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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. 1802
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR CARTER.
7502S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 50.1000 and 70.600, 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Section A. Sections 50.1000 and 70.600, RSMo, are repealed 1
and two new sections enacted in lieu thereof, to be known as 2
sections 50.1000 and 70.600, to read as follows:3
50.1000. As used in sections 50.1000 to 50.1300, the 1
following words and terms mean: 2
(1) "Annuity", annual payments, made in equal monthly 3
installments, to a retired member from funds provided for 4
in, or authorized by, the provisions of sections 50.1000 to 5
50.1300; 6
(2) "Average final compensation", the monthly average 7
of the two highest years of annual compensation received by 8
the member; 9
(3) "Board of directors" or "board", the board of 10
directors established by the provisions of sections 50.1000 11
to 50.1300; 12
(4) "Compensation", all salary and other compensation 13
payable to a county employee for personal services rendered 14
as a county employee, but not including travel and mileage 15
reimbursement, and not including compensation in excess of 16
the limit imposed by 26 U.S.C. Section 401(a)(17); 17
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(5) "County", each county in the state, except any 18
city not within a county and counties of the first 19
classification with a charter form of government; 20
(6) "Creditable service", a member's period of 21
employment as an employee, including the member's prior 22
service, except as provided in sections 50.1090 and 50.1140; 23
(7) "Effective date of the establishment of the 24
system", August 28, 1994, the date the retirement system was 25
established; 26
(8) "Employee", any county elective or appointive 27
officer or employee who is hired and fired by the county or 28
by the circuit court located in a county of the first 29
classification without a charter form of government which is 30
not participating in LAGERS, whose work and responsibilities 31
are directed and controlled by the county or by the circuit 32
court located in a county of the first classification 33
without a charter form of government which is not 34
participating in LAGERS, who is compensated directly from 35
county funds, and whose position requires the actual 36
performance of duties during not less than one thousand 37
hours per year, except county prosecuting attorneys covered 38
pursuant to sections 56.800 to 56.840, circuit clerks and 39
deputy circuit clerks covered under the Missouri state 40
retirement system and county sheriffs covered pursuant to 41
sections 57.949 to 57.997 in each county of the state, 42
except for any city not within a county and any county of 43
the first classification having a charter form of government; 44
(9) "LAGERS", the local government employees' 45
retirement system presently codified at sections 70.600 to 46
70.755; 47
(10) "Primary Social Security amount", the old age 48
insurance benefit pursuant to Section 202 of the Social 49
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Security Act (42 U.S.C. Section 402) payable to a member at 50
age sixty-two. The primary Social Security amount shall be 51
determined pursuant to the Social Security Act as in effect 52
at the time the employee's normal annuity pursuant to 53
section 50.1060 is determined. Such determination shall be 54
at the time that creditable service ends without assuming 55
any future increases in compensation, any future increases 56
in the taxable wage base, any changes in the formulas used 57
pursuant to the Social Security Act, or any future increases 58
in the consumer price index. However, it shall be assumed 59
that the employee will continue to receive compensation at 60
the same rate as that received at the time the determination 61
is being made, until the member reaches age sixty-two. Only 62
compensation with respect to creditable service as a county 63
employee shall be considered, and the first year of 64
compensation as a county employee shall be regressed at 65
three percent per year with respect to years prior to the 66
period of creditable service; 67
(11) "Prior service", service of a member rendered 68
prior to August 28, 1994, the effective date of the 69
establishment of the system; 70
(12) "Required beginning date", the April first of the 71
calendar year following the later of the calendar year in 72
which the member reaches age seventy and one-half, or the 73
calendar year in which the member retires; 74
(13) "Retirement fund" or "fund", the funds held by 75
the county employees' retirement system; 76
(14) "Retirement system" or "system", the county 77
employees' retirement system authorized by the provisions of 78
sections 50.1000 to 50.1300; 79
(15) "Target replacement ratio": 80
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(a) Eighty percent, if a member's average final 81
compensation is thirty thousand dollars or less; 82
(b) Seventy-seven percent, if a member's average final 83
compensation is forty thousand dollars or less, but greater 84
than thirty thousand dollars; 85
(c) Seventy-two percent, if a member's average final 86
compensation is fifty thousand dollars or less, but greater 87
than forty thousand dollars; 88
(d) Seventy percent, if a member's average final 89
compensation is greater than fifty thousand dollars. 90
70.600. The following words and phrases as used in 1
sections 70.600 to 70.755, unless a different meaning is 2
plainly required by the context, shall mean: 3
(1) "Accumulated contributions", the total of all 4
amounts deducted from the compensations of a member and 5
standing to the member's credit in his or her individual 6
account in the members deposit fund, together with 7
investment credits thereon; 8
(2) "Actuarial equivalent", a benefit of equal reserve 9
value; 10
(3) "Allowance", the total of the annuity and the 11
pension. All allowances shall be paid not later than the 12
tenth day of each calendar month; 13
(4) "Annuity", a monthly amount derived from the 14
accumulated contributions of a member and payable by the 15
system throughout the life of a person or for a temporary 16
period; 17
(5) "Beneficiary", any person who is receiving or 18
designated to receive a system benefit, except a retirant; 19
(6) "Benefit program", a schedule of benefits or 20
benefit formulas from which the amounts of system benefits 21
can be determined; 22
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(7) "Board of trustees" or "board", the board of 23
trustees of the system; 24
(8) "Compensation", the remuneration paid an employee 25
by a political subdivision or by an elected fee official of 26
the political subdivision for personal services rendered by 27
the employee for the political subdivision or for the 28
elected fee official in the employee's public capacity; 29
provided, that for an elected fee official, the term 30
"compensation" means that portion of his or her fees which 31
is net after deduction of (a) compensation paid by such 32
elected fee official to his or her office employees, if any, 33
and (b) the ordinary and necessary expenses paid by such 34
elected fee official and attributable to the operation of 35
his or her office. In cases where an employee's 36
compensation is not all paid in money, the political 37
subdivision shall fix the reasonable value of the employee's 38
compensation not paid in money. In determining compensation 39
no consideration shall be given to: 40
(a) Any nonrecurring single sum payment paid by an 41
employer; 42
(b) Employer contributions to any employee benefit 43
plan or trust; 44
(c) Any other unusual or nonrecurring remuneration; or 45
(d) Compensation in excess of the limitations set 46
forth in [Internal Revenue Code] Section 401(a)(17) of the 47
Internal Revenue Code of 1986, as amended, 26 U.S.C. Section 48
401(a)(17). The limitation on compensation for eligible 49
employees shall not be less than the amount which was 50
allowed to be taken into account under the system as in 51
effect on July 1, 1993. For purposes of this paragraph, 52
[an] the term "eligible employee" [is] means an individual 53
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who was a member of the system before the first plan year 54
beginning after December 31, 1995; 55
(9) "Credited service", the total of a member's prior 56
service and membership service, to the extent such service 57
is standing to the member's credit as provided in sections 58
70.600 to 70.755; 59
(10) "Employee", any person regularly employed by a 60
political subdivision who receives compensation from the 61
political subdivision for personal services rendered the 62
political subdivision, including any elected official of the 63
political subdivision whose position requires his or her 64
regular personal services and who is compensated wholly or 65
in part on a fee basis, and including the employees of such 66
elected fee officials who may be compensated by such elected 67
fee officials. The term "employee" may include any elected 68
county official. The term "employee" shall not include any 69
person: 70
(a) Who is not an elected official of the political 71
subdivision and who is included as an active member in any 72
other plan similar in purpose to this system by reason of 73
his or her employment with his or her political subdivision, 74
except the federal Social Security Old Age, Survivors, and 75
Disability Insurance Program, as amended; or 76
(b) Who acts for the political subdivision under 77
contract; or 78
(c) Who is paid wholly on a fee basis, except elected 79
officials and their employees; or 80
(d) Who holds the position of mayor, presiding judge, 81
president or chairman of the political subdivision or is a 82
member of the governing body of the political subdivision; 83
except that, such an official of a political subdivision 84
having ten or more other employees may become a member if 85
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the official is covered under the federal Social Security 86
Old Age, Survivors, and Disability Insurance Program, as 87
amended, by reason of such official's employment with his or 88
her political subdivision, by filing written application for 89
membership with the board after the date the official 90
qualifies for such position or within thirty days after the 91
date his or her political subdivision becomes an employer, 92
whichever date is later; 93
(11) "Employer", any political subdivision which has 94
elected to have all its eligible employees covered by the 95
system; 96
(12) "Final average salary", the monthly average of 97
the compensations paid an employee during the period of 98
sixty or, if an election has been made in accordance with 99
section 70.656, thirty-six consecutive months of credited 100
service producing the highest monthly average, which period 101
is contained within the period of one hundred twenty 102
consecutive months of credited service immediately preceding 103
his or her termination of membership. Should a member have 104
less than sixty or, if an election has been made in 105
accordance with section 70.656, thirty-six months of 106
credited service, "final average salary" means the monthly 107
average of compensation paid the member during his or her 108
total months of credited service; 109
(13) "Fireman", any regular or permanent employee of 110
the fire department of a political subdivision, including a 111
probationary fireman. The term "fireman" shall not include: 112
(a) Any volunteer fireman; or 113
(b) Any civilian employee of a fire department; or 114
(c) Any person temporarily employed as a fireman for 115
an emergency; 116
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(14) "Member", any employee included in the membership 117
of the system; 118
(15) "Membership service", employment as an employee 119
with the political subdivision from and after the date such 120
political subdivision becomes an employer, which employment 121
is creditable as service hereunder; 122
(16) "Minimum service retirement age", age sixty for a 123
member who is neither public safety personnel as [defined] 124
described in section 70.631, a policeman, nor a fireman; 125
"minimum service retirement age", age fifty-five for a 126
member who is public safety personnel as [defined] described 127
in section 70.631, a policeman, or a fireman; 128
(17) "Pension", a monthly amount derived from 129
contributions of an employer and payable by the system 130
throughout the life of a person or for a temporary period; 131
(18) "Policeman", any regular or permanent employee of 132
the police department of a political subdivision, including 133
a probationary policeman. The term "policeman" shall not 134
include: 135
(a) Any civilian employee of a police department; or 136
(b) Any person temporarily employed as a policeman for 137
an emergency; 138
(19) "Political subdivision", any governmental 139
subdivision of this state created pursuant to the laws of 140
this state, and having the power to tax, except public 141
school districts; a board of utilities or a board of public 142
works which is required by charter or ordinance to establish 143
the compensation of employees of the utility separate from 144
the compensation of other employees of the city may be 145
considered a political subdivision for purposes of sections 146
70.600 to 70.755; a joint municipal utility commission may 147
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be considered a political subdivision for purposes of 148
sections 70.600 to 70.755; 149
(20) "Prior service", employment as an employee with 150
the political subdivision prior to the date such political 151
subdivision becomes an employer, which employment is 152
creditable as service hereunder; 153
(21) "Regular interest" or "investment credits", such 154
reasonable rate or rates per annum, compounded annually, as 155
the board shall adopt annually; 156
(22) "Reserve", the present value of all payments to 157
be made on account of any system benefit based upon such 158
tables of experience and regular interest as the board shall 159
adopt from time to time; 160
(23) "Retirant", a former member receiving a system 161
allowance by reason of having been a member; 162
(24) "Retirement system" or "system", the Missouri 163
local government employees' retirement system. 164
✓