Read the full stored bill text
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. 1559
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR HENDERSON.
6555S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 105.915, RSMo, and to enact in lieu thereof one new section relating to deferred
compensation.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 105.915, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 105.915, 2
to read as follows:3
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
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
SB 1559 2
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 reemployment, 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
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
SB 1559 3
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; and 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
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
SB 1559 4
[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
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
SB 1559 5
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
✓