HOUSE BILL NO. 3208 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE HOVIS.
6943H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 169.450, RSMo, and to enact in lieu thereof one new section relating to certain public school retirement systems.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 169.450, RSMo, is repealed and one new section enacted in lieu 2 thereof, to be known as section 169.450, to read as follows: 169.450. 1. The general administration and responsibility for the proper operation of 2 the retirement system and for making effective the provisions of sections 169.410 to 169.540 3 are hereby vested in a board of trustees of thirteen persons, as follows: 4 (1) Four trustees to be appointed for terms of four years by the board of education; 5 provided, however, that their terms shall be fixed so the terms of one of the trustees so 6 appointed shall expire each year. The members of such board of trustees appointed by the 7 board of education may be members of the board of education or other individuals deemed 8 qualified to hold such positions by the board of education; 9 (2) Four trustees to be elected for terms of four years by and from the active members 10 of the retirement system who shall hold office as trustees only while active members; 11 provided, however, that their terms shall be fixed so that the terms of one of the trustees so 12 elected shall expire each year; and provided further, that not more than two of such persons 13 shall be teachers and two shall be nonteachers. For the purposes of this subsection, a school 14 administrator shall not be eligible for the positions established pursuant to this subdivision 15 and shall be eligible for the position established pursuant to subdivision (4) of this subsection; 16 (3) Two trustees, who shall be retired members, to be elected for terms of four years 17 by and from the retired members of the retirement system; provided, however, that the terms
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 3208 2
18 of office of the first two trustees so elected shall begin immediately upon their election and 19 shall expire two and four years from the date of their election, respectively; and provided 20 further, that not more than one of such persons shall be a teacher and one shall be a 21 nonteacher; 22 (4) One member, who shall be a school administrator, to be elected for a term of four 23 years by and from the active members of the retirement system who shall hold office as a 24 trustee only while an active member; except that, the initial term of office of such trustee shall 25 expire on December 31, 1999; 26 (5) Two trustees to be appointed for terms of four years by the Missouri Charter 27 Public School Association; provided, however, that the terms of office of the first two trustees 28 so elected shall begin immediately upon their election and shall expire two and four years 29 from the date of their election, respectively. The members of such board of trustees appointed 30 by the Missouri Charter Public School Association shall have experience or qualifications 31 relevant to public charter schools and the retirement system, and at least one such member 32 shall be a teacher. The appointment of the trustees shall be subject to the same rules and 33 regulations applicable to other trustees, including, but not limited to, taking an oath of office 34 as provided in subsection 5 of this section. 35 2. If a vacancy occurs in the office of trustee, the vacancy shall be filled for the 36 unexpired term in the same manner as the office was previously filled. No vacancy or 37 vacancies on the board of trustees shall impair the power of the remaining trustees to 38 administer the retirement system pending the filling of such vacancies. 39 3. In the event of a lapse of a school district's corporate organization as described in 40 subsections 1 and 4 of section 162.081, or for any other reason, the general administration and 41 the responsibility for the proper operation of the retirement system shall continue to be fully 42 vested in the trustees then currently serving and such trustees shall continue to serve and be 43 elected in the same manner as set forth in this statute as if no lapse had occurred, except that 44 in the event of vacancies occurring in the office of trustees appointed by the board of 45 education prior to the lapse, the board of trustees shall appoint a qualified person or persons to 46 fill such vacancy or vacancies for terms of up to four years. 47 4. Trustees shall serve without compensation, and any trustee shall be reimbursed 48 from the expense fund for all necessary expenses which the trustee may incur through service 49 on the board of trustees. 50 5. Each trustee shall, within ten days after such trustee's appointment or election, take 51 an oath of office before the clerk of the circuit court of the judicial circuit in which the school 52 district is located that, so far as it devolves upon the trustee, the trustee will diligently and 53 honestly administer the affairs of the board of trustees and that the trustee will not knowingly 54 violate or willingly permit to be violated any of the provisions of the law applicable to the HB 3208 3
55 retirement system. Such oath shall be subscribed to by the trustee making it and filed in the 56 office of the clerk of the circuit court. 57 6. The circuit court of the judicial circuit in which the school district is located shall 58 have jurisdiction over the members of the board of trustees to require them to account for 59 their official conduct in the management and disposition of the funds and property committed 60 to their charge; to order, decree and compel payment by them to the public school retirement 61 system of their school district of all sums of money, and of the value of all property which 62 may have been improperly retained by them, or transferred to others, or which may have been 63 lost or wasted by any violation of their duties or abuse of their powers as such members of 64 such board; to remove any such member upon proof that the trustee has abused the trustee's 65 trust or has violated the duties of the trustee's office; to restrain and prevent any alienation or 66 disposition of property of such public school retirement system by the members, in cases 67 where it may be threatened, or there is good reason to apprehend that it is intended to be made 68 in fraud of the rights and interests of such public school retirement system. The jurisdiction 69 conferred by sections 169.410 to 169.540 shall be exercised as in ordinary cases upon 70 petition, filed by the board of education of such school district, or by any two members of the 71 board of trustees. Such petition shall be heard in a summary manner after ten days' notice in 72 writing to the member complained of, and an appeal shall lie from the judgment of the circuit 73 court as in other causes and be speedily determined, but such appeal shall not operate under 74 any condition as a supersedeas of a judgment of removal from office. 75 7. Each trustee shall be entitled to one vote in the board of trustees. [Six votes shall be 76 necessary for a decision by the trustees at any meeting of the board of trustees.] Seven 77 members of the board of trustees shall constitute a quorum for the transaction of 78 business. Any action or decision of the board of trustees may be approved by a majority 79 vote of the board members who attend a duly called meeting at which a quorum is 80 present. 81 8. Subject to the limitations of sections 169.410 to 169.540, the board of trustees 82 shall, from time to time, establish rules and regulations for the administration of the 83 retirement system, for eligibility for and determination of benefits under the retirement 84 system, for the investment of retirement system assets, and for the transaction of the 85 retirement system's business. 86 9. The board of trustees shall elect from its membership a chairman and shall, by 87 majority vote of its members, appoint a secretary, who may be, but need not be, one of its 88 members. It shall engage such actuarial and other services as shall be required to transact the 89 business of the retirement system. It shall also engage an investment counselor who shall be 90 experienced in the investment of moneys to advise the trustees on investments of the 91 retirement system. The compensation of all persons engaged by the board of trustees and all HB 3208 4
92 other expenses of the board necessary for the operation of the retirement system shall be paid 93 at such rates and in such amounts as the board of trustees shall approve. 94 10. The board of trustees shall keep in convenient form such data as shall be 95 necessary for actuarial valuations of the assets of the retirement system and for checking the 96 experience of the system. 97 11. The board of trustees shall keep a record of all its proceedings which shall be 98 open to public inspection. It shall prepare annually and send to the board of education and to 99 each member of the retirement system a report showing the fiscal transactions of the 100 retirement system for the preceding fiscal year, a detailed listing of all salaries and 101 expenditures incurred by the trustees for its operation, the amount of the accumulated cash 102 and securities of the system, and the last balance sheet showing the financial condition of the 103 system by means of an actuarial valuation of the assets and liabilities of the retirement 104 system. The board of trustees shall also prepare or cause to be prepared an annual report 105 concerning the operation of the retirement system herein provided for, which report shall be 106 sent by the chairman of the board of trustees to the board of education. 107 12. The board of trustees shall arrange for necessary legal advice for the operation of 108 the retirement system. 109 13. The board of trustees shall designate a medical board to be composed of three 110 physicians, none of whom shall be eligible for benefits pursuant to sections 169.410 to 111 169.540, who shall arrange for and pass upon all medical examinations required pursuant to 112 the provisions of sections 169.410 to 169.540, shall investigate all essential statements and 113 certificates made by or on behalf of a member in connection with an application for disability 114 retirement and shall report in writing to the board of trustees its conclusions and 115 recommendations upon all matters referred to it. 116 14. The actuary shall be the technical adviser of the board of trustees on matters 117 regarding the operation of the system created by sections 169.410 to 169.540 and shall 118 perform such other duties as are required in connection therewith. Such person shall be 119 qualified as an actuary by membership as a fellow in the Society of Actuaries or by objective 120 standards which are no less stringent than those established by the Society of Actuaries. 121 15. At least once in each five-year period the actuary shall make an investigation into 122 the actuarial experience of the retirement system, and taking into account the results of such 123 investigation of the experience, the board of trustees shall adopt for the retirement system 124 such actuarial assumptions as shall be deemed necessary. 125 16. On the basis of such actuarial assumptions as the board of trustees shall adopt, the 126 actuary shall make an annual valuation of the assets and liabilities of the funds of the 127 retirement system. HB 3208 5
128 17. On the basis of the valuation the board of trustees shall certify the rates of 129 contribution payable by the board of education. ✔
Statutes affected: