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SECOND REGULAR SESSION
HOUSE BILL NO. 2144
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE BROMLEY .
4542H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 169.070, RSMo, and to enact in lieu thereof one new section relating to the
public school retirement system one-time death benefit payment.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 169.070, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 169.070, to read as follows:
169.070. 1. The retirement allowance of a member whose age at retirement is sixty
2 years or more and whose creditable service is five years or more, or whose sum of age and
3 creditable service equals eighty years or more, or who has attained age fifty-five and whose
4 creditable service is twenty-five years or more or whose creditable service is thirty years or
5 more regardless of age, may be the sum of the following items, not to exceed one hundred
6 percent of the member's final average salary:
7 (1) T wo and five-tenths percent of the member's final average salary for each year of
8 membership service;
9 (2) Six-tenths of the amount payable for a year of membership service for each year
10 of prior service not exceeding thirty years.
11
12 In lieu of the retirement allowance otherwise provided in subdivisions (1) and (2) of this
13 subsection, a member may elect to receive a retirement allowance of:
14 (3) T wo and four -tenths percent of the member's final average salary for each year of
15 membership service, if the member's creditable service is twenty-nine years or more but less
16 than thirty years, and the member has not attained age fifty-five;
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
17 (4) T wo and thirty-five-hundredths percent of the member's final average salary for
18 each year of membership service, if the member's creditable service is twenty-eight years or
19 more but less than twenty-nine years, and the member has not attained age fifty-five;
20 (5) T wo and three-tenths percent of the member's final average salary for each year of
21 membership service, if the member's creditable service is twenty-seven years or more but less
22 than twenty-eight years, and the member has not attained age fifty-five;
23 (6) T wo and twenty-five-hundredths percent of the member's final average salary for
24 each year of membership service, if the member's creditable service is twenty-six years or
25 more but less than twenty-seven years, and the member has not attained age fifty-five;
26 (7) T wo and two-tenths percent of the member's final average salary for each year of
27 membership service, if the member's creditable service is twenty-five years or more but less
28 than twenty-six years, and the member has not attained age fifty-five;
29 (8) T wo and fifty-five hundredths percent of the member's final average salary for
30 each year of membership service, if the member's creditable service is thirty-two years or
31 more regardless of age.
32 2. In lieu of the retirement allowance provided in subsection 1 of this section, a
33 member whose age is sixty years or more on September 28, 1975, may elect to have the
34 member's retirement allowance calculated as a sum of the following items:
35 (1) Sixty cents plus one and five-tenths percent of the member's final average salary
36 for each year of membership service;
37 (2) Six-tenths of the amount payable for a year of membership service for each year
38 of prior service not exceeding thirty years;
39 (3) Three-fourths of one percent of the sum of subdivisions (1) and (2) of this
40 subsection for each month of attained age in excess of sixty years but not in excess of age
41 sixty-five.
42 3. (1) In lieu of the retirement allowance provided either in subsection 1 or 2 of this
43 section, collectively called "option 1", a member whose creditable service is twenty-five years
44 or more or who has attained the age of fifty-five with five or more years of creditable service
45 may elect in the member's application for retirement to receive the actuarial equivalent of the
46 member's retirement allowance in reduced monthly payments for life during retirement with
47 the provision that:
48 Option 2.
49 Upon the member's death the reduced retirement allowance shall be continued
50 throughout the life of and paid to such person as has an insurable interest in the life of the
51 member as the member shall have nominated in the member's election of the option, and
52 provided further that if the person so nominated dies before the retired member , the retirement
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53 allowance will be increased to the amount the retired member would be receiving had the
54 retired member elected option 1; or
55 Option 3.
56 Upon the death of the member three-fourths of the reduced retirement allowance shall
57 be continued throughout the life of and paid to such person as has an insurable interest in the
58 life of the member and as the member shall have nominated in an election of the option, and
59 provided further that if the person so nominated dies before the retired member , the retirement
60 allowance will be increased to the amount the retired member would be receiving had the
61 member elected option 1; or
62 Option 4.
63 Upon the death of the member one-half of the reduced retirement allowance shall be
64 continued throughout the life of, and paid to, such person as has an insurable interest in the
65 life of the member and as the member shall have nominated in an election of the option, and
66 provided further that if the person so nominated dies before the retired member , the retirement
67 allowance shall be increased to the amount the retired member would be receiving had the
68 member elected option 1; or
69 Option 5.
70 Upon the death of the member prior to the member having received one hundred
71 twenty monthly payments of the member's reduced allowance, the remainder of the one
72 hundred twenty monthly payments of the reduced allowance shall be paid to such beneficiary
73 as the member shall have nominated in the member's election of the option or in a subsequent
74 nomination. If there is no beneficiary so nominated who survives the member for the
75 remainder of the one hundred twenty monthly payments, the total of the remainder of such
76 one hundred twenty monthly payments shall be paid to the surviving spouse, surviving
77 children in equal shares, surviving parents in equal shares, or estate of the last person, in that
78 order of precedence, to receive a monthly allowance in a lump sum payment. If the total of
79 the one hundred twenty payments paid to the retired individual and the beneficiary of the
80 retired individual is less than the total of the member's accumulated contributions, the
81 dif ference shall be paid to the beneficiary in a lump sum; or
82 Option 6.
83 Upon the death of the member prior to the member having received sixty monthly
84 payments of the member's reduced allowance, the remainder of the sixty monthly payments
85 of the reduced allowance shall be paid to such beneficiary as the member shall have
86 nominated in the member's election of the option or in a subsequent nomination. If there is no
87 beneficiary so nominated who survives the member for the remainder of the sixty monthly
88 payments, the total of the remainder of such sixty monthly payments shall be paid to the
89 surviving spouse, surviving children in equal shares, surviving parents in equal shares, or
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90 estate of the last person, in that order of precedence, to receive a monthly allowance in a lump
91 sum payment. If the total of the sixty payments paid to the retired individual and the
92 beneficiary of the retired individual is less than the total of the member's accumulated
93 contributions, the dif ference shall be paid to the beneficiary in a lump sum.
94 (2) The election of an option may be made only in the application for retirement and
95 such application must be filed prior to the date on which the retirement of the member is to be
96 ef fective. If either the member or the person nominated to receive the survivorship payments
97 dies before the ef fective date of retirement, the option shall not be ef fective, provided that:
98 (a) If the member or a person retired on disability retirement dies after acquiring
99 twenty-five or more years of creditable service or after attaining the age of fifty-five years and
100 acquiring five or more years of creditable service and before retirement, except retirement
101 with disability benefits, and the person named by the member as the member's beneficiary has
102 an insurable interest in the life of the deceased member , the designated beneficiary may elect
103 to receive either survivorship benefits under option 2 or a payment of the accumulated
104 contributions of the member . If survivorship benefits under option 2 are elected and the
105 member at the time of death would have been eligible to receive an actuarial equivalent of the
106 member's retirement allowance, the designated beneficiary may further elect to defer the
107 option 2 payments until the date the member would have been eligible to receive the
108 retirement allowance provided in subsection 1 or 2 of this section;
109 (b) If the member or a person retired on disability retirement dies before attaining age
110 fifty-five but after acquiring five but fewer than twenty-five years of creditable service, and
111 the person named as the member's beneficiary has an insurable interest in the life of the
112 deceased member , the designated beneficiary may elect to receive either a payment of the
113 member's accumulated contributions, or survivorship benefits under option 2 to begin on the
114 date the member would first have been eligible to receive an actuarial equivalent of the
115 member's retirement allowance, or to begin on the date the member would first have been
116 eligible to receive the retirement allowance provided in subsection 1 or 2 of this section.
117 4. If the total of the retirement or disability allowance paid to an individual before the
118 death of the individual is less than the accumulated contributions at the time of retirement, the
119 dif ference shall be paid to the beneficiary of the individual, or to the surviving spouse,
120 surviving children in equal shares, surviving parents in equal shares, or estate of the
121 individual in that order of precedence. If an optional benefit as provided in option 2, 3 or 4 in
122 subsection 3 of this section had been elected, and the beneficiary dies after receiving the
123 optional benefit, and if the total retirement allowance paid to the retired individual and the
124 beneficiary of the retired individual is less than the total of the contributions, the dif ference
125 shall be paid to the surviving spouse, surviving children in equal shares, surviving parents in
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126 equal shares, or estate of the beneficiary , in that order of precedence, unless the retired
127 individual designates a dif ferent recipient with the board at or after retirement.
128 5. If a member dies and his or her financial institution is unable to accept the final
129 payment or payments due to the member , the final payment or payments shall be paid to the
130 beneficiary of the member or , if there is no beneficiary , to the surviving spouse, surviving
131 children in equal shares, surviving parents in equal shares, or estate of the member , in that
132 order of precedence, unless otherwise stated. If the beneficiary of a deceased member dies
133 and his or her financial institution is unable to accept the final payment or payments, the final
134 payment or payments shall be paid to the surviving spouse, surviving children in equal shares,
135 surviving parents in equal shares, or estate of the member , in that order of precedence, unless
136 otherwise stated.
137 6. If a member dies before receiving a retirement allowance, the member's
138 accumulated contributions at the time of the death of the member shall be paid to the
139 beneficiary of the member or , if there is no beneficiary , to the surviving spouse, surviving
140 children in equal shares, surviving parents in equal shares, or to the estate of the member , in
141 that order of precedence; except that, no such payment shall be made if the beneficiary elects
142 option 2 in subsection 3 of this section, unless the beneficiary dies before having received
143 benefits pursuant to that subsection equal to the accumulated contributions of the member , in
144 which case the amount of accumulated contributions in excess of the total benefits paid
145 pursuant to that subsection shall be paid to the surviving spouse, surviving children in equal
146 shares, surviving parents in equal shares, or estate of the beneficiary , in that order of
147 precedence.
148 7. If a member ceases to be a public school employee as herein defined and certifies
149 to the board of trustees that such cessation is permanent, or if the membership of the person is
150 otherwise terminated, the member shall be paid the member's accumulated contributions with
151 interest.
152 8. Notwithstanding any provisions of sections 169.010 to 169.141 to the contrary , if a
153 member ceases to be a public school employee after acquiring five or more years of
154 membership service in Missouri, the member may at the option of the member leave the
155 member's contributions with the retirement system and claim a retirement allowance any time
156 after reaching the minimum age for voluntary retirement. When the member's claim is
157 presented to the board, the member shall be granted an allowance as provided in sections
158 169.010 to 169.141 on the basis of the member's age, years of service, and the provisions of
159 the law in effect at the time the member requests the member's retirement to become
160 ef fective.
161 9. The retirement allowance of a member retired because of disability shall be nine-
162 tenths of the allowance to which the member's creditable service would entitle the member if
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163 the member's age were sixty , or fifty percent of one-twelfth of the annual salary rate used in
164 determining the member's contributions during the last school year for which the member
165 received a year of creditable service immediately prior to the member's disability , whichever
166 is greater , except that no such allowance shall exceed the retirement allowance to which the
167 member would have been entitled upon retirement at age sixty if the member had continued to
168 teach from the date of disability until age sixty at the same salary rate.
169 10. Notwithstanding any provisions of sections 169.010 to 169.141 to the contrary ,
170 from October 13, 1961, the contribution rate pursuant to sections 169.010 to 169.141 shall be
171 multiplied by the factor of two-thirds for any member of the system for whom federal Old
172 Age and Survivors Insurance tax is paid from state or local tax funds on account of the
173 member's employment entitling the person to membership in the system. The monetary
174 benefits for a member who elected not to exercise an option to pay into the system a
175 retroactive contribution of four percent on that part of the member's annual salary rate which
176 was in excess of four thousand eight hundred dollars but not in excess of eight thousand four
177 hundred dollars for each year of employment in a position covered by this system between
178 July 1, 1957, and July 1, 1961, as provided in subsection 10 of this section as it appears in
179 RSMo, 1969, shall be the sum of:
180 (1) For years of service prior to July 1, 1946, six-tenths of the full amount payable for
181 years of membership service;
182 (2) For years of membership service after July 1, 1946, in which the full contribution
183 rate was paid, full benefits under the formula in ef fect at the time of the member's retirement;
184 (3) For years of membership service after July 1, 1957, and prior to July 1, 1961, the
185 benefits provided in this section as it appears in RSMo, 1959; except that if the member has at
186 least thirty years of creditable service at retirement the member shall receive the benefit
187 payable pursuant to that section as though the member's age were sixty-five at retirement;
188 (4) For years of membership service after July 1, 1961, in which the two-thirds
189 contribution rate was paid, two-thirds of the benefits under the formula in effect at the time of
190 the member's retirement.
191 1 1. The monetary benefits for each other member for whom federal Old Age and
192 Survivors Insurance tax is or was paid at any time from state or local funds on account of the
193 member's employment entitling the member to membership in the system shall be the sum of:
194 (1) For years of service prior to July 1, 1946, six-tenths of the full amount payable for
195 years of membership service;
196 (2) For years of membership service after July 1, 1946, in which the full contribution
197 rate was paid, full benefits under the formula in ef fect at the time of the member's retirement;
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198 (3) For years of membership service after July 1, 1957, in which the two-thirds
199 contribution rate was paid, two-thirds of the benefits under the formula in effect at the time of
200 the member's retirement.
201 12. Any retired member of the system who was retired prior to September 1, 1972, or
202 beneficiary receiving payments under option 1 or option 2 of subsection 3 of this section, as
203 such option existed prior to September 1, 1972, will be eligible to receive an increase in the
204 retirement allowance of the member of two percent for each year , or major fraction of more
205 than one-half of a year , which the retired member has been retired prior to July 1, 1975. This
206 increased amount shall be payable commencing with January , 1976, and shall thereafter be
207 referred to as the member's retirement allowance. The increase provided for in this
208 subsection shall not affect the retired member's eligibility for compensation provided for in
209 section 169.580 or 169.585, nor shall the amount being paid pursuant to these sections be
210 reduced because of any increases provided for in this section.
211 13. If the board of trustees determines that the cost of living, as measured by
212 generally accepted standards, increases two percent or more in the preceding fiscal year , the
213 board shall increase the retirement allowances which the retired members or beneficiaries are
214 receiving by two percent of the amount being received by the retired member or the
215 beneficiary at the time the annual increase is granted by the board with the provision that the
216 increases provided for in this subsection shall not become ef fective until the fourth January
217 first following the member's retirement or January 1, 1977, whichever later occurs, or in the
218 case of any member retiring on or after July 1, 2000, the increase provided for in this
219 subsection shall not become ef fective until the third January first following the member's
220 retirement, or in the case of any member retiring on or after July 1, 2001, the increase
221 provided for in this subsection shall not become ef fective until the second January first
222 following the member's retirement. Commencing with January 1, 1992, if the board of
223 trustees determines that the cost of living has increased five percent or more in the preceding
224 fiscal year , the board shall increase the retirement allowances by five percent. The total of the
225 increases granted to a retired member or the beneficiary after December 31, 1976, may not
226 exceed eighty percent of the retirement allowance established at retirement or as previously
227 adjusted by other subsections. If the cost of living increases less than five percent, the board
228 of trustees may determine the percentage of increase to be made in retirement allowances, but
229 at no time can the increase exceed five percent per year . If the cost of living decreases in a
230 fiscal year , there will be no increase in allowances for retired members on the following
231 January first.
232 14. The board of trustees may reduce the amounts which have been granted as
233 increases to a member pursuant to subsection 13 of this section if the cost of living, as
234 determined by the board and as measured by generally accepted standards, is less than the
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235 cost of living was at the time of the first increase granted to the member; except that, the
236 reductions shall not exceed the amount of increases which have been made to the member's
237 allowance after December 31, 1976.
238 15. Any application for retirement shall include a sworn statement by the member
239 certifying that the spouse of the member at the time the application was completed was aware
240 of the application and the plan of retirement elected in the application.
241 16. Notwithstanding any other provision of law , any person retired prior to September
242 28, 1983, who is receiving a reduced retirement allowance under option 1 or option 2 of
243 subsection 3 of this section, as such option existed prior to September 28, 1983, and whose
244 beneficiary nominated to receive continued retirement allowance payments under the elected
245 option dies or has died, shall upon application to the board of trustees have his or her
246 retirement allowance increased to the amount he or she would have been receiving had the
247 option not been elected, actuarially adjusted to recognize any excessive benefits which would
248 have been paid to him or her up to the time of application.
249 17. Benefits paid pursuant to the provisions of the public school retirement system of
250 Missouri shall not exceed the limitations of Section 415 of T itle 26 of the United States Code
251 except as provided pursuant to this subsection. Notwithstanding any other law to the
252 contrary , the board of trustees may establish a benefit plan pursuant to Section 415(m) of T itle
253 26 of the United States Code. Such plan shall be created solely for the purpose described in
254 Section 415(m)(3)(A) of T itle 26 of the United States Code. The board of trustees may
255 promulgate regulations necessary to implement the provisions of this subsection and to create
256 and administer such benefit plan.
257 18. Notwithstanding any other provision of law to the contrary , any person retired
258 before, on, or after May 26, 1994, shall be made, constituted, appointed and employed by the
259 board as a special consultant on the matters of education, retirement and aging, and upon
260 request shall give written or oral opinions to the board in response to such requests. As
261 compensation for such duties the person shall receive an amount based on the person's years
262 of service so that the total amount received pursuant to sections 169.010 to 169.141 shall be at
263 least the minimum amounts specified in subdivisions (1) to (4) of this subsection. In
264 determining the minimum amount to be received, the amounts in subdivisions (3) and (4) of
265 this subsection shall be adjusted in accordance with the actuarial adjustment, if any , that was
266 applied to the person's retirement allowance. In determining the minimum amount to be
267 received, beginning September 1, 1996, the amounts in subdivisions (1) and (2) of this
268 subsection shall be adjusted in accordance with the actuarial adjustment, if any , that was
269 applied to the person's retirement allowance due to election of an optional form of retirement
270 having a continued monthly payment after the person's death. Notwithstanding any other
271 provision of law to the contrary , no person retired before, on, or after May 26, 1994, and no
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272 beneficiary of such a person, shall receive a retirement benefit pursuant to sections 169.010 to
273 169.141 based on the person's years of service less than the following amounts:
274 (1) Thirty or more years of service, one thousand two hundred dollars;
275 (2) At least twenty-five years but less than thirty years, one thousand dollars;
276 (3) At least twenty years but less than twenty-five years, eight hundred dollars;
277 (4) At least fifteen years but less than twenty years, six hundred dollars.
278 19. Notwithstanding any other provisions of law to the contrary , any person retired
279 prior to May 26, 1994, and any designated beneficiary of such a retired member who was
280 deceased prior to July 1, 1999, shall be made, constituted, appointed and employed by the
281 board as a special consultant on the matters of education, retirement or aging and upon
282 request shall give written or oral opinions to the board in response to such requests.
283 Beginning September 1, 1996, as compensation for such service, the member shall have
284 added, pursuant to this subsection, to the member's monthly annuity as provided by this
285 section a dollar amount equal to the lesser of sixty dollars or the product of two dollars
286 multiplied by the member's number of years of creditable service. Beginning September 1,
287 1999, the designated beneficiary of the deceased member shall as compensation for such
288 service have added, pursuant to this subsection, to the monthly annuity as provided by this
289 section a dollar amount equal to the lesser of sixty dollars or the product of two dollars
290 multiplied by the member's number of years of creditable service. The total compensation
291 provided by this section including the compensation provided by this subsection shall be used
292 in calculating any future cost-of-living adjustments provided by subsection 13 of this section.
293 20. Any member who has retired prior to July 1, 1998, and the designated beneficiary
294 of a deceased retired member shall be made, constituted, appointed and employed by the
295 board as a special consultant on the matters of education, retirement and aging, and upon
296 request shall give written or oral opinions to the board in response to such requests. As
297 compensation for such duties the person shall receive a payment equivalent to eight and
298 seven-tenths percent of the previous month's benefit, which shall be added to the member's or
299 beneficiary's monthly annuity and which shall not be subject to the provisions of subsections
300 13 and 14 of this section for the purposes of the limit on the total amount of increases which
301 may be received.
302 21. Any member who has retired shall be made, constituted, appointed and employed
303 by the board as a special consultant on the matters of education, retirement and aging, and
304 upon request shall give written or oral opinions to the board in response to such request. As
305 compensation for such duties, the beneficiary of the retired member , or , if there is no
306 beneficiary , the surviving spouse, surviving children in equal shares, surviving parents in
307 equal shares, or estate of the retired member , in that order of precedence, shall receive as a
308 part of compensation for these duties a death benefit of five thousand dollars for a death
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309 occurring on or before August 27, 2026, and for a death occurring on or after August 28,
310 2026, such death benefit shall be ten thousand dollars .
311 22. Any member who has retired prior to July 1, 1999, and the designated beneficiary
312 of a retired member who was deceased prior to July 1, 1999, shall be made, constituted,
313 appointed and employed by the board as a special consultant on the matters of education,
314 retirement and aging, and upon request shall give written or oral opinions to the board in
315 response to such requests. As compensation for such duties, the person shall have added,
316 pursuant to this subsection, to the monthly annuity as provided by this section a dollar amount
317 equal to five dollars times the member's number of years of creditable service.
318 23. Any member who has retired prior to July 1, 2000, and the designated beneficiary
319 of a deceased retired member shall be made, constituted, appointed and employed by the
320 board as a special consultant on the matters of education, retirement and aging, and upon
321 request shall give written or oral opinions to the board in response to such requests. As
322 compensation for such duties, the person shall receive a payment equivalent to three and five-
323 tenths percent of the previous month's benefit, which shall be added to the member or
324 beneficiary's monthly annuity and which shall not be subject to the provisions of subsections
325 13 and 14 of this section for the purposes of the limit on the total amount of increases which
326 may be received.
327 24. Any member who has retired prior to July 1, 2001, and the designated beneficiary
328 of a deceased retired member shall be made, constituted, appointed and employed by the
329 board as a special consultant on the matters of education, retirement and aging, and upon
330 request shall give written or oral opinions to the board in response to such requests. As
331 compensation for such duties, the person shall receive a dollar amount equal to three dollars
332 times the member's number of years of creditable service, which shall be added to the
333 member's or beneficiary's monthly annuity and which shall not be subject to the provisions of
334 subsections 13 and 14 of this section for the purposes of the limit on the total amount of
335 increases which may be received.
✔
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