(2) The election of an option may be made only in the 207
application for retirement and such application must be 208
filed prior to the date on which the retirement of the 209
member is to be effective. If either the member or the 210
person nominated dies before the effective date of 211
retirement, the option shall not be effective, provided that: 212
(a) If the member or a person retired on disability 213
retirement dies after attaining age fifty -five and acquiring 214
five or more years of creditable service or after acquiring 215
twenty-five or more years of creditable service and before 216
retirement, except retirement with disability benefits, and 217
the person named by the member as the member's benefic iary 218
has an insurable interest in the life of the deceased 219
member, the designated beneficiary may elect to receive 220
either survivorship payments under option 2 or a payment of 221
the member's accumulated contributions. If survivorship 222
benefits under option 2 are elected and the member at the 223
time of death would have been eligible to receive an 224
actuarial equivalent of the member's retirement allowance, 225
the designated beneficiary may further elect to defer the 226
option 2 payments until the date the member would have been 227
eligible to receive the retirement allowance provided in 228
subsection 1 of this section. 229
(b) If the member or a person retired on disability 230
retirement dies before attaining age fifty -five but after 231
acquiring five but fewer than tw enty-five years of 232
creditable service, and the person named as the beneficiary 233
has an insurable interest in the life of the deceased member 234
or disability retiree, the designated beneficiary may elect 235
to receive either a payment of the person's accumula ted 236 SB 709 26
contributions or survivorship benefits under option 2 to 237
begin on the date the member would first have been eligible 238
to receive an actuarial equivalent of the person's 239
retirement allowance, or to begin on the date the member 240
would first have been eligible to receive the retirement 241
allowance provided in subsection 1 of this section. 242
5. If the total of the retirement or disability 243
allowances paid to an individual before the person's death 244
is less than the person's accumulated contributions a t the 245
time of the person's retirement, the difference shall be 246
paid to the person's beneficiary or, if there is no 247
beneficiary, to the surviving spouse, surviving children in 248
equal shares, surviving parents in equal shares, or person's 249
estate, in that order of precedence; provided, however, that 250
if an optional benefit, as provided in option 2, 3 or 4 in 251
subsection 4 of this section, had been elected and the 252
beneficiary dies after receiving the optional benefit, then, 253
if the total retirement allowan ces paid to the retired 254
individual and the individual's beneficiary are less than 255
the total of the contributions, the difference shall be paid 256
to the surviving spouse, surviving children in equal shares, 257
surviving parents in equal shares, or estate of the 258
beneficiary, in that order of precedence, unless the retired 259
individual designates a different recipient with the board 260
at or after retirement. 261
6. If a member dies and his or her financial 262
institution is unable to accept the final payment or 263
payments due to the member, the final payment or payments 264
shall be paid to the beneficiary of the member or, if there 265
is no beneficiary, to the surviving spouse, surviving 266
children in equal shares, surviving parents in equal shares, 267
or estate of the member, in that order of precedence, unless 268 SB 709 27
otherwise stated. If the beneficiary of a deceased member 269
dies and his or her financial institution is unable to 270
accept the final payment or payments, the final payment or 271
payments shall be paid to the surviv ing spouse, surviving 272
children in equal shares, surviving parents in equal shares, 273
or estate of the member, in that order of precedence, unless 274
otherwise stated. 275
7. If a member dies before receiving a retirement 276
allowance, the member's accumulate d contributions at the 277
time of the member's death shall be paid to the member's 278
beneficiary or, if there is no beneficiary, to the surviving 279
spouse, surviving children in equal shares, surviving 280
parents in equal shares, or to the member's estate; 281
provided, however, that no such payment shall be made if the 282
beneficiary elects option 2 in subsection 4 of this section, 283
unless the beneficiary dies before having received benefits 284
pursuant to that subsection equal to the accumulated 285
contributions of the member, in which case the amount of 286
accumulated contributions in excess of the total benefits 287
paid pursuant to that subsection shall be paid to the 288
surviving spouse, surviving children in equal shares, 289
surviving parents in equal shares, or estate of th e 290
beneficiary, in that order of precedence. 291
8. If a member ceases to be an employee as defined in 292
section 169.600 and certifies to the board of trustees that 293
such cessation is permanent or if the person's membership is 294
otherwise terminated, the p erson shall be paid the person's 295
accumulated contributions with interest. 296
9. Notwithstanding any provisions of sections 169.600 297
to 169.715 to the contrary, if a member ceases to be an 298
employee as defined in section 169.600 after acquiring five 299
or more years of creditable service, the member may, at the 300 SB 709 28
option of the member, leave the member's contributions with 301
the retirement system and claim a retirement allowance any 302
time after the member reaches the minimum age for voluntary 303
retirement. When the member's claim is presented to the 304
board, the member shall be granted an allowance as provided 305
in sections 169.600 to 169.715 on the basis of the member's 306
age and years of service. 307
10. The retirement allowance of a member retired 308
because of disability shall be nine -tenths of the allowance 309
to which the member's creditable service would entitle the 310
member if the member's age were sixty. 311
11. Notwithstanding any provisions of sections 169.600 312
to 169.715 to the contrary, any member who is a member prior 313
to October 13, 1969, may elect to have the member's 314
retirement allowance computed in accordance with sections 315
169.600 to 169.715 as they existed prior to October 13, 1969. 316
12. Any application for retirement shall include a 317
sworn statement by the member certifying that the spouse of 318
the member at the time the application was completed was 319
aware of the application and the plan of retirement elected 320
in the application. 321
13. Notwithstanding any other provision of law, any 322
person retired prior to August 14, 1984, who is receiving a 323
reduced retirement allowance under option 1 or 2 of 324
subsection 4 of this section, as the option existed prior to 325
August 14, 1984, and whose beneficiary nominated to receive 326
continued retirement allowance payments under the elected 327
option dies or has died, shall upon application to the board 328
of trustees have the person's retirement allowance increased 329
to the amount the person would have been receiving had the 330
person not elected the option actu arially adjusted to 331 SB 709 29
recognize any excessive benefits which would have been paid 332
to the person up to the time of the application. 333
14. Benefits paid pursuant to the provisions of the 334
public education employee retirement system of Missouri 335
shall not exceed the limitations of Section 415 of Title 26 336
of the United States Code, except as provided under this 337
subsection. Notwithstanding any other law, the board of 338
trustees may establish a benefit plan under Section 415(m) 339
of Title 26 of the United St ates Code. Such plan shall be 340
credited solely for the purpose described in Section 341
415(m)(3)(A) of Title 26 of the United States Code. The 342
board of trustees may promulgate regulations necessary to 343
implement the provisions of this subsection and to cr eate 344
and administer such benefit plan. 345
15. Any member who has retired prior to July 1, 1999, 346
and the designated beneficiary of a deceased retired member 347
upon request shall be made, constituted, appointed and 348
employed by the board as a special con sultant on the matters 349
of education, retirement and aging. As compensation for 350
such duties the person shall receive a payment equivalent to 351
seven and four-tenths percent of the previous month's 352
benefit, which shall be added to the member's or 353
beneficiary's monthly annuity and which shall not be subject 354
to the provisions of subsections 2 and 3 of this section for 355
the purposes of the limit on the total amount of increases 356
which may be received. 357
16. Any member who has retired prior to July 1, 20 00, 358
and the designated beneficiary of a deceased retired member 359
upon request shall be made, constituted, appointed and 360
employed by the board as a special consultant on the matters 361
of education, retirement and aging. As compensation for 362
such duties the person shall receive a payment equivalent to 363 SB 709 30
three and four-tenths percent of the previous month's 364
benefit, which shall be added to the member's or 365
beneficiary's monthly annuity and which shall not be subject 366
to the provisions of subsections 2 and 3 of this section for 367
the purposes of the limit on the total amount of increases 368
which may be received. 369
17. Any member who has retired prior to July 1, 2001, 370
and the designated beneficiary of a deceased retired member 371
upon request shall be made, co nstituted, appointed and 372
employed by the board as a special consultant on the matters 373
of education, retirement and aging. As compensation for 374
such duties the person shall receive a payment equivalent to 375
seven and one-tenth percent of the previous mont h's benefit, 376
which shall be added to the member's or beneficiary's 377
monthly annuity and which shall not be subject to the 378
provisions of subsections 2 and 3 of this section for the 379
purposes of the limit on the total amount of increases which 380
may be received. 381