Contributions by members and employees, exceptions--rate--withholdingrequired--board to fix rate, conditions.
169.030. 1. The funds required for the operation of the retirementsystem created by sections 169.010 to 169.141 shall come from contributionsmade in equal amounts by members of the system and their employers, except asprovided for certain members and employers by section 104.342, RSMo, and fromsuch interest as may be derived from the investment of any part of suchcontributions. All contributions shall be transmitted to the board oftrustees by employers in such manner and at such time as the board by ruleshall require.
2. For each school year following the date on which the system becomesoperative, each and every employer of one or more persons who are members ofthe system shall transmit to the board of trustees, in the manner andaccompanied by such supporting data as the board shall prescribe, twice theamount that is deductible from the pay of such employee or employees duringthe school year. Failure or refusal to transmit such amount as required shallrender the person or persons responsible therefor individually liable fortwice the amount so withheld. Suits for the recovery of amounts for whichindividuals are thus rendered liable shall be instituted and prosecuted by theboard of trustees in the name of the retirement system. In addition to suchcivil penalty, and not in lieu thereof, any person or persons made responsiblefor the payment of contributions who shall willfully and knowingly fail orrefuse to transmit such contributions or any part thereof to the board oftrustees shall be deemed guilty of a misdemeanor and upon conviction thereofshall be punished by a fine of not less than twenty-five dollars and not morethan two hundred dollars, and each day such person or persons shall so fail orrefuse to transmit such contributions shall be deemed a separate offense.
3. The contributions of members of the retirement system shall becollected by their employers through appropriate deductions from paychecks,except as provided for certain members and employers by section 104.342, RSMo. The total amount deducted from the paychecks of members during any schoolyear shall equal such a percent of their salary rates as may be required bythe contribution rate then in effect. Contributions transmitted to theretirement system before February 20, 1996, based on salary rates which eitherincluded or excluded employer-paid medical benefits for members, shall bedeemed to have been in compliance with this section. The retirement systemshall not refund or adjust contributions or adjust benefit determinations withrespect to any period before February 20, 1996, solely because of thetreatment of employer-paid medical benefits for members. Effective December31, 1995, compensation in excess of the limitations set forth in Section401(a)(17) of Title 26 of the United States Code shall be disregarded forpurposes of determining contributions under this section and calculatingbenefits paid by the public school retirement system of Missouri. Thelimitation on compensation for eligible employees shall not be less than theamount which was allowed to be taken into account under the system as ineffect on July 1, 1993. For this purpose, an "eligible employee" is anindividual who was a member of the system before July 1, 1996.
4. The board of trustees shall fix and certify to the employers thelevel rate of contribution subject to the following:
(1) The level rate of contribution for a fiscal year shall not exceedthe level rate of contribution for the prior fiscal year by more than one-halfpercent;
(2) The board shall fix and certify to the employers the rate ofcontribution for a fiscal year no later than six months prior to the date suchrate is to be effective;
(3) The board shall fix and certify to the employers the rate ofcontribution for a fiscal year based on an actuarial valuation of the systemas of a date not earlier than the last day of the second prior fiscal year.Such actuarial valuation of the system shall be performed using processes andactuarial assumptions that are in accordance with actuarial standards ofpractice in effect at the time the valuation is performed, as promulgated bythe actuarial standards board or its successor; provided that such actuarialvaluation shall be based on the entry age normal actuarial cost method and anasset valuation method based on the market value of system assets that mayprovide for smoothing of investment gains and losses, and, further, that thelevel rate of contribution shall be the total of the normal cost rate and arate which shall amortize the unfunded actuarial accrued liability over aperiod that shall not exceed thirty years from the date of the valuation,subject to the limitations of this subsection; and
(4) Not less than once every ten years the board shall have an actuary,other than the actuary performing the actuarial valuation pursuant to thissection, review such actuarial valuation and perform an additional valuationof the system.
5. Regardless of the provisions of any law governing compensation andcontracts, every teacher or employee shall be deemed to consent and agree tothe deductions provided herein. Payment of salary or compensation less suchdeduction shall be a full and complete discharge of all salary or compensationclaims and demands during the period covered by such payment, except as to thebenefits provided under sections 169.010 to 169.141.
6. Notwithstanding any other provision of sections 169.010 to 169.141 tothe contrary, no legislation shall be enacted after July 1, 2003, thatincreases benefits provided to members or retirees of the public schoolretirement system of Missouri above that which may be funded using a rate ofcontribution of ten and one-half percent as determined using an actuarialvaluation as provided in subsection 4 of this section; provided that,notwithstanding the provision of this subsection, legislation may be enactedafter July 1, 2003, that provides for an extension of time within which amember may make an election pursuant to subdivisions (3) to (8) of subsection1 of section 169.070.
(L. 1945 p. 1353 § 3, A.L. 1949 p. 525, A.L. 1953 p. 480, A.L. 1957 p. 432, A.L. 1965 p. 288, A.L. 1967 p. 250, A.L. 1972 S.B. 491, A.L. 1977 H.B. 477, A.L. 1990 H.B. 1347, et al., A.L. 1994 S.B. 575, A.L. 1995 S.B. 378, A.L. 1996 S.B. 857, A.L. 2003 H.B. 346 & 174)
CROSS REFERENCE:
Requires that certain persons must make an election if they wish to remain members of the public school retirement system, RSMo 104.032
(1995) "Salary rate" does not include fringe benefits. Savannah R-III School Dist. v. PSRS, 912 S.W.2d 574 (Mo.App.W.D.).
Contributions by members and employees, exceptions--rate--withholdingrequired--board to fix rate, conditions.
169.030. 1. The funds required for the operation of the retirementsystem created by sections 169.010 to 169.141 shall come from contributionsmade in equal amounts by members of the system and their employers, except asprovided for certain members and employers by section 104.342, RSMo, and fromsuch interest as may be derived from the investment of any part of suchcontributions. All contributions shall be transmitted to the board oftrustees by employers in such manner and at such time as the board by ruleshall require.
2. For each school year following the date on which the system becomesoperative, each and every employer of one or more persons who are members ofthe system shall transmit to the board of trustees, in the manner andaccompanied by such supporting data as the board shall prescribe, twice theamount that is deductible from the pay of such employee or employees duringthe school year. Failure or refusal to transmit such amount as required shallrender the person or persons responsible therefor individually liable fortwice the amount so withheld. Suits for the recovery of amounts for whichindividuals are thus rendered liable shall be instituted and prosecuted by theboard of trustees in the name of the retirement system. In addition to suchcivil penalty, and not in lieu thereof, any person or persons made responsiblefor the payment of contributions who shall willfully and knowingly fail orrefuse to transmit such contributions or any part thereof to the board oftrustees shall be deemed guilty of a misdemeanor and upon conviction thereofshall be punished by a fine of not less than twenty-five dollars and not morethan two hundred dollars, and each day such person or persons shall so fail orrefuse to transmit such contributions shall be deemed a separate offense.
3. The contributions of members of the retirement system shall becollected by their employers through appropriate deductions from paychecks,except as provided for certain members and employers by section 104.342, RSMo. The total amount deducted from the paychecks of members during any schoolyear shall equal such a percent of their salary rates as may be required bythe contribution rate then in effect. Contributions transmitted to theretirement system before February 20, 1996, based on salary rates which eitherincluded or excluded employer-paid medical benefits for members, shall bedeemed to have been in compliance with this section. The retirement systemshall not refund or adjust contributions or adjust benefit determinations withrespect to any period before February 20, 1996, solely because of thetreatment of employer-paid medical benefits for members. Effective December31, 1995, compensation in excess of the limitations set forth in Section401(a)(17) of Title 26 of the United States Code shall be disregarded forpurposes of determining contributions under this section and calculatingbenefits paid by the public school retirement system of Missouri. Thelimitation on compensation for eligible employees shall not be less than theamount which was allowed to be taken into account under the system as ineffect on July 1, 1993. For this purpose, an "eligible employee" is anindividual who was a member of the system before July 1, 1996.
4. The board of trustees shall fix and certify to the employers thelevel rate of contribution subject to the following:
(1) The level rate of contribution for a fiscal year shall not exceedthe level rate of contribution for the prior fiscal year by more than one-halfpercent;
(2) The board shall fix and certify to the employers the rate ofcontribution for a fiscal year no later than six months prior to the date suchrate is to be effective;
(3) The board shall fix and certify to the employers the rate ofcontribution for a fiscal year based on an actuarial valuation of the systemas of a date not earlier than the last day of the second prior fiscal year.Such actuarial valuation of the system shall be performed using processes andactuarial assumptions that are in accordance with actuarial standards ofpractice in effect at the time the valuation is performed, as promulgated bythe actuarial standards board or its successor; provided that such actuarialvaluation shall be based on the entry age normal actuarial cost method and anasset valuation method based on the market value of system assets that mayprovide for smoothing of investment gains and losses, and, further, that thelevel rate of contribution shall be the total of the normal cost rate and arate which shall amortize the unfunded actuarial accrued liability over aperiod that shall not exceed thirty years from the date of the valuation,subject to the limitations of this subsection; and
(4) Not less than once every ten years the board shall have an actuary,other than the actuary performing the actuarial valuation pursuant to thissection, review such actuarial valuation and perform an additional valuationof the system.
5. Regardless of the provisions of any law governing compensation andcontracts, every teacher or employee shall be deemed to consent and agree tothe deductions provided herein. Payment of salary or compensation less suchdeduction shall be a full and complete discharge of all salary or compensationclaims and demands during the period covered by such payment, except as to thebenefits provided under sections 169.010 to 169.141.
6. Notwithstanding any other provision of sections 169.010 to 169.141 tothe contrary, no legislation shall be enacted after July 1, 2003, thatincreases benefits provided to members or retirees of the public schoolretirement system of Missouri above that which may be funded using a rate ofcontribution of ten and one-half percent as determined using an actuarialvaluation as provided in subsection 4 of this section; provided that,notwithstanding the provision of this subsection, legislation may be enactedafter July 1, 2003, that provides for an extension of time within which amember may make an election pursuant to subdivisions (3) to (8) of subsection1 of section 169.070.
(L. 1945 p. 1353 § 3, A.L. 1949 p. 525, A.L. 1953 p. 480, A.L. 1957 p. 432, A.L. 1965 p. 288, A.L. 1967 p. 250, A.L. 1972 S.B. 491, A.L. 1977 H.B. 477, A.L. 1990 H.B. 1347, et al., A.L. 1994 S.B. 575, A.L. 1995 S.B. 378, A.L. 1996 S.B. 857, A.L. 2003 H.B. 346 & 174)
CROSS REFERENCE:
Requires that certain persons must make an election if they wish to remain members of the public school retirement system, RSMo 104.032
(1995) "Salary rate" does not include fringe benefits. Savannah R-III School Dist. v. PSRS, 912 S.W.2d 574 (Mo.App.W.D.).
Contributions by members and employees, exceptions--rate--withholdingrequired--board to fix rate, conditions.
169.030. 1. The funds required for the operation of the retirementsystem created by sections 169.010 to 169.141 shall come from contributionsmade in equal amounts by members of the system and their employers, except asprovided for certain members and employers by section 104.342, RSMo, and fromsuch interest as may be derived from the investment of any part of suchcontributions. All contributions shall be transmitted to the board oftrustees by employers in such manner and at such time as the board by ruleshall require.
2. For each school year following the date on which the system becomesoperative, each and every employer of one or more persons who are members ofthe system shall transmit to the board of trustees, in the manner andaccompanied by such supporting data as the board shall prescribe, twice theamount that is deductible from the pay of such employee or employees duringthe school year. Failure or refusal to transmit such amount as required shallrender the person or persons responsible therefor individually liable fortwice the amount so withheld. Suits for the recovery of amounts for whichindividuals are thus rendered liable shall be instituted and prosecuted by theboard of trustees in the name of the retirement system. In addition to suchcivil penalty, and not in lieu thereof, any person or persons made responsiblefor the payment of contributions who shall willfully and knowingly fail orrefuse to transmit such contributions or any part thereof to the board oftrustees shall be deemed guilty of a misdemeanor and upon conviction thereofshall be punished by a fine of not less than twenty-five dollars and not morethan two hundred dollars, and each day such person or persons shall so fail orrefuse to transmit such contributions shall be deemed a separate offense.
3. The contributions of members of the retirement system shall becollected by their employers through appropriate deductions from paychecks,except as provided for certain members and employers by section 104.342, RSMo. The total amount deducted from the paychecks of members during any schoolyear shall equal such a percent of their salary rates as may be required bythe contribution rate then in effect. Contributions transmitted to theretirement system before February 20, 1996, based on salary rates which eitherincluded or excluded employer-paid medical benefits for members, shall bedeemed to have been in compliance with this section. The retirement systemshall not refund or adjust contributions or adjust benefit determinations withrespect to any period before February 20, 1996, solely because of thetreatment of employer-paid medical benefits for members. Effective December31, 1995, compensation in excess of the limitations set forth in Section401(a)(17) of Title 26 of the United States Code shall be disregarded forpurposes of determining contributions under this section and calculatingbenefits paid by the public school retirement system of Missouri. Thelimitation on compensation for eligible employees shall not be less than theamount which was allowed to be taken into account under the system as ineffect on July 1, 1993. For this purpose, an "eligible employee" is anindividual who was a member of the system before July 1, 1996.
4. The board of trustees shall fix and certify to the employers thelevel rate of contribution subject to the following:
(1) The level rate of contribution for a fiscal year shall not exceedthe level rate of contribution for the prior fiscal year by more than one-halfpercent;
(2) The board shall fix and certify to the employers the rate ofcontribution for a fiscal year no later than six months prior to the date suchrate is to be effective;
(3) The board shall fix and certify to the employers the rate ofcontribution for a fiscal year based on an actuarial valuation of the systemas of a date not earlier than the last day of the second prior fiscal year.Such actuarial valuation of the system shall be performed using processes andactuarial assumptions that are in accordance with actuarial standards ofpractice in effect at the time the valuation is performed, as promulgated bythe actuarial standards board or its successor; provided that such actuarialvaluation shall be based on the entry age normal actuarial cost method and anasset valuation method based on the market value of system assets that mayprovide for smoothing of investment gains and losses, and, further, that thelevel rate of contribution shall be the total of the normal cost rate and arate which shall amortize the unfunded actuarial accrued liability over aperiod that shall not exceed thirty years from the date of the valuation,subject to the limitations of this subsection; and
(4) Not less than once every ten years the board shall have an actuary,other than the actuary performing the actuarial valuation pursuant to thissection, review such actuarial valuation and perform an additional valuationof the system.
5. Regardless of the provisions of any law governing compensation andcontracts, every teacher or employee shall be deemed to consent and agree tothe deductions provided herein. Payment of salary or compensation less suchdeduction shall be a full and complete discharge of all salary or compensationclaims and demands during the period covered by such payment, except as to thebenefits provided under sections 169.010 to 169.141.
6. Notwithstanding any other provision of sections 169.010 to 169.141 tothe contrary, no legislation shall be enacted after July 1, 2003, thatincreases benefits provided to members or retirees of the public schoolretirement system of Missouri above that which may be funded using a rate ofcontribution of ten and one-half percent as determined using an actuarialvaluation as provided in subsection 4 of this section; provided that,notwithstanding the provision of this subsection, legislation may be enactedafter July 1, 2003, that provides for an extension of time within which amember may make an election pursuant to subdivisions (3) to (8) of subsection1 of section 169.070.
(L. 1945 p. 1353 § 3, A.L. 1949 p. 525, A.L. 1953 p. 480, A.L. 1957 p. 432, A.L. 1965 p. 288, A.L. 1967 p. 250, A.L. 1972 S.B. 491, A.L. 1977 H.B. 477, A.L. 1990 H.B. 1347, et al., A.L. 1994 S.B. 575, A.L. 1995 S.B. 378, A.L. 1996 S.B. 857, A.L. 2003 H.B. 346 & 174)
CROSS REFERENCE:
Requires that certain persons must make an election if they wish to remain members of the public school retirement system, RSMo 104.032
(1995) "Salary rate" does not include fringe benefits. Savannah R-III School Dist. v. PSRS, 912 S.W.2d 574 (Mo.App.W.D.).
