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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. 1054
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BLACK.
5602S.01I KRISTINA MARTIN, Secretary
AN ACT
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. Sections 104.1091 and 105.915, RSMo, are 1
repealed and two new sections enacted in lieu thereof, to be 2
known as sections 104.1091 and 105.915, 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
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(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
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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
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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
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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
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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
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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
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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
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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
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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
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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
105.915. 1. The board of trustees of the Missouri 1
state employees' retirement system shall administer the 2
deferred compensation fund for the employees of the state of 3
Missouri that was previously administered by the deferred 4
compensation commission, as established in section 105.910, 5
prior to August 28, 2007. The board shall be vested with 6
the same powers that it has under chapter 104 to enable it 7
and its officers, employees, and agents to administer the 8
fund under sections 105.900 to 105.927. 9
2. Except as provided in this subsection, 10
participation in such plan shall be by a specific written 11
agreement between state employees and the state, which shall 12
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provide for the deferral of such amounts of compensation as 13
requested by the employee subject to any limitations imposed 14
under federal law. Participating employees must authorize 15
that such deferrals be made from their wages for the purpose 16
of participation in such program. An election to defer 17
compensation shall be made before the beginning of the 18
[month in] payroll period for which the compensation is 19
paid. Contributions shall be made for payroll periods 20
[occurring on or after the first day of the month] beginning 21
after the election is made. 22
3. Each employee eligible to participate in the plan 23
hired or rehired on or after July 1, 2012, shall be enrolled 24
in the plan automatically and his or her employer shall, in 25
accordance with the plan document, withhold and contribute 26
to the plan an amount equal to one percent of eligible 27
compensation received on and after the date of hire, unless 28
the employee elects not to participate in the plan within 29
the first thirty days of employment, and in that event, any 30
amounts contributed and earnings thereon will be refunded by 31
the plan to the employee pursuant to the procedure contained 32
in the plan documents. Employees who are employed by a 33
state college or university shall not be automatically 34
enrolled but may elect to participate in the plan and make 35
contributions in accordance with the terms of the plan. 36
4. Effective July 1, 2027: 37
(1) The plan document shall provide for automatic 38
increases in the deferral amount contributed by a 39
participating employee commencing with the first payroll 40
period following the employee's one year anniversary date of 41
employment or re-employment, whichever is later. The 42
deferral amount shall increase annually by one-half of one 43
percent until the amount reaches ten percent of the 44
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employee's eligible compensation or the limitation imposed 45
under federal law, whichever is less. 46
(2) Each employee eligible to participate in the plan 47
who was last hired or rehired on or after July 1, 2012, and 48
before July 1, 2027, who was automatically enrolled in the 49
plan pursuant to subsection 3 of this section, and whose 50
contribution is equal to one percent of eligible 51
compensation on the effective date, shall be enrolled in 52
such automatic increases. 53
(3) Each employee eligible to participate in the plan 54
who was last hired or rehired on or after July 1, 2027, 55
shall be enrolled in such automatic increases. 56
5. Employees who are enrolled automatically or whose 57
deferral amounts are automatically increased may elect to 58
change the contribution rate in accordance with the terms of 59
the plan. Employees who elect not to participate in the 60
plan may at a later date elect to participate in the plan 61
and make contributions in accordance with the terms of the 62
plan. All assets and income of such fund shall be held in 63
trust by the board for the exclusive benefit of participants 64
and their beneficiaries. Assets of such trust, and the 65
trust established pursuant to section 105.927, may be pooled 66
solely for investment management purposes with assets of the 67
trust established under section 104.320. 68
[3.] 6. Notwithstanding any other provision of 69
sections 105.900 to 105.927, funds held for the state by the 70
board in accordance with written deferred compensation 71
agreements between the state and participating employees may 72
be invested in such investments as are deemed appropriate by 73
the board. All administrative costs of the program 74
described in this section, including staffing and overhead 75
expenses, may be paid out of assets of the fund, which may 76
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reduce the amount due participants in the fund. Such 77
investments shall not be construed to be a prohibited use of 78
the general assets of the state. 79
[4.] 7. Investments offered under the deferred 80
compensation fund for the employees of the state of Missouri 81
shall be made available at the discretion of the board. 82
[5.] 8. The board and employees of the Missouri state 83
employees' retirement system shall be immune from suit and 84
shall not be subject to any claim or liability associated 85
with any administrative actions or decisions made by the 86
commission with regard to the deferred compensation program 87
prior to the transfer made to the board under section 88
105.910. 89
[6.] 9. The board and employees of the system shall 90
not be liable for the investment decisions made or not made 91
by participating employees as long as the board acts with 92
the same skill, prudence, and diligence in the selection and 93
monitoring of providers of investment products, education, 94
advice, or any default investment option, under the 95
circumstances then prevailing that a prudent person acting 96
in a similar capacity and familiar with those matters would 97
use in the conduct of a similar enterprise with similar aims. 98
[7.] 10. The system shall be immune from suit and 99
shall not be subject to any claim or liability associated 100
with the administration of the deferred compensation fund by 101
the board and employees of the system. 102
[8.] 11. Beginning on or after September 1, 2011, if a 103
participant under the deferred compensation plan or the plan 104
established under section 105.927 is married on the date of 105
his or her death, the participant's surviving spouse shall 106
be automatically designated as the primary beneficiary under 107
both plans, unless the surviving spouse consented in 108
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writing, witnessed by a notary public, to allow the 109
participant to designate a nonspouse beneficiary. As used 110
in this subsection, "surviving spouse" means the spouse as 111
defined pursuant to section 104.012 to whom the participant 112
is lawfully married on the date of death of the participant, 113
provided that a former spouse shall be treated as the 114
surviving spouse of the participant to the extent provided 115
under a judgment, decree, or order that relates to child 116
support, alimony payments, or marital property rights made 117
under Missouri domestic relations law that creates or 118
recognizes the existence of such former spouse's right to 119
receive all or a portion expressed as a stated dollar amount 120
or specific percentage stated in integers of the benefits 121
payable from such plan upon the death of the participant. 122
This subsection shall not apply to beneficiary designations 123
made prior to September 1, 2011. 124
[9.] 12. The board may adopt and amend plan documents 125
to change the terms and conditions of the deferred 126
compensation plan and the plan established under section 127
105.927 that are consistent with federal law. 128
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