Retirement allowances, minimum amounts--retirants may substitutewithout affecting allowance, limitation--annual determination ofability to provide benefits, standards--action plan for use ofminority and women money managers, brokers and investment counselors.
169.324. 1. The annual service retirement allowance payable pursuantto section 169.320 in equal monthly installments for life shall be theretirant's number of years of creditable service multiplied by one andthree-fourths percent of the person's average final compensation, subjectto a maximum of sixty percent of the person's average final compensation.For any member who retires as an active member on or after June 30, 1999,the annual service retirement allowance payable pursuant to section 169.320in equal monthly installments for life shall be the retirant's number ofyears of creditable service multiplied by two percent of the person'saverage final compensation, subject to a maximum of sixty percent of theperson's average final compensation. Any member whose number of years ofcreditable service is greater than thirty-four and one-quarter on August28, 1993, shall receive an annual service retirement allowance payablepursuant to section 169.320 in equal monthly installments for life equal tothe retirant's number of years of creditable service as of August 28, 1993,multiplied by one and three-fourths percent of the person's average finalcompensation but shall not receive a greater annual service retirementallowance based on additional years of creditable service after August 28,1993. Provided, however, that, effective January 1, 1996, any retiree whoretired on, before or after January 1, 1996, with at least twenty years ofcreditable service shall receive at least three hundred dollars each monthas a retirement allowance, or the actuarial equivalent thereof if theretiree elected any of the options available under section 169.326.Provided, further, any retiree who retired with at least ten years ofcreditable service shall receive at least one hundred fifty dollars eachmonth as a retirement allowance, plus fifteen dollars for each additionalfull year of creditable service greater than ten years but less than twentyyears (or the actuarial equivalent thereof if the retiree elected any ofthe options available under section 169.326). Any beneficiary of adeceased retiree who retired with at least ten years of creditable serviceand elected one of the options available under section 169.326 shall alsobe entitled to the actuarial equivalent of the minimum benefit provided bythis subsection, determined from the option chosen.
2. Except as otherwise provided in sections 169.331, 169.580 and169.585, payment of a retirant's retirement allowance will be suspended forany month for which such person receives remuneration from the person'semployer or from any other employer in the retirement system established bysection 169.280 for the performance of services except any such personother than a person receiving a disability retirement allowance undersection 169.322 may serve as a nonregular substitute, part-time ortemporary employee for not more than six hundred hours in any school yearwithout becoming a member and without having the person's retirementallowance discontinued. If a retirant is reemployed by any employer in anycapacity, whether pursuant to this section, or section 169.331, 169.580, or169.585, or as a regular employee, the amount of such person's retirementallowance attributable to service prior to the person's first retirementdate shall not be changed by the reemployment. If the person again becomesan active member and earns additional creditable service, upon the person'ssecond retirement the person's retirement allowance shall be the sum of:
(1) The retirement allowance the person was receiving at the time theperson's retirement allowance was suspended, pursuant to the payment optionelected as of the first retirement date, plus the amount of any increase insuch retirement allowance the person would have received pursuant tosubsection 3 of this section had payments not been suspended during theperson's reemployment; and
(2) An additional retirement allowance computed using the benefitformula in effect on the person's second retirement date, the person'screditable service following reemployment, and the person's average annualcompensation as of the second retirement date.
The sum calculated pursuant to this subsection shall not exceed the greaterof sixty percent of the person's average final compensation as of thesecond retirement date or the amount determined pursuant to subdivision (1)of this subsection. Compensation earned prior to the person's firstretirement date shall be considered in determining the person's averagefinal compensation as of the second retirement date if such compensationwould otherwise be included in determining the person's average finalcompensation.
3. The board of trustees shall determine annually whether theinvestment return on funds of the system can provide for an increase inbenefits for retirants eligible for such increase. A retirant shall andwill be eligible for an increase awarded pursuant to this section as of thesecond January following the date the retirant commenced receivingretirement benefits. Any such increase shall also apply to any monthlyjoint and survivor retirement allowance payable to such retirant'sbeneficiaries, regardless of age. The board shall make such determinationas follows:
(1) After determination by the actuary of the investment return forthe preceding year as of December thirty-first (the "valuation year"), theactuary shall recommend to the board of trustees what portion of theinvestment return is available to provide such benefits increase, if any,and shall recommend the amount of such benefits increase, if any, to beimplemented as of the first day of the thirteenth month following the endof the valuation year, and the first payable on or about the first day ofthe fourteenth month following the end of the valuation year. The actuaryshall make such recommendations so as not to affect the financial soundnessof the retirement system, recognizing the following safeguards:
(a) The retirement system's funded ratio as of January first of theyear preceding the year of a proposed increase shall be at least onehundred percent after adjusting for the effect of the proposed increase.The funded ratio is the ratio of assets to the pension benefit obligation;
(b) The actuarially required contribution rate, after adjusting forthe effect of the proposed increase, may not exceed the statutorycontribution rate;
(c) The actuary shall certify to the board of trustees that theproposed increase will not impair the actuarial soundness of the retirementsystem;
(d) A benefit increase, under this section, once awarded, cannot bereduced in succeeding years;
(2) The board of trustees shall review the actuary's recommendationand report and shall, in their discretion, determine if any increase isprudent and, if so, shall determine the amount of increase to be awarded.
4. This section does not guarantee an annual increase to anyretirant.
5. If an inactive member becomes an active member after June 30,2001, and after a break in service, unless the person earns at least fouradditional years of creditable service without another break in service,upon retirement the person's retirement allowance shall be calculatedseparately for each separate period of service ending in a break inservice. The retirement allowance shall be the sum of the separateretirement allowances computed for each such period of service using thebenefit formula in effect, the person's average final compensation as ofthe last day of such period of service and the creditable service theperson earned during such period of service; provided, however, if theperson earns at least four additional years of creditable service withoutanother break in service, all of the person's creditable service prior toand including such service shall be aggregated and, upon retirement, theretirement allowance shall be computed using the benefit formula in effectand the person's average final compensation as of the last day of suchperiod of four or more years and all of the creditable service the personearned prior to and during such period.
6. Notwithstanding anything contained in this section to thecontrary, the amount of the annual service retirement allowance payable toany retirant pursuant to the provisions of sections 169.270 to 169.400,including any adjustments made pursuant to subsection 3 of this section,shall at all times comply with the provisions and limitations of Section415 of the Internal Revenue Code of 1986, as amended, and the regulationsthereunder, the terms of which are specifically incorporated herein byreference.
7. All retirement systems established by the laws of the state ofMissouri shall develop a procurement action plan for utilization ofminority and women money managers, brokers and investment counselors. Suchretirement systems shall report their progress annually to the jointcommittee on public employee retirement and the governor's minorityadvocacy commission.
Retirement allowances, minimum amounts--retirants may substitutewithout affecting allowance, limitation--annual determination ofability to provide benefits, standards--action plan for use ofminority and women money managers, brokers and investment counselors.
169.324. 1. The annual service retirement allowance payable pursuantto section 169.320 in equal monthly installments for life shall be theretirant's number of years of creditable service multiplied by one andthree-fourths percent of the person's average final compensation, subjectto a maximum of sixty percent of the person's average final compensation.For any member who retires as an active member on or after June 30, 1999,the annual service retirement allowance payable pursuant to section 169.320in equal monthly installments for life shall be the retirant's number ofyears of creditable service multiplied by two percent of the person'saverage final compensation, subject to a maximum of sixty percent of theperson's average final compensation. Any member whose number of years ofcreditable service is greater than thirty-four and one-quarter on August28, 1993, shall receive an annual service retirement allowance payablepursuant to section 169.320 in equal monthly installments for life equal tothe retirant's number of years of creditable service as of August 28, 1993,multiplied by one and three-fourths percent of the person's average finalcompensation but shall not receive a greater annual service retirementallowance based on additional years of creditable service after August 28,1993. Provided, however, that, effective January 1, 1996, any retiree whoretired on, before or after January 1, 1996, with at least twenty years ofcreditable service shall receive at least three hundred dollars each monthas a retirement allowance, or the actuarial equivalent thereof if theretiree elected any of the options available under section 169.326.Provided, further, any retiree who retired with at least ten years ofcreditable service shall receive at least one hundred fifty dollars eachmonth as a retirement allowance, plus fifteen dollars for each additionalfull year of creditable service greater than ten years but less than twentyyears (or the actuarial equivalent thereof if the retiree elected any ofthe options available under section 169.326). Any beneficiary of adeceased retiree who retired with at least ten years of creditable serviceand elected one of the options available under section 169.326 shall alsobe entitled to the actuarial equivalent of the minimum benefit provided bythis subsection, determined from the option chosen.
2. Except as otherwise provided in sections 169.331, 169.580 and169.585, payment of a retirant's retirement allowance will be suspended forany month for which such person receives remuneration from the person'semployer or from any other employer in the retirement system established bysection 169.280 for the performance of services except any such personother than a person receiving a disability retirement allowance undersection 169.322 may serve as a nonregular substitute, part-time ortemporary employee for not more than six hundred hours in any school yearwithout becoming a member and without having the person's retirementallowance discontinued. If a retirant is reemployed by any employer in anycapacity, whether pursuant to this section, or section 169.331, 169.580, or169.585, or as a regular employee, the amount of such person's retirementallowance attributable to service prior to the person's first retirementdate shall not be changed by the reemployment. If the person again becomesan active member and earns additional creditable service, upon the person'ssecond retirement the person's retirement allowance shall be the sum of:
(1) The retirement allowance the person was receiving at the time theperson's retirement allowance was suspended, pursuant to the payment optionelected as of the first retirement date, plus the amount of any increase insuch retirement allowance the person would have received pursuant tosubsection 3 of this section had payments not been suspended during theperson's reemployment; and
(2) An additional retirement allowance computed using the benefitformula in effect on the person's second retirement date, the person'screditable service following reemployment, and the person's average annualcompensation as of the second retirement date.
The sum calculated pursuant to this subsection shall not exceed the greaterof sixty percent of the person's average final compensation as of thesecond retirement date or the amount determined pursuant to subdivision (1)of this subsection. Compensation earned prior to the person's firstretirement date shall be considered in determining the person's averagefinal compensation as of the second retirement date if such compensationwould otherwise be included in determining the person's average finalcompensation.
3. The board of trustees shall determine annually whether theinvestment return on funds of the system can provide for an increase inbenefits for retirants eligible for such increase. A retirant shall andwill be eligible for an increase awarded pursuant to this section as of thesecond January following the date the retirant commenced receivingretirement benefits. Any such increase shall also apply to any monthlyjoint and survivor retirement allowance payable to such retirant'sbeneficiaries, regardless of age. The board shall make such determinationas follows:
(1) After determination by the actuary of the investment return forthe preceding year as of December thirty-first (the "valuation year"), theactuary shall recommend to the board of trustees what portion of theinvestment return is available to provide such benefits increase, if any,and shall recommend the amount of such benefits increase, if any, to beimplemented as of the first day of the thirteenth month following the endof the valuation year, and the first payable on or about the first day ofthe fourteenth month following the end of the valuation year. The actuaryshall make such recommendations so as not to affect the financial soundnessof the retirement system, recognizing the following safeguards:
(a) The retirement system's funded ratio as of January first of theyear preceding the year of a proposed increase shall be at least onehundred percent after adjusting for the effect of the proposed increase.The funded ratio is the ratio of assets to the pension benefit obligation;
(b) The actuarially required contribution rate, after adjusting forthe effect of the proposed increase, may not exceed the statutorycontribution rate;
(c) The actuary shall certify to the board of trustees that theproposed increase will not impair the actuarial soundness of the retirementsystem;
(d) A benefit increase, under this section, once awarded, cannot bereduced in succeeding years;
(2) The board of trustees shall review the actuary's recommendationand report and shall, in their discretion, determine if any increase isprudent and, if so, shall determine the amount of increase to be awarded.
4. This section does not guarantee an annual increase to anyretirant.
5. If an inactive member becomes an active member after June 30,2001, and after a break in service, unless the person earns at least fouradditional years of creditable service without another break in service,upon retirement the person's retirement allowance shall be calculatedseparately for each separate period of service ending in a break inservice. The retirement allowance shall be the sum of the separateretirement allowances computed for each such period of service using thebenefit formula in effect, the person's average final compensation as ofthe last day of such period of service and the creditable service theperson earned during such period of service; provided, however, if theperson earns at least four additional years of creditable service withoutanother break in service, all of the person's creditable service prior toand including such service shall be aggregated and, upon retirement, theretirement allowance shall be computed using the benefit formula in effectand the person's average final compensation as of the last day of suchperiod of four or more years and all of the creditable service the personearned prior to and during such period.
6. Notwithstanding anything contained in this section to thecontrary, the amount of the annual service retirement allowance payable toany retirant pursuant to the provisions of sections 169.270 to 169.400,including any adjustments made pursuant to subsection 3 of this section,shall at all times comply with the provisions and limitations of Section415 of the Internal Revenue Code of 1986, as amended, and the regulationsthereunder, the terms of which are specifically incorporated herein byreference.
7. All retirement systems established by the laws of the state ofMissouri shall develop a procurement action plan for utilization ofminority and women money managers, brokers and investment counselors. Suchretirement systems shall report their progress annually to the jointcommittee on public employee retirement and the governor's minorityadvocacy commission.
Retirement allowances, minimum amounts--retirants may substitutewithout affecting allowance, limitation--annual determination ofability to provide benefits, standards--action plan for use ofminority and women money managers, brokers and investment counselors.
169.324. 1. The annual service retirement allowance payable pursuantto section 169.320 in equal monthly installments for life shall be theretirant's number of years of creditable service multiplied by one andthree-fourths percent of the person's average final compensation, subjectto a maximum of sixty percent of the person's average final compensation.For any member who retires as an active member on or after June 30, 1999,the annual service retirement allowance payable pursuant to section 169.320in equal monthly installments for life shall be the retirant's number ofyears of creditable service multiplied by two percent of the person'saverage final compensation, subject to a maximum of sixty percent of theperson's average final compensation. Any member whose number of years ofcreditable service is greater than thirty-four and one-quarter on August28, 1993, shall receive an annual service retirement allowance payablepursuant to section 169.320 in equal monthly installments for life equal tothe retirant's number of years of creditable service as of August 28, 1993,multiplied by one and three-fourths percent of the person's average finalcompensation but shall not receive a greater annual service retirementallowance based on additional years of creditable service after August 28,1993. Provided, however, that, effective January 1, 1996, any retiree whoretired on, before or after January 1, 1996, with at least twenty years ofcreditable service shall receive at least three hundred dollars each monthas a retirement allowance, or the actuarial equivalent thereof if theretiree elected any of the options available under section 169.326.Provided, further, any retiree who retired with at least ten years ofcreditable service shall receive at least one hundred fifty dollars eachmonth as a retirement allowance, plus fifteen dollars for each additionalfull year of creditable service greater than ten years but less than twentyyears (or the actuarial equivalent thereof if the retiree elected any ofthe options available under section 169.326). Any beneficiary of adeceased retiree who retired with at least ten years of creditable serviceand elected one of the options available under section 169.326 shall alsobe entitled to the actuarial equivalent of the minimum benefit provided bythis subsection, determined from the option chosen.
2. Except as otherwise provided in sections 169.331, 169.580 and169.585, payment of a retirant's retirement allowance will be suspended forany month for which such person receives remuneration from the person'semployer or from any other employer in the retirement system established bysection 169.280 for the performance of services except any such personother than a person receiving a disability retirement allowance undersection 169.322 may serve as a nonregular substitute, part-time ortemporary employee for not more than six hundred hours in any school yearwithout becoming a member and without having the person's retirementallowance discontinued. If a retirant is reemployed by any employer in anycapacity, whether pursuant to this section, or section 169.331, 169.580, or169.585, or as a regular employee, the amount of such person's retirementallowance attributable to service prior to the person's first retirementdate shall not be changed by the reemployment. If the person again becomesan active member and earns additional creditable service, upon the person'ssecond retirement the person's retirement allowance shall be the sum of:
(1) The retirement allowance the person was receiving at the time theperson's retirement allowance was suspended, pursuant to the payment optionelected as of the first retirement date, plus the amount of any increase insuch retirement allowance the person would have received pursuant tosubsection 3 of this section had payments not been suspended during theperson's reemployment; and
(2) An additional retirement allowance computed using the benefitformula in effect on the person's second retirement date, the person'screditable service following reemployment, and the person's average annualcompensation as of the second retirement date.
The sum calculated pursuant to this subsection shall not exceed the greaterof sixty percent of the person's average final compensation as of thesecond retirement date or the amount determined pursuant to subdivision (1)of this subsection. Compensation earned prior to the person's firstretirement date shall be considered in determining the person's averagefinal compensation as of the second retirement date if such compensationwould otherwise be included in determining the person's average finalcompensation.
3. The board of trustees shall determine annually whether theinvestment return on funds of the system can provide for an increase inbenefits for retirants eligible for such increase. A retirant shall andwill be eligible for an increase awarded pursuant to this section as of thesecond January following the date the retirant commenced receivingretirement benefits. Any such increase shall also apply to any monthlyjoint and survivor retirement allowance payable to such retirant'sbeneficiaries, regardless of age. The board shall make such determinationas follows:
(1) After determination by the actuary of the investment return forthe preceding year as of December thirty-first (the "valuation year"), theactuary shall recommend to the board of trustees what portion of theinvestment return is available to provide such benefits increase, if any,and shall recommend the amount of such benefits increase, if any, to beimplemented as of the first day of the thirteenth month following the endof the valuation year, and the first payable on or about the first day ofthe fourteenth month following the end of the valuation year. The actuaryshall make such recommendations so as not to affect the financial soundnessof the retirement system, recognizing the following safeguards:
(a) The retirement system's funded ratio as of January first of theyear preceding the year of a proposed increase shall be at least onehundred percent after adjusting for the effect of the proposed increase.The funded ratio is the ratio of assets to the pension benefit obligation;
(b) The actuarially required contribution rate, after adjusting forthe effect of the proposed increase, may not exceed the statutorycontribution rate;
(c) The actuary shall certify to the board of trustees that theproposed increase will not impair the actuarial soundness of the retirementsystem;
(d) A benefit increase, under this section, once awarded, cannot bereduced in succeeding years;
(2) The board of trustees shall review the actuary's recommendationand report and shall, in their discretion, determine if any increase isprudent and, if so, shall determine the amount of increase to be awarded.
4. This section does not guarantee an annual increase to anyretirant.
5. If an inactive member becomes an active member after June 30,2001, and after a break in service, unless the person earns at least fouradditional years of creditable service without another break in service,upon retirement the person's retirement allowance shall be calculatedseparately for each separate period of service ending in a break inservice. The retirement allowance shall be the sum of the separateretirement allowances computed for each such period of service using thebenefit formula in effect, the person's average final compensation as ofthe last day of such period of service and the creditable service theperson earned during such period of service; provided, however, if theperson earns at least four additional years of creditable service withoutanother break in service, all of the person's creditable service prior toand including such service shall be aggregated and, upon retirement, theretirement allowance shall be computed using the benefit formula in effectand the person's average final compensation as of the last day of suchperiod of four or more years and all of the creditable service the personearned prior to and during such period.
6. Notwithstanding anything contained in this section to thecontrary, the amount of the annual service retirement allowance payable toany retirant pursuant to the provisions of sections 169.270 to 169.400,including any adjustments made pursuant to subsection 3 of this section,shall at all times comply with the provisions and limitations of Section415 of the Internal Revenue Code of 1986, as amended, and the regulationsthereunder, the terms of which are specifically incorporated herein byreference.
7. All retirement systems established by the laws of the state ofMissouri shall develop a procurement action plan for utilization ofminority and women money managers, brokers and investment counselors. Suchretirement systems shall report their progress annually to the jointcommittee on public employee retirement and the governor's minorityadvocacy commission.
