Missouri Revised Statutes













Chapter 169

Teacher and School Employee Retirement Systems

←169.022

Section 169.030.1

169.033→

August 28, 2015

Contributions by members and employees, exceptions--rate--withholding required--board to fix rate, conditions.

169.030. 1. The funds required for the operation of the retirement

system created by sections 169.010 to 169.141 shall come from contributions

made in equal amounts by members of the system and their employers, except as

provided for certain members and employers by section 104.342, and from such

interest as may be derived from the investment of any part of such

contributions. All contributions shall be transmitted to the board of

trustees by employers in such manner and at such time as the board by rule

shall require.



2. For each school year following the date on which the system becomes

operative, each and every employer of one or more persons who are members of

the system shall transmit to the board of trustees, in the manner and

accompanied by such supporting data as the board shall prescribe, twice the

amount that is deductible from the pay of such employee or employees during

the school year. Failure or refusal to transmit such amount as required

shall render the person or persons responsible therefor individually liable

for twice the amount so withheld. Suits for the recovery of amounts for which

individuals are thus rendered liable shall be instituted and prosecuted by

the board of trustees in the name of the retirement system. In addition to

such civil penalty, and not in lieu thereof, any person or persons made

responsible for the payment of contributions who shall willfully and knowingly

fail or refuse to transmit such contributions or any part thereof to the

board of trustees shall be deemed guilty of a misdemeanor and upon conviction

thereof shall be punished by a fine of not less than twenty-five dollars and

not more than two hundred dollars, and each day such person or persons shall

so fail or refuse to transmit such contributions shall be deemed a separate

offense.



3. The contributions of members of the retirement system shall be

collected by their employers through appropriate deductions from paychecks,

except as provided for certain members and employers by section 104.342. The

total amount deducted from the paychecks of members during any school year

shall equal such a percent of their salary rates as may be required by the

contribution rate then in effect. Contributions transmitted to the retirement

system before February 20, 1996, based on salary rates which either included

or excluded employer-paid medical benefits for members, shall be deemed to

have been in compliance with this section. The retirement system shall not

refund or adjust contributions or adjust benefit determinations with respect

to any period before February 20, 1996, solely because of the treatment of

employer-paid medical benefits for members. Effective December 31, 1995,

compensation in excess of the limitations set forth in Section 401(a)(17) of

Title 26 of the United States Code shall be disregarded for purposes of

determining contributions under this section and calculating benefits paid by

the public school retirement system of Missouri. The limitation on

compensation for eligible employees shall not be less than the amount which

was allowed to be taken into account under the system as in effect on July 1,

1993. For this purpose, an "eligible employee" is an individual who was a

member of the system before July 1, 1996.



4. The board of trustees shall fix and certify to the employers the level

rate of contribution subject to the following:



(1) The level rate of contribution for a fiscal year shall not exceed

the level rate of contribution for the prior fiscal year by more than

one-half percent;



(2) The board shall fix and certify to the employers the rate of

contribution for a fiscal year no later than six months prior to the date

such rate is to be effective;



(3) The board shall fix and certify to the employers the rate of

contribution for a fiscal year based on an actuarial valuation of the system

as 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 and

actuarial assumptions that are in accordance with actuarial standards of

practice in effect at the time the valuation is performed, as promulgated by

the actuarial standards board or its successor; provided that such actuarial

valuation shall be based on the entry age normal actuarial cost method and an

asset valuation method based on the market value of system assets that may

provide for smoothing of investment gains and losses, and, further, that the

level rate of contribution shall be the total of the normal cost rate and a

rate which shall amortize the unfunded actuarial accrued liability over a

period 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 this

section, review such actuarial valuation and perform an additional valuation

of the system.



5. Regardless of the provisions of any law governing compensation and

contracts, every teacher or employee shall be deemed to consent and agree to

the deductions provided herein. Payment of salary or compensation less such

deduction shall be a full and complete discharge of all salary or compensation

claims and demands during the period covered by such payment, except as to

the benefits provided under sections 169.010 to 169.141.



6. Notwithstanding any other provision of sections 169.010 to 169.141 to

the contrary, no legislation shall be enacted after July 1, 2003, that

increases benefits provided to members or retirees of the public school

retirement system of Missouri above that which may be funded using a rate of

contribution of ten and one-half percent as determined using an actuarial

valuation as provided in subsection 4 of this section; provided that,

notwithstanding the provision of this subsection, legislation may be enacted

after July 1, 2003, that provides for an extension of time within which a

member may make an election pursuant to subdivisions (3) to (8) of subsection

1 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)





1996



1996



169.030. 1. The funds required for the operation of the retirement

system created by sections 169.010 to 169.141 shall come from contributions

made in equal amounts by members of the system and their employers, except

as provided for certain members and employers by section 104.342, RSMo, and

from such interest as may be derived from the investment of any part of

such contributions. All contributions shall be transmitted to the board of

trustees by employers in such manner and at such time as the board by rule

shall require.



2. For each school year following the date on which the system

becomes operative, each and every employer of one or more persons who are

members of the system shall transmit to the board of trustees, in the

manner and accompanied by such supporting data as the board shall

prescribe, twice the amount that is deductible from the pay of such

employee or employees during the school year. Failure or refusal to

transmit such amount as required shall render the person or persons

responsible therefor individually liable for twice the amount so withheld.

Suits for the recovery of amounts for which individuals are thus rendered

liable shall be instituted and prosecuted by the board of trustees in the

name of the retirement system. In addition to such civil penalty, and not

in lieu thereof, any person or persons made responsible for the payment of

contributions who shall willfully and knowingly fail or refuse to transmit

such contributions or any part thereof to the board of trustees shall be

deemed guilty of a misdemeanor and upon conviction thereof shall be

punished by a fine of not less than twenty-five dollars and not more than

two hundred dollars, and each day such person or persons shall so fail or

refuse to transmit such contributions shall be deemed a separate offense.



3. The contributions of members of the retirement system shall be

collected 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

school year shall equal such a percent of their salary rates as may be

required by the contribution rate then in effect. Contributions

transmitted to the retirement system before February 20, 1996, based on

salary rates which either included or excluded employer-paid medical

benefits for members, shall be deemed to have been in compliance with this

section. The retirement system shall not refund or adjust contributions or

adjust benefit determinations with respect to any period before February

20, 1996, solely because of the treatment of employer-paid medical benefits

for members. Effective December 31, 1995, compensation in excess of the

limitations set forth in section 401(a)(17) of title 26 of the United

States Code shall be disregarded for purposes of determining contributions

under this section and calculating benefits paid by the public school

retirement system of Missouri. The limitation on compensation for eligible

employees shall not be less than the amount which was allowed to be taken

into account under the system as in effect on July 1, 1993. For this

purpose, an "eligible employee" is an individual who was a member of the

system before July 1, 1996.



4. The contribution rate shall be three percent for the first year of

the system's operation. After the first year of operation the board of

trustees shall have authority to fix the level rate of contribution, not to

exceed eleven and one-half percent, required for the operation of the

system and to make adjustments in such rate as may thereafter be necessary;

provided that if the level rate required for operation of the system shall

exceed eleven and one-half percent for five consecutive years, all benefits

provided herein shall be equitably reduced to such an extent that the rate

required for the operation of the system shall be eleven and one-half

percent.



5. Regardless of the provisions of any law governing compensation and

contracts, every teacher or employee shall be deemed to consent and agree

to the deductions provided herein. Payment of salary or compensation less

such deduction shall be a full and complete discharge of all salary or

compensation claims and demands during the period covered by such payment,

except as to the benefits provided under sections 169.010 to 169.141.



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