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SECOND REGULAR SESSION
SENATE BILL NO. 1258
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR NURRENBERN.
3903S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 169.070, RSMo, and to enact in lieu thereof one new section relating to public
school retirement systems.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 169.070, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 169.070, 2
to read as follows:3
169.070. 1. The retirement allowance of a member 1
whose age at retirement is sixty years or more and whose 2
creditable service is five years or more, or whose sum of 3
age and creditable service equals eighty years or more, or 4
who has attained age fifty-five and whose creditable service 5
is twenty-five years or more or whose creditable service is 6
thirty years or more regardless of age, may be the sum of 7
the following items, not to exceed one hundred percent of 8
the member's final average salary: 9
(1) Two and five-tenths percent of the member's final 10
average salary for each year of membership service; 11
(2) Six-tenths of the amount payable for a year of 12
membership service for each year of prior service not 13
exceeding thirty years. 14
In lieu of the retirement allowance otherwise provided in 15
subdivisions (1) and (2) of this subsection, a member may 16
elect to receive a retirement allowance of: 17
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(3) Two and four-tenths percent of the member's final 18
average salary for each year of membership service, if the 19
member's creditable service is twenty-nine years or more but 20
less than thirty years, and the member has not attained age 21
fifty-five; 22
(4) Two and thirty-five-hundredths percent of the 23
member's final average salary for each year of membership 24
service, if the member's creditable service is twenty-eight 25
years or more but less than twenty-nine years, and the 26
member has not attained age fifty-five; 27
(5) Two and three-tenths percent of the member's final 28
average salary for each year of membership service, if the 29
member's creditable service is twenty-seven years or more 30
but less than twenty-eight years, and the member has not 31
attained age fifty-five; 32
(6) Two and twenty-five-hundredths percent of the 33
member's final average salary for each year of membership 34
service, if the member's creditable service is twenty-six 35
years or more but less than twenty-seven years, and the 36
member has not attained age fifty-five; 37
(7) Two and two-tenths percent of the member's final 38
average salary for each year of membership service, if the 39
member's creditable service is twenty-five years or more but 40
less than twenty-six years, and the member has not attained 41
age fifty-five; 42
(8) Two and fifty-five hundredths percent of the 43
member's final average salary for each year of membership 44
service, if the member's creditable service is thirty-two 45
years or more but less than thirty-three years, regardless 46
of age; 47
(9) Two and six-tenths percent of the member's final 48
average salary for each year of membership service, if the 49
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member's creditable service is thirty-three years or more 50
regardless of age. 51
2. In lieu of the retirement allowance provided in 52
subsection 1 of this section, a member whose age is sixty 53
years or more on September 28, 1975, may elect to have the 54
member's retirement allowance calculated as a sum of the 55
following items: 56
(1) Sixty cents plus one and five-tenths percent of 57
the member's final average salary for each year of 58
membership service; 59
(2) Six-tenths of the amount payable for a year of 60
membership service for each year of prior service not 61
exceeding thirty years; 62
(3) Three-fourths of one percent of the sum of 63
subdivisions (1) and (2) of this subsection for each month 64
of attained age in excess of sixty years but not in excess 65
of age sixty-five. 66
3. (1) In lieu of the retirement allowance provided 67
either in subsection 1 or 2 of this section, collectively 68
called "option 1", a member whose creditable service is 69
twenty-five years or more or who has attained the age of 70
fifty-five with five or more years of creditable service may 71
elect in the member's application for retirement to receive 72
the actuarial equivalent of the member's retirement 73
allowance in reduced monthly payments for life during 74
retirement with the provision that: 75
Option 2. 76
Upon the member's death the reduced retirement 77
allowance shall be continued throughout the life of and paid 78
to such person as has an insurable interest in the life of 79
the member as the member shall have nominated in the 80
member's election of the option, and provided further that 81
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if the person so nominated dies before the retired member, 82
the retirement allowance will be increased to the amount the 83
retired member would be receiving had the retired member 84
elected option 1; or 85
Option 3. 86
Upon the death of the member three-fourths of the 87
reduced retirement allowance shall be continued throughout 88
the life of and paid to such person as has an insurable 89
interest in the life of the member and as the member shall 90
have nominated in an election of the option, and provided 91
further that if the person so nominated dies before the 92
retired member, the retirement allowance will be increased 93
to the amount the retired member would be receiving had the 94
member elected option 1; or 95
Option 4. 96
Upon the death of the member one-half of the reduced 97
retirement allowance shall be continued throughout the life 98
of, and paid to, such person as has an insurable interest in 99
the life of the member and as the member shall have 100
nominated in an election of the option, and provided further 101
that if the person so nominated dies before the retired 102
member, the retirement allowance shall be increased to the 103
amount the retired member would be receiving had the member 104
elected option 1; or 105
Option 5. 106
Upon the death of the member prior to the member having 107
received one hundred twenty monthly payments of the member's 108
reduced allowance, the remainder of the one hundred twenty 109
monthly payments of the reduced allowance shall be paid to 110
such beneficiary as the member shall have nominated in the 111
member's election of the option or in a subsequent 112
nomination. If there is no beneficiary so nominated who 113
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survives the member for the remainder of the one hundred 114
twenty monthly payments, the total of the remainder of such 115
one hundred twenty monthly payments shall be paid to the 116
surviving spouse, surviving children in equal shares, 117
surviving parents in equal shares, or estate of the last 118
person, in that order of precedence, to receive a monthly 119
allowance in a lump sum payment. If the total of the one 120
hundred twenty payments paid to the retired individual and 121
the beneficiary of the retired individual is less than the 122
total of the member's accumulated contributions, the 123
difference shall be paid to the beneficiary in a lump sum; or 124
Option 6. 125
Upon the death of the member prior to the member having 126
received sixty monthly payments of the member's reduced 127
allowance, the remainder of the sixty monthly payments of 128
the reduced allowance shall be paid to such beneficiary as 129
the member shall have nominated in the member's election of 130
the option or in a subsequent nomination. If there is no 131
beneficiary so nominated who survives the member for the 132
remainder of the sixty monthly payments, the total of the 133
remainder of such sixty monthly payments shall be paid to 134
the surviving spouse, surviving children in equal shares, 135
surviving parents in equal shares, or estate of the last 136
person, in that order of precedence, to receive a monthly 137
allowance in a lump sum payment. If the total of the sixty 138
payments paid to the retired individual and the beneficiary 139
of the retired individual is less than the total of the 140
member's accumulated contributions, the difference shall be 141
paid to the beneficiary in a lump sum. 142
(2) The election of an option may be made only in the 143
application for retirement and such application must be 144
filed prior to the date on which the retirement of the 145
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member is to be effective. If either the member or the 146
person nominated to receive the survivorship payments dies 147
before the effective date of retirement, the option shall 148
not be effective, provided that: 149
(a) If the member or a person retired on disability 150
retirement dies after acquiring twenty-five or more years of 151
creditable service or after attaining the age of fifty-five 152
years and acquiring five or more years of creditable service 153
and before retirement, except retirement with disability 154
benefits, and the person named by the member as the member's 155
beneficiary has an insurable interest in the life of the 156
deceased member, the designated beneficiary may elect to 157
receive either survivorship benefits under option 2 or a 158
payment of the accumulated contributions of the member. If 159
survivorship benefits under option 2 are elected and the 160
member at the time of death would have been eligible to 161
receive an actuarial equivalent of the member's retirement 162
allowance, the designated beneficiary may further elect to 163
defer the option 2 payments until the date the member would 164
have been eligible to receive the retirement allowance 165
provided in subsection 1 or 2 of this section; 166
(b) If the member or a person retired on disability 167
retirement dies before attaining age fifty-five but after 168
acquiring five but fewer than twenty-five years of 169
creditable service, and the person named as the member's 170
beneficiary has an insurable interest in the life of the 171
deceased member, the designated beneficiary may elect to 172
receive either a payment of the member's accumulated 173
contributions, or survivorship benefits under option 2 to 174
begin on the date the member would first have been eligible 175
to receive an actuarial equivalent of the member's 176
retirement allowance, or to begin on the date the member 177
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would first have been eligible to receive the retirement 178
allowance provided in subsection 1 or 2 of this section. 179
4. If the total of the retirement or disability 180
allowance paid to an individual before the death of the 181
individual is less than the accumulated contributions at the 182
time of retirement, the difference shall be paid to the 183
beneficiary of the individual, or to the surviving spouse, 184
surviving children in equal shares, surviving parents in 185
equal shares, or estate of the individual in that order of 186
precedence. If an optional benefit as provided in option 2, 187
3 or 4 in subsection 3 of this section had been elected, and 188
the beneficiary dies after receiving the optional benefit, 189
and if the total retirement allowance paid to the retired 190
individual and the beneficiary of the retired individual is 191
less than the total of the contributions, the difference 192
shall be paid to the surviving spouse, surviving children in 193
equal shares, surviving parents in equal shares, or estate 194
of the beneficiary, in that order of precedence, unless the 195
retired individual designates a different recipient with the 196
board at or after retirement. 197
5. If a member dies and his or her financial 198
institution is unable to accept the final payment or 199
payments due to the member, the final payment or payments 200
shall be paid to the beneficiary of the member or, if there 201
is no beneficiary, to the surviving spouse, surviving 202
children in equal shares, surviving parents in equal shares, 203
or estate of the member, in that order of precedence, unless 204
otherwise stated. If the beneficiary of a deceased member 205
dies and his or her financial institution is unable to 206
accept the final payment or payments, the final payment or 207
payments shall be paid to the surviving spouse, surviving 208
children in equal shares, surviving parents in equal shares, 209
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or estate of the member, in that order of precedence, unless 210
otherwise stated. 211
6. If a member dies before receiving a retirement 212
allowance, the member's accumulated contributions at the 213
time of the death of the member shall be paid to the 214
beneficiary of the member or, if there is no beneficiary, to 215
the surviving spouse, surviving children in equal shares, 216
surviving parents in equal shares, or to the estate of the 217
member, in that order of precedence; except that, no such 218
payment shall be made if the beneficiary elects option 2 in 219
subsection 3 of this section, unless the beneficiary dies 220
before having received benefits pursuant to that subsection 221
equal to the accumulated contributions of the member, in 222
which case the amount of accumulated contributions in excess 223
of the total benefits paid pursuant to that subsection shall 224
be paid to the surviving spouse, surviving children in equal 225
shares, surviving parents in equal shares, or estate of the 226
beneficiary, in that order of precedence. 227
7. If a member ceases to be a public school employee 228
as herein defined and certifies to the board of trustees 229
that such cessation is permanent, or if the membership of 230
the person is otherwise terminated, the member shall be paid 231
the member's accumulated contributions with interest. 232
8. Notwithstanding any provisions of sections 169.010 233
to 169.141 to the contrary, if a member ceases to be a 234
public school employee after acquiring five or more years of 235
membership service in Missouri, the member may at the option 236
of the member leave the member's contributions with the 237
retirement system and claim a retirement allowance any time 238
after reaching the minimum age for voluntary retirement. 239
When the member's claim is presented to the board, the 240
member shall be granted an allowance as provided in sections 241
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169.010 to 169.141 on the basis of the member's age, years 242
of service, and the provisions of the law in effect at the 243
time the member requests the member's retirement to become 244
effective. 245
9. The retirement allowance of a member retired 246
because of disability shall be nine-tenths of the allowance 247
to which the member's creditable service would entitle the 248
member if the member's age were sixty, or fifty percent of 249
one-twelfth of the annual salary rate used in determining 250
the member's contributions during the last school year for 251
which the member received a year of creditable service 252
immediately prior to the member's disability, whichever is 253
greater, except that no such allowance shall exceed the 254
retirement allowance to which the member would have been 255
entitled upon retirement at age sixty if the member had 256
continued to teach from the date of disability until age 257
sixty at the same salary rate. 258
10. Notwithstanding any provisions of sections 169.010 259
to 169.141 to the contrary, from October 13, 1961, the 260
contribution rate pursuant to sections 169.010 to 169.141 261
shall be multiplied by the factor of two-thirds for any 262
member of the system for whom federal Old Age and Survivors 263
Insurance tax is paid from state or local tax funds on 264
account of the member's employment entitling the person to 265
membership in the system. The monetary benefits for a 266
member who elected not to exercise an option to pay into the 267
system a retroactive contribution of four percent on that 268
part of the member's annual salary rate which was in excess 269
of four thousand eight hundred dollars but not in excess of 270
eight thousand four hundred dollars for each year of 271
employment in a position covered by this system between July 272
1, 1957, and July 1, 1961, as provided in subsection 10 of 273
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this section as it appears in RSMo, 1969, shall be the sum 274
of: 275
(1) For years of service prior to July 1, 1946, six- 276
tenths of the full amount payable for years of membership 277
service; 278
(2) For years of membership service after July 1, 279
1946, in which the full contribution rate was paid, full 280
benefits under the formula in effect at the time of the 281
member's retirement; 282
(3) For years of membership service after July 1, 283
1957, and prior to July 1, 1961, the benefits provided in 284
this section as it appears in RSMo, 1959; except that if the 285
member has at least thirty years of creditable service at 286
retirement the member shall receive the benefit payable 287
pursuant to that section as though the member's age were 288
sixty-five at retirement; 289
(4) For years of membership service after July 1, 290
1961, in which the two-thirds contribution rate was paid, 291
two-thirds of the benefits under the formula in effect at 292
the time of the member's retirement. 293
11. The monetary benefits for each other member for 294
whom federal Old Age and Survivors Insurance tax is or was 295
paid at any time from state or local funds on account of the 296
member's employment entitling the member to membership in 297
the system shall be the sum of: 298
(1) For years of service prior to July 1, 1946, six- 299
tenths of the full amount payable for years of membership 300
service; 301
(2) For years of membership service after July 1, 302
1946, in which the full contribution rate was paid, full 303
benefits under the formula in effect at the time of the 304
member's retirement; 305
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(3) For years of membership service after July 1, 306
1957, in which the two-thirds contribution rate was paid, 307
two-thirds of the benefits under the formula in effect at 308
the time of the member's retirement. 309
12. Any retired member of the system who was retired 310
prior to September 1, 1972, or beneficiary receiving 311
payments under option 1 or option 2 of subsection 3 of this 312
section, as such option existed prior to September 1, 1972, 313
will be eligible to receive an increase in the retirement 314
allowance of the member of two percent for each year, or 315
major fraction of more than one-half of a year, which the 316
retired member has been retired prior to July 1, 1975. This 317
increased amount shall be payable commencing with January, 318
1976, and shall thereafter be referred to as the member's 319
retirement allowance. The increase provided for in this 320
subsection shall not affect the retired member's eligibility 321
for compensation provided for in section 169.580 or 169.585, 322
nor shall the amount being paid pursuant to these sections 323
be reduced because of any increases provided for in this 324
section. 325
13. If the board of trustees determines that the cost 326
of living, as measured by generally accepted standards, 327
increases two percent or more in the preceding fiscal year, 328
the board shall increase the retirement allowances which the 329
retired members or beneficiaries are receiving by two 330
percent of the amount being received by the retired member 331
or the beneficiary at the time the annual increase is 332
granted by the board with the provision that the increases 333
provided for in this subsection shall not become effective 334
until the fourth January first following the member's 335
retirement or January 1, 1977, whichever later occurs, or in 336
the case of any member retiring on or after July 1, 2000, 337
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the increase provided for in this subsection shall not 338
become effective until the third January first following the 339
member's retirement, or in the case of any member retiring 340
on or after July 1, 2001, the increase provided for in this 341
subsection shall not become effective until the second 342
January first following the member's retirement. Commencing 343
with January 1, 1992, if the board of trustees determines 344
that the cost of living has increased five percent or more 345
in the preceding fiscal year, the board shall increase the 346
retirement allowances by five percent. The total of the 347
increases granted to a retired member or the beneficiary 348
after December 31, 1976, may not exceed eighty percent of 349
the retirement allowance established at retirement or as 350
previously adjusted by other subsections. If the cost of 351
living increases less than five percent, the board of 352
trustees may determine the percentage of increase to be made 353
in retirement allowances, but at no time can the increase 354
exceed five percent per year. If the cost of living 355
decreases in a fiscal year, there will be no increase in 356
allowances for retired members on the following January 357
first. 358
14. The board of trustees may reduce the amounts which 359
have been granted as increases to a member pursuant to 360
subsection 13 of this section if the cost of living, as 361
determined by the board and as measured by generally 362
accepted standards, is less than the cost of living was at 363
the time of the first increase granted to the member; except 364
that, the reductions shall not exceed the amount of 365
increases which have been made to the member's allowance 366
after December 31, 1976. 367
15. Any application for retirement shall include a 368
sworn statement by the member certifying that the spouse of 369
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the member at the time the application was completed was 370
aware of the application and the plan of retirement elected 371
in the application. 372
16. Notwithstanding any other provision of law, any 373
person retired prior to September 28, 1983, who is receiving 374
a reduced retirement allowance under option 1 or option 2 of 375
subsection 3 of this section, as such option existed prior 376
to September 28, 1983, and whose beneficiary nominated to 377
receive continued retirement allowance payments under the 378
elected option dies or has died, shall upon application to 379
the board of trustees have his or her retirement allowance 380
increased to the amount he or she would have been receiving 381
had the option not been elected, actuarially adjusted to 382
recognize any excessive benefits which would have been paid 383
to him or her up to the time of application. 384
17. Benefits paid pursuant to the provisions of the 385
public school retirement system of Missouri shall not exceed 386
the limitations of Section 415 of Title 26 of the United 387
States Code except as provided pursuant to this subsection. 388
Notwithstanding any other law to the contrary, the board of 389
trustees may establish a benefit plan pursuant to Section 390
415(m) of Title 26 of the United States Code. Such plan 391
shall be created solely for the purpose described in Section 392
415(m)(3)(A) of Title 26 of the United States Code. The 393
board of trustees may promulgate regulations necessary to 394
implement the provisions of this subsection and to create 395
and administer such benefit plan. 396
18. Notwithstanding any other provision of law to the 397
contrary, any person retired before, on, or after May 26, 398
1994, shall be made, constituted, appointed and employed by 399
the board as a special consultant on the matters of 400
education, retirement and aging, and upon request shall give 401
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written or oral opinions to the board in response to such 402
requests. As compensation for such duties the person shall 403
receive an amount based on the person's years of service so 404
that the total amount received pursuant to sections 169.010 405
to 169.141 shall be at least the minimum amounts specified 406
in subdivisions (1) to (4) of this subsection. In 407
determining the minimum amount to be received, the amounts 408
in subdivisions (3) and (4) of this subsection shall be 409
adjusted in accordance with the actuarial adjustment, if 410
any, that was applied to the person's retirement allowance. 411
In determining the minimum amount to be received, beginning 412
September 1, 1996, the amounts in subdivisions (1) and (2) 413
of this subsection shall be adjusted in accordance with the 414
actuarial adjustment, if any, that was applied to the 415
person's retirement allowance due to election of an optional 416
form of retirement having a continued monthly payment after 417
the person's death. Notwithstanding any other provision of 418
law to the contrary, no person retired before, on, or after 419
May 26, 1994, and no beneficiary of such a person, shall 420
receive a retirement benefit pursuant to sections 169.010 to 421
169.141 based on the person's years of service less than the 422
following amounts: 423
(1) Thirty or more years of service, one thousand two 424
hundred dollars; 425
(2) At least twenty-five years but less than thirty 426
years, one thousand dollars; 427
(3) At least twenty years but less than twenty-five 428
years, eight hundred dollars; 429
(4) At least fifteen years but less than twenty years, 430
six hundred dollars. 431
19. Notwithstanding any other provisions of law to the 432
contrary, any person retired prior to May 26, 1994, and any 433
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designated beneficiary of such a retired member who was 434
deceased prior to July 1, 1999, shall be made, constituted, 435
appointed and employed by the board as a special consultant 436
on the matters of education, retirement or aging and upon 437
request shall give written or oral opinions to the board in 438
response to such requests. Beginning September 1, 1996, as 439
compensation for such service, the member shall have added, 440
pursuant to this subsection, to the member's monthly annuity 441
as provided by this section a dollar amount equal to the 442
lesser of sixty dollars or the product of two dollars 443
multiplied by the member's number of years of creditable 444
service. Beginning September 1, 1999, the designated 445
beneficiary of the deceased member shall as compensation for 446
such service have added, pursuant to this subsection, to the 447
monthly annuity as provided by this section a dollar amount 448
equal to the lesser of sixty dollars or the product of two 449
dollars multiplied by the member's number of years of 450
creditable service. The total compensation provided by this 451
section including the compensation provided by this 452
subsection shall be used in calculating any future cost-of- 453
living adjustments provided by subsection 13 of this section. 454
20. Any member who has retired prior to July 1, 1998, 455
and the designated beneficiary of a deceased retired member 456
shall be made, constituted, appointed and employed by the 457
board as a special consultant on the matters of education, 458
retirement and aging, and upon request shall give written or 459
oral opinions to the board in response to such requests. As 460
compensation for such duties the person shall receive a 461
payment equivalent to eight and seven-tenths percent of the 462
previous month's benefit, which shall be added to the 463
member's or beneficiary's monthly annuity and which shall 464
not be subject to the provisions of subsections 13 and 14 of 465
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this section for the purposes of the limit on the total 466
amount of increases which may be received. 467
21. Any member who has retired shall be made, 468
constituted, appointed and employed by the board as a 469
special consultant on the matters of education, retirement 470
and aging, and upon request shall give written or oral 471
opinions to the board in response to such request. As 472
compensation for such duties, the beneficiary of the retired 473
member, or, if there is no beneficiary, the surviving 474
spouse, surviving children in equal shares, surviving 475
parents in equal shares, or estate of the retired member, in 476
that order of precedence, shall receive as a part of 477
compensation for these duties a death benefit of five 478
thousand dollars. 479
22. Any member who has retired prior to July 1, 1999, 480
and the designated beneficiary of a retired member who was 481
deceased prior to July 1, 1999, shall be made, constituted, 482
appointed and employed by the board as a special consultant 483
on the matters of education, retirement and aging, and upon 484
request shall give written or oral opinions to the board in 485
response to such requests. As compensation for such duties, 486
the person shall have added, pursuant to this subsection, to 487
the monthly annuity as provided by this section a dollar 488
amount equal to five dollars times the member's number of 489
years of creditable service. 490
23. Any member who has retired prior to July 1, 2000, 491
and the designated beneficiary of a deceased retired member 492
shall be made, constituted, appointed and employed by the 493
board as a special consultant on the matters of education, 494
retirement and aging, and upon request shall give written or 495
oral opinions to the board in response to such requests. As 496
compensation for such duties, the person shall receive a 497
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payment equivalent to three and five-tenths percent of the 498
previous month's benefit, which shall be added to the member 499
or beneficiary's monthly annuity and which shall not be 500
subject to the provisions of subsections 13 and 14 of this 501
section for the purposes of the limit on the total amount of 502
increases which may be received. 503
24. Any member who has retired prior to July 1, 2001, 504
and the designated beneficiary of a deceased retired member 505
shall be made, constituted, appointed and employed by the 506
board as a special consultant on the matters of education, 507
retirement and aging, and upon request shall give written or 508
oral opinions to the board in response to such requests. As 509
compensation for such duties, the person shall receive a 510
dollar amount equal to three dollars times the member's 511
number of years of creditable service, which shall be added 512
to the member's or beneficiary's monthly annuity and which 513
shall not be subject to the provisions of subsections 13 and 514
14 of this section for the purposes of the limit on the 515
total amount of increases which may be received. 516
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