Missouri Revised Statutes
Chapter 70
Powers of Political Subdivisions to Cooperate or Contract with Governmental Units
←70.650
Section 70.655.1
70.656→
August 28, 2015
Retirement benefits--program to be selected by governing body--formula for computing benefits--cost-of-living factor--suspension of certain benefits, when.
70.655. 1. Upon a member's retirement he or she shall receive an
allowance for life in accordance with the applicable benefit program elected
by the member's employer, as follows:
(1) Benefit program L-1. A member with credited service covered by
benefit program L-1 shall receive an allowance for life equal to one percent
of the member's final average salary multiplied by the number of years of
such credited service;
(2) Benefit program L-3. A member with credited service covered by
benefit program L-3 shall receive an allowance for life equal to one and
one-quarter percent of the member's final average salary multiplied by the
number of years of such credited service;
(3) Benefit program LT-4. A member with credited service covered by
benefit program LT-4 shall receive an allowance for life equal to one percent
of the member's final average salary multiplied by the number of years of such
credited service. In addition, if such member is retiring as provided in
section 70.645 or section 70.650 or section 70.670, and if such member's age
at retirement is younger than age sixty-two, then such member shall receive a
temporary allowance equal to one percent of the member's final average salary
multiplied by the number of years of such credited service. Such temporary
allowance shall terminate at the end of the calendar month in which the
earlier of the following events occurs: such member's death; or the member's
attainment of age sixty-two;
(4) Benefit program LT-5. A member with credited service covered by
benefit program LT-5 shall receive an allowance for life equal to one and
one-quarter percent of the member's final average salary multiplied by the
number of years of such credited service. In addition, if such member is
retiring as provided in section 70.645 or section 70.650 or section 70.670,
and if such member's age at retirement is younger than age sixty-two, then
such member shall receive a temporary allowance equal to three-quarters of
one percent of the member's final average salary multiplied by the number of
years of such credited service. Such temporary allowance shall terminate at
the end of the calendar month in which the earlier of the following events
occurs: such member's death; or the member's attainment of age sixty-two;
(5) Benefit program L-6. A member with credited service covered by
benefit program L-6 shall receive an allowance for life equal to two percent
of the member's final average salary multiplied by the number of years of
such credited service;
(6) Benefit program L-7. A member with credited service covered by
benefit program L-7 shall receive an allowance for life equal to one and
one-half percent of the member's final average salary multiplied by the
number of years of such credited service;
(7) Benefit program LT-8. A member with credited service covered by
benefit program LT-8 shall receive an allowance for life equal to one and
one-half percent of the member's final average salary multiplied by the
number of years of such credited service. In addition, if such member is
retiring as provided in section 70.645 or section 70.650 or section 70.670,
and if such member's age at retirement is younger than age sixty-two, then
such member shall receive a temporary allowance equal to one-half of one
percent of the member's final average salary multiplied by the number of years
of such credited service. Such temporary allowance shall terminate at the
end of the calendar month in which the earlier of the following events
occurs: such member's death; or the member's attainment of age sixty-two;
(8) Benefit program LT-4(65). A member with credited service covered by
benefit program LT-4(65) shall receive an allowance for life equal to one
percent of the member's final average salary multiplied by the number of
years of such credited service. In addition, if such member is retiring as
provided in section 70.645 or section 70.650 or section 70.670, and if such
member's age at retirement is younger than age sixty-five, then such member
shall receive a temporary allowance equal to one percent of the member's
final average salary multiplied by the number of years of such credited
service. Such temporary allowance shall terminate at the end of the calendar
month in which the earlier of the following events occurs: such member's
death; or the member's attainment of age sixty-five;
(9) Benefit program LT-5(65). A member with credited service covered by
benefit program LT-5(65) shall receive an allowance for life equal to one and
one-quarter percent of the member's final average salary multiplied by the
number of years of such credited service. In addition, if such member is
retiring as provided in section 70.645 or section 70.650 or section 70.670,
and if such member's age at retirement is younger than age sixty-five, then
such member shall receive a temporary allowance equal to three-quarters of
one percent of the member's final average salary multiplied by the number of
years of such credited service. Such temporary allowance shall terminate at
the end of the calendar month in which the earlier of the following events
occurs: such member's death; or the member's attainment of age sixty-five;
(10) Benefit program LT-8(65). A member with credited service covered by
benefit program LT-8(65) shall receive an allowance for life equal to one and
one-half percent of the member's final average salary multiplied by the
number of years of such credited service. In addition, if such member is
retiring as provided in section 70.645 or section 70.650 or section 70.670,
and if such member's age at retirement is younger than age sixty-five, then
such member shall receive a temporary allowance equal to one-half of one
percent of the member's final average salary multiplied by the number of years
of such credited service. Such temporary allowance shall terminate at the
end of the calendar month in which the earlier of the following events
occurs: such member's death; or the member's attainment of age sixty-five;
(11) Benefit program L-9. A member with credited service covered by
benefit program L-9 shall receive an allowance for life equal to one and
six-tenths percent of the member's final average salary multiplied by the
number of years of such credited service;
(12) Benefit program LT-10(65). A member with credited service covered
by benefit program LT-10(65) shall receive an allowance for life equal to one
and six-tenths percent of the members' final average salary multiplied by the
number of years of such credited service. In addition, if such member is
retiring as provided in section 70.645 or section 70.650 or section 70.670,
and if such member's age at retirement is younger than age sixty-five, then
such member shall receive a temporary allowance equal to four-tenths of one
percent of the member's final average salary multiplied by the number of years
of such credited service. Such temporary allowance shall terminate at the
end of the calendar month in which the earlier of the following events
occurs: such member's death; or the member's attainment of age sixty-five;
(13) Benefit program L-11. Benefit program L-11 may cover employment in
a position only if such position is not concurrently covered by federal
Social Security; in addition, if such position was previously covered by
federal Social Security, benefit program L-11 may cover only employment
rendered after cessation of federal Social Security coverage. A member with
credited service covered by benefit program L-11 shall receive an allowance
for life equal to two and one-half percent of the member's final average
salary multiplied by the number of years of such credited service;
(14) Benefit program L-12. A member with credited service covered by
benefit program L-12 shall receive an allowance for life equal to one and
three-quarter percent of the member's final average salary multiplied by the
number of years of such credited service;
(15) Benefit program LT-14(65). A member with credited service covered
by benefit program LT-14(65) shall receive an allowance for life equal to one
and three-quarter percent of the member's final average salary multiplied by
the number of years of such credited service. In addition, if such member is
retiring as provided in section 70.645, 70.650, or 70.670, then such member
shall receive a temporary allowance equal to one-quarter of one percent of
the member's final average salary multiplied by the number of years of such
credited service. Such temporary allowance shall terminate at the end of the
calendar month in which the earlier of the following events occurs: such
member's death or the member's attainment of age sixty-five.
2. If each portion of a member's credited service is not covered by the
same benefit program, then the member's total allowance for life shall be the
total of the allowance for life determined under each applicable benefit
program.
3. Each employer shall have the credited service of each of its members
covered by benefit program L-1 provided for in this section unless such
employer shall have elected another benefit program provided for in this
section.
4. Except as otherwise provided in this subsection, each political
subdivision, by majority vote of its governing body, may elect from time to
time to cover its members, whose political subdivision employment is
concurrently covered by federal Social Security, under one of the benefit
programs provided for in this section. Each political subdivision, by
majority vote of its governing body, may elect from time to time to cover its
members, whose political subdivision employment is not concurrently covered
by federal Social Security, under one of the benefit programs provided for in
this section. The clerk or secretary of the political subdivision shall
certify the election of the benefit program to the board within ten days
after such vote. The effective date of the political subdivision's benefit
program is the first day of the calendar month specified by such governing
body, or the first day of the calendar month next following receipt by the
board of the certification of election of benefit program, or the effective
date of the political subdivision becoming an employer, whichever is the
latest. Such election of benefit program may be changed from time to time by
such vote, but not more often than biennially. If such changed benefit
program provides larger allowances than the benefit program previously in
effect, then such larger benefit program shall be applicable to the past and
future employment with the employer by present and future employees. If such
changed benefit program provides smaller allowances than the benefit program
previously in effect, then such changed benefit program shall be applicable
only to credited service for employment rendered from and after the effective
date of such change. After August 28, 1994, political subdivisions shall not
elect coverage under benefit program LT-4, benefit program LT-5, or benefit
program LT-8. After August 28, 2005, political subdivisions shall not elect
coverage under benefit program L-9 or benefit program LT-10(65).
5. Should an employer change its election of benefit program as provided
in this section, the employer contributions shall be correspondingly changed
effective the same date as the benefit program change.
6. The limitation on increases in an employer's contribution provided by
subsection 6 of section 70.730 shall not apply to any contribution increase
resulting from an employer electing a benefit program which provides larger
allowances.
7. Subject to the provisions of subsections 9 and 10 of this section, for
an allowance becoming effective on September 28, 1975, or later, and
beginning with the October first which is at least twelve full months after
the effective date of the allowance, the amount of the allowance shall be
redetermined effective each October first and such redetermined amount shall
be payable for the ensuing year. Subject to the limitations stated in the
next sentence, such redetermined amount shall be the amount of the allowance
otherwise payable multiplied by the following percent: one hundred percent,
plus two percent for each full year (excluding any fraction of a year) in the
period from the effective date of the allowance to the current October first.
In no event shall such redetermined amount (1) be less than the amount of the
allowance otherwise payable nor (2) be more than the amount of the allowance
otherwise payable multiplied by the following fraction: the numerator shall
be the Consumer Price Index for the month of June immediately preceding such
October first (but in no event an amount less than the denominator below) and
the denominator shall be the Consumer Price Index for the month of June
immediately preceding the effective date of the allowance. As used herein,
"Consumer Price Index" means the Consumer Price Index for Urban Wage Earners
and Clerical Workers, as determined by the United States Department of Labor
and in effect January 1, 1975; provided, should such Consumer Price Index be
restructured subsequent to 1974 in a manner materially changing its
character, the board shall change the application of the Consumer Price Index
so that as far as is practicable the 1975 intent of the use of the Consumer
Price Index shall be continued. As used herein "the amount of the allowance
otherwise payable" means the amount of the allowance which would be payable
without regard to these provisions redetermining allowance amounts after
retirement.
8. Subject to the provisions of subsections 9 and 10 of this section, for
an allowance becoming effective on September 28, 1975, or later, the maximum
allowance payable under the provisions of section 70.685 shall be
redetermined each October first in the same manner as an allowance is
redetermined under the provisions of subsection 7 of this section.
9. (1) The system establishes reserves for the payment of future
allowances to retirants and beneficiaries. Should the board determine, after
consulting with the actuary, that the established reserves are more than
sufficient to provide such allowances, the board may increase the annual
increase rate provided for in subsections 7 and 8 of this section, as it
applies to any allowance payable, but in no event shall the total of all
redetermined amounts as of October first of any year be greater than one
hundred four percent of the allowances which would have been payable that
October first without such redeterminations; provided, as of any
redetermination date the same annual increase rate shall be applied to all
allowances with effective dates in the range of November first to October
first of the following year. The board may extend the provisions of
subsections 7 and 8 of this section to allowances which became effective
before September 28, 1975; provided such an action by the board shall not
increase an employer contribution rate then in effect;
(2) After August 28, 1993, the annual increase rate established by this
subsection shall be a compound rate, compounded annually, and the four
percent annual maximum rate shall also be a compound rate, compounded
annually; provided, the use of such compounding shall not begin until October
1, 1993, and shall not affect redeterminations made prior to that date.
10. Should the board determine that the provisions of subsections 7, 8
and 9 of this section are jeopardizing the financial solvency of the system,
the board shall suspend these provisions redetermining allowance amounts after
retirement for such periods of time as the board deems appropriate.
(L. 1967 p. 141 § 12, A.L. 1975 S.B. 16, A.L. 1977 H.B. 702, A.L.
1986 H.B. 1051 merged with H.B. 1050, A.L. 1988 H.B. 1098, A.L.
1993 H.B. 287, A.L. 1994 H.B. 1606, A.L. 1995 H.B. 416, et al.
merged with S.B. 395, A.L. 2000 H.B. 1808, A.L. 2005 H.B. 261)
2000
2000
70.655. 1. Upon a member's retirement he shall receive an allowance
for life in accordance with the applicable benefit program elected by his
employer, as follows:
(1) Benefit program L-1. A member with credited service covered by
benefit program L-1 shall receive an allowance for life equal to one
percent of his final average salary multiplied by his number of years of
such credited service.
(2) Benefit program L-3. A member with credited service covered by
benefit program L-3 shall receive an allowance for life equal to one and
one-quarter percent of his final average salary multiplied by his number of
years of such credited service.
(3) Benefit program LT-4. A member with credited service covered by
benefit program LT-4 shall receive an allowance for life equal to one
percent of his final average salary multiplied by his number of years of
such credited service. In addition, if such member is retiring as provided
in section 70.645 or section 70.650 or section 70.670, and if such member's
age at retirement is younger than age sixty-two, then such member shall
receive a temporary allowance equal to one percent of his final average
salary multiplied by his number of years of such credited service. Such
temporary allowance shall terminate at the end of the calendar month in
which the earlier of the following events occurs: such member's death; or
his attainment of age sixty-two.
(4) Benefit program LT-5. A member with credited service covered by
benefit program LT-5 shall receive an allowance for life equal to one and
one-quarter percent of his final average salary multiplied by his number of
years of such credited service. In addition, if such member is retiring as
provided in section 70.645 or section 70.650 or section 70.670, and if such
member's age at retirement is younger than age sixty-two, then such member
shall receive a temporary allowance equal to three-quarters of one percent
of his final average salary multiplied by his number of years of such
credited service. Such temporary allowance shall terminate at the end of
the calendar month in which the earlier of the following events occurs:
such member's death; or his attainment of age sixty-two.
(5) Benefit program L-6. A member with credited service covered by
benefit program L-6 shall receive an allowance for life equal to two
percent of his final average salary multiplied by his number of years of
such credited service.
(6) Benefit program L-7. A member with credited service covered by
benefit program L-7 shall receive an allowance for life equal to one and
one-half percent of his final average salary multiplied by his number of
years of such credited service.
(7) Benefit program LT-8. A member with credited service covered by
benefit program LT-8 shall receive an allowance for life equal to one and
one-half percent of his final average salary multiplied by his number of
years of such credited service. In addition, if such member is retiring as
provided in section 70.645 or section 70.650 or section 70.670, and if such
member's age at retirement is younger than age sixty-two, then such member
shall receive a temporary allowance equal to one-half of one percent of his
final average salary multiplied by his number of years of such credited
service. Such temporary allowance shall terminate at the end of the
calendar month in which the earlier of the following events occurs: such
member's death; or his attainment of age sixty-two.
(8) Benefit program LT-4(65). A member with credited service covered
by benefit program LT-4(65) shall receive an allowance for life equal to
one percent of his final average salary multiplied by his number of years
of such credited service. In addition, if such member is retiring as
provided in section 70.645 or section 70.650 or section 70.670, and if such
member's age at retirement is younger than age sixty-five, then such member
shall receive a temporary allowance equal to one percent of his final
average salary multiplied by his number of years of such credited service.
Such temporary allowance shall terminate at the end of the calendar month
in which the earlier of the following events occurs: such member's death;
or his attainment of age sixty-five.
(9) Benefit program LT-5(65). A member with credited service covered
by benefit program LT-5(65) shall receive an allowance for life equal to
one and one-quarter percent of his final average salary multiplied by his
number of years of such credited service. In addition, if such member is
retiring as provided in section 70.645 or section 70.650 or section 70.670,
and if such member's age at retirement is younger than age sixty-five, then
such member shall receive a temporary allowance equal to three-quarters of
one percent of his final average salary multiplied by his number of years
of such credited service. Such temporary allowance shall terminate at the
end of the calendar month in which the earlier of the following events
occurs: such member's death; or his attainment of age sixty-five.
(10) Benefit program LT-8(65). A member with credited service
covered by benefit program LT-8(65) shall receive an allowance for life
equal to one and one-half percent of his final average salary multiplied by
his number of years of such credited service. In addition, if such member
is retiring as provided in section 70.645 or section 70.650 or section
70.670, and if such member's age at retirement is younger than age
sixty-five, then such member shall receive a temporary allowance equal to
one-half of one percent of his final average salary multiplied by his
number of years of such credited service. Such temporary allowance shall
terminate at the end of the calendar month in which the earlier of the
following events occurs: such member's death; or his attainment of age
sixty-five.
(11) Benefit program L-9. A member with credited service covered by
benefit program L-9 shall receive an allowance for life equal to one and
six-tenths percent of his final average salary multiplied by his number of
years of such credited service.
(12) Benefit program LT-10(65). A member with credited service
covered by benefit program LT-10(65) shall receive an allowance for life
equal to one and six-tenths percent of his final average salary multiplied
by his number of years of such credited service. In addition, if such
member is retiring as provided in section 70.645 or section 70.650 or
section 70.670, and if such member's age at retirement is younger than age
sixty-five, then such member shall receive a temporary allowance equal to
four-tenths of one percent of his final average salary multiplied by his
number of years of such credited service. Such temporary allowance shall
terminate at the end of the calendar month in which the earlier of the
following events occurs: such member's death; or his attainment of age
sixty-five.
(13) Benefit program L-11. Benefit program L-11 may cover employment
in a position only if such position is not concurrently covered by federal
Social Security; in addition, if such position was previously covered by
federal Social Security, benefit program L-11 may cover only employment
rendered after cessation of federal Social Security coverage. A member
with credited service covered by benefit program L-11 shall receive an
allowance for life equal to two and one-half percent of his final average
salary multiplied by his number of years of such credited service.
2. If each portion of a member's credited service is not covered by
the same benefit program, then his total allowance for life shall be the
total of the allowance for life determined under each applicable benefit
program.
3. Each employer shall have the credited service of each of its
members covered by benefit program L-1 provided for in this section unless
such employer shall have elected another benefit program provided for in
this section.
4. Except as otherwise provided in this subsection, each political
subdivision, by majority vote of its governing body, may elect from time to
time to cover its members, whose political subdivision employment is
concurrently covered by federal Social Security, under one of the benefit
programs provided for in this section. Each political subdivision, by
majority vote of its governing body, may elect from time to time to cover
its members, whose political subdivision employment is not concurrently
covered by federal Social Security, under one of the benefit programs
provided for in this section. The clerk or secretary of the political
subdivision shall certify the election of the benefit program to the board
within ten days after such vote. The effective date of the political
subdivision's benefit program is the first day of the calendar month
specified by such governing body, or the first day of the calendar month
next following receipt by the board of the certification of election of
benefit program, or the effective date of the political subdivision
becoming an employer, whichever is the latest. Such election of benefit
program may be changed from time to time by such vote, but not more often
than biennially. If such changed benefit program provides larger
allowances than the benefit program previously in effect, then such larger
benefit program shall be applicable to the past and future employment with
the employer by present and future employees. If such changed benefit
program provides smaller allowances than the benefit program previously in
effect, then such changed benefit program shall be applicable only to
credited service for employment rendered from and after the effective date
of such change. After August 28, 1994, political subdivisions shall not
elect coverage under benefit program LT-4, benefit program LT-5, or benefit
program LT-8.
5. Should an employer change its election of benefit program as
provided in this section, the employer contributions shall be
correspondingly changed effective the same date as the benefit program
change.
6. The limitation on increases in an employer's contribution provided
by subsection 6 of section 70.730 shall not apply to any contribution
increase resulting from an employer electing a benefit program which
provides larger allowances.
7. Subject to the provisions of subsections 9 and 10 of this section,
for an allowance becoming effective on September 28, 1975, or later, and
beginning with the October first which is at least twelve full months after
the effective date of the allowance, the amount of the allowance shall be
redetermined effective each October first and such redetermined amount
shall be payable for the ensuing year. Subject to the limitations stated
in the next sentence, such redetermined amount shall be the amount of the
allowance otherwise payable multiplied by the following percent: one
hundred percent, plus two percent for each full year (excluding any
fraction of a year) in the period from the effective date of the allowance
to the current October first. In no event shall such redetermined amount
(1) be less than the amount of the allowance otherwise payable nor (2) be
more than the amount of the allowance otherwise payable multiplied by the
following fraction: the numerator shall be the Consumer Price Index for
the month of June immediately preceding such October first (but in no event
an amount less than the denominator below) and the denominator shall be the
Consumer Price Index for the month of June immediately preceding the
effective date of the allowance. As used herein, "Consumer Price Index"
means the Consumer Price Index for Urban Wage Earners and Clerical Workers,
as determined by the United States Department of Labor and in effect
January 1, 1975; provided, should such Consumer Price Index be restructured
subsequent to 1974 in a manner materially changing its character, the board
shall change the application of the Consumer Price Index so that as far as
is practicable the 1975 intent of the use of the Consumer Price Index shall
be continued. As used herein "the amount of the allowance otherwise
payable" means the amount of the allowance which would be payable without
regard to these provisions redetermining allowance amounts after
retirement.
8. Subject to the provisions of subsections 9 and 10 of this section,
for an allowance becoming effective on September 28, 1975, or later, the
maximum allowance payable under the provisions of section 70.685 shall be
redetermined each October first in the same manner as an allowance is
redetermined under the provisions of subsection 7 of this section.
9. (1) The system establishes reserves for the payment of future
allowances to retirants and beneficiaries. Should the board determine,
after consulting with the actuary, that the established reserves are more
than sufficient to provide such allowances, the board may increase the
annual increase rate provided for in subsections 7 and 8 of this section,
as it applies to any allowance payable, but in no event shall the total of
all redetermined amounts as of October first of any year be greater than
one hundred four percent of the allowances which would have been payable
that October first without such redeterminations; provided, as of any
redetermination date the same annual increase rate shall be applied to all
allowances with effective dates in the range of November first to October
first of the following year. The board may extend the provisions of
subsections 7 and 8 of this section to allowances which became effective
before September 28, 1975; provided such an action by the board shall not
increase an employer contribution rate then in effect;
(2) After August 28, 1993, the annual increase rate established by
this subsection shall be a compound rate, compounded annually, and the four
percent annual maximum rate shall also be a compound rate, compounded
annually; provided, the use of such compounding shall not begin until
October 1, 1993, and shall not affect redeterminations made prior to that
date.
10. Should the board determine that the provisions of subsections 7,
8 and 9 of this section are jeopardizing the financial solvency of the
system, the board shall suspend these provisions redetermining allowance
amounts after retirement for such periods of time as the board deems
appropriate.
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