HOUSE BILL NO. 2144 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE BROMLEY.
4542H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 169.070, RSMo, and to enact in lieu thereof one new section relating to the public school retirement system one-time death benefit payment.
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Section A. Section 169.070, RSMo, is repealed and one new section enacted in lieu 2 thereof, to be known as section 169.070, to read as follows: 169.070. 1. The retirement allowance of a member whose age at retirement is sixty 2 years or more and whose creditable service is five years or more, or whose sum of age and 3 creditable service equals eighty years or more, or who has attained age fifty-five and whose 4 creditable service is twenty-five years or more or whose creditable service is thirty years or 5 more regardless of age, may be the sum of the following items, not to exceed one hundred 6 percent of the member's final average salary: 7 (1) Two and five-tenths percent of the member's final average salary for each year of 8 membership service; 9 (2) Six-tenths of the amount payable for a year of membership service for each year 10 of prior service not exceeding thirty years. 11 12 In lieu of the retirement allowance otherwise provided in subdivisions (1) and (2) of this 13 subsection, a member may elect to receive a retirement allowance of: 14 (3) Two and four-tenths percent of the member's final average salary for each year of 15 membership service, if the member's creditable service is twenty-nine years or more but less 16 than thirty years, and the member has not attained age fifty-five;
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 2144 2
17 (4) Two and thirty-five-hundredths percent of the member's final average salary for 18 each year of membership service, if the member's creditable service is twenty-eight years or 19 more but less than twenty-nine years, and the member has not attained age fifty-five; 20 (5) Two and three-tenths percent of the member's final average salary for each year of 21 membership service, if the member's creditable service is twenty-seven years or more but less 22 than twenty-eight years, and the member has not attained age fifty-five; 23 (6) Two and twenty-five-hundredths percent of the member's final average salary for 24 each year of membership service, if the member's creditable service is twenty-six years or 25 more but less than twenty-seven years, and the member has not attained age fifty-five; 26 (7) Two and two-tenths percent of the member's final average salary for each year of 27 membership service, if the member's creditable service is twenty-five years or more but less 28 than twenty-six years, and the member has not attained age fifty-five; 29 (8) Two and fifty-five hundredths percent of the member's final average salary for 30 each year of membership service, if the member's creditable service is thirty-two years or 31 more regardless of age. 32 2. In lieu of the retirement allowance provided in subsection 1 of this section, a 33 member whose age is sixty years or more on September 28, 1975, may elect to have the 34 member's retirement allowance calculated as a sum of the following items: 35 (1) Sixty cents plus one and five-tenths percent of the member's final average salary 36 for each year of membership service; 37 (2) Six-tenths of the amount payable for a year of membership service for each year 38 of prior service not exceeding thirty years; 39 (3) Three-fourths of one percent of the sum of subdivisions (1) and (2) of this 40 subsection for each month of attained age in excess of sixty years but not in excess of age 41 sixty-five. 42 3. (1) In lieu of the retirement allowance provided either in subsection 1 or 2 of this 43 section, collectively called "option 1", a member whose creditable service is twenty-five years 44 or more or who has attained the age of fifty-five with five or more years of creditable service 45 may elect in the member's application for retirement to receive the actuarial equivalent of the 46 member's retirement allowance in reduced monthly payments for life during retirement with 47 the provision that: 48 Option 2. 49 Upon the member's death the reduced retirement allowance shall be continued 50 throughout the life of and paid to such person as has an insurable interest in the life of the 51 member as the member shall have nominated in the member's election of the option, and 52 provided further that if the person so nominated dies before the retired member, the retirement HB 2144 3
53 allowance will be increased to the amount the retired member would be receiving had the 54 retired member elected option 1; or 55 Option 3. 56 Upon the death of the member three-fourths of the reduced retirement allowance shall 57 be continued throughout the life of and paid to such person as has an insurable interest in the 58 life of the member and as the member shall have nominated in an election of the option, and 59 provided further that if the person so nominated dies before the retired member, the retirement 60 allowance will be increased to the amount the retired member would be receiving had the 61 member elected option 1; or 62 Option 4. 63 Upon the death of the member one-half of the reduced retirement allowance shall be 64 continued throughout the life of, and paid to, such person as has an insurable interest in the 65 life of the member and as the member shall have nominated in an election of the option, and 66 provided further that if the person so nominated dies before the retired member, the retirement 67 allowance shall be increased to the amount the retired member would be receiving had the 68 member elected option 1; or 69 Option 5. 70 Upon the death of the member prior to the member having received one hundred 71 twenty monthly payments of the member's reduced allowance, the remainder of the one 72 hundred twenty monthly payments of the reduced allowance shall be paid to such beneficiary 73 as the member shall have nominated in the member's election of the option or in a subsequent 74 nomination. If there is no beneficiary so nominated who survives the member for the 75 remainder of the one hundred twenty monthly payments, the total of the remainder of such 76 one hundred twenty monthly payments shall be paid to the surviving spouse, surviving 77 children in equal shares, surviving parents in equal shares, or estate of the last person, in that 78 order of precedence, to receive a monthly allowance in a lump sum payment. If the total of 79 the one hundred twenty payments paid to the retired individual and the beneficiary of the 80 retired individual is less than the total of the member's accumulated contributions, the 81 difference shall be paid to the beneficiary in a lump sum; or 82 Option 6. 83 Upon the death of the member prior to the member having received sixty monthly 84 payments of the member's reduced allowance, the remainder of the sixty monthly payments 85 of the reduced allowance shall be paid to such beneficiary as the member shall have 86 nominated in the member's election of the option or in a subsequent nomination. If there is no 87 beneficiary so nominated who survives the member for the remainder of the sixty monthly 88 payments, the total of the remainder of such sixty monthly payments shall be paid to the 89 surviving spouse, surviving children in equal shares, surviving parents in equal shares, or HB 2144 4
90 estate of the last person, in that order of precedence, to receive a monthly allowance in a lump 91 sum payment. If the total of the sixty payments paid to the retired individual and the 92 beneficiary of the retired individual is less than the total of the member's accumulated 93 contributions, the difference shall be paid to the beneficiary in a lump sum. 94 (2) The election of an option may be made only in the application for retirement and 95 such application must be filed prior to the date on which the retirement of the member is to be 96 effective. If either the member or the person nominated to receive the survivorship payments 97 dies before the effective date of retirement, the option shall not be effective, provided that: 98 (a) If the member or a person retired on disability retirement dies after acquiring 99 twenty-five or more years of creditable service or after attaining the age of fifty-five years and 100 acquiring five or more years of creditable service and before retirement, except retirement 101 with disability benefits, and the person named by the member as the member's beneficiary has 102 an insurable interest in the life of the deceased member, the designated beneficiary may elect 103 to receive either survivorship benefits under option 2 or a payment of the accumulated 104 contributions of the member. If survivorship benefits under option 2 are elected and the 105 member at the time of death would have been eligible to receive an actuarial equivalent of the 106 member's retirement allowance, the designated beneficiary may further elect to defer the 107 option 2 payments until the date the member would have been eligible to receive the 108 retirement allowance provided in subsection 1 or 2 of this section; 109 (b) If the member or a person retired on disability retirement dies before attaining age 110 fifty-five but after acquiring five but fewer than twenty-five years of creditable service, and 111 the person named as the member's beneficiary has an insurable interest in the life of the 112 deceased member, the designated beneficiary may elect to receive either a payment of the 113 member's accumulated contributions, or survivorship benefits under option 2 to begin on the 114 date the member would first have been eligible to receive an actuarial equivalent of the 115 member's retirement allowance, or to begin on the date the member would first have been 116 eligible to receive the retirement allowance provided in subsection 1 or 2 of this section. 117 4. If the total of the retirement or disability allowance paid to an individual before the 118 death of the individual is less than the accumulated contributions at the time of retirement, the 119 difference shall be paid to the beneficiary of the individual, or to the surviving spouse, 120 surviving children in equal shares, surviving parents in equal shares, or estate of the 121 individual in that order of precedence. If an optional benefit as provided in option 2, 3 or 4 in 122 subsection 3 of this section had been elected, and the beneficiary dies after receiving the 123 optional benefit, and if the total retirement allowance paid to the retired individual and the 124 beneficiary of the retired individual is less than the total of the contributions, the difference 125 shall be paid to the surviving spouse, surviving children in equal shares, surviving parents in HB 2144 5
126 equal shares, or estate of the beneficiary, in that order of precedence, unless the retired 127 individual designates a different recipient with the board at or after retirement. 128 5. If a member dies and his or her financial institution is unable to accept the final 129 payment or payments due to the member, the final payment or payments shall be paid to the 130 beneficiary of the member or, if there is no beneficiary, to the surviving spouse, surviving 131 children in equal shares, surviving parents in equal shares, or estate of the member, in that 132 order of precedence, unless otherwise stated. If the beneficiary of a deceased member dies 133 and his or her financial institution is unable to accept the final payment or payments, the final 134 payment or payments shall be paid to the surviving spouse, surviving children in equal shares, 135 surviving parents in equal shares, or estate of the member, in that order of precedence, unless 136 otherwise stated. 137 6. If a member dies before receiving a retirement allowance, the member's 138 accumulated contributions at the time of the death of the member shall be paid to the 139 beneficiary of the member or, if there is no beneficiary, to the surviving spouse, surviving 140 children in equal shares, surviving parents in equal shares, or to the estate of the member, in 141 that order of precedence; except that, no such payment shall be made if the beneficiary elects 142 option 2 in subsection 3 of this section, unless the beneficiary dies before having received 143 benefits pursuant to that subsection equal to the accumulated contributions of the member, in 144 which case the amount of accumulated contributions in excess of the total benefits paid 145 pursuant to that subsection shall be paid to the surviving spouse, surviving children in equal 146 shares, surviving parents in equal shares, or estate of the beneficiary, in that order of 147 precedence. 148 7. If a member ceases to be a public school employee as herein defined and certifies 149 to the board of trustees that such cessation is permanent, or if the membership of the person is 150 otherwise terminated, the member shall be paid the member's accumulated contributions with 151 interest. 152 8. Notwithstanding any provisions of sections 169.010 to 169.141 to the contrary, if a 153 member ceases to be a public school employee after acquiring five or more years of 154 membership service in Missouri, the member may at the option of the member leave the 155 member's contributions with the retirement system and claim a retirement allowance any time 156 after reaching the minimum age for voluntary retirement. When the member's claim is 157 presented to the board, the member shall be granted an allowance as provided in sections 158 169.010 to 169.141 on the basis of the member's age, years of service, and the provisions of 159 the law in effect at the time the member requests the member's retirement to become 160 effective. 161 9. The retirement allowance of a member retired because of disability shall be nine- 162 tenths of the allowance to which the member's creditable service would entitle the member if HB 2144 6
163 the member's age were sixty, or fifty percent of one-twelfth of the annual salary rate used in 164 determining the member's contributions during the last school year for which the member 165 received a year of creditable service immediately prior to the member's disability, whichever 166 is greater, except that no such allowance shall exceed the retirement allowance to which the 167 member would have been entitled upon retirement at age sixty if the member had continued to 168 teach from the date of disability until age sixty at the same salary rate. 169 10. Notwithstanding any provisions of sections 169.010 to 169.141 to the contrary, 170 from October 13, 1961, the contribution rate pursuant to sections 169.010 to 169.141 shall be 171 multiplied by the factor of two-thirds for any member of the system for whom federal Old 172 Age and Survivors Insurance tax is paid from state or local tax funds on account of the 173 member's employment entitling the person to membership in the system. The monetary 174 benefits for a member who elected not to exercise an option to pay into the system a 175 retroactive contribution of four percent on that part of the member's annual salary rate which 176 was in excess of four thousand eight hundred dollars but not in excess of eight thousand four 177 hundred dollars for each year of employment in a position covered by this system between 178 July 1, 1957, and July 1, 1961, as provided in subsection 10 of this section as it appears in 179 RSMo, 1969, shall be the sum of: 180 (1) For years of service prior to July 1, 1946, six-tenths of the full amount payable for 181 years of membership service; 182 (2) For years of membership service after July 1, 1946, in which the full contribution 183 rate was paid, full benefits under the formula in effect at the time of the member's retirement; 184 (3) For years of membership service after July 1, 1957, and prior to July 1, 1961, the 185 benefits provided in this section as it appears in RSMo, 1959; except that if the member has at 186 least thirty years of creditable service at retirement the member shall receive the benefit 187 payable pursuant to that section as though the member's age were sixty-five at retirement; 188 (4) For years of membership service after July 1, 1961, in which the two-thirds 189 contribution rate was paid, two-thirds of the benefits under the formula in effect at the time of 190 the member's retirement. 191 11. The monetary benefits for each other member for whom federal Old Age and 192 Survivors Insurance tax is or was paid at any time from state or local funds on account of the 193 member's employment entitling the member to membership in the system shall be the sum of: 194 (1) For years of service prior to July 1, 1946, six-tenths of the full amount payable for 195 years of membership service; 196 (2) For years of membership service after July 1, 1946, in which the full contribution 197 rate was paid, full benefits under the formula in effect at the time of the member's retirement; HB 2144 7
198 (3) For years of membership service after July 1, 1957, in which the two-thirds 199 contribution rate was paid, two-thirds of the benefits under the formula in effect at the time of 200 the member's retirement. 201 12. Any retired member of the system who was retired prior to September 1, 1972, or 202 beneficiary receiving payments under option 1 or option 2 of subsection 3 of this section, as 203 such option existed prior to September 1, 1972, will be eligible to receive an increase in the 204 retirement allowance of the member of two percent for each year, or major fraction of more 205 than one-half of a year, which the retired member has been retired prior to July 1, 1975. This 206 increased amount shall be payable commencing with January, 1976, and shall thereafter be 207 referred to as the member's retirement allowance. The increase provided for in this 208 subsection shall not affect the retired member's eligibility for compensation provided for in 209 section 169.580 or 169.585, nor shall the amount being paid pursuant to these sections be 210 reduced because of an