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--- version:6554S.01I - Introduced+++ version:Senate Committee Substitute - Committee Version@@ -1,348 +1,477 @@-EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted-and is intended to be omitted in the law.-SECOND REGULAR SESSION-SENATE BILL NO. 1557-103RD GENERAL ASSEMBLY-INTRODUCED BY SENATOR HENDERSON.-6554S.01I KRISTINA MARTIN, Secretary+6554S.03C+ 1+SENATE COMMITTEE SUBSTITUTE+FOR+SENATE BILLS NOS. 1557 & 1054AN ACT-To repeal section 104.1091, RSMo, and to enact in lieu thereof one new section relating to refunds-of retirement contributions.+To repeal sections 104.1091 and 105.915, RSMo, and to+enact in lieu thereof two new sections relating to+retirement.+Be it enacted by the General Assembly of the State of Missouri, as follows:- Section A. Section 104.1091, RSMo, is repealed and one 1-new section enacted in lieu thereof, to be known as section 2-104.1091, to read as follows:3- 104.1091. 1. Notwithstanding any provision of the 1-year 2000 plan to the contrary, each person who first 2-becomes an employee on or after January 1, 2011, shall be a 3-member of the year 2000 plan subject to the provisions of 4-this section. 5- 2. A member's normal retirement eligibility shall be 6-as follows: 7- (1) The member's attainment of at least age sixty- 8-seven and the completion of at least ten years of credited 9-service; or the member's attainment of at least age fifty- 10-five with the sum of the member's age and credited service 11-equaling at least ninety; or, in the case of a member who is 12-serving as a uniformed member of the highway patrol and 13-subject to the mandatory retirement provisions of section 14-104.081, such member's attainment of at least age sixty or 15-the attainment of at least age fifty-five with ten years of 16-credited service; 17- SB 1557 2- (2) For members of the general assembly, the member's 18-attainment of at least age sixty-two and the completion of 19-at least three full biennial assemblies; or the member's 20-attainment of at least age fifty-five with the sum of the 21-member's age and credited service equaling at least ninety; 22- (3) For statewide elected officials, the official's 23-attainment of at least age sixty-two and the completion of 24-at least four years of credited service; or the official's 25-attainment of at least age fifty-five with the sum of the 26-official's age and credited service equaling at least ninety. 27- 3. A vested former member's normal retirement 28-eligibility shall be based on the attainment of at least age 29-sixty-seven and the completion of at least ten years of 30-credited service. 31- 4. A temporary annuity paid pursuant to subsection 4 32-of section 104.1024 shall be payable if the member has 33-attained at least age fifty-five with the sum of the 34-member's age and credited service equaling at least ninety; 35-or in the case of a member who is serving as a uniformed 36-member of the highway patrol and subject to the mandatory 37-retirement provisions of section 104.081, the temporary 38-annuity shall be payable if the member has attained at least 39-age sixty, or at least age fifty-five with ten years of 40-credited service. 41- 5. A member, other than a member who is serving as a 42-uniformed member of the highway patrol and subject to the 43-mandatory retirement provisions of section 104.081, shall be 44-eligible for an early retirement annuity upon the attainment 45-of at least age sixty-two and the completion of at least ten 46-years of credited service. A vested former member who 47-terminated employment prior to the attainment of early 48- SB 1557 3-retirement eligibility shall not be eligible for early 49-retirement. 50- 6. The provisions of subsection 6 of section 104.1021 51-and section 104.344 as applied pursuant to subsection 7 of 52-section 104.1021 and section 104.1090 shall not apply to 53-members covered by this section. 54- 7. The minimum credited service requirements of five 55-years contained in sections 104.1018, 104.1030, 104.1036, 56-and 104.1051 shall be ten years for members covered by this 57-section. The normal and early retirement eligibility 58-requirements in this section shall apply for purposes of 59-administering section 104.1087. 60- 8. A member shall be required to contribute four 61-percent of the member's pay to the retirement system, which 62-shall stand to the member's credit in his or her individual 63-account with the system, together with investment credits 64-thereon, for purposes of funding retirement benefits payable 65-under the year 2000 plan, subject to the following 66-provisions: 67- (1) The state of Missouri employer, pursuant to the 68-provisions of 26 U.S.C. Section 414(h)(2), shall pick up and 69-pay the contributions that would otherwise be payable by the 70-member under this section. The contributions so picked up 71-shall be treated as employer contributions for purposes of 72-determining the member's pay that is includable in the 73-member's gross income for federal income tax purposes; 74- (2) Member contributions picked up by the employer 75-shall be paid from the same source of funds used for the 76-payment of pay to a member. A deduction shall be made from 77-each member's pay equal to the amount of the member's 78-contributions picked up by the employer. This deduction, 79-however, shall not reduce the member's pay for purposes of 80- SB 1557 4-computing benefits under the retirement system pursuant to 81-this chapter; 82- (3) Member contributions so picked up shall be 83-credited to a separate account within the member's 84-individual account so that the amounts contributed pursuant 85-to this section may be distinguished from the amounts 86-contributed on an after-tax basis; 87- (4) The contributions, although designated as employee 88-contributions, shall be paid by the employer in lieu of the 89-contributions by the member. The member shall not have the 90-option of choosing to receive the contributed amounts 91-directly instead of having them paid by the employer to the 92-retirement system; 93- (5) Interest shall be credited annually on June 94-thirtieth based on the value in the account as of July first 95-of the immediately preceding year at a rate of four 96-percent. Effective June 30, 2014, and each June thirtieth 97-thereafter, the interest crediting rate shall be equal to 98-the investment rate that is published by the United States 99-Department of the Treasury, or its successor agency, for 100-fifty-two week treasury bills for the relevant auction that 101-is nearest to the preceding July first, or a successor 102-treasury bill investment rate as approved by the board if 103-the fifty-two week treasury bill is no longer issued. 104-Interest credits shall cease upon termination of employment 105-if the member is not a vested former member. Otherwise, 106-interest credits shall cease upon retirement or death; 107- (6) (a) A vested former member or a former member who 108-is not vested may request a refund of his or her 109-contributions and interest credited thereon. If such member 110-is married at the time of such request, such request shall 111-not be processed without consent from the spouse. Such 112- SB 1557 5-member is not eligible to request a refund if such member's 113-retirement benefit is subject to a division of benefit order 114-pursuant to section 104.1051. [Such refund] 115- (b) For a former member who is not vested, the system 116-shall refund the former member's contributions and interest 117-credited thereon if the total amount thereof is one thousand 118-dollars or less, or such other amount as may be permitted 119-under applicable federal law, provided that: 120- a. The system's procedures in effect from time to time 121-to locate such member shall be considered reasonable and 122-necessary diligence consistent with good business practice, 123-such that if after the application of such procedures such 124-refund is returned to the system, the refund shall be 125-presumed to be abandoned property under sections 447.500 to 126-447.585 notwithstanding any provisions of those sections 127-which require a specific abandonment or dormancy period; and 128- b. Subsection 2 of section 104.620 shall not apply to 129-such refunds. 130- (c) Contribution refunds shall be paid by the system 131-within an administratively reasonable period, but no sooner 132-than ninety days from the date of termination of 133-employment. The amount refunded shall include all employee 134-contributions made to any retirement plan administered by 135-the system and interest credited thereon. 136- (d) A vested former member may not request a refund 137-after such member becomes eligible for normal retirement. 138- (e) A vested former member or a former member who is 139-not vested who receives a refund shall forfeit all the 140-member's credited service and future rights to receive 141-benefits from the system and shall not be eligible to 142-receive any disability benefits; provided that any member or 143-vested former member receiving disability benefits shall not 144- SB 1557 6-be eligible for a refund. If such member subsequently 145-becomes an employee and works continuously for at least one 146-year, the credited service previously forfeited shall be 147-restored if the member returns to the system the amount 148-previously refunded plus interest at a rate established by 149-the board; 150- (7) The beneficiary of any member who made 151-contributions shall receive a refund upon the member's death 152-equal to the amount, if any, of such contributions and 153-interest credited thereon less any retirement benefits 154-received by the member unless an annuity is payable to a 155-survivor or beneficiary as a result of the member's death. 156-In that event, the beneficiary of the survivor or 157-beneficiary who received the annuity shall receive a refund 158-upon the survivor's or beneficiary's death equal to the 159-amount, if any, of the member's contributions less any 160-annuity amounts received by the member and the survivor or 161-beneficiary. 162- 9. The employee contribution rate, the benefits 163-provided under the year 2000 plan to members covered under 164-this section, and any other provision of the year 2000 plan 165-with regard to members covered under this section may be 166-altered, amended, increased, decreased, or repealed, but 167-only with respect to services rendered by the member after 168-the effective date of such alteration, amendment, increase, 169-decrease, or repeal, or, with respect to interest credits, 170-for periods of time after the effective date of such 171-alteration, amendment, increase, decrease, or repeal. 172- 10. For purposes of members covered by this section, 173-the options under section 104.1027 shall be as follows: 174-Option 1. 175- SB 1557 7-A retiree's life annuity shall be reduced to a 176-certain percent of the annuity otherwise 177-payable. Such percent shall be eighty-eight and 178-one half percent adjusted as follows: if the 179-retiree's age on the annuity starting date is 180-younger than sixty-seven years, an increase of 181-three-tenths of one percent for each year the 182-retiree's age is younger than age sixty-seven 183-years; and if the beneficiary's age is younger 184-than the retiree's age on the annuity starting 185-date, a decrease of three-tenths of one percent 186-for each year of age difference; and if the 187-retiree's age is younger than the beneficiary's 188-age on the annuity starting date, an increase of 189-three-tenths of one percent for each year of age 190-difference; provided, after all adjustments the 191-option 1 percent cannot exceed ninety-four and 192-one quarter percent. Upon the retiree's death, 193-fifty percent of the retiree's reduced annuity 194-shall be paid to such beneficiary who was the 195-retiree's spouse on the annuity starting date or 196-as otherwise provided by subsection 5 of this 197-section. 198-Option 2. 199-A retiree's life annuity shall be reduced to a 200-certain percent of the annuity otherwise 201-payable. Such percent shall be eighty-one 202-percent adjusted as follows: if the retiree's 203-age on the annuity starting date is younger than 204-sixty-seven years, an increase of four-tenths of 205-one percent for each year the retiree's age is 206-younger than sixty-seven years; and if the 207- SB 1557 8-beneficiary's age is younger than the retiree's 208-age on the annuity starting date, a decrease of 209-five-tenths of one percent for each year of age 210-difference; and if the retiree's age is younger 211-than the beneficiary's age on the annuity 212-starting date, an increase of five-tenths of one 213-percent for each year of age difference; 214-provided, after all adjustments the option 2 215-percent cannot exceed eighty-seven and three 216-quarter percent. Upon the retiree's death one 217-hundred percent of the retiree's reduced annuity 218-shall be paid to such beneficiary who was the 219-retiree's spouse on the annuity starting date or 220-as otherwise provided by subsection 5 of this 221-section. 222-Option 3. 223-A retiree's life annuity shall be reduced to 224-ninety-three percent of the annuity otherwise 225-payable. If the retiree dies before having 226-received one hundred twenty monthly payments, 227-the reduced annuity shall be continued for the 228-remainder of the one hundred twenty-month period 229-to the retiree's designated beneficiary provided 230-that if there is no beneficiary surviving the 231-retiree, the present value of the remaining 232-annuity payments shall be paid as provided under 233-subsection 3 of section 104.620. If the 234-beneficiary survives the retiree but dies before 235-receiving the remainder of such one hundred 236-twenty monthly payments, the present value of 237-the remaining annuity payments shall be paid as 238-provided under subsection 3 of section 104.620. 239- SB 1557 9-Option 4. 240-A retiree's life annuity shall be reduced to 241-eighty-six percent of the annuity otherwise 242-payable. If the retiree dies before having 243-received one hundred eighty monthly payments, 244-the reduced annuity shall be continued for the 245-remainder of the one hundred eighty-month period 246-to the retiree's designated beneficiary provided 247-that if there is no beneficiary surviving the 248-retiree, the present value of the remaining 249-annuity payments shall be paid as provided under 250-subsection 3 of section 104.620. If the 251-beneficiary survives the retiree but dies before 252-receiving the remainder of such one hundred 253-eighty monthly payments, the present value of 254-the remaining annuity payments shall be paid as 255-provided under subsection 3 of section 104.620. 256- 11. The provisions of subsection 6 of section 104.1024 257-shall not apply to members covered by this section. 258- 12. Effective January 1, 2018, a member who is not a 259-statewide elected official or a member of the general 260-assembly shall be eligible for retirement under this 261-subsection subject to the following conditions: 262- (1) A member's normal retirement eligibility shall be 263-based on the attainment of at least age sixty-seven and the 264-completion of at least five years of credited service; or 265-the member's attainment of at least age fifty-five with the 266-sum of the member's age and credited service equaling at 267-least ninety; or in the case of a member who is serving as a 268-uniformed member of the highway patrol and subject to the 269-mandatory retirement provisions of section 104.081, such 270-member's attainment of at least age sixty or the attainment 271- SB 1557 10-of at least age fifty-five with five years of credited 272-service; 273- (2) A vested former member's normal retirement 274-eligibility shall be based on the attainment of at least age 275-sixty-seven and the completion of at least five years of 276-credited service; except that, a vested former member who 277-terminates employment after the attainment of normal 278-retirement eligibility as described in subdivision (1) of 279-this subsection shall be covered under such subdivision; 280- (3) A temporary annuity paid under subsection 4 of 281-section 104.1024 shall be payable if the member has attained 282-at least age fifty-five with the sum of the member's age and 283-credited service equaling at least ninety; or in the case of 284-a member who is serving as a uniformed member of the highway 285-patrol and subject to the mandatory retirement provisions of 286-section 104.081, the temporary annuity shall be payable if 287-the member has attained at least age sixty, or at least age 288-fifty-five with five years of credited service; 289- (4) A member, other than a member who is serving as a 290-uniformed member of the highway patrol and subject to the 291-mandatory retirement provisions of section 104.081, shall be 292-eligible for an early retirement annuity upon the attainment 293-of at least age sixty-two and the completion of at least 294-five years of credited service. A vested former member who 295-terminated employment prior to the attainment of early 296-retirement eligibility shall not be eligible for early 297-retirement; 298- (5) The normal and early retirement eligibility 299-requirements in this subsection shall apply for purposes of 300-administering section 104.1087; 301- (6) The survivor annuity payable under section 302-104.1030 for vested former members who terminated employment 303- SB 1557 11-prior to the attainment of early retirement eligibility and 304-who are covered by this section shall not be payable until 305-the deceased member would have reached his or her normal 306-retirement eligibility under this subsection; 307- (7) The annual cost-of-living adjustment payable under 308-section 104.1045 shall not commence until the second 309-anniversary of the annuity starting date for vested former 310-members who terminated employment prior to the attainment of 311-early retirement eligibility and who are covered by this 312-subsection; 313- (8) The unused sick leave credit granted under 314-subsection 2 of section 104.1021 shall not apply to members 315-covered by this subsection unless the member terminates 316-employment after reaching normal retirement eligibility or 317-becoming eligible for an early retirement annuity under this 318-subsection; and 319- (9) The minimum credited service requirements of five 320-years contained in sections 104.1018, 104.1030, 104.1036, 321-and 104.1051 shall be five years for members covered by this 322-subsection. 323-✓+ Section A. Sections 104.1091 and 105.915, RSMo, are+repealed and two new sections enacted in lieu thereof, to be+known as sections 104.1091 and 105.915, to read as follows:+ 104.1091. 1. Notwithstanding any provision of the+year 2000 plan to the contrary, each person who first+becomes an employee on or after January 1, 2011, shall be a+member of the year 2000 plan subject to the provisions of+this section.+ 2. A member's normal retirement eligibility shall be+as follows:+ (1) The member's attainment of at least age sixty-+seven and the completion of at least ten years of credited+service; or the member's attainment of at least age fifty-+five with the sum of the member's age and credited service+equaling at least ninety; or, in the case of a member who is+serving as a uniformed member of the highway patrol and+subject to the mandatory retirement provisions of section+104.081, such member's attainment of at least age sixty or+the attainment of at least age fifty-five with ten years of+credited service;+ (2) For members of the general assembly, the member's+attainment of at least age sixty-two and the completion of+at least three full biennial assemblies; or the member's++ 2+attainment of at least age fifty-five with the sum of the+member's age and credited service equaling at least ninety;+ (3) For statewide elected officials, the official's+attainment of at least age sixty-two and the completion of+at least four years of credited service; or the official's+attainment of at least age fifty-five with the sum of the+official's age and credited service equaling at least ninety.+ 3. A vested former member's normal retirement+eligibility shall be based on the attainment of at least age+sixty-seven and the completion of at least ten years of+credited service.+ 4. A temporary annuity paid pursuant to subsection 4+of section 104.1024 shall be payable if the member has+attained at least age fifty-five with the sum of the+member's age and credited service equaling at least ninety;+or in the case of a member who is serving as a uniformed+member of the highway patrol and subject to the mandatory+retirement provisions of section 104.081, the temporary+annuity shall be payable if the member has attained at least+age sixty, or at least age fifty-five with ten years of+credited service.+ 5. A member, other than a member who is serving as a+uniformed member of the highway patrol and subject to the+mandatory retirement provisions of section 104.081, shall be+eligible for an early retirement annuity upon the attainment+of at least age sixty-two and the completion of at least ten+years of credited service. A vested former member who+terminated employment prior to the attainment of early+retirement eligibility shall not be eligible for early+retirement.+ 6. The provisions of subsection 6 of section 104.1021+and section 104.344 as applied pursuant to subsection 7 of++ 3+section 104.1021 and section 104.1090 shall not apply to+members covered by this section.+ 7. The minimum credited service requirements of five+years contained in sections 104.1018, 104.1030, 104.1036,+and 104.1051 shall be ten years for members covered by this+section. The normal and early retirement eligibility+requirements in this section shall apply for purposes of+administering section 104.1087.+ 8. A member shall be required to contribute four+percent of the member's pay to the retirement system, which+shall stand to the member's credit in his or her individual+account with the system, together with investment credits+thereon, for purposes of funding retirement benefits payable+under the year 2000 plan, subject to the following+provisions:+ (1) The state of Missouri employer, pursuant to the+provisions of 26 U.S.C. Section 414(h)(2), shall pick up and+pay the contributions that would otherwise be payable by the+member under this section. The contributions so picked up+shall be treated as employer contributions for purposes of+determining the member's pay that is includable in the+member's gross income for federal income tax purposes;+ (2) Member contributions picked up by the employer+shall be paid from the same source of funds used for the+payment of pay to a member. A deduction shall be made from+each member's pay equal to the amount of the member's+contributions picked up by the employer. This deduction,+however, shall not reduce the member's pay for purposes of+computing benefits under the retirement system pursuant to+this chapter;+ (3) Member contributions so picked up shall be+credited to a separate account within the member's+individual account so that the amounts contributed pursuant++ 4+to this section may be distinguished from the amounts+contributed on an after-tax basis;+ (4) The contributions, although designated as employee+contributions, shall be paid by the employer in lieu of the+contributions by the member. The member shall not have the+option of choosing to receive the contributed amounts+directly instead of having them paid by the employer to the+retirement system;+ (5) Interest shall be credited annually on June+thirtieth based on the value in the account as of July first+of the immediately preceding year at a rate of four+percent. Effective June 30, 2014, and each June thirtieth+thereafter, the interest crediting rate shall be equal to+the investment rate that is published by the United States+Department of the Treasury, or its successor agency, for+fifty-two week treasury bills for the relevant auction that+is nearest to the preceding July first, or a successor+treasury bill investment rate as approved by the board if+the fifty-two week treasury bill is no longer issued.+Interest credits shall cease upon termination of employment+if the member is not a vested former member. Otherwise,+interest credits shall cease upon retirement or death;+ (6) (a) A vested former member or a former member who+is not vested may request a refund of his or her+contributions and interest credited thereon. If such member+is married at the time of such request, such request shall+not be processed without consent from the spouse. Such+member is not eligible to request a refund if such member's+retirement benefit is subject to a division of benefit order+pursuant to section 104.1051. [Such refund]+ (b) For a former member who is not vested, the system+shall refund the former member's contributions and interest+credited thereon if the total amount thereof is one thousand++ 5+dollars or less, or such other amount as may be permitted+under applicable federal law.+ a. The system and the treasurer are authorized to+share information consistent with section 447.560 for the+purpose of the system's refunding the former member's+contributions and credited interest directly to the former+member or the former member's survivor or beneficiary.+ b. The availability of the shared information for+public inspection shall be consistent with section 447.560.+ c. The system's procedures in effect from time to time+to locate such former member, survivor, or beneficiary shall+be considered reasonable and necessary diligence consistent+with good business practice and in compliance with federal+law.+ (c) Contribution refunds shall be paid by the system+within an administratively reasonable period, but no sooner+than ninety days from the date of termination of+employment. The amount refunded shall include all employee+contributions made to any retirement plan administered by+the system and interest credited thereon.+ (d) A vested former member may not request a refund+after such member becomes eligible for normal retirement.+ (e) A vested former member or a former member who is+not vested who receives a refund shall forfeit all the+member's credited service and future rights to receive+benefits from the system and shall not be eligible to+receive any disability benefits; provided that any member or+vested former member receiving disability benefits shall not+be eligible for a refund. If such member subsequently+becomes an employee and works continuously for at least one+year, the credited service previously forfeited shall be+restored if the member returns to the system the amount++ 6+previously refunded plus interest at a rate established by+the board;+ (7) The beneficiary of any member who made+contributions shall receive a refund upon the member's death+equal to the amount, if any, of such contributions and+interest credited thereon less any retirement benefits+received by the member unless an annuity is payable to a+survivor or beneficiary as a result of the member's death.+In that event, the beneficiary of the survivor or+beneficiary who received the annuity shall receive a refund+upon the survivor's or beneficiary's death equal to the+amount, if any, of the member's contributions less any+annuity amounts received by the member and the survivor or+beneficiary.+ 9. The employee contribution rate, the benefits+provided under the year 2000 plan to members covered under+this section, and any other provision of the year 2000 plan+with regard to members covered under this section may be+altered, amended, increased, decreased, or repealed, but+only with respect to services rendered by the member after+the effective date of such alteration, amendment, increase,+decrease, or repeal, or, with respect to interest credits,+for periods of time after the effective date of such+alteration, amendment, increase, decrease, or repeal.+ 10. For purposes of members covered by this section,+the options under section 104.1027 shall be as follows:+Option 1.+ A retiree's life annuity shall be reduced to a certain+percent of the annuity otherwise payable. Such percent+shall be eighty-eight and one half percent adjusted as+follows: if the retiree's age on the annuity starting date+is younger than sixty-seven years, an increase of three-+tenths of one percent for each year the retiree's age is++ 7+younger than age sixty-seven years; and if the beneficiary's+age is younger than the retiree's age on the annuity+starting date, a decrease of three-tenths of one percent for+each year of age difference; and if the retiree's age is+younger than the beneficiary's age on the annuity starting+date, an increase of three-tenths of one percent for each+year of age difference; provided, after all adjustments the+option 1 percent cannot exceed ninety-four and one quarter+percent. Upon the retiree's death, fifty percent of the+retiree's reduced annuity shall be paid to such beneficiary+who was the retiree's spouse on the annuity starting date or+as otherwise provided by subsection 5 of this section.+Option 2.+ A retiree's life annuity shall be reduced to a certain+percent of the annuity otherwise payable. Such percent+shall be eighty-one percent adjusted as follows: if the+retiree's age on the annuity starting date is younger than+sixty-seven years, an increase of four-tenths of one percent+for each year the retiree's age is younger than sixty-seven+years; and if the beneficiary's age is younger than the+retiree's age on the annuity starting date, a decrease of+five-tenths of one percent for each year of age difference;+and if the retiree's age is younger than the beneficiary's+age on the annuity starting date, an increase of five-tenths+of one percent for each year of age difference; provided,+after all adjustments the option 2 percent cannot exceed+eighty-seven and three quarter percent. Upon the retiree's+death one hundred percent of the retiree's reduced annuity+shall be paid to such beneficiary who was the retiree's+spouse on the annuity starting date or as otherwise provided+by subsection 5 of this section.+Option 3.++ 8+ A retiree's life annuity shall be reduced to ninety-+three percent of the annuity otherwise payable. If the+retiree dies before having received one hundred twenty+monthly payments, the reduced annuity shall be continued for+the remainder of the one hundred twenty-month period to the+retiree's designated beneficiary provided that if there is+no beneficiary surviving the retiree, the present value of+the remaining annuity payments shall be paid as provided+under subsection 3 of section 104.620. If the beneficiary+survives the retiree but dies before receiving the remainder+of such one hundred twenty monthly payments, the present+value of the remaining annuity payments shall be paid as+provided under subsection 3 of section 104.620.+Option 4.+ A retiree's life annuity shall be reduced to eighty-six+percent of the annuity otherwise payable. If the retiree+dies before having received one hundred eighty monthly+payments, the reduced annuity shall be continued for the+remainder of the one hundred eighty-month period to the+retiree's designated beneficiary provided that if there is+no beneficiary surviving the retiree, the present value of+the remaining annuity payments shall be paid as provided+under subsection 3 of section 104.620. If the beneficiary+survives the retiree but dies before receiving the remainder+of such one hundred eighty monthly payments, the present+value of the remaining annuity payments shall be paid as+provided under subsection 3 of section 104.620.+ 11. The provisions of subsection 6 of section 104.1024+shall not apply to members covered by this section.+ 12. Effective January 1, 2018, a member who is not a+statewide elected official or a member of the general+assembly shall be eligible for retirement under this+subsection subject to the following conditions:++ 9+ (1) A member's normal retirement eligibility shall be+based on the attainment of at least age sixty-seven and the+completion of at least five years of credited service; or+the member's attainment of at least age fifty-five with the+sum of the member's age and credited service equaling at+least ninety; or in the case of a member who is serving as a+uniformed member of the highway patrol and subject to the+mandatory retirement provisions of section 104.081, such+member's attainment of at least age sixty or the attainment+of at least age fifty-five with five years of credited+service;+ (2) A vested former member's normal retirement+eligibility shall be based on the attainment of at least age+sixty-seven and the completion of at least five years of+credited service; except that, a vested former member who+terminates employment after the attainment of normal+retirement eligibility as described in subdivision (1) of+this subsection shall be covered under such subdivision;+ (3) A temporary annuity paid under subsection 4 of+section 104.1024 shall be payable if the member has attained+at least age fifty-five with the sum of the member's age and+credited service equaling at least ninety; or in the case of+a member who is serving as a uniformed member of the highway+patrol and subject to the mandatory retirement provisions of+section 104.081, the temporary annuity shall be payable if+the member has attained at least age sixty, or at least age+fifty-five with five years of credited service;+ (4) A member, other than a member who is serving as a+uniformed member of the highway patrol and subject to the+mandatory retirement provisions of section 104.081, shall be+eligible for an early retirement annuity upon the attainment+of at least age sixty-two and the completion of at least+five years of credited service. A vested former member who++ 10+terminated employment prior to the attainment of early+retirement eligibility shall not be eligible for early+retirement;+ (5) The normal and early retirement eligibility+requirements in this subsection shall apply for purposes of+administering section 104.1087;+ (6) The survivor annuity payable under section+104.1030 for vested former members who terminated employment+prior to the attainment of early retirement eligibility and+who are covered by this section shall not be payable until+the deceased member would have reached his or her normal+retirement eligibility under this subsection;+ (7) The annual cost-of-living adjustment payable under+section 104.1045 shall not commence until the second+anniversary of the annuity starting date for vested former+members who terminated employment prior to the attainment of+early retirement eligibility and who are covered by this+subsection;+ (8) The unused sick leave credit granted under+subsection 2 of section 104.1021 shall not apply to members+covered by this subsection unless the member terminates+employment after reaching normal retirement eligibility or+becoming eligible for an early retirement annuity under this+subsection; and+ (9) The minimum credited service requirements of five+years contained in sections 104.1018, 104.1030, 104.1036,+and 104.1051 shall be five years for members covered by this+subsection.+ 105.915. 1. The board of trustees of the Missouri+state employees' retirement system shall administer the+deferred compensation fund for the employees of the state of+Missouri that was previously administered by the deferred+compensation commission, as established in section 105.910,++ 11+prior to August 28, 2007. The board shall be vested with+the same powers that it has under chapter 104 to enable it+and its officers, employees, and agents to administer the+fund under sections 105.900 to 105.927.+ 2. Except as provided in this subsection,+participation in such plan shall be by a specific written+agreement between state employees and the state, which shall+provide for the deferral of such amounts of compensation as+requested by the employee subject to any limitations imposed+under federal law. Participating employees must authorize+that such deferrals be made from their wages for the purpose+of participation in such program. An election to defer+compensation shall be made before the beginning of the+[month in] payroll period for which the compensation is+paid. Contributions shall be made for payroll periods+[occurring on or after the first day of the month] beginning+after the election is made.+ 3. Each employee eligible to participate in the plan+hired or rehired on or after July 1, 2012, shall be enrolled+in the plan automatically and his or her employer shall, in+accordance with the plan document, withhold and contribute+to the plan an amount equal to one percent of eligible+compensation received on and after the date of hire, unless+the employee elects not to participate in the plan within+the first thirty days of employment, and in that event, any+amounts contributed and earnings thereon will be refunded by+the plan to the employee pursuant to the procedure contained+in the plan documents. Employees who are employed by a+state college or university shall not be automatically+enrolled but may elect to participate in the plan and make+contributions in accordance with the terms of the plan.+ 4. Effective July 1, 2027:++ 12+ (1) The plan document shall provide for automatic+increases in the deferral amount contributed by a+participating employee commencing with the first payroll+period following the employee's one-year anniversary date of+employment or reemployment, whichever is later. The+deferral amount shall increase annually by one-half of one+percent until the amount reaches ten percent of the+employee's eligible compensation or the limitation imposed+under federal law, whichever is less.+ (2) Each employee eligible to participate in the plan+who was last hired or rehired on or after July 1, 2012, and+before July 1, 2027, who was automatically enrolled in the+plan pursuant to subsection 3 of this section, and whose+contribution is equal to one percent of eligible+compensation on the effective date, shall be enrolled in+such automatic increases.+ (3) Each employee eligible to participate in the plan+who was last hired or rehired on or after July 1, 2027,+shall be enrolled in such automatic increases.+ 5. Employees who are enrolled automatically or whose+deferral amounts are automatically increased may elect to+change the contribution rate in accordance with the terms of+the plan. Employees who elect not to participate in the+plan may at a later date elect to participate in the plan+and make contributions in accordance with the terms of the+plan. All assets and income of such fund shall be held in+trust by the board for the exclusive benefit of participants+and their beneficiaries. Assets of such trust, and the+trust established pursuant to section 105.927, may be pooled+solely for investment management purposes with assets of the+trust established under section 104.320.+ [3.] 6. Notwithstanding any other provision of+sections 105.900 to 105.927, funds held for the state by the++ 13+board in accordance with written deferred compensation+agreements between the state and participating employees may+be invested in such investments as are deemed appropriate by+the board. All administrative costs of the program+described in this section, including staffing and overhead+expenses, may be paid out of assets of the fund, which may+reduce the amount due participants in the fund. Such+investments shall not be construed to be a prohibited use of+the general assets of the state.+ [4.] 7. Investments offered under the deferred+compensation fund for the employees of the state of Missouri+shall be made available at the discretion of the board.+ [5.] 8. The board and employees of the Missouri state+employees' retirement system shall be immune from suit and+shall not be subject to any claim or liability associated+with any administrative actions or decisions made by the+commission with regard to the deferred compensation program+prior to the transfer made to the board under section+105.910.+ [6.] 9. The board and employees of the system shall+not be liable for the investment decisions made or not made+by participating employees as long as the board acts with+the same skill, prudence, and diligence in the selection and+monitoring of providers of investment products, education,+advice, or any default investment option, under the+circumstances then prevailing that a prudent person acting+in a similar capacity and familiar with those matters would+use in the conduct of a similar enterprise with similar aims.+ [7.] 10. The system shall be immune from suit and+shall not be subject to any claim or liability associated+with the administration of the deferred compensation fund by+the board and employees of the system.++ 14+ [8.] 11. Beginning on or after September 1, 2011, if a+participant under the deferred compensation plan or the plan+established under section 105.927 is married on the date of+his or her death, the participant's surviving spouse shall+be automatically designated as the primary beneficiary under+both plans, unless the surviving spouse consented in+writing, witnessed by a notary public, to allow the+participant to designate a nonspouse beneficiary. As used+in this subsection, "surviving spouse" means the spouse as+defined pursuant to section 104.012 to whom the participant+is lawfully married on the date of death of the participant,+provided that a former spouse shall be treated as the+surviving spouse of the participant to the extent provided+under a judgment, decree, or order that relates to child+support, alimony payments, or marital property rights made+under Missouri domestic relations law that creates or+recognizes the existence of such former spouse's right to+receive all or a portion expressed as a stated dollar amount+or specific percentage stated in integers of the benefits+payable from such plan upon the death of the participant.+This subsection shall not apply to beneficiary designations+made prior to September 1, 2011.+ [9.] 12. The board may adopt and amend plan documents+to change the terms and conditions of the deferred+compensation plan and the plan established under section+105.927 that are consistent with federal law.
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