Bill Text: MO HB1741 | 2012 | Regular Session | Engrossed
Bill Title: Changes the laws regarding the death benefit for members of the County Employees' Retirement System and the defined contribution plan for employees of certain higher education institutions
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2012-05-01 - Second Rd/Refer: Vet Affairs, Pensions,& Urban Affairs (S) [HB1741 Detail]
Download: Missouri-2012-HB1741-Engrossed.html
SECOND REGULAR SESSION
[PERFECTED]
HOUSE COMMITTEE SUBSTITUTE FOR
96TH GENERAL ASSEMBLY
5809L.03P D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To repeal sections 50.1130, 50.1140, 104.1205, and 104.1215, RSMo, and to enact in lieu thereof four new sections relating to retirement benefits.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 50.1130, 50.1140, 104.1205, and 104.1215, RSMo, are repealed and four new sections enacted in lieu thereof, to be known as sections 50.1130, 50.1140, 104.1205, and 104.1215, to read as follows:
50.1130. 1. Notwithstanding the provisions of section 50.1150 to the contrary, a death benefit of ten thousand dollars and, in the case of an active member who dies after December 31, 2002, and before becoming vested, an amount equal to the amount of the member's accumulated contributions standing to his or her credit in the fund shall be paid to the designated beneficiary of every active member upon his or her death or, if the member fails to designate a beneficiary, then to the member's surviving spouse or, if there is no spouse, then in equal shares to the member's surviving children. If there is neither a surviving spouse or surviving children, then the benefit shall be paid to the active member's estate.
2. If the member executes a beneficiary designation form and lists more than one beneficiary but fails to list the percentage of benefit that each beneficiary should receive, then the benefit shall be divided equally among the named beneficiaries.
50.1140. 1. Upon termination of employment, any member with less than eight years of creditable service shall forfeit all rights in the fund, including the member's accrued creditable service as of the date of the member's termination of employment, but may receive any refund of contributions to which the member is entitled pursuant to subsection 3 of this section or subsection 1 of section 50.1130.
2. A member who terminates employment with at least eight years of creditable service shall be entitled to an annuity from the fund, determined in accordance with the formula described in section 50.1060. The member may elect to defer the receipt of his or her annuity, until the member's attainment of age sixty-two, or the member may elect to begin receiving his or her annuity on the first day of any month following the later of the date of termination of employment or age fifty-five. If the member begins receiving an annuity before age sixty-two and termination of employment occurs on or after age fifty-five, the annuity shall be reduced by four-tenths of one percent for each month the commencement date of the annuity precedes age sixty-two, and an additional three-tenths of one percent for each month the commencement date of the annuity precedes age sixty.
3. In the event a member ceases to be a member other than by death before the date the member becomes vested in the system, the member shall be paid, upon his or her written application filed with the board, the member's accumulated contributions standing to his or her credit in the members' deposit fund.
4. A former member who has forfeited creditable service may have the creditable service restored by again becoming an employee, completing a total of eight years of uninterrupted creditable service, and purchasing the forfeited service by paying into the fund the forfeited amount previously refunded to the participant or credited to the participant's county plus interest equal to the current prime rate plus two percent.
104.1205. The board of trustees of the Missouri state employees' retirement system shall:
(1) Establish a defined contribution plan for outside employees which, among other things, provides for immediate vesting;
(2) Select a third-party administrator to provide such services as the board determines to be necessary for the proper administration of the defined contribution plan;
(3) Select the investment products which shall be made available to the participants in the defined contribution plan;
(4) Annually establish the contribution rate used for purposes of subsection 3 of section 104.1066 for employees of institutions who are other than outside employees, which shall be done by considering all such employees to be part of the general employee population within the Missouri state employees' retirement system;
(5) Establish the contribution rate to be used by institutions for purposes of making employer contributions for outside employees which shall be equal to one percent of payroll less than the normal cost contribution rate established pursuant to subdivision (4) of this section; provided that on and after July 1, 2013:
(a) The contribution rate to be used by institutions for purposes of making employer contributions for outside employees shall be equal to seven percent of payroll;
(b) Each institution may, by resolution of its governing body, prospectively require its outside employees hired on or after July 1, 2013, to contribute an additional amount up to four percent of pay; and
(c) Each institution requiring employee contributions shall pick up and pay such contributions pursuant to 26 U.S.C. Section 414(h)(2); and
(6) Establish such rules and regulations as may be necessary to carry out the purposes of this section.
104.1215. 1. Any outside employee who has participated in the defined contribution plan established pursuant to sections 104.1200 to 104.1215 for at least six years may elect to become a member of the Missouri state employees' retirement system. Such employee shall:
(1) Make such election while actively employed in a position that would otherwise be eligible for membership in the Missouri state employees' retirement system except for the provisions of sections 104.1200 to 104.1215;
(2) Participate in the year 2000 plan;
(3) Be considered to have met the service requirements contained in section 104.1018;
(4) Not receive any credited service for service rendered while a participant in such defined contribution plan;
(5) Forfeit any right to future participation in the defined contribution plan after such election; and
(6) Not be eligible to receive credited service pursuant to section 104.1090 based on service rendered while a participant in such defined contribution plan.
2. The provisions of subsection 1 of this section shall not apply to any outside employee who first becomes an outside employee on or after July 1, 2013.
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