Missouri Statute | Act | Code |Cities, Towns And Villages| US Code - US Statute | Chapter 86 Police Relief And Pension Systems

The following words and phrases as used in sections 86.010 to
86.193, unless a different meaning is plainly required by the context,
shall have the following meanings:

(1) "Accumulated contributions" shall mean the sum of all amounts
deducted from the compensation of a member and credited to his individual
account in the annuity savings fund, together with regular interest
thereon as provided in section 86.127.

(2) "Actuarial equivalent" shall mean a benefit of equal value when
computed upon the basis of mortality tables adopted by the board of
trustees and regular interest.

(3) "Annuity" shall mean annual payments for life derived from the
accumulated contributions of a member. All annuities shall be payable in
monthly installments.

(4) "Annuity reserve" shall mean the present value of all payments to be
made on account of an annuity or benefit in lieu of an annuity granted
under the provisions of sections 86.010 to 86.193 upon the basis of such
mortality tables as shall be adopted by the board of trustees and regular
interest.

(5) "Average final compensation" shall mean the average earnable
compensation of the member during his last ten years of service as a
policeman, or if he has had less than ten years of service, then the
average earnable compensation of his entire period of service; provided,
that all earnable compensation for service prior to July 9, 1925, shall
be computed on the rates of compensation fixed by section 84.160, RSMo.

(6) "Beneficiary" shall mean any person in receipt of a pension, an
annuity, a retirement allowance or other benefit as provided in sections
86.010 to 86.193.

(7) "Board of police commissioners" shall mean any board of police, board
of police commissioners, police commissioners and any other officials or
boards now or hereafter authorized by law to employ and manage a
permanent police force in said cities.

(8) "Board of trustees" shall mean the board provided in section 86.023
to administer the retirement system.

(9) "Creditable service" shall mean prior service plus membership service
as provided in section 86.020.

(10) "Earnable compensation" shall mean the regular compensation which a
member would earn during one year on the basis of the stated compensation
for his rank or position.

(11) "Medical board" shall mean the board of physicians provided for in
section 86.047.

(12) "Member" shall mean a member of the retirement system as defined by
section 86.017.

(13) "Membership service" shall mean service as a policeman rendered
since last becoming a member, except in the case of a member who shall
have served in the armed forces of the United States and shall have
subsequently been reinstated as a policeman, in which case "membership
service" shall mean service as a policeman rendered since last becoming a
member prior to entering such armed service.

(14) "Pension" shall mean annual payments for life derived from
appropriations provided by the said cities. All pensions shall be paid in
equal monthly installments.

(15) "Pension reserve" shall mean the present value of all payments to be
made on account of any pension or benefit in lieu of a pension granted
under the provisions of sections 86.010 to 86.193 upon the basis of such
mortality tables as shall be adopted by the board of trustees and regular
interest.

(16) "Policeman" shall mean any officer or employee of the police
department of the said cities employed by the board of police
commissioners of the said cities for police duty, and shall include
prison guards, turnkeys, probationary patrolmen, patrolmen, sergeants,
lieutenants, drill masters, captains, senior officers, detectives, and
secretary to the chief of police, but shall not include any police
commissioner or anyone employed in a clerical or other capacity not
involving police duties. In case of doubt as to whether any person is a
policeman within the meaning of sections 86.010 to 86.193, the decision
of the board of trustees shall be final.

(17) "Prior service" shall mean all service as a policeman rendered prior
to the date the system becomes operative which is creditable in
accordance with the provisions of section 86.020.

(18) "Regular interest" shall mean interest at the rate of four percent
per annum, compounded annually.

(19) "Retirement allowance" shall mean the sum of the annuity and the
pension or any benefits in lieu thereof granted to a member upon
retirement.

(20) "Retirement system" shall mean the police retirement system of the
said cities as defined in section 86.013. (RSMo 1939 § 9464, A.L. 1945 p.
1336)

Prior revision: 1929 § 8906

In all cities of this state that now have or may hereafter attain
a population of five hundred thousand or more, there are hereby created
and established retirement or pension systems for the purpose of
providing retirement allowances for policemen of such cities; except
that, any city which establishes a police retirement system under any
other provisions of this chapter prior to attaining a population of five
hundred thousand or more, may elect to continue its police retirement
system under such other provisions of this chapter, and the provisions of
sections 86.010 to 86.193 shall not apply to any city which makes such
election. Each such system shall be under the management of a board of
trustees herein described and shall be known as "The Police Retirement
System of ..... (name of city)" and by such name all of its business
shall be transacted, all of its funds invested, and all of its cash and
securities and other property held. The retirement systems so created
shall begin operation as of the first day of October, 1929. (RSMo 1939 §
9465, A.L. 1985 S.B. 337, et al.)

Prior revision: 1929 § 8907

1. All persons who become policemen and all policemen who enter
or reenter the service of the said cities after the date the retirement
system begins operation shall become members as a condition of their
employment and shall receive no pension or retirement allowance from any
other pension or retirement system supported wholly or in part by the
said cities or the state of Missouri, nor shall they be required to make
contributions under any other pension or retirement system of the said
cities or the state of Missouri, anything to the contrary notwithstanding.

2. All policemen in service on the date as of which the retirement system
becomes operative shall become members as of that date unless prior
thereto any such policeman shall file with the board of trustees, on a
form prescribed by such board, a notice of his election not to become a
member of the retirement system and a duly executed waiver of all present
and prospective benefits which would otherwise inure to him on account of
his participation in the retirement system.

3. Any policeman whose membership is contingent on his own election and
who elects not to become a member may thereafter revoke such election and
become a member, but no such policeman shall receive credit for prior
service unless he becomes a member within one year from the date the
retirement system becomes operative.

4. Should any member in any period of five consecutive years after last
becoming a member be absent from service for more than four years, or
should he withdraw his accumulated contributions or should he become a
beneficiary or die, he shall thereupon cease to be a member; except in
the case of a member who shall have served in the armed forces of the
United States and shall have subsequently been reinstated as a policeman.
(RSMo 1939 § 9466, A.L. 1945 p. 1336)

Prior revision: 1929 § 8908

1. Under such rules and regulations as the board of trustees
shall adopt, each member who was a policeman on and prior to the date the
retirement system becomes operative and who becomes a member within one
year from such date, shall file a detailed statement of all service as a
policeman rendered by him prior to that date, for which he claims credit.

2. The board of trustees shall fix and determine by proper rules and
regulations how much service in any year is equivalent to one year of
service, but in no case shall more than one year of service be creditable
for all service in one calendar year, nor shall the board of trustees
allow credit as service for any period of more than one month's duration
during which the member was absent without pay.

3. Subject to the above restrictions and to such other rules and
regulations as the board of trustees may adopt, the board of trustees
shall verify the service claims as soon as practicable after the filing
of such statement of service.

4. Upon verification of the statements of service the board of trustees
shall issue prior service certificates, certifying to each member the
length of prior service with which he is credited on the basis of his
statement of service. So long as the holder of such a certificate
continues to be a member, a prior service certificate shall be final and
conclusive for retirement purposes as to such service; provided, however,
that any member may, within one year from the date of issuance or
modification of such certificate, request the board of trustees to modify
or correct his prior service certificate. When any policeman ceases to be
a member his prior service certificate shall become void. Should he again
become a member, he shall enter the retirement system as a member not
entitled to prior service credit except as provided in section 86.087.

5. Creditable service at retirement on which the retirement allowance of
a member shall be based shall consist of the membership service rendered
by him since he last became a member and also, if he has a prior service
certificate which is in full force and effect, the amount of the service
certified on his prior service certificate. (RSMo 1939 § 9467)

Prior revision: 1929 § 8909

The general administration and the responsibility for the proper
operation of the retirement system and for making effective the
provisions of sections 86.010 to 86.193 are hereby vested in a board of
trustees of seven persons. The board shall be constituted as follows:

(1) The president of the board of police commissioners of said cities, ex
officio. If the said president shall be absent from any meeting of such
board of trustees for any cause whatsoever, he may be represented by any
member of the board of police commissioners who in such case shall have
full power to act as a member of the said board of trustees.

(2) The comptroller of the said cities, ex officio. If the said
comptroller shall be absent from any meeting of such board of trustees
for any cause whatsoever, he may be represented by either the deputy
comptroller or the first assistant comptroller who in such case shall
have full power to act as a member of the said board of trustees.

(3) Two members to be appointed by the mayor of said cities to serve for
a term of two years; provided, however, that the term of office of the
first two trustees so appointed shall begin immediately upon their
appointment and shall expire one year from the date the retirement system
becomes operative and two years from the date the retirement system
becomes operative, respectively.

(4) Three members to be elected by the members of the retirement system
of said cities for a term of three years; provided, however, that the
term of office of the first three members so elected shall begin
immediately upon their election and shall expire one year from the date
the retirement system becomes operative, two years from the date the
retirement system becomes operative and three years from the date the
retirement system becomes operative, respectively. (RSMo 1939 § 9468,
A.L. 1947 V. I p. 418)

Prior revision: 1929 § 8910

1. If a vacancy occurs in the office of trustee, the vacancy
shall be filled for the unexpired term in the same manner as the office
was previously filled.

2. The trustees shall serve without compensation, but they shall be
reimbursed from the expense fund for all necessary expenses which they
may incur through service on the board. (RSMo 1939 § 9468, A.L. 1947 V. I
p. 418)

Prior revision: 1929 § 8910

Each trustee shall, within ten days after his appointment or
election, take an oath of office before the clerk of circuit court of
said cities, that, so far as it devolves upon him he will diligently and
honestly administer the affairs of the said board, and that he will not
knowingly violate or willingly permit to be violated any of the
provisions of the law applicable to the retirement system. Such oath
shall be subscribed to by the member making it and certified by the said
clerk of circuit court and filed in his office. (RSMo 1939 § 9468, A.L.
1947 V. I p. 418)

Prior revision: 1929 § 8910

Each trustee shall be entitled to one vote in the board. Four
votes shall be necessary for a decision by the trustees at any meeting of
said board. (RSMo 1939 § 9468, A.L. 1947 V. I p. 418)

Prior revision: 1929 § 8910

The board of trustees has exclusive original jurisdiction in all
matters relating to or affecting the funds herein provided for,
including, in addition to all other matters, all claims for annuities,
benefits, refunds or pensions under this law, and its action, decision or
determination in any matter is reviewable under chapter 536, RSMo, only,
and any party to the proceedings has a right of appeal from the decision
of the reviewing court. Subject to the limitations of sections 86.010 to
86.193, the board of trustees shall, from time to time, establish rules
and regulations for the administration of funds created by this law, for
the transaction of its business and for the limitation of the time within
which claims may be filed. (RSMo 1939 § 9468, A.L. 1947 V. I p. 418, A.L.
1957 p. 240)

Prior revision: 1929 § 8910

The board of trustees shall elect from its membership a chairman
and shall, by majority vote of its members, appoint a secretary, who may
be, but need not be one of its members. It shall engage such actuarial
and other services as shall be required to transact the business of the
retirement system. The compensation of all persons engaged by the board
of trustees and all other expenses of the board necessary for the
operation of the retirement system shall be paid at such rates and in
such amounts as the board of trustees shall approve. (RSMo 1939 § 9468,
A.L. 1947 V. I p. 418)

Prior revision: 1929 § 8910

1. The board of trustees shall keep in convenient form such data
as shall be necessary for actuarial valuation of the various funds of the
retirement system and for checking the experience of the system.

2. The board of trustees shall keep a record of all its proceedings which
shall be open to public inspection. It shall publish annually a report
showing the fiscal transactions of the retirement system for the
preceding fiscal year, the amount of the accumulated cash and securities
of the system, and the last balance sheet showing the financial condition
of the system by means of an actuarial valuation of the assets and
liabilities of the retirement system. (RSMo 1939 § 9468, A.L. 1947 V. I
p. 418)

Prior revision: 1929 § 8910

(1955) Records of board are public and any person should be permitted to
inspect and copy them. Disabled Police Vets. Club v. Long (A.), 279
S.W.2d 220.

1. The city counselor of the said cities shall be the legal
adviser of the board of trustees.

2. The board of trustees shall designate a medical board to be composed
of three physicians who shall arrange for and pass upon all medical
examinations required under the provisions of sections 86.010 to 86.193,
shall investigate all essential statements and certificates made by or on
behalf of a member in connection with an application for disability
retirement and shall report in writing to the board of trustees its
conclusions and recommendations upon all the matters referred to it.
(RSMo 1939 § 9468, A.L. 1947 V. I p. 418)

Prior revision: 1929 § 8910

1. The actuary shall be the technical adviser of board of
trustees on matters regarding the operation of the funds created by the
provisions of sections 86.010 to 86.193 and shall perform such other
duties as are required in connection therewith.

2. Immediately after the establishment of the retirement system the
actuary shall make such investigation of the mortality, service and
compensation experience of the members of the system as he shall
recommend and the board of trustees shall authorize, and on the basis of
such investigation he shall recommend for adoption by the board of
trustees such tables and such rates as are required in section 86.053.
The board of trustees shall adopt tables and certify rates of
contribution to be used by the system. As soon as practicable after the
establishment the actuary shall make a valuation of its assets and
liabilities based upon such tables and rates of contribution as the board
may adopt. (RSMo 1939 § 9468, A.L. 1947 V. I p. 418)

Prior revision: 1929 § 8910

In the year 1933 and at least once in each five-year period
thereafter the actuary shall make an actuarial investigation into the
mortality, service and compensation experience of the members and
beneficiaries of the retirement system and shall make a valuation of the
assets and liabilities of the funds of the system and taking into account
the results of such investigation and valuation the board of trustees
shall:

(1) Adopt for the retirement system such mortality, service and other
tables as shall be deemed necessary;

(2) Certify the rates of contribution payable by the members under the
provisions of sections 86.010 to 86.193; and

(3) Certify the rates of contribution payable by the said cities in
accordance with section 86.153. (RSMo 1939 § 9468, A.L. 1947 V. I p. 418)

Prior revision: 1929 § 8910

On the basis of such tables as the board of trustees shall adopt,
the actuary shall make an annual valuation of the assets and liabilities
of the funds of the system created by sections 86.010 to 86.193. (RSMo
1939 § 9468, A.L. 1947 V. I p. 418)

Prior revision: 1929 § 8910

Retirement of a member on a service retirement allowance shall be
made by the board of trustees as follows:

(1) Any member in service may retire upon his written application to the
board of trustees setting forth at what time not less than thirty days
nor more than ninety days subsequent to the execution and filing
therefor, he desires to be retired; provided, that the said member at the
time so specified for his retirement shall have attained the age of
sixty, and notwithstanding that, during such period of notification, he
may have separated from service;

(2) Any member in service who has attained the age of seventy shall be
retired forthwith provided that upon request of the board of police
commissioners the board of trustees may permit such member to remain in
service for periods of not to exceed one year from the date of the last
request from the board of police commissioners. (RSMo 1939 § 9469)

Prior revision: 1929 § 8911

Upon retirement from service a member shall receive a service
retirement allowance which shall consist of:

(1) An annuity which shall be the actuarial equivalent of his accumulated
contributions at the time of his retirement; and

(2) A pension in addition to his annuity which shall equal one-one
hundred and fortieth of his average final compensation multiplied by the
number of years of his membership service; and

(3) If he has a prior service certificate in full force and effect an
additional pension which shall be equal to one-seventieth of his average
final compensation multiplied by the number of years of service certified
to him on his prior service certificate.

(4) If, at any time since first becoming a member of the retirement
system, he has served in the armed forces of the United States, in any
war or period of armed hostilities between the military or naval forces
of the United States and those of a foreign power, he shall be paid an
additional pension which shall be the actuarial equivalent of the
contributions that would have been paid into the annuity savings fund and
credited to his individual account therein, together with regular
interest, if his service in the police department of such city had not
been interrupted by his induction into the armed forces of the United
States, such contributions to be calculated on the basis of the
compensation payable to the officers of his rank during the period of his
absence. (RSMo 1939 § 9469, A.L. 1951 p. 333)

Prior revision: 1929 § 8911

Upon the application of a member in service or of the board of
police commissioners, any member who has had ten or more years of
creditable service shall be retired by the board of trustees, not less
than thirty and not more than ninety days next following the date of
filing such application on an ordinary disability retirement allowance;
provided, that the medical board after a medical examination of such
member shall certify that such member is mentally or physically
incapacitated for the further performance of duty, that such incapacity
is likely to be permanent and that such member should be retired. (RSMo
1939 § 9469)

Prior revision: 1929 § 8911

Upon retirement for ordinary disability a member shall receive a
service retirement allowance if he has attained age sixty, otherwise he
shall receive an ordinary disability retirement allowance which shall
consist of:

(1) An annuity which shall be the actuarial equivalent of his accumulated
contributions at the time of retirement; and

(2) A pension which together with his annuity shall make a total
retirement allowance equal to ninety percent of one-seventieth of his
average final compensation multiplied by the number of years of
creditable service, if such retirement allowance exceeds one-fourth of
his average final compensation; otherwise a pension which together with
his annuity shall provide a total retirement allowance equal to
one-fourth of his average final compensation; provided, however, that no
such allowance shall exceed ninety percent of one-seventieth of his
average final compensation multiplied by the number of years which would
be creditable to him were his service to continue until the attainment of
age sixty. (RSMo 1939 § 9469)

Prior revision: 1929 § 8911

Upon application of a member of the board of police commissioners
any member who has become totally and permanently incapacitated for duty
as the natural and proximate result of an accident occurring while in the
actual performance of duty at some definite time and place through no
negligence on his part, shall be retired by the board of trustees
provided that the medical board shall certify that such member is
mentally or physically incapacitated for further performance of duty,
that such incapacity is likely to be permanent and that such member
should be retired. (RSMo 1939 § 9469)

Prior revision: 1929 § 8911

1. Upon retirement for accidental disability, other than
permanent total disability as defined in subsection 2 of this section, a
member shall receive a service retirement allowance if he has attained
the age of sixty; otherwise he shall receive an accidental disability
retirement allowance which shall consist of:

(1) An annuity which shall be the actuarial equivalent of his accumulated
contributions at the time of his retirement; and

(2) A pension, in addition to the annuity, of sixty-six and two-thirds
percent of his average final compensation.

2. Any member who, as the natural and proximate result of an accident
occurring in the actual performance of his duty at some definite time and
place through no negligence on his part, is permanently and totally
incapacitated from performing any work, occupation or vocation of any
kind whatsoever shall receive a retirement allowance which shall consist
of:

(1) An annuity which shall be the actuarial equivalent of his accumulated
contributions at the time of his retirement; and

(2) In addition to such annuity, a pension of sixty-six and two-thirds
percent of his average final compensation or, in the discretion of the
board of trustees, a pension in an amount not exceeding the then
prevailing compensation of a patrolman who has served four years or more;
and

(3) An allowance, in an amount to be determined by the board of trustees
of such retirement system, to provide such member with surgical, medical
and hospital care reasonably required, which are the result and in
consequence of the accident causing such permanent total disability.
(RSMo 1939 § 9469, A.L. 1951 p. 356)

Prior revision: 1929 § 8911

Once each year during the first five years following the
retirement of a member on a disability retirement allowance and once in
every three-year period thereafter, the board of trustees may, and upon
his application shall, require any disability beneficiary who has not yet
attained age sixty to undergo a medical examination, such examination to
be made at a place designated by the medical board, the examination to be
made by the medical board or by a physician or physicians designated by
such board. Should any disability beneficiary who has not attained the
age of sixty refuse to submit to such medical examination, his allowance
may be discontinued until his withdrawal of such refusal and should his
refusal continue for one year all rights in and to his pension may be
revoked by the board of trustees. (RSMo 1939 § 9469)

Prior revision: 1929 § 8911

Should the medical board report and certify to the board of
trustees that such disability beneficiary is engaged in or is able to
engage in a gainful occupation paying more than the difference between
his retirement allowance and his average final compensation, and should
the board of trustees concur in such report, then the amount of his
pension shall be reduced to an amount which together with his annuity and
the amount earnable by him shall equal the amount of his average final
compensation. Should his earning capacity be later changed, the amount of
his pension may be further modified, providing that the new pension shall
not exceed the amount of the pension originally granted nor an amount
which, when added to the amount earnable by the beneficiary together with
his annuity, equals the amount of his average final compensation. A
beneficiary restored to active service at a salary less than the average
final compensation upon the basis of which he was retired at age
fifty-five or greater shall not again become a member of the retirement
system and shall have his retirement allowance suspended while in active
service. (RSMo 1939 § 9469)

Prior revision: 1929 § 8911

Should a disability beneficiary under age fifty-five be restored
to active service at a compensation not less than his average final
compensation, his retirement allowance shall cease, he shall again become
a member and he shall contribute thereafter at the same rate he paid
prior to disability. Any prior service certificate on the basis of which
his service was computed at the time of his retirement shall be restored
to full force and effect and in addition upon his subsequent retirement
he shall be credited with all his service as a member. (RSMo 1939 § 9469)

Prior revision: 1929 § 8911

Upon the receipt of proper proofs of the death of a member in
service there shall be paid to his estate or to such person having an
insurable interest in his life as he shall have nominated by written
designation duly executed and filed with the board of trustees

(1) His accumulated contributions; and

(2) If the member has had one or more years of creditable service and no
pension is payable under the provisions of section 86.093, in addition
thereto an amount equal to fifty percent of the compensation earnable by
him during the year immediately preceding his death. (RSMo 1939 § 9469)

Prior revision: 1929 § 8911

Upon the receipt by the board of trustees of proper proofs of the
death of a member in service there shall be paid to his designated
beneficiary, or to his estate, the amount of his accumulated
contributions and if, upon the receipt of evidence and proof that such
death was the natural and proximate result of an accident occurring at
some definite time and place while the member was in the actual
performance of duty, the board of trustees shall decide that death was
the result of an accident in the performance of duty and not caused by
negligence on the part of the member, there shall be paid in lieu of the
ordinary death benefit provided in subdivision (2) of section 86.090, a
pension of one-half of the average final compensation of such employee:

(1) To his widow to continue during her widowhood; or

(2) If there be no widow, or if the widow dies or remarries before any
child of such deceased member shall have attained the age of sixteen
years, then to his child or children under said age, divided in such
manner as the board of trustees in its discretion shall determine to
continue as a joint and survivor pension of one-half of his final
compensation until every child dies or attains such age; or

(3) If there be no widow or child under the age of sixteen years
surviving such deceased member, then to his dependent father or dependent
mother as the deceased member shall have nominated by written designation
duly acknowledged and filed with the board of trustees or if there be no
such nomination then to his dependent father or his dependent mother as
the board of trustees in its discretion shall direct, to continue until
remarriage or death;

(4) If there be no widow, children under the age of sixteen years or
dependent parent surviving such deceased member, the death shall be
treated as an ordinary death case and the benefit payable in accordance
with the provisions of subdivision (2) of section 86.090. (RSMo 1939 §
9469)

Prior revision: 1929 § 8911

Should a member cease to be a policeman except by death or
retirement, he shall be paid on demand the amount of his accumulated
contributions standing to the credit of his individual account in the
annuity savings fund. (RSMo 1939 § 9469)

Prior revision: 1929 § 8911

With the provision that no optional selection shall be effective
in case a beneficiary dies within thirty days after retirement, in which
event such a beneficiary shall be considered as an active member at the
time of death. Until the first payment on account of any benefit becomes
normally due, any beneficiary may elect to receive his benefit in a
retirement allowance payable throughout life or he may elect to receive
the actuarial equivalent at that time, of his retirement allowance in a
lesser retirement allowance, payable throughout life with the provision
that:

Option 1. If he dies before he has received in payments the present value
of his retirement allowance as it was at the time of his retirement, the
balance shall be paid to his legal representatives or to such person as
he shall nominate by written designation duly acknowledged and filed with
the board of trustees; or

Option 2. Upon his death, his retirement allowance shall be continued
throughout the life of and paid to such person as he shall nominate by
written designation duly acknowledged and filed with the board of
trustees at the time of his retirement; or

Option 3. Upon his death, one-half of his retirement allowance shall be
continued throughout the life of and paid to such person as he shall
nominate by written designation duly acknowledged and filed with the
board of trustees at the time of his retirement; or

Option 4. Some other benefit or benefits shall be paid either to the
member or to such person or persons as he shall nominate provided such
other benefit or benefits, together with the lesser retirement allowance,
shall be certified by the actuary to be of equivalent actuarial value to
his retirement allowance and shall be approved by the board of trustees.
(RSMo 1939 § 9469)

Prior revision: 1929 § 8911

Any amounts which may be paid or payable by the said cities under
the provisions of any workers' compensation or similar law to a member or
to the dependents of a member on account of any disability or death shall
be offset against and payable in lieu of any benefits payable out of
funds provided by the said cities under the provisions of sections 86.010
to 86.193 on account of the same disability or death. In case the present
value of the total commuted benefits under said workers' compensation or
similar law is less than the pension reserve on the benefits otherwise
payable from funds provided by the said cities under sections 86.010 to
86.193, then the present value of the commuted payments shall be deducted
from the pension reserve and such benefits as may be provided by the
pension reserve so reduced shall be payable under the provisions of
sections 86.010 to 86.193. (RSMo 1939 § 9469)

Prior revision: 1929 § 8911

The board of trustees shall be the trustees of the several funds
created by sections 86.010 to 86.193 as provided in section 86.123 and
shall have full power to invest and reinvest such funds subject to all
the terms, conditions, limitations and restrictions imposed by law upon
life insurance companies in the state of Missouri in making and disposing
of their investments, and subject to like terms, conditions, limitations
and restrictions said trustees shall have full power to hold, purchase,
sell, assign, transfer or dispose of any of the securities and
investments in which any of the funds created herein shall have been
invested, as well as of the proceeds of said investments and any moneys
belonging to said funds. (RSMo 1939 § 9470)

Prior revision: 1929 § 8912

CROSS REFERENCE: Multinational banks, securities and obligations of,
investment in, when, RSMo 409.950

The board of trustees annually shall allow regular interest on
the mean amount for the preceding year in each of the funds with the
exception of the expense fund. The amount so allowed shall be due and
payable to said funds and shall be annually credited thereto by the board
of trustees from interest and other earnings on the moneys and other
assets of the retirement system. Any additional amount required to meet
the interest on the funds of the retirement system shall be paid by the
said cities and any excess of earnings over such amount required shall be
deductible from the amount to be contributed by the said cities. (RSMo
1939 § 9470)

Prior revision: 1929 § 8912

The treasurer of the said cities shall be the custodian of the
several funds. All payments from said funds shall be made by him only
upon vouchers signed by two persons designated by the board of trustees.
A duly attested copy of the resolution of the board of trustees
designating such persons and bearing on its face specimen signatures of
such persons shall be filed with the treasurer as his authority for
making payments upon such vouchers. No voucher shall be drawn unless it
shall previously have been allowed by resolution of the board of
trustees. (RSMo 1939 § 9470)

Prior revision: 1929 § 8912

For the purpose of meeting disbursements for pensions, annuities,
and other payments, there may be kept available cash not exceeding ten
percent of the total amount in the several funds of the retirement system
on deposit in one or more banks or trust companies in said cities,
organized under the laws of the state of Missouri, or of the United
States; provided, that the amount on deposit in any one bank or trust
company shall not exceed twenty-five percent of the paid up capital and
surplus of such bank or trust company. (RSMo 1939 § 9470)

Prior revision: 1929 § 8912

Except as herein provided, no trustee and no employee of the
board shall have any direct interest in the gains or profits of any
investment made by the board of trustees, nor as such receive any pay or
emolument for his services. No trustee or employee of the board of
trustees shall directly or indirectly for himself or as an agent in any
manner use the assets of the retirement system except to make such
current and necessary payments as are authorized by the board of
trustees, nor shall any trustee or employee of the board become an
endorser or surety or become in any manner an obligor for moneys loaned
by or borrowed from the board of trustees. (RSMo 1939 § 9470)

Prior revision: 1929 § 8912

All the assets of the retirement system shall be credited
according to the purpose for which they are held to one of five funds;
namely, the annuity savings fund, the annuity reserve fund, the pension
accumulation fund, the pension reserve fund and the expense fund. (RSMo
1939 § 9471)

Prior revision: 1929 § 8913

The annuity savings fund shall be the fund in which shall be
accumulated contributions from the compensation of the members to provide
for their annuities. Upon the basis of such tables as the board of
trustees shall adopt, and regular interest, the actuary of the retirement
system shall determine for each member the proportion of compensation
which when deducted from each payment of his prospective annual earnable
compensation prior to his attainment of age sixty and accumulated at
regular interest until his attainment of such age shall be computed to
provide at that time an annuity equal to the pension to which he will be
entitled at that age on account of his membership service. Such
proportion of compensation shall be computed to remain constant. (RSMo
1939 § 9471)

Prior revision: 1929 § 8913

Subject to the provisions of sections 86.010 to 86.193 as to the
certification of rates of contribution payable by members until the first
valuation, the rates of contribution payable by members according to
their ages at becoming members shall be as follows: Age at becoming a
contributor. Rate. 20 ....................... 3.53% 21
....................... 3.56% 22 ....................... 3.60% 23
....................... 3.64% 24 ....................... 3.68% 25
....................... 3.72% 26 ....................... 3.76% 27
....................... 3.80% 28 ....................... 3.85% 29
....................... 3.90% 30 ....................... 3.95% 31
....................... 4.00% 32 ....................... 4.05% 33
....................... 4.10% 34 ....................... 4.15% 35
....................... 4.21% 36 ....................... 4.27%
37........................ 4.33% 38........................ 4.39%
39........................ 4.45% 40........................ 4.52%
41........................ 4.59% 42........................ 4.66%
43........................ 4.73% 44........................ 4.80%
45........................ 4.88% 46........................ 4.96%
47........................ 5.04% 48........................ 5.12%
49........................ 5.20% 50........................ 5.27%
51........................ 5.34% 52........................ 5.42%
53........................ 5.50% 54 ....................... 5.60% 55
....................... 5.70% 56 ....................... 5.80%
57........................ 5.90% 58........................ 5.99%
59........................ 6.08% (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

The proportion so computed for a person age fifty-nine shall be
applied to a member who attains a greater age before he becomes a member.
The board of trustees shall certify to the board of police commissioners
and the board of police commissioners shall cause to be deducted from the
salary of each member on each and every payroll for each and every pay
period, the proportion of the compensation of each member so computed.
But the board of police commissioners shall not have any deduction made
for annuity purposes from the compensation of a member who elects not to
contribute if he has attained age sixty, nor shall any member be required
to increase his rate of contribution as a result of any valuation or
revision of members' contribution rates. (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

In determining the amount earnable by a member in any payroll
period, the board of trustees may consider the rate of annual
compensation payable to such member on the first day of the payroll
period as continuing throughout such payroll period and it may omit
deduction from compensation for any period less than a full payroll
period if the policeman was not a member on the first day of the payroll
period and to facilitate the making of the deductions, it may modify the
deduction required of any member by such amount as shall not exceed
one-tenth of one percent of the compensation upon the basis of which such
deduction was made. (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

The deductions provided for herein shall be made notwithstanding
that the minimum compensation provided by law for any member shall be
reduced thereby. Every member shall be deemed to consent to the
deductions made and provided for herein, and shall receipt for his full
salary or compensation and payment of salary or compensation less said
deduction shall be a full and complete discharge and acquittance of all
claims and demands whatsoever for services rendered during the period
covered by the payment except as to benefits provided by sections 86.010
to 86.193. The board of police commissioners shall certify to the board
of trustees on each and every payroll or in such other manner as the
board of trustees shall prescribe the amount deducted, and such amounts
shall be paid into said annuity savings fund and shall be credited
together with regular interest thereon to the individual account of the
member from whose compensation said deduction was made. (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

In addition to the contributions deducted from compensation as
herein provided, any member may redeposit in the annuity savings fund by
a single payment or by an increased rate of contribution an amount equal
to the total amount he previously withdrew therefrom as provided in
sections 86.010 to 86.193 or any part thereof or any member may deposit
therein by a single payment or by an increased rate of contribution an
amount computed to be sufficient to purchase an additional annuity which
together with his prospective retirement allowance shall provide for him
a total retirement allowance of not to exceed one-half of his average
final compensation at age sixty. Such additional amounts so contributed
shall become a part of his accumulated contributions except in the case
of ordinary disability retirement when they shall be treated as excess
contributions returnable to the member in cash or as an annuity of
equivalent actuarial value. The accumulated contributions of a member
withdrawn by him or paid to his estate or designated beneficiary in event
of his death shall be paid from the annuity savings fund. Upon the
retirement of a member his accumulated contributions shall be transferred
from the annuity savings fund to the annuity reserve fund. (RSMo 1939 §
9471)

Prior revision: 1929 § 8913

The annuity reserve fund shall be the fund from which shall be
paid all annuities and all benefits in lieu of annuities payable as
provided in sections 86.010 to 86.193. Should a beneficiary retired on
account of disability be restored to active service and again become a
member of the retirement system, his annuity reserve shall be transferred
from the annuity reserve fund to the annuity savings fund and credited to
his individual account therein. (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

The pension accumulation fund shall be the fund in which shall be
accumulated all reserves for the payment of all pensions and other
benefits payable from contributions made by the said cities and from
which shall be paid all pensions and other benefits on account of members
with prior service credit and the lump sum death benefits for all members
payable from the said contributions. (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

Contributions to and payments from the pension accumulation fund
shall be as follows: On account of each member there shall be paid
annually into the pension accumulation fund by the said cities an amount
equal to a certain percentage of the earnable compensation of the member
to be known as "the normal contribution" and an additional amount equal
to a percentage of his earnable compensation to be known as "the accrued
liability contribution". The rates percent of such contributions shall be
fixed on the basis of the liabilities of the retirement system as shown
by actuarial valuations. Until the first valuation the normal
contribution shall be five and thirty-one one-hundredths percent and the
accrued liability contribution four and forty-nine one-hundredths percent
of the earnable compensation of all members. (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

On the basis of regular interest and of such mortality and other
tables as shall be adopted by the board of trustees, the actuary engaged
by the board to make each valuation required by sections 86.010 to 86.193
during the period over which the accrued liability contribution is
payable, immediately after making such valuation, shall determine the
uniform and constant percentage of the earnable compensation of the
average new entrant, which, if contributed throughout his entire period
of active service, would be sufficient to provide for the payment of any
death benefit or pension payable on his account. The rate percent so
determined shall be known as "the normal contribution rate". After the
accrued liability contribution has ceased to be payable the normal
contribution rate shall be the rate percent of the earnable compensation
of all members obtained by deducting from the total liabilities of the
fund the amount of the funds in hand to the credit of the fund and
dividing the remainder by one percent of the present value of the
prospective future compensation of all members as computed on the basis
of mortality and service tables adopted by the board of trustees and
regular interest. The normal rate of contribution shall be determined by
the actuary after each valuation. (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

Immediately succeeding the first valuation the actuary engaged by
the board of trustees shall compute the rate percent of the total
earnable compensation of all members which is equivalent to four percent
of the amount of the total pension and death benefit liability on account
of all members and beneficiaries which is not dischargeable by the
aforesaid normal contribution made on account of such members during the
remainder of their active service. The rate percent originally so
determined shall be known as "the accrued liability contribution rate".
(RSMo 1939 § 9471)

Prior revision: 1929 § 8913

The total amount payable in each year to the pension accumulation
fund shall be not less than the sum of the rates percent known as the
normal contribution rate and the accrued liability contribution rate of
the total compensation earnable by all members during the year; provided,
however, that the aggregate payment by the said cities shall be
sufficient when combined with the amount in the fund to provide the
pensions and other benefits payable out of the fund during the then
current year. (RSMo 1939 § 9471, A.L. 1951 p. 354)

Prior revision: 1929 § 8913

The accrued liability contribution should be discontinued as soon
as the accumulated reserve in the pension accumulation fund shall equal
the present value as actuarially computed and approved by the board of
trustees, of the total liability of said fund, less the present value
computed on the basis of the normal contribution rate then in force of
the prospective normal contributions to be received on account of persons
who are at that time members. (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

All pensions, and benefits in lieu thereof with the exception of
those payable to or on account of members who received no prior service
allowance and all lump sum death benefits on account of death in active
service payable from contributions of the said cities, shall be paid from
the pension accumulation fund. (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

Upon the retirement or death of a member not entitled to prior
service credit an amount equal to the pension reserve on any pension
payable to him or on account of his death shall be transferred from the
pension accumulation fund to the pension reserve fund. (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

The pension reserve fund shall be the fund in which shall be held
the reserves on all pensions granted to members not entitled to prior
service credit or to their beneficiaries and from which such pensions and
benefits in lieu thereof shall be paid. Should a beneficiary retired on
account of disability be restored to active service and again become a
member of the retirement system his pension reserve shall be transferred
from the pension reserve fund to the pension accumulation fund. Should
the pension of a disability beneficiary be reduced as a result of an
increase in his earning capacity, the amount of the annual reduction in
his pension shall be paid annually into the pension accumulation fund
during the period of such reduction. (RSMo 1939 § 9471)

Prior revision: 1929 § 8913

The expense fund shall be the fund to which shall be credited all
money provided by the said cities to pay the administration expenses of
the retirement system and from which shall be paid all the expenses
necessary in connection with the administration and operation of the
system. Annually the board of trustees shall estimate the amount of money
necessary to be paid into the expense fund during the ensuing year to
provide for the expense of operation of the retirement system. (RSMo 1939
§ 9471)

Prior revision: 1929 § 8913

1. On or before the first of March of each year the board of
trustees shall certify to the board of police commissioners the amounts
which will become due and payable during the year next following to the
pension accumulation fund and the expense fund. The amounts so certified
shall be included by the board of police commissioners in their annual
budget estimate. The amounts so certified shall be appropriated by the
said cities and transferred to the retirement system for the ensuing year.

2. To cover the requirements of the retirement system for the period
prior to the date when the first regular appropriation is due as provided
by subsection 1, such amounts as shall be necessary to cover the needs of
the retirement system shall be paid into the pension accumulation fund
and expense fund by special appropriations to the retirement system.
(RSMo 1939 § 9472)

Prior revision: 1929 § 8914

Regular interest charges payable, the creation and maintenance of
reserves in the pension accumulation fund and the maintenance of annuity
reserves and pension reserves as provided for and the payment of all
pensions, annuities, retirement allowances, refunds and other benefits
granted under the provisions of sections 86.010 to 86.193 and all
expenses in connection with the administration and operation of the
retirement system are hereby made obligations of the said cities. All
income, interest and dividends derived from deposits and investments
authorized by sections 86.010 to 86.193 shall be used for the payment of
the said obligations of the said cities. Any amounts derived therefrom,
which, when combined with regular appropriations made under the
provisions of sections 86.010 to 86.193, exceed the amount required to
provide such obligations, shall be used to reduce the regular
appropriations otherwise required. (RSMo 1939 § 9474)

Prior revision: 1929 § 8916

The right of any person to a pension, annuity or retirement
allowance, to the return of contributions, the pension, annuity or
retirement allowance itself, any optional benefit or death benefit, any
other right accrued or accruing to any person under the provisions of
sections 86.010 to 86.193 and the moneys in the various funds created
under sections 86.010 to 86.193 are hereby exempt from any tax of the
state of Missouri and shall not be subject to execution, garnishment,
attachment or any other process whatsoever and shall be unassignable
except as in sections 86.010 to 86.193 specifically provided. (RSMo 1939
§ 9475)

Prior revision: 1929 § 8917

Should any change or error in records result in any member or
beneficiary receiving from the retirement system more or less than he
would have been entitled to receive had the records been correct, the
board of trustees shall correct such error and, as far as practicable,
shall adjust the payments in such a manner that the actuarial equivalent
of the benefit to which such member or beneficiary was correctly entitled
shall be paid. (RSMo 1939 § 9476, A.L. 1955 p. 275)

Prior revision: 1929 § 8918

The following words and phrases as used in sections 86.200 to
86.366, unless a different meaning is plainly required by the context,
shall have the following meanings:

(1) "Accumulated contributions", the sum of all mandatory contributions
deducted from the compensation of a member and credited to the member's
individual account, together with members' interest thereon;

(2) "Actuarial equivalent", a benefit of equal value when computed upon
the basis of mortality tables and interest assumptions adopted by the
board of trustees;

(3) "Average final compensation":

(a) With respect to a member who earns no creditable service on or after
October 1, 2001, the average earnable compensation of the member during
the member's last three years of creditable service as a police officer,
or if the member has had less than three years of creditable service, the
average earnable compensation of the member's entire period of creditable
service;

(b) With respect to a member who is not participating in the DROP
pursuant to section 86.251 on October 1, 2001, who did not participate in
the DROP at any time before such date, and who earns any creditable
service on or after October 1, 2001, the average earnable compensation of
the member during the member's last two years of creditable service as a
policeman, or if the member has had less than two years of creditable
service, then the average earnable compensation of the member's entire
period of creditable service;

(c) With respect to a member who is participating in the DROP pursuant to
section 86.251 on October 1, 2001, or whose participation in DROP ended
before such date, who returns to active participation in the system
pursuant to section 86.251, and who terminates employment as a police
officer for reasons other than death or disability before earning at
least two years of creditable service after such return, the portion of
the member's benefit attributable to creditable service earned before
DROP entry shall be determined using average final compensation as
defined in paragraph (a) of this subdivision; and the portion of the
member's benefit attributable to creditable service earned after return
to active participation in the system shall be determined using average
final compensation as defined in paragraph (b) of this subdivision;

(d) With respect to a member who is participating in the DROP pursuant to
section 86.251 on October 1, 2001, or whose participation in the DROP
ended before such date, who returns to active participation in the system
pursuant to section 86.251, and who terminates employment as a police
officer after earning at least two years of creditable service after such
return, the member's benefit attributable to all of such member's
creditable service shall be determined using the member's average final
compensation as defined in paragraph (b) of this subdivision;

(e) With respect to a member who is participating in the DROP pursuant to
section 86.251 on October 1, 2001, or whose participation in DROP ended
before such date, who returns to active participation in the system
pursuant to section 86.251, and whose employment as a police officer
terminates due to death or disability after such return, the member's
benefit attributable to all of such member's creditable service shall be
determined using the member's average final compensation as defined in
paragraph (b) of this subdivision; and

(f) With respect to the surviving spouse or surviving dependent child of
a member who earns any creditable service on or after October 1, 2001,
the average earnable compensation of the member during the member's last
two years of creditable service as a police officer or, if the member has
had less than two years of creditable service, the average earnable
compensation of the member's entire period of creditable service;

(4) "Beneficiary", any person in receipt of a retirement allowance or
other benefit;

(5) "Board of police commissioners", any board of police commissioners,
police commissioners and any other officials or boards now or hereafter
authorized by law to employ and manage a permanent police force in such
cities;

(6) "Board of trustees", the board provided in sections 86.200 to 86.366
to administer the retirement system;

(7) "Creditable service", prior service plus membership service as
provided in sections 86.200 to 86.366;

(8) "DROP", the deferred retirement option plan provided for in section
86.251;

(9) "Earnable compensation", the annual salary which a member would earn
during one year on the basis of the member's rank or position as
specified in the applicable salary matrix in section 84.160, RSMo, plus
additional compensation for academic work as provided in subsection 8 of
section 84.160, RSMo, plus shift differential as provided in subdivision
(4) of subsection 9 of section 84.160, RSMo. Such amount shall include
the member's deferrals to a deferred compensation plan pursuant to
Section 457 of the Internal Revenue Code or to a cafeteria plan pursuant
to Section 125 of the Internal Revenue Code or, effective October 1,
2001, to a transportation fringe benefit program pursuant to Section
132(f)(4) of the Internal Revenue Code. Earnable compensation shall not
include a member's additional compensation for overtime, standby time,
court time, nonuniform time or unused vacation time. Notwithstanding the
foregoing, the earnable compensation taken into account under the plan
established pursuant to sections 86.200 to 86.366 with respect to a
member who is a noneligible participant, as defined in this subdivision,
for any plan year beginning on or after October 1, 1996, shall not exceed
the amount of compensation that may be taken into account under Section
401(a)(17) of the Internal Revenue Code, as adjusted for increases in the
cost of living, for such plan year. For purposes of this subdivision, a
"noneligible participant" is an individual who first becomes a member on
or after the first day of the first plan year beginning after the earlier
of:

(a) The last day of the plan year that includes August 28, 1995; or

(b) December 31, 1995;

(10) "Internal Revenue Code", the federal Internal Revenue Code of 1986,
as amended;

(11) "Mandatory contributions", the contributions required to be deducted
from the salary of each member who is not participating in DROP in
accordance with section 86.320;

(12) "Medical board", the board of physicians provided for in section
86.237;

(13) "Member", a member of the retirement system as defined by sections
86.200 to 86.366;

(14) "Members' interest", interest on accumulated contributions at such
rate as may be set from time to time by the board of trustees;

(15) "Membership service", service as a policeman rendered since last
becoming a member, except in the case of a member who has served in the
armed forces of the United States and has subsequently been reinstated as
a policeman, in which case "membership service" means service as a
policeman rendered since last becoming a member prior to entering such
armed service;

(16) "Plan year" or "limitation year", the twelve consecutive-month
period beginning each October first and ending each September thirtieth;

(17) "Policeman" or "police officer", any member of the police force of
such cities who holds a rank in such police force for which the annual
salary is listed in section 84.160, RSMo;

(18) "Prior service", all service as a policeman rendered prior to the
date the system becomes operative or prior to membership service which is
creditable in accordance with the provisions of sections 86.200 to 86.366;

(19) "Retirement allowance", annual payments for life as provided by
sections 86.200 to 86.366 which shall be payable in equal monthly
installments or any benefits in lieu thereof granted to a member upon
termination of employment as a police officer and actual retirement;

(20) "Retirement system", the police retirement system of the cities as
defined in sections 86.200 to 86.366;

(21) "Surviving spouse", the surviving spouse of a member who was the
member's spouse at the time of the member's death. (L. 1957 p. 256 § 1,
A.L. 1963 p. 137, A.L. 1972 H.B. 1389, A.L. 1983 H.B. 664, A.L. 1986 S.B.
443, A.L. 1993 S.B. 250, A.L. 1995 H.B. 260, et al., A.L. 2000 H.B. 1808,
A.L. 2001 S.B. 290, A.L. 2002 H.B. 1455)

Effective 7-11-02

In any city not within a county, there is hereby created and
established retirement systems as alternative systems to those which have
been established under the provisions of sections 86.010 to 86.193. Each
such system shall be under the management of a board of trustees
hereinafter described and shall be known as "The Police Retirement System
of (name of city)" and by such name all of its business shall be
transacted, all of its funds invested and all of its cash and securities
and other property held. The retirement systems so created shall begin
operation as of the first day of October, 1957. (L. 1957 p. 256 § 2, A.L.
1983 H.B. 664, A.L. 2000 H.B. 1808)

Effective 7-1-00

1. All persons who become policemen and all policemen who enter
or reenter the service of the city after the first day of October, 1957,
become members as a condition of their employment and shall receive no
pensions or retirement allowance from any other pension or retirement
system supported wholly or in part by the city or the state of Missouri,
nor shall they be required to make contributions under any other pension
or retirement system of the city or the state of Missouri, anything to
the contrary notwithstanding.

2. If any member ceases to be in service for more than one year unless
the member has attained the age of fifty-five or has twenty years or more
of creditable service, or if the member withdraws the member's
accumulated contributions or if the member receives benefits under the
retirement system or dies, the member thereupon ceases to be a member;
except in the case of a member who has served in the armed forces of the
United States and has subsequently been reinstated as a policeman. A
member who has terminated employment as a police officer, has actually
retired and is receiving retirement benefits under the system shall be
considered a retired member. (L. 1957 p. 256 § 3, A.L. 1959 S.B. 76 §
86.753, A.L. 1965 p. 201, A.L. 1975 S.B. 349, A.L. 1983 H.B. 664, A.L.
2000 H.B. 1808, A.L. 2001 S.B. 290)

1. Under such rules and regulations as the board of trustees
shall adopt, each member who was a policeman on and prior to the date the
retirement system becomes operative and who becomes a member within one
year from such date and each member who was a policeman prior to
reentering the service of the city as a policeman, shall file a detailed
statement of all service as a policeman rendered by the member prior to
the date the retirement system becomes operative or prior to the date of
last becoming a member, for which the member claims credit. If such
member has withdrawn the member's accumulated contributions prior to
reentering said service, then the member shall repay all such accumulated
contributions plus the applicable members' interest thereon from the date
of withdrawal to the date of repayment in order to receive credit for
such prior service.

2. The board of trustees shall fix and determine by proper rules and
regulations how much service in any year is equivalent to one year of
service, but in no case shall more than one year of service be creditable
for all service in one calendar year, nor shall the board of trustees
allow credit as service for any period of more than one month's duration
during which the member was absent without pay.

3. Subject to the above restrictions and to such other rules and
regulations as the board of trustees may adopt, the board of trustees
shall verify the service claims as soon as practicable after the filing
of such statement of service.

4. Upon verification of the statements of service the board of trustees
shall issue prior service certificates, certifying to each member the
length of prior service with which the member is credited on the basis of
such member's statement of service. So long as the holder of such a
certificate continues to be a member, a prior service certificate shall
be final and conclusive for retirement purposes as to such service;
provided, however, that any member may, within one year from the date of
issuance or modification of such certificate, request the board of
trustees to modify or correct such prior service certificate. When any
policeman ceases to be a member, the former member's prior service
certificate shall become void. Should the former member again become a
member, the former member shall enter the retirement system as a member
not entitled to prior service credit except as provided in sections
86.200 to 86.366.

5. Creditable service at retirement on which the retirement allowance of
a member shall be based shall consist of the membership service rendered
by the member since last becoming a member and also if the member has a
prior service certificate which is in full force and effect, the amount
of the service certified on such prior service certificate. (L. 1957 p.
256 § 4, A.L. 1963 p. 137, A.L. 2000 H.B. 1808)

Effective 7-1-00

1. The general administration and the responsibility for the
proper operation of the retirement system and for making effective the
provisions of sections 86.200 to 86.366 are hereby vested in a board of
trustees of ten persons. The board shall be constituted as follows:

(1) The president of the board of police commissioners of the city, ex
officio. If the president is absent from any meeting of the board of
trustees for any cause whatsoever, the president may be represented by
any member of the board of police commissioners who in such case shall
have full power to act as a member of the board of trustees;

(2) The comptroller of the city, ex officio. If the comptroller is absent
from any meeting of the board of trustees for any cause whatsoever, the
comptroller may be represented by either the deputy comptroller or the
first assistant comptroller who in such case shall have full power to act
as a member of the said board of trustees;

(3) Three members to be appointed by the mayor of the city to serve for a
term of two years;

(4) Three members to be elected by the members of the retirement system
of the city for a term of three years; provided, however, that the term
of office of the first three members so elected shall begin immediately
upon their election and one such member's term shall expire one year from
the date the retirement system becomes operative, another such member's
term shall expire two years from the date the retirement system becomes
operative and the other such member's term shall expire three years from
the date the retirement system becomes operative; provided, further, that
such members shall be members of the system and hold office only while
members of the system;

(5) Two members who shall be retired members of the retirement system to
be elected by the retired members of the retirement system for a term of
three years; except that, the term of office of the first two members so
elected shall begin immediately upon their election and one such member's
term shall expire two years from the date of election and the other such
member's term shall expire three years from the date of election.

2. Any member elected chairman of the board of trustees may serve without
term limitations.

3. Each commissioned elected trustee shall be granted travel time by the
St. Louis metropolitan police department to attend any and all functions
that have been authorized by the board of trustees of the police
retirement system of St. Louis. Travel time, with compensation, for a
trustee shall not exceed thirty days in any board fiscal year. (L. 1957
p. 256 § 5, A.L. 1990 H.B. 999, A.L. 1993 S.B. 250, A.L. 2000 H.B. 1808,
A.L. 2001 S.B. 290, A.L. 2002 H.B. 1455)

Effective 7-11-02

1. If a vacancy occurs in the office of trustee, the vacancy
shall be filled for the unexpired term in the same manner as the office
was previously filled.

2. The trustees shall serve without compensation, but they shall be
reimbursed for all necessary expenses which they may incur through
service on the board. (L. 1957 p. 256 § 6, A.L. 2000 H.B. 1808)

Effective 7-1-00

Each trustee shall, within ten days after his appointment or
election, take an oath of office before the clerk of circuit court of
said cities, that, so far as it devolves upon such trustee, the trustee
will diligently and honestly administer the affairs of the said board,
and will not knowingly violate or willingly permit to be violated any of
the provisions of the law applicable to the retirement system. Such oath
shall be subscribed to by the trustee making it and certified by the said
clerk of circuit court and filed in the clerk's office. (L. 1957 p. 256 §
7, A.L. 2000 H.B. 1808)

Effective 7-1-00

Six trustees shall constitute a quorum for the transaction of
business, and any official action of the board shall be based on the
majority vote of the trustees present. (L. 1957 p. 256 § 8, A.L. 1990
H.B. 999, A.L. 2004 H.B. 1217)

The board of trustees has exclusive original jurisdiction in all
matters relating to or affecting the funds herein provided for,
including, in addition to all other matters, all claims for annuities,
benefits, refunds of pensions under this law, and its action, decision or
determination in any matter is reviewable under chapter 536, RSMo, only,
and any party to the proceedings has a right of appeal from the decision
of the reviewing court. Subject to the limitations of sections 86.200 to
86.366, the board of trustees shall, from time to time, establish rules
and regulations for the administration of the retirement system created
by this law, for the transaction of its business and for the limitation
of the time within which claims may be filed. (L. 1957 p. 256 § 9, A.L.
2000 H.B. 1808)

Effective 7-1-00

The board of trustees shall elect from its membership a chairman
and shall, by majority vote of its members, appoint a secretary, who may
be, but need not be, one of its members. It shall engage such actuarial
and other services as shall be required to transact the business of the
retirement system. The compensation of all persons engaged by the board
of trustees, and all other expenses of the board necessary for the
operation of the retirement system, shall be paid at such rates and in
such amounts as the board of trustees shall approve. (L. 1957 p. 256 § 10)

1. The board of trustees shall keep in convenient form such data
as shall be necessary for actuarial valuation of the retirement system
and for checking the experience of the system.

2. The board of trustees shall keep a record of all its proceedings which
shall be open to public inspection. It shall publish annually a report
showing the fiscal transactions of the retirement system for the
preceding fiscal year, the amount of the accumulated cash and securities
of the system, and the last balance sheet showing the financial condition
of the system by means of an actuarial valuation of the assets and
liabilities of the retirement system. (L. 1957 p. 256 § 11, A.L. 2001
S.B. 290)

1. The board of trustees is authorized to use the city counselor
of the specified cities as a legal advisor to the board of trustees and
may also appoint an attorney-at-law or firm of attorneys-at- law to serve
as the legal advisor and consultant to the board of trustees and to
represent the system and the board of trustees in all legal proceedings.

2. The board of trustees shall designate a medical board to be composed
of three physicians who shall arrange for and pass upon all medical
examinations required under the provisions of sections 86.200 to 86.366,
shall investigate all essential statements and certificates made by or on
behalf of a member in connection with an application for disability
retirement and shall report in writing to the board of trustees its
conclusions and recommendations upon all the matters referred to it. In
addition, the board of trustees may appoint a fourth physician to act as
an administrator of the medical board who may, with the consent of the
board of trustees, select the members of the medical board and coordinate
any reports to the board of trustees. (L. 1957 p. 256 § 12, A.L. 2000
H.B. 1808, A.L. 2001 S.B. 290)

The actuary shall be the technical adviser of the* board of
trustees on matters regarding the operation of the retirement system
created by sections 86.200 to 86.366 and shall perform such other duties
as are required in connection therewith. (L. 1957 p. 256 § 13, A.L. 2000
H.B. 1808)

Effective 7-1-00

*Word "the" does not appear in original rolls.

At least once in each five-year period the actuary shall make an
actuarial investigation into the mortality, service and compensation
experience of the members and beneficiaries of the retirement system and
shall make a valuation of the assets and liabilities of the system and
taking into account the results of such investigation and valuation the
board of trustees shall:

(1) Adopt for the retirement system such mortality, service and other
tables as shall be deemed necessary;

(2) Certify the rates of contribution payable by the said cities. (L.
1957 p. 256 § 14, A.L. 2000 H.B. 1808)

Effective 7-1-00

On the basis of such tables as the board of trustees shall adopt,
the actuary shall make an annual valuation of the assets and liabilities
of the system created by sections 86.200 to 86.366. (L. 1957 p. 256 § 15,
A.L. 2000 H.B. 1808)

Effective 7-1-00

All assets of the retirement system, including investment income,
shall be retained for the exclusive benefit of members and their
beneficiaries and shall be used to pay benefits or administrative
expenses of the system and shall not revert to or inure to the benefit of
any other person or entity prior to the termination of the retirement
system established pursuant to sections 86.200 to 86.366, and the
satisfaction of all benefit liabilities under such retirement system. (L.
1995 H.B. 260, et al. § 5, A.L. 2000 H.B. 1808)

Effective 7-1-00

Retirement of a member on a service retirement allowance shall be
made by the board of trustees as follows:

(1) Any member may terminate employment as a police officer and actually
retire after completing twenty or more years of creditable service or
attaining the age of fifty-five upon the member's written application to
the board of trustees setting forth at what time, but not more than
ninety days subsequent to the execution and filing of the application,
the member desires to be retired;

(2) Any member in service who has attained the age of sixty-five shall be
terminated as a police officer and actually retired forthwith provided
that upon request of the board of police commissioners the board of
trustees may permit such member to remain in service for periods of not
to exceed one year from the date of the last request from the board of
police commissioners. (L. 1957 p. 256 § 16, A.L. 1969 p. 151, A.L. 1977
H.B. 53, A.L. 1979 H.B. 850, A.L. 1993 S.B. 250, A.L. 2000 H.B. 1808,
A.L. 2001 S.B. 290)

1. The board of trustees may develop and establish a deferred
retirement option plan (DROP) in which members who are eligible for
retirement but who have not terminated employment as police officers and
who have not actually retired may participate. The DROP shall be designed
to allow members with at least twenty years of creditable service or who
have attained the age of fifty-five who have achieved eligibility for
retirement and are entitled to a service retirement allowance and other
benefits to postpone actual retirement, continue active employment and
accumulate a deferred receipt of the service retirement allowance. No one
shall participate in the DROP for a period exceeding five years.

2. Any member who has at least twenty years of creditable service or has
attained the age of fifty-five may elect in writing before retirement to
participate in the DROP. A member electing to participate in the DROP
shall postpone actual retirement, shall continue in active employment and
shall not receive any direct retirement allowance payments or benefits
during the period of participation.

3. Upon the start of the participation in the DROP, the member shall
cease to make any mandatory contributions to the system. No contribution
shall be required by the city into the DROP account. During the period of
participation in the DROP, the amount that the member would have received
as a service retirement allowance if the member had actually retired
instead of entering DROP shall be deposited monthly in the member's DROP
account which shall be established in the member's name by the board of
trustees. The member's service retirement allowance shall not be adjusted
for any cost-of-living increases for any period prior to the member's
termination of employment as a police officer and actual retirement.
Cost-of-living increases, if any, for any period following the member's
termination of employment as a police officer and actual retirement shall
be applied only to monthly service retirement payments made following
termination of employment as a police officer and actual retirement.
Service earned during the period of participation in the DROP shall not
be creditable service and shall not be counted in determination of any
service retirement allowance or surviving spouse's or dependents'
benefits. Compensation paid during the period of participation in the
DROP shall not be earnable compensation and shall not be counted in the
determination of any service retirement allowance or surviving spouse's
or dependent's benefits. The member's service retirement allowance shall
be frozen as of the date the member enters DROP. Except as specifically
provided in sections 86.200 to 86.366, the member's frozen service
retirement allowance shall not increase while the member is participating
in DROP or after the member's participation in DROP ends, and the member
shall not share in any benefit improvement that is enacted or that
becomes effective while such member is participating in the DROP.

4. A member shall cease participation in the DROP upon the termination of
the member's employment as a police officer and actual retirement, or at
the end of the five-year period commencing on the first day of the
member's participation in the DROP, or as of the effective date, but in
no event prior to October 1, 2001, of the member's election to return to
active participation in the system, whichever occurs first. A member's
election to return to active participation in the system before the end
of the five-year period commencing on the first day of participation in
the DROP shall be made and shall become effective in accordance with
procedures established by the board of trustees, but in no event prior to
October 1, 2001. Upon the member's termination of employment as a police
officer and actual retirement, the member shall elect to receive the
value of the member's DROP account, in one of the following forms of
payment:

(a) A lump sum payment; or

(b) Equal monthly installments over a ten-year period.

Either form of payment should begin within thirty days after the member's
notice to the board of trustees that the member has selected a particular
option.

5. If a member who is participating in the DROP elects to return to
active participation in the system or if a member who is participating in
the DROP does not terminate employment and actually retires as a police
officer in the city for which the retirement system was established
pursuant to sections 86.200 to 86.366 at the end of the five-year period
commencing on the first day of the member's participation in the DROP,
the member shall return to active participation in the system and shall
resume making mandatory contributions to the system effective as of the
day after participation in the DROP ends or, if later, October 1, 2001.
The board of trustees shall notify the police commissioners to begin
deducting mandatory contributions from the member's salary and the
member's employment period shall count as creditable service beginning as
of the day the member returns to active participation.

6. In no event shall a member whose participation in DROP has ended for
any reason be eligible to participate in DROP again.

7. Upon the member's termination of employment as a police officer and
actual retirement, the member's mandatory contributions to the retirement
system shall be paid to the member pursuant to subsection 4 of section
86.253.

8. If a member dies prior to termination of employment as a police
officer and actual retirement while participating in the DROP or before
the member has received full withdrawal of the amount in the member's
DROP account under the installment optional payment form, the remaining
balance of the member's DROP account shall be payable to the member's
surviving spouse; or, if the member is then unmarried, to the member's
dependent children in equal shares; or, if none, to the member's
dependent mother or father; or, if none, to the member's designated
beneficiary or, if no such beneficiary is then living, to the member's
estate. Payment shall be made in a lump sum within sixty days after
receipt by the board of trustees of evidence and proof of the death of a
member. In addition, the member's mandatory contributions, if any, that
were not already paid to the member pursuant to subsection 4 of section
86.253 shall be paid to the member's surviving spouse pursuant to section
86.288.

9. If a member applies for and receives benefits for an accidental
disability retirement allowance pursuant to the provisions of section
86.263, the member shall forfeit all rights, claims or interest in the
member's DROP account and the member's benefits shall be calculated as if
the member has continued in employment and had not elected to participate
in the DROP. Any portion of a DROP account that has been forfeited as
provided in this subsection shall be a general asset of the system.

10. A member's DROP account shall earn interest equal to the rate of
return earned by the system's investment portfolio on a market value
basis, including realized and unrealized gains and losses, net of
investment expense, as certified by the system's actuary. As of the last
day of each plan year beginning after DROP participation begins, the
member's DROP account balance, determined as of the last day of the prior
plan year, shall be credited with interest at the investment rate earned
by the assets of the retirement system for such prior plan year. If
distribution of the member's DROP account balance is made in a lump sum
under subsection 4 or 8 of this section, interest for the plan year of
distribution shall be credited on the ending balance for the prior plan
year at the investment rate earned on the assets of the retirement system
for the prior plan year, in proportion to the part of the plan year
preceding the date of the member's termination of employment or death,
whichever is earlier. If the member's DROP account is paid in equal
monthly installments pursuant to subsection 4 of this section, interest
during the installment period shall be credited as of the last day of
each plan year ending after installment payment begins on the account
balance as of the first or last day of the plan year, whichever is lower,
at the investment rate earned by the assets of the system for the prior
plan year. Interest for the year in which the final installment is paid
shall be credited on the balance remaining after the final installment is
paid, at the investment rate earned on the assets of the system for the
prior plan year, in proportion to the part of the plan year preceding
payment of the final installment. Any interest credited to the DROP
account during the installment period shall be paid as soon as reasonably
possible after the final monthly installment. No interest shall be
credited on amounts, if any, added to the member's DROP account during
the year in which the distribution of the account is completed.

11. The board of trustees shall not incur any liability individually or
on behalf of other individuals for any act or omission made in good faith
in relation to the DROP or assets credited to DROP accounts established
by this section. The provisions of the Internal Revenue Code and
regulations promulgated thereunder shall supersede any provision of this
section if there is any inconsistency with the Internal Revenue Code or
regulation.

12. Upon the receipt by the board of trustees of evidence and proof that
the death of a member resulted from an event occurring while the member
was in the actual performance of duty, and if the member is participating
in the DROP, the member's surviving spouse or, if the member is then
unmarried, the member's unmarried dependent children, may elect within
thirty days after the member's death to have the amount in the member's
DROP account paid in the form of a monthly survivor annuity. Payment of
the survivor annuity shall begin within sixty days after the election is
received. Payment to the member's surviving spouse shall continue until
the surviving spouse's death; payment to the member's unmarried dependent
children shall be made while any child qualifies as an unmarried
dependent child pursuant to section 86.280. The survivor annuity shall be
the actuarial equivalent of the member's DROP account as of the date of
the member's death. In no event shall the total amount paid pursuant to
this subsection be less than the member's DROP account balance as of the
date of the member's death. (L. 1995 H.B. 260, et al. § 1, A.L. 1999 S.B.
308 & 314, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 290, A.L. 2002 H.B. 1455,
A.L. 2003 H.B. 152 & 180 merged with S.B. 248, et al.)

Notwithstanding any provision of sections 86.200 to 86.366, to
the contrary, the entire interest of a member shall be distributed or
begin to be distributed no later than the member's required beginning
date. The general required beginning date of a member's benefit is April
first of the calendar year following the calendar year in which the
member attains age seventy and one-half years or, if later, in which the
member terminates employment as a police officer and actually retires.
All distributions required pursuant to this section shall be determined
and made in accordance with the income tax regulations under Section
401(a)(9) of the Internal Revenue Code, including the minimum
distribution incidental benefit requirement of Section 1.401(a)(9)-2 of
the income tax regulations. As of the first distribution year,
distributions, if not made in a single sum, may only be made over one of
the following periods, or a combination thereof:

(1) The life of the member;

(2) The life of the member and a designated beneficiary;

(3) A period certain not extending beyond the life expectancy of the
member; or

(4) A period certain not extending beyond the joint and last survivor
expectancy of the member and a designated beneficiary. (L. 1995 H.B. 260,
et al. § 3, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 290)

1. Upon termination of employment as a police officer and actual
retirement for service, a member shall receive a service retirement
allowance which shall be an amount equal to two percent of the member's
average final compensation multiplied by the number of years of the
member's creditable service, up to twenty-five years, plus an amount
equal to four percent of the member's average final compensation for each
year of creditable service in excess of twenty-five years but not in
excess of thirty years; plus an additional five percent of the member's
average final compensation for any creditable service in excess of thirty
years. Notwithstanding the foregoing, the service retirement allowance of
a member who does not earn any creditable service after August 11, 1999,
shall not exceed an amount equal to seventy percent of the member's
average final compensation, and the service retirement allowance of a
member who earns creditable service on or after August 12, 1999, shall
not exceed an amount equal to seventy-five percent of the member's
average final compensation; provided, however, that the service
retirement allowance of a member who is participating in the DROP
pursuant to section 86.251 on August 12, 1999, who returns to active
participation in the system pursuant to section 86.251, and who
terminates employment as a police officer and actually retires for
reasons other than death or disability before earning at least two years
of creditable service after such return shall be the sum of (1) the
member's service retirement allowance as of the date the member entered
DROP and (2) an additional service retirement allowance based solely on
the creditable service earned by the member following the member's return
to active participation. The member's total years of creditable service
shall be taken into account for the purpose of determining whether the
additional allowance attributable to such additional creditable service
is two percent, four percent or five percent of the member's average
final compensation.

2. If, at any time since first becoming a member of the retirement
system, the member has served in the armed forces of the United States,
and has subsequently been reinstated as a policeman within ninety days
after the member's discharge, the member shall be granted credit for such
service as if the member's service in the police department of such city
had not been interrupted by the member's induction into the armed forces
of the United States. If earnable compensation is needed for such period
in computation of benefits it shall be calculated on the basis of the
compensation payable to the officers of the member's rank during the
period of the member's absence. Notwithstanding any provision of sections
86.200 to 86.366 to the contrary, the retirement system governed by
sections 86.200 to 86.366 shall be operated and administered in
accordance with the applicable provisions of the Uniformed Services
Employment and Reemployment Rights Act of 1994, as amended.

3. The service retirement allowance of each present and future retired
member who terminated employment as a police officer and actually retired
from service after attaining age fifty-five or after completing twenty
years of creditable service shall be increased annually at a rate not to
exceed three percent as approved by the board of trustees beginning with
the first increase in the second October following the member's
retirement and subsequent increases in each October thereafter, provided
that each increase is subject to a determination by the board of trustees
that the consumer price index (United States City Average Index) as
published by the United States Department of Labor shows an increase of
not less than the approved rate during the latest twelve-month period for
which the index is available at the date of determination; and provided
further, that if the increase is in excess of the approved rate for any
year, such excess shall be accumulated as to any retired member and
increases may be granted in subsequent years subject to a maximum of
three percent for each full year from October following the member's
retirement but not to exceed a total percentage increase of thirty
percent. In no event shall the increase described under this subsection
be applied to the amount, if any, paid to a member or surviving spouse of
a deceased member for services as a special consultant under subsection 5
of this section or, if applicable, subsection 6 of this section. If the
board of trustees determines that the index has decreased for any year,
the benefits of any retired member that have been increased shall be
decreased but not below the member's initial benefit. No annual increase
shall be made of less than one percent and no decrease of less than three
percent except that any decrease may be limited in amount by the initial
benefit.

4. In addition to any other retirement allowance payable under this
section and section 86.250, a member, upon termination of employment as
police officer and actual service retirement, shall be repaid the total
amount of the member's mandatory contributions to the retirement system
without interest. The board shall pay the retired member such total
amount of the member's mandatory contributions to the retirement system
to be paid pursuant to this subsection within sixty days after such
retired member's date of termination of employment as a police officer
and actual retirement.

5. Any person who is receiving retirement benefits from the retirement
system, upon application to the board of trustees, shall be made,
constituted, appointed and employed by the board of trustees as a special
consultant on the problems of retirement, aging and other matters, for
the remainder of the person's life or, in the case of a deceased member's
surviving spouse, until the earlier of the person's death or remarriage,
and upon request of the board of trustees shall give opinions and be
available to give opinions in writing or orally, in response to such
requests, as may be required. For such services the special consultant
shall be compensated monthly, in an amount which, when added to any
monthly retirement benefits being received from the retirement system,
including any cost-of-living increases under subsection 3 of this
section, shall total six hundred fifty dollars a month. This employment
shall in no way affect any person's eligibility for retirement benefits
under this chapter, or in any way have the effect of reducing retirement
benefits, notwithstanding any provisions of law to the contrary. (L. 1957
p. 256 § 17, A.L. 1965 p. 204, A.L. 1967 p. 162, A.L. 1969 p. 151, A.L.
1973 S.B. 94, A.L. 1975 S.B. 349, A.L. 1977 H.B. 53, A.L. 1979 H.B. 850,
A.L. 1981 S.B. 260, A.L. 1983 H.B. 664, A.L. 1986 S.B. 443, A.L. 1993
S.B. 250, A.L. 1995 H.B. 260, et al., A.L. 1997 H.B. 331, A.L. 1999 S.B.
308 & 314, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 290)

1. Beginning July 1, 1994, in addition to any other annuity,
benefits, or retirement allowance provided pursuant to sections 86.200 to
86.366, each present and future retired member after attaining the age of
sixty years shall, upon application to the board of trustees, be made,
constituted, appointed and employed by the board of trustees as an
advisor on the problems of retirement, aging and other matters, for the
remainder of the retired member's life, and upon request of the board of
trustees shall give opinions in writing or orally in response to such
requests as may be required.

2. For the performance of duties required in subsection 1 of this
section, each retired member employed as an advisor by the board of
trustees shall be compensated monthly in an amount of ten dollars per
month multiplied by the number of years the retired member is past the
age of sixty years. The compensation provided by this subsection shall be
adjusted annually. No funding shall be required prior to the effective
date of this benefit.

3. Beginning October 1, 1999, in addition to any other benefit provided
to any surviving spouse pursuant to sections 86.200 to 86.366, each
present and future surviving spouse of a member after attaining the age
of sixty years shall upon application to the board of trustees, be made,
constituted, appointed and employed by the board of trustees as an
advisor on the problems of retirement, aging and other matters for the
remainder of the surviving spouse's life or until the surviving spouse
remarries, whichever is earlier, and upon request of the board of
trustees shall give opinions in writing or orally in response to such
requests as may be required.

4. For the performance of duties required in subsection 3 of this
section, each surviving spouse of a member employed as an advisor by the
board of trustees shall be compensated monthly in an amount of ten
dollars per month multiplied by the number of years the surviving spouse
is past the age of sixty years. The compensation provided by this
subsection shall be adjusted annually. (L. 1990 S.B. 593, A.L. 1999 S.B.
308 & 314, A.L. 2000 H.B. 1808)

Effective 7-1-00

1. Notwithstanding any other provision of the plan established in
sections 86.200 to 86.366, if an eligible rollover distribution becomes
payable to a distributee, the distributee may elect, at the time and in
the manner prescribed by the board of trustees, to have any of the
eligible rollover distribution paid directly to an eligible retirement
plan specified by the distributee in a direct rollover.

2. For purposes of this section, the following terms mean:

(1) "Direct rollover", a payment by the board of trustees from the fund
to the eligible retirement plan specified by the distributee;

(2) "Distributee", a member, a surviving spouse or a spouse;

(3) "Eligible retirement plan", an individual retirement account
described in Section 408(a) of the Internal Revenue Code, an individual
retirement annuity described in Section 408(b) of the Internal Revenue
Code, or a qualified trust described in Section 401(a) of the Internal
Revenue Code that accepts the distributee's eligible rollover
distribution or, effective for eligible rollover distributions made on or
after January 1, 2002, an annuity contract described in Section 403(b) of
the Internal Revenue Code or an eligible plan under Section 457(b) of the
Internal Revenue Code which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state and which agrees to separately account
for amounts transferred into such plan from this plan, and shall include,
for eligible rollover distributions made on or after January 1, 2002, a
distribution to a surviving spouse or to a spouse or former spouse who is
the alternate payee under a qualified domestic relations order, as
defined in Section 414(p) of the Internal Revenue Code;

(4) "Eligible rollover distribution", any distribution of all or any
portion of a member's benefit, other than:

(a) A distribution that is one of a series of substantially equal
periodic payments, made not less frequently than annually, for the life
or life expectancy of the distributee or for the joint lives or joint
life expectancies of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more;

(b) The portion of a distribution that is required under Section
401(a)(9) of the Internal Revenue Code; or

(c) Effective for distributions made on or after January 1, 2002, a
portion of a distribution shall not fail to be an eligible rollover
distribution merely because the portion consists of after-tax employee
contributions which are not includable in gross income. However, such
portion may be transferred only to an individual retirement account or
annuity described in Section 408(a) or (b) of the Internal Revenue Code,
or to a qualified defined contribution plan described in Section 401(a)
or 403(a) of the Internal Revenue Code that agrees to separately account
for amounts so transferred, including to separately account for the
portion of such distribution which is includable in gross income and the
portion that is not so includable.

3. The board of trustees shall, at least thirty days, but not more than
ninety days, before making an eligible rollover distribution, provide a
written explanation to the distributee in accordance with the
requirements of Section 402(f) of the Internal Revenue Code.

4. If the eligible rollover distribution is not subject to Sections
401(a) and 417 of the Internal Revenue Code, such eligible rollover
distribution may be made less than thirty days after the distributee has
received the notice described in subsection 3 of this section, provided
that:

(1) The board of trustees clearly informs the distributee of the
distributee's right to consider whether to elect a direct rollover, and
if applicable, a particular distribution option, for at least thirty days
after the distributee receives the notice; and

(2) The distributee, after receiving the notice, affirmatively elects a
distribution. (L. 1995 H.B. 260, et al. § 2, A.L. 2000 H.B. 1808, A.L.
2002 H.B. 1455)

Effective 7-11-02

1. In no event shall a member's annual benefit paid under the
plan established pursuant to sections 86.200 to 86.366 exceed the amount
specified in Section 415(b)(1)(A) of the Internal Revenue Code, as
adjusted for any applicable increases in the cost of living, as in effect
on the last day of the plan year, including any increases after the
member's termination of employment.

2. Effective for limitation years beginning after December 31, 2001, in
no event shall the annual additions to the plan established pursuant to
sections 86.200 to 86.366, on behalf of the member, including the
member's own mandatory contributions, exceed the lesser of:

(1) One hundred percent of the member's compensation, as defined for
purposes of Section 415(c)(3) of the Internal Revenue Code, for the
limitation year; or

(2) Forty thousand dollars, as adjusted for increases in the cost of
living under Section 415(d) of the Internal Revenue Code.

3. Effective for limitation years beginning prior to January 1, 2000, in
no event shall the combined plan limitation of Section 415(e) of the
Internal Revenue Code be exceeded; provided that, if necessary to avoid
exceeding such limitation, the member's annual benefit under the plan
established pursuant to sections 86.200 to 86.366 shall be reduced to the
extent necessary to satisfy such limitations.

4. For purposes of this section, Section 415 of the Internal Revenue
Code, including the special rules under Section 415(b) applicable to
governmental plans and qualified participants employed by a police or
fire department, is incorporated in this section by reference. (L. 1995
H.B. 260, et al. § 4, A.L. 1997 H.B. 331, A.L. 1999 S.B. 308 & 314, A.L.
2000 H.B. 1808, A.L. 2001 S.B. 290, A.L. 2002 H.B. 1455)

Effective 7-11-02

Upon the application of a member in service or of the board of
police commissioners, any member who has had ten or more years of
creditable service shall terminate employment as a police officer and
shall be actually retired by the board of trustees, not more than ninety
days next following the date of filing such application on an ordinary
disability retirement allowance; provided, that the medical board after a
medical examination of such member shall certify that such member is
mentally or physically incapacitated for the further performance of duty,
that such incapacity is likely to be permanent and that such member
should be retired. (L. 1957 p. 256 § 18, A.L. 2000 H.B. 1808, A.L. 2001
S.B. 290)

1. Upon termination of employment as a police officer and actual
retirement for ordinary disability a member shall receive a service
retirement allowance if the member has attained the age of fifty-five or
completed twenty years of creditable service; otherwise the member shall
receive an ordinary disability retirement allowance which shall be equal
to ninety percent of the member's accrued service retirement in section
86.253, but not less than one-fourth of the member's average final
compensation; provided, however, that no such allowance shall exceed
ninety percent of the member's accrued service retirement benefit based
on continuation of the member's creditable service to the age set out in
section 86.250.

2. Effective October 1, 1999, the ordinary disability retirement
allowance will be increased by fifteen percent of the member's average
final compensation for each unmarried dependent child of the disabled
member who is under the age of eighteen, or who, regardless of age, is
totally and permanently mentally or physically disabled and incapacitated
from engaging in gainful occupation sufficient to support himself or
herself.

3. Any member receiving benefits pursuant to the provisions of this
section immediately prior to October 1, 1999, shall upon application to
the board of trustees be made, constituted, appointed and employed by the
board of trustees as a special consultant on the problems of retirement,
aging and other matters while the member is receiving such benefits, and
upon request of the board of trustees shall give opinions in writing or
orally in response to such requests as may be required. Beginning October
1, 1999, for such services as may be required, there shall be payable an
additional monthly compensation of one hundred dollars or five percent of
the member's average final compensation, whichever is greater, for each
unmarried dependent child of the member.

4. Any benefit payable to or for the benefit of a child or children under
the age of eighteen years pursuant to the provisions of subsections 2 and
3 of this section shall continue to be paid beyond the age of eighteen
years through the age of twenty-two years in those cases where the child
is a full-time student at a regularly accredited college, business
school, nursing school, school for technical or vocational training, or
university, but such extended benefit shall cease whenever the child
ceases to be a student. A college or university shall be deemed to be
regularly accredited which maintains membership in good standing in a
national or regional accrediting agency recognized by any state college
or university.

5. No benefits pursuant to this section shall be paid to a child over
eighteen years of age who is totally and permanently disabled if such
child is a patient or resident of a public-supported institution, nor
shall such benefits be paid unless such disability occurred prior to such
child reaching the age of eighteen. (L. 1957 p. 256 § 19, A.L. 1965 p.
204, A.L. 1967 p. 163, A.L. 1969 p. 152, A.L. 1977 H.B. 53, A.L. 1979
H.B. 850, A.L. 1997 H.B. 331, A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B.
1808, A.L. 2001 S.B. 290, A.L. 2005 S.B. 401)

Upon application by the member or the board of police
commissioners any member who has become totally and permanently
incapacitated for duty at some definite time and place as the natural and
proximate result of an accident occurring while in the actual performance
of duty through no negligence on the member's part, and if such accident
occurred not more than five years prior to date of application unless the
accident was reported and an examination made of the member by the
medical staff of the board of police commissioners within five years of
the date of the accident with subsequent examinations made as requested,
shall be retired by the board of trustees provided that the medical board
shall certify that such member is mentally or physically incapacitated
for further performance of duty, that such incapacity is likely to be
permanent and that such member should be retired; provided that if the
accident occurred prior to the age and year set out in section 86.250,
application for benefits must be made before such age and year except
that the interval between date of accident and of application may be six
months. (L. 1957 p. 256 § 20, A.L. 1969 p. 152, A.L. 2000 H.B. 1808, A.L.
2001 S.B. 290)

(1975) Term "accident" held to mean a single identifiable event, not a
series of mishaps over an extended period of time. Chapman v. Sanders
(A.), 528 S.W.2d 462.

1. Upon termination of employment as a police officer and actual
retirement for accidental disability, other than permanent total
disability as defined in subsection 2, a member shall receive a
retirement allowance of seventy-five percent of the member's average
final compensation.

2. Any member who, as the natural and proximate result of an accident
occurring at some definite time and place in the actual performance of
the member's duty through no negligence on the member's part, is
permanently and totally incapacitated from performing any work,
occupation or vocation of any kind whatsoever shall receive a retirement
allowance as under subsection 1 or, in the discretion of the board of
trustees, may receive a larger retirement allowance in an amount not
exceeding the member's rate of compensation as a policeman in effect as
of the date the allowance begins.

3. The board of trustees, in its discretion, may, in addition to the
allowance granted in accordance with the provisions of subsections 1 and
2, grant an allowance in an amount to be determined by the board of
trustees, to provide such member with surgical, medical and hospital care
reasonably required after retirement, which are the result and in
consequence of the accident causing such disability.

4. Any person who is receiving benefits pursuant to subsection 2 of this
section on or after August 28, 1997, and any person who is receiving
benefits pursuant to subsection 1 of this section on or after October 1,
2001, and who made mandatory contributions to the retirement system, upon
application to the board of trustees, shall be made, constituted,
appointed and employed by the board of trustees as a special consultant
on the problems of retirement, aging and other matters, and upon request
of the board of trustees shall give opinions and be available to give
opinions in writing or orally, in response to such requests, as may be
required. For such services the retired member shall be paid a lump sum
payment in an amount equal to the total amount of the member's mandatory
contributions to the retirement system, without interest, within sixty
days after approval of the retired member's application by the board of
trustees. (L. 1957 p. 256 § 21, A.L. 1963 p. 137, A.L. 1997 H.B. 331,
A.L. 2000 H.B. 1808, A.L. 2001 S.B. 290)

The board of trustees shall require each member who applies for
disability benefits to undergo a medical examination at a place
designated by the medical board. The examination shall be made by the
medical board or by a physician or physicians designated by such board.
Once each year during the first five years following the retirement of a
member on a disability retirement allowance and once in every three-year
period after that, the board of trustees may require any disabled member
to undergo a medical examination. Should any disabled member refuse to
submit to such medical examination, such member's disability allowance
may be discontinued until the withdrawal of such refusal and should the
refusal continue for one year all rights in and to the member's
disability allowance may be revoked by the board of trustees. (L. 1957 p.
256 § 22, A.L. 2000 H.B. 1808)

Effective 7-1-00

Should a disabled member be restored to active service, such
member's disability allowance shall cease. The disabled member shall
again become a member and shall contribute thereafter at the same rate in
effect prior to disability. Any prior service certificate on the basis of
which the member's service was computed at the time of retirement shall
be restored to full force and effect and in addition upon the member's
subsequent retirement, the member shall be credited with all service as a
member, and if the member's then average final compensation is less than
the average final compensation used in determining the member's
disability allowance, the latter amount shall be used in determining
benefits. (L. 1957 p. 256 § 24, A.L. 2000 H.B. 1808)

Effective 7-1-00

Upon the receipt of proper proofs of the death of a member in
service and provided no other benefits are payable under the retirement
system, there shall be paid the following benefits:

(1) Effective October 1, 1999, a pension to the surviving spouse until
the surviving spouse dies or remarries, whichever is earlier, of forty
percent of the deceased member's average final compensation plus fifteen
percent of such compensation to, or for the benefit of, each unmarried
dependent child of the deceased member, who is either under the age of
eighteen, or who, regardless of age, is totally and permanently mentally
or physically disabled and incapacitated from engaging in gainful
occupation sufficient to support himself or herself;

(2) Any surviving spouse or unmarried dependent child receiving benefits
pursuant to the provisions of this section immediately prior to October
1, 1999, shall, upon application to the board of trustees, be made,
constituted, appointed and employed by the board of trustees as a special
consultant on the problems of retirement, aging and other matters while
the surviving spouse or unmarried dependent child is receiving such
benefits, and upon request of the board of trustees shall give opinions
in writing or orally in response to such requests as may be required.
Beginning October 1, 1999, for such services as may be required, the
surviving spouse shall receive additional monthly compensation in an
amount equal to fifteen percent of the deceased member's average final
compensation, and there shall be payable an additional monthly
compensation of one hundred dollars or five percent of the member's
average final compensation, whichever is greater, for each unmarried
dependent child of the member. The additional monthly compensation
payable to a surviving spouse pursuant to this subdivision shall be
adjusted for any cost-of-living increases that apply, pursuant to
subdivision (8) of this section, to the benefit the surviving spouse was
receiving prior to October 1, 1999;

(3) If no surviving spouse benefits are payable pursuant to subdivisions
(1) and (2) of this section, such total pension as would have been paid
pursuant to subdivisions (1) and (2) of this section had there been a
surviving spouse shall be divided among the unmarried dependent children
under age eighteen and such unmarried dependent children, regardless of
age, who are totally and permanently mentally or physically disabled and
incapacitated from engaging in a gainful occupation sufficient to support
themselves. The benefit shall be divided equally among the eligible
dependent children, and the share of a child who is no longer eligible
shall be divided equally among the remaining eligible dependent children;
provided that not more than one-half of the surviving spouse's benefit
shall be paid for one child;

(4) If there is no surviving spouse or dependent children, the return of
accumulated contributions to the designated beneficiary as set forth in
section 86.293;

(5) No benefits pursuant to this section shall be paid to a child over
eighteen years of age who is totally and permanently disabled if such
child is a patient or resident of a public-supported institution, nor
shall such benefits be paid unless such disability occurred prior to such
child reaching the age of eighteen;

(6) Wherever any dependent child designated by the board of trustees to
receive benefits pursuant to this section is in the care of the surviving
spouse of the deceased member, such benefits may be paid to such
surviving spouse for the child;

(7) Any benefit payable to, or for the benefit of, a child or children
under the age of eighteen years pursuant to subdivisions (1) to (3) of
this section shall continue to be paid beyond the age of eighteen years
through the age of twenty-two years if the child is a full-time student
at a regularly accredited college, business school, nursing school,
school for technical or vocational training, or university, but such
extended benefit shall cease whenever the child ceases to be a student. A
college or university shall be deemed to be regularly accredited which
maintains membership in good standing in a national or regional
accrediting agency recognized by any state college or university;

(8) The benefits payable pursuant to this section to the surviving spouse
of a member who died in service after attaining the age of fifty-five or
completing twenty years of creditable service shall be increased in the
same percentages and pursuant to the same method as is provided in
section 86.253 for adjustments in the service retirement allowance of a
retired member. (L. 1957 p. 256 § 25, A.L. 1961 p. 207, A.L. 1963 p. 137,
A.L. 1969 p. 154, A.L. 1995 H.B. 260, et al., A.L. 1999 S.B. 308 & 314,
A.L. 2000 H.B. 1808, A.L. 2005 S.B. 401)

Upon receipt of proper proofs of the death of a retired member
who retired while in service, including retirement for service, ordinary
disability or accidental disability, and provided no other benefits are
payable from the retirement system, there shall be paid the following
benefits:

(1) Effective October 1, 1999, a pension to the surviving spouse until
the surviving spouse dies or remarries, whichever is earlier, of forty
percent of the deceased member's average final compensation plus fifteen
percent of such compensation to, or for the benefit of, each unmarried
dependent child of the deceased member, who is either under the age of
eighteen, or who, regardless of age, is totally and permanently mentally
or physically disabled and incapacitated from engaging in a gainful
occupation sufficient to support himself or herself;

(2) Any surviving spouse or unmarried dependent child receiving benefits
pursuant to this section immediately prior to October 1, 1999, shall upon
application to the board of trustees be made, constituted, appointed and
employed by the board of trustees as a special consultant on the problems
of retirement, aging and other matters while the surviving spouse or
unmarried dependent child is receiving such benefits, and upon request of
the board of trustees shall give opinions in writing or orally in
response to such requests as may be required. Beginning October 1, 1999,
for such services as may be required, a surviving spouse shall receive
additional monthly compensation equal to the amount which when added to
the benefits the surviving spouse was receiving pursuant to this section
prior to October 1, 1999, determined without regard to any increase
applied to such benefits prior to October 1, 1999, pursuant to
subdivision (8) of this section, will increase the surviving spouse's
total monthly payment pursuant to this section to forty percent of the
deceased member's average final compensation, and there shall be payable
an additional monthly compensation of one hundred dollars or five percent
of the member's average final compensation, whichever is greater, for
each unmarried dependent child of the member. The additional monthly
compensation payable to a surviving spouse pursuant to this subdivision
shall be adjusted for any cost-of-living increases that apply to the
benefit the surviving spouse was receiving prior to October 1, 1999;

(3) If no surviving spouse benefits are payable pursuant to subdivisions
(1) and (2) of this section, such total pension as would have been paid
pursuant to subdivisions (1) and (2) of this section had there been a
surviving spouse, determined without regard to any increase which would
have applied to the surviving spouse's benefits pursuant to subdivision
(8) of this section, shall be divided among the unmarried dependent
children under age eighteen and unmarried dependent children, regardless
of age, who are totally and permanently mentally or physically disabled
and incapacitated from engaging in a gainful occupation sufficient to
support themselves. The benefit shall be divided equally among the
eligible dependent children, and the share of a child who is no longer
eligible shall be divided equally among the remaining eligible dependent
children; provided that not more than one-half of the surviving spouse's
benefits shall be paid for one child;

(4) No benefits pursuant to this section shall be paid to a child over
eighteen years of age who is totally and permanently disabled if such
child is a patient or resident of a public-supported institution, nor
shall such benefits be paid unless such disability occurred prior to such
child reaching the age of eighteen;

(5) Whenever any dependent child designated by the board of trustees to
receive benefits pursuant to this section is in the care of the surviving
spouse of the deceased member, such benefits may be paid to such
surviving spouse for the child;

(6) In the event of the death of a retired member receiving accidental
disability benefits before such benefits have been paid for five years,
the member's surviving spouse until the surviving spouse dies or
remarries, whichever is earlier, shall receive an additional pension of
ten percent of the deceased member's final average compensation;

(7) Any benefit payable to, or for the benefit of, a child or children
under the age of eighteen years pursuant to subdivisions (1) to (3) of
this section shall continue to be paid beyond the age of eighteen years
through the age of twenty-two years if the child is a full-time student
at a regularly accredited college, business school, nursing school,
school for technical or vocational training, or university, but such
extended benefit shall cease whenever the child ceases to be a student. A
college or university shall be deemed to be regularly accredited which
maintains membership in good standing in a national or regional
accrediting agency recognized by any state college or university;

(8) The benefits payable pursuant to this section to the surviving spouse
of a retired member who received or was entitled to receive a service
retirement allowance shall be increased in the same percentages and
pursuant to the same method as is provided in section 86.253 for
adjustments in the service retirement allowance of a retired member. (L.
1957 p. 256 § 25-A, A.L. 1961 p. 208, A.L. 1963 p. 137, A.L. 1965 p. 201,
A.L. 1967 p. 163, A.L. 1969 p. 154, A.L. 1969 3d Ex. Sess. H.B. 17, A.L.
1972 S.B. 570, A.L. 1977 H.B. 53, A.L. 1979 H.B. 850, A.L. 1993 S.B. 250,
A.L. 1995 H.B. 260, et al., A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B.
1808, A.L. 2005 S.B. 401)

Upon the receipt by the board of trustees of evidence and proof
that the death of a member was the natural and proximate result of an
accident occurring at some definite time and place while the member was
in the actual performance of duty and not caused by negligence on the
part of the member, there shall be paid in lieu of the benefits pursuant
to sections 86.280 to 86.283:

(1) Effective October 1, 1999, a pension to the surviving spouse until
the surviving spouse dies or remarries, whichever is earlier, of
seventy-five percent of the deceased member's average final compensation
plus fifteen percent of such compensation to, or for the benefit of, each
unmarried dependent child of the deceased member, who is either under the
age of eighteen, or who, regardless of age, is totally and permanently
disabled and incapacitated from engaging in a gainful occupation
sufficient to support himself or herself;

(2) Any surviving spouse or unmarried dependent child receiving benefits
pursuant to this section immediately prior to October 1, 1999, shall upon
application to the board of trustees be made, constituted, appointed and
employed by the board of trustees as a special consultant on the problems
of retirement, aging and other matters while the surviving spouse or
unmarried dependent child is receiving such benefits, and upon request of
the board of trustees shall give opinions in writing or orally in
response to such requests as may be required. Beginning October 1, 1999,
for such services as may be required, a surviving spouse shall receive
additional monthly compensation equal to the amount which when added to
the benefits the surviving spouse was receiving pursuant to this section
prior to October 1, 1999, will increase the surviving spouse's total
monthly benefit payment pursuant to this section to seventy-five percent
of the deceased member's average final compensation, and there shall be
payable an additional monthly compensation of one hundred dollars or five
percent of the member's average final compensation, whichever is greater,
for each unmarried dependent child of the member;

(3) If no surviving spouse benefits are payable pursuant to subdivisions
(1) and (2) of this section, such total pension as would have been paid
pursuant to subdivisions (1) and (2) of this section had there been a
surviving spouse shall be divided among the unmarried dependent children
under age eighteen and such unmarried dependent children, regardless of
age, who are totally and permanently disabled and incapacitated from
engaging in a gainful occupation sufficient to support themselves. The
benefit shall be divided equally among the eligible dependent children,
and the share of a child who is no longer eligible shall be divided
equally among the remaining eligible dependent children; provided that
not more than one-half of the surviving spouse's benefit shall be paid
for one child;

(4) If there is no surviving spouse or unmarried dependent children of
either class mentioned in subdivision (3) of this section, then an amount
equal to the surviving spouse's benefit shall be paid to the member's
dependent father or dependent mother to continue until remarriage or
death;

(5) No benefits pursuant to this section shall be paid to a child over
eighteen years of age who is totally and permanently disabled if such
child is a patient or resident of a public-supported institution, nor
shall such benefits be paid unless such disability occurred prior to such
child reaching the age of eighteen;

(6) Wherever any dependent child designated by the board of trustees to
receive benefits pursuant to this section is in the care of the surviving
spouse of the deceased member, such benefits may be paid to such
surviving spouse for the child;

(7) Any benefit payable to, or for the benefit of, a child or children
under the age of eighteen years pursuant to subdivisions (1) to (3) of
this section shall continue to be paid beyond the age of eighteen years
through the age of twenty-two years in those cases where the child is a
full-time student at a regularly accredited college, business school,
nursing school, school for technical or vocational training, or
university, but such extended benefit shall cease whenever the child
ceases to be a student. A college or university shall be deemed to be
regularly accredited which maintains membership in good standing in a
national or regional accrediting agency recognized by any state college
or university. (L. 1957 p. 256 § 26, A.L. 1961 p. 209, A.L. 1963 p. 137,
A.L. 1969 p. 154, A.L. 1995 H.B. 260, et al., A.L. 1999 S.B. 308 & 314,
A.L. 2000 H.B. 1808, A.L. 2005 S.B. 401)

In addition to any other benefits payable, notwithstanding any
provisions of sections 86.280 and 86.287 to the contrary, if a member
dies while commissioned as a peace officer, or after retiring and before
receiving a refund of the member's mandatory contributions in accordance
with section 86.253 or 86.290, or while receiving a disability retirement
allowance in accordance with section 86.253 or 86.257, the total amount
of the member's mandatory contributions to the retirement system shall be
paid without interest to the surviving spouse of such member. Payment
pursuant to this section shall be made within sixty days after the later
of the date proper proofs of death are provided or August 28, 1994,
regardless of when the member died or actually retired, provided that the
surviving spouse shall be alive on the date that payment is made. (L.
1983 H.B. 664, A.L. 1986 S.B. 443, A.L. 1987 H.B. 384 Revision, A.L. 1994
S.B. 575, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 290)

Should a member cease to be a policeman except by death or actual
retirement, the member may request payment of the amount of the
accumulated contributions standing to the credit of the member's
individual account, including members' interest, in which event such
amount shall be paid to the member not later than one year after the
member ceases to be a policeman. If the former member is reemployed as a
policeman before any portion of such former member's accumulated
contributions is distributed, no distribution shall be made. If the
former member is reemployed as a policeman after a portion of the former
member's accumulated contributions is distributed, the amount remaining
shall also be distributed. (L. 1957 p. 256 § 27, A.L. 1965 p. 201, A.L.
2000 H.B. 1808, A.L. 2001 S.B. 290)

If the board of trustees is unable to refund the accumulated
contributions of a member or to commence payment of benefits within five
years after such refund or benefits are otherwise first due and payable,
the accumulated contributions shall remain assets of the retirement
system. If proper application is thereafter made for refund or benefits,
the board shall make payment, but no credit shall be allowed for any
interest after the date the refund or benefits were first due and
payable. (L. 2000 H.B. 1808, A.L. 2001 S.B. 290)

If there are no further benefits otherwise payable under sections
86.200 to 86.366 and the total amount of benefits paid to date is less
than an amount equal to the accumulated contributions of the member at
death or retirement, whichever occurred first, the difference shall be
paid to the beneficiary named to receive such amount or if no such
beneficiary is living, to the beneficiary or the estate of the
beneficiary last entitled to benefits. (L. 1957 p. 256 § 28, A.L. 2000
H.B. 1808)

Effective 7-1-00

1. Notwithstanding any other provision of the plan established in
sections 86.200 to 86.366, and subject to the provisions of subsections
2, 3, and 4 of this section, effective January 1, 2002, the plan shall
accept a member's rollover contribution or direct rollover of an eligible
rollover distribution made on or after January 1, 2002, from a qualified
plan described in Section 401(a) or 403(a) of the Internal Revenue Code,
or an annuity contract described in Section 403(b) of the Internal
Revenue Code, or an eligible plan under Section 457(b) of the Internal
Revenue Code which is maintained by a state, political subdivision of a
state, or any agency or instrumentality of a state or political
subdivision of a state. The plan will also accept a member's rollover
contribution of the portion of a distribution from an individual
retirement account or annuity described in Section 408(a) or (b) of the
Internal Revenue Code that is eligible to be rolled over and would
otherwise be includable in gross income.

2. The amount of such rollover contribution or direct rollover of an
eligible rollover distribution shall not exceed the amount required to
repay the member's accumulated contributions plus the applicable members'
interest thereon from the date of withdrawal to the date of repayment in
order to receive credit for such prior service in accordance with section
86.210, to the extent that Section 415 of the Internal Revenue Code does
not apply to such repayment by reason of subsection (k)(3) thereof, or to
purchase permissive service credit, as defined in Section 415(n)(3)(A) of
the Internal Revenue Code, for the member under the plan in accordance
with the provisions of section 105.691, RSMo.

3. Acceptance of any rollover contribution or direct rollover of eligible
rollover distribution under this section shall be subject to the approval
of the board of trustees and shall be made in accordance with procedures
established by the board of trustees.

4. In no event shall the plan accept any rollover contribution or direct
rollover distribution to the extent that such contribution or
distribution consists of after-tax employee contributions which are not
includable in gross income. (L. 2002 H.B. 1455)

Effective 7-11-02

1. Notwithstanding any other provision of the plan established in
sections 86.200 to 86.366, and subject to the provisions of subsections 2
and 3 of this section, effective January 1, 2002, the plan shall accept a
direct trustee-to-trustee transfer on behalf of a member from an annuity
contract described in Section 403(b) of the Internal Revenue Code or an
eligible plan under Section 457(b) of the Internal Revenue Code which is
maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision.

2. A trustee-to-trustee transfer may be accepted by the plan only if the
transfer is used to repay the member's accumulated contributions plus the
applicable members' interest thereon from the date of withdrawal to the
date of repayment in order to receive credit for such prior service in
accordance with section 86.210, to the extent that Section 415 of the
Internal Revenue Code does not apply to such repayment by reason of
subsection (k)(3) thereof, or to purchase permissive service credit, as
defined in Section 415(n)(3)(A) of the Internal Revenue Code, for the
member under the plan in accordance with the provisions of section
105.691, RSMo.

3. Acceptance of any trustee-to-trustee transfer under this section shall
be subject to the approval of the board of trustees and shall be made in
accordance with procedures established by the board of trustees. (L. 2002
H.B. 1455)

Effective 7-11-02

Any amounts which may be paid or payable by the said cities under
the provisions of any workers' compensation or similar law to a member or
to the dependents of a member on account of any temporary total
disability, permanent total disability or death shall be offset against
and payable in lieu of any periodic benefits payable out of the
retirement system on account of the same disability or death. In case the
present value of the total commuted benefits under said workers'
compensation or similar law is less than the actuarial equivalent of the
benefits otherwise payable from the retirement system, then the present
value of the commuted payments shall be deducted from the actuarial
equivalent of the benefits and such benefits as may be provided by the
retirement system so reduced. (L. 1957 p. 256 § 29, A.L. 2000 H.B. 1808)

Effective 7-1-00

(2000) Section is unambiguous and clearly provides for an offset of
worker's compensation benefits against retirement system benefits where
both are paid on account of the same injury. Sisco v. Board of Trustees
of Police Retirement System of St. Louis, 31 S.W.3d 114 (Mo.App.E.D.).

The board of trustees shall be the trustees of the assets of the
retirement system created by sections 86.200 to 86.366 and shall have
full power to hold, purchase, sell, assign, transfer or dispose of any of
the securities and investments in which any of the assets shall have been
invested, as well as the proceeds of such investments and any moneys
belonging to the retirement system, subject to the terms, conditions and
limitations provided in sections 105.687 to 105.689, RSMo. (L. 1957 p.
256 § 30, A.L. 1965 p. 201, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 290)

CROSS REFERENCES: Bi-state development agency, bonds of, investment in
authorized, RSMo 70.377 Multinational banks, securities and obligations
of, investment in, when, RSMo 409.950

The board of trustees shall annually credit each member's
individual account with interest on the largest balance remaining in each
account for the entire year and at the members' interest rate determined
by the board. (L. 1957 p. 256 § 31, A.L. 2000 H.B. 1808)

Effective 7-1-00

The treasurer of the cities shall be the custodian of the assets
of the retirement system. The treasurer shall make payments from such
assets only upon vouchers signed by two persons designated by the board
of trustees. A duly attested copy of the resolution of the board of
trustees designating such persons and bearing on its face specimen
signatures of such persons shall be filed with the treasurer as authority
for making payments upon such vouchers. No voucher shall be drawn unless
it shall previously have been allowed by resolution of the board of
trustees. (L. 1957 p. 256 § 32, A.L. 2000 H.B. 1808)

Effective 7-1-00

For the purpose of meeting disbursements for benefits and other
payments there may be kept available cash not exceeding ten percent of
the total assets of the retirement system on deposit in one or more banks
or trust companies in said cities, organized under the laws of the state
of Missouri, or of the United States; provided, that the amount on
deposit in any one bank or trust company shall not exceed twenty-five
percent of the paid-up capital and surplus of such bank or trust company.
(L. 1957 p. 256 § 33, A.L. 2000 H.B. 1808)

Effective 7-1-00

Except as herein provided, no trustee and no employee of the
board shall have any direct interest in the gains or profits of any
investment made by the board of trustees, nor receive any pay or
emolument for any services rendered as a trustee or employee. No trustee
or employee of the board of trustees shall directly or indirectly in any
manner use the assets of the retirement system except to make such
current and necessary payments as are authorized by the board of
trustees, nor shall any trustee or employee of the board become an
endorser or surety or become in any manner an obligor for moneys loaned
by or borrowed from the board of trustees. (L. 1957 p. 256 § 34, A.L.
2000 H.B. 1808)

Effective 7-1-00

1. The board of trustees shall certify to the board of police
commissioners and the board of police commissioners shall cause to be
deducted from the salary of each member on each and every payroll for
each and every pay period, seven percent of the compensation of each
member who is not participating in the DROP, including each member whose
participation in the DROP has ended and who has returned to active
participation in the system pursuant to section 86.251, and zero percent
of the compensation of each member who is participating in the DROP or
whose participation in the DROP has ended but who has not returned to
active participation in the system pursuant to section 86.251.

2. The deductions provided for in this section shall be made
notwithstanding that the minimum compensation provided by law for any
member shall be reduced thereby. Every member shall be deemed to consent
to the deductions made and provided for in this section, and shall
receipt for the member's full salary or compensation and payment of
salary or compensation less such deduction shall be a full and complete
discharge and acquittance of all claims and demands whatsoever for
services rendered during the period covered by the payment except as to
benefits provided by sections 86.200 to 86.366. The board of police
commissioners shall certify to the board of trustees on each and every
payroll or in such other manner as the board of trustees shall prescribe
the amount deducted, and such amounts shall be paid into the system and
shall be credited together with members' interest thereon to the
individual account of the member from whose compensation such deduction
was made.

3. The board of trustees is authorized to grant additional benefits for
such parts of contributions as were made prior to the adoption of the
seven-percent rate for all members which were in excess of the compulsory
contributions required of each member. (L. 1957 p. 256 §§ 36 to 39, A.L.
1995 H.B. 260, et al., A.L. 2000 H.B. 1808, A.L. 2001 S.B. 290)

After each annual valuation, the actuary engaged by the board to
make the valuation required by sections 86.200 to 86.366, shall determine
the normal contribution rate. The normal contribution rate shall be the
rate percent of the earnable compensation of all members obtained by
deducting from the total liabilities of the retirement system the amount
of the assets in hand to the credit of the retirement system and the
present value of expected future member contributions and dividing the
remainder by one percent of the present value of the prospective future
compensation of all members as computed on the basis of mortality and
service tables and interest assumptions adopted by the board of trustees.
(L. 1957 p. 256 § 43, A.L. 2000 H.B. 1808)

Effective 7-1-00

At the first valuation after the effective date of these
amendments the actuary engaged by the board of trustees shall compute the
rate percent of the total earnable compensation of all members which is
equivalent to four percent of the amount of the total unfunded benefit
liability on account of all members and beneficiaries which is not
dischargeable by the aforesaid normal contribution made on account of
such members during the remainder of their active service. The rate
percent originally so determined shall be known as "the accrued liability
contribution rate". (L. 1957 p. 256 § 44)

The total amount payable to the retirement system for each fiscal
year shall be not less than the normal contribution rate of the total
compensation earnable by all members during the year; provided, however,
that the aggregate payment by the said cities shall be sufficient when
combined with the assets of the retirement system to provide the pensions
and other benefits payable during the then current year. (L. 1957 p. 256
§ 45, A.L. 2000 H.B. 1808)

Effective 7-1-00

The accrued liability contribution should be discontinued as soon
as the accumulated reserve in the general fund shall equal the present
value, as actuarially computed and approved by the board of trustees, of
the total liability of said fund, less the present value, computed on the
basis of the normal contribution rate then in force, of the prospective
normal contributions to be received on account of persons who are at that
time members. (L. 1957 p. 256 § 46, A.L. 1965 p. 201, A.L. 2000 H.B.
1808, A.L. 2001 S.B. 290)

1. The costs of special personal service, financial advisers,
special consultants, and office supplies and equipment shall be borne by
the board of trustees.

2. Annually the board of trustees shall estimate the amount of money
necessary to provide for the expense of the administration and operation
of the retirement system for the ensuing year, excluding those items the
cost of which the board is to bear pursuant to subsection 1. Fifty
percent of the estimate shall be provided by the city and the remaining
fifty percent shall be provided by the board of trustees from interest
and other earnings on assets.

3. Annually, the board of trustees shall estimate the amount of money
necessary to be paid into a board of trustees account during the ensuing
year to provide for the expenses of the retirement system for the cost of
special personal service, financial advisers, special consultants, and
office supplies and equipment. (L. 1947 p. 256 § 47, A.L. 1965 p. 201,
A.L. 1983 H.B. 664, A.L. 2000 H.B. 1808)

Effective 7-1-00

On or before the first day of March of each year the board of
trustees shall certify to the board of estimate and apportionment of the
city the amounts which will become due and payable during the year next
following for expenses pursuant to subsection 2 of section 86.343 and the
cost of benefits as determined pursuant to section 86.337. The amounts so
certified shall be appropriated by the city and transferred to the
retirement system in equal payments in the first six months of the
ensuing year. (L. 1983 H.B. 664, A.L. 2000 H.B. 1808)

Effective 7-1-00

The payment of the cost of providing all benefits granted under
the provisions of sections 86.200 to 86.366, as determined pursuant to
section 86.337, and the payment of fifty percent of all expenses
described in subsection 2 of section 86.343 incurred in connection with
the administration and operation of the retirement system are hereby made
obligations of the cities. (L. 1957 p. 256 § 49, A.L. 1965 p. 201, A.L.
2000 H.B. 1808)

Effective 7-1-00

The right of any person to a benefit, any other right accrued or
accruing to any person under the provisions of sections 86.200 to 86.366
and the moneys created pursuant to sections 86.200 to 86.366 are not
subject to execution, garnishment, attachment or any other process
whatsoever and are unassignable except as in sections 86.200 to 86.366
specifically provided. Notwithstanding the foregoing, nothing in this
section shall prevent the board of trustees from honoring the terms of a
court order requiring the retirement system to pay all or any portion of
the retirement benefit otherwise payable to a retired or disabled member
to a third party to satisfy the member's obligation to pay child support
or maintenance. Any relief association created pursuant to section 86.500
shall be exempt from the tax imposed by sections 143.011 to 143.1013,
RSMo. (L. 1957 p. 256 § 50, A.L. 1961 p. 463, A.L. 2000 H.B. 1808, A.L.
2001 S.B. 290)

A member's benefit shall be one hundred percent vested and
nonforfeitable upon the member's attainment of normal retirement age of
the earlier of age fifty-five or completion of twenty years of creditable
service or, if earlier, and to the extent funded, upon the termination of
the plan established pursuant to sections 86.200 to 86.366. Forfeitures
of any nature under such plan shall not be used to increase the benefits
of any member, but shall be used to reduce the city's contributions
pursuant to section 86.243. (L. 1995 H.B. 260, et al. § 6, A.L. 2000 H.B.
1808)

Effective 7-1-00

1. Any person who shall knowingly make any false statement, or
shall falsify or permit to be falsified any record or records of this
retirement system in any attempt to defraud such system as a result of
such act, shall be guilty of a misdemeanor, and shall be punishable
therefor under the laws of this state.

2. Should any change or error in records result in any member or
beneficiary receiving from the retirement system more or less than would
have been payable had the records been correct, the board of trustees
shall correct such error, and, as far as practicable, shall adjust the
payments in such a manner that the actuarial equivalent of the benefit to
which such member or beneficiary was correctly entitled, shall be paid.
(L. 1957 p. 256 § 51, A.L. 2000 H.B. 1808)

Effective 7-1-00

The board of trustees provided for by section 86.213 is hereby
authorized to consolidate, combine and transfer funds provided by
sections 86.010 to 86.193 with the funds provided by sections 86.200 to
86.366 in such a manner as will simplify the operations of the two
systems. Separate records shall be maintained only to the extent
necessary to determine and pay the benefits provided by sections 86.010
to 86.193 for those policemen electing not to become members of the
retirement system provided by sections 86.200 to 86.366. The board of
trustees may accept the membership records of the older system in lieu of
the requirements in section 86.210. The board of trustees may authorize
the use of the same actuarial assumptions and interest rate in the
calculation of the contributions by the cities for both systems and the
accrued liability rate may be a combined rate for both systems. (L. 1957
p. 256 § 53, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 290)

As soon as the board of trustees provided for by section 86.213
shall have been established, the board of trustees provided for by
sections 86.013 and 86.023 shall be dissolved and its functions shall be
assumed by the board of trustees established under the provisions of
section 86.213. (L. 1957 p. 256 § 52)

All provisions of this chapter which authorize the granting of
additional benefits or compensation to beneficiaries shall terminate upon
the issuance of an opinion by the Missouri supreme court which would
result in the state of Missouri being obligated or required to pay any
such additional benefits or compensation even though such additional
benefits or compensation is formally approved or authorized by the
appropriate body of the city. (L. 1983 H.B. 664, A.L. 2000 H.B. 1808)

Effective 7-1-00

Any person who served as a policeman for a period of thirty years
and who terminated employment and actually retired prior to October 1,
1957, in the police department of any city not within a county, under the
provisions of this chapter, shall, upon application to the police
department of that city, be employed by the department as a special
advisor and supervisor in connection with city police problems. Any
person so employed shall perform such duties as the chief of police
directs and shall receive a salary of one hundred dollars per month,
payable out of the department budget pursuant to appropriations for the
purpose; except that the payment to the retired person for such services,
together with the retirement benefits such retired person receives under
this chapter, shall not exceed two hundred dollars per month. The
employment provided for by this section shall in no way affect any
person's eligibility for retirement benefits under any provision of this
chapter. (L. 1971 H.B. 61 § 1, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 290)

1. The board of trustees shall by rule adopt a program whereby,
in addition to any retirement allowance, or compensation paid or payable
under sections 86.200 to 86.366, any retired member under such sections
who is receiving ordinary service retirement benefits and who has not
received a lump sum payment equal to the retired member's contributions,
shall upon application to the retirement system of the city and approval
of the application by the board of trustees be made a special advisor to
the retirement system and shall be paid as compensation for services as
special advisor a lump sum payment in an amount equal to the total amount
of the retired member's contributions to the retirement system, without
interest, in the manner provided in subsection 2 of this section.

2. Within ninety days of August 28, 1990, the board of trustees shall
establish a system of processing and approving qualified applicants for
appointment and payment under this section. Application for appointment
for special advisor to the retirement system must be made within one
hundred eighty days of August 28, 1990. All qualified applicants shall be
deemed appointed as of the date of their application, and shall be paid
within one year of August 28, 1990.

3. Any diminishment of the assets of the system resulting from the
compensation paid the special advisors to the retirement system provided
for in sections 86.200 to 86.366 shall result in an increase in the
funding requirement as computed under section 86.330 and made an
obligation of the city under sections 86.344 and 86.350. (L. 1984 H.B.
1103, A.L. 1990 S.B. 593, A.L. 2000 H.B. 1808)

Effective 7-1-00

Any police force organized or existing by authority of the laws
of this state in any city having a population of over one hundred
thousand inhabitants is hereby authorized and empowered to form a relief
association under the general incorporation laws of this state, and to
create a fund for the purpose of affording relief to such members of
their organization as may become sick or disabled while in the discharge
of their duties, or who may become incapacitated by long years of
service, and for aiding the families of police officers who may die while
in the service of any police department, and for such other similar
purposes as may be set forth in their articles of incorporation. (RSMo
1939 § 9543, A.L. 1975 H.B. 398)

Prior revisions: 1929 § 8978; 1919 § 10302; 1909 § 3458

This fund shall be created in the following manner: All moneys at
present remaining in the hands of any unincorporated police relief
committee or association; all moneys arising from the sale of unclaimed
personal property; all fines assessed against any delinquent officers by
any board of police commissioners; all monthly, annual or periodical
assessments of members as may be provided for by the rules of said
association; all percentages of rewards allowed to members of any police
force under the regulations of its department. (RSMo 1939 § 9544)

Prior revisions: 1929 § 8979; 1919 § 10303; 1909 § 3459

The following words and phrases as used in sections 86.510 to
86.577, unless a different meaning is plainly required by the context,
shall have the following meanings:

(1) "Board of police commissioners" shall mean any board of police, board
of police commissioners, police commissioners and any other officials, or
board now or hereafter authorized by law to employ and manage a permanent
police force in said cities;

(2) "Pension system" shall mean the police pension system of said cities;

(3) "Policeman" or "member of the police department" shall mean any
regularly employed officer or employee of the police department of said
cities employed and commissioned by the board of police commissioners of
the said cities for police duty but shall not include any police
commissioner or anyone employed in a clerical or other capacity not
involving police duties and not commissioned by the said board as a
police officer. In case of doubt as to whether any person is a policeman
within the meaning of sections 86.510 to 86.577, decision of the board of
trustees shall be final. (RSMo 1939 § 9497)

Any pension authorized by sections 86.510 to 86.577 shall be paid
to the recipient entitled thereto in equal monthly installments. (RSMo
1939 § 9497)

Municipal authorities, by ordinance, in all cities of the first
class in this state, having an organized police department, or having an
organized fire department, may provide for a pension fund for the
pensioning of retired, crippled or disabled members of such police
department or such fire department, and the dependent widow and minor
children of deceased members, and such cities may appropriate or set
apart from special or general municipal funds such percent or amount as
may be fixed by the ordinance therefor, subject to existing
constitutional or statutory limitations, said fund to be managed by a
board of trustees, and the treasurer of said city shall be the treasurer
of said funds. (RSMo 1939 § 9477, A.L. 1953 p. 265)

Prior revision: 1929 § 8919

The city treasurer, counselor, city clerk and comptroller, or
such other officers exercising such functions while holding such office,
and the chief officer of the police department, two delegates at large
from the police department to be selected by the members thereof
annually, whose term of office shall be one year and two delegates from
the pensioned list, if any, to be selected by such retired or pensioned
members on the thirtieth day of June of each year, who shall hold office
for one year, shall constitute and be a board by the name of "The Board
of Trustees of the Policemen's Pension Fund". The said board shall make
all needful rules and regulations for its government in the discharge of
its duties. The board shall select from their members a president and
secretary and shall establish their own order of business. (RSMo 1939 §
9478)

Prior revision: 1929 § 8920

The board shall have exclusive control and management of funds
created for the purpose herein and of all moneys donated, paid or
received for the relief or pensioning of retired or disabled members of
the police department, their widows and minor children, and may have an
assessment from each member of at least five percent but not more than
ten percent of the salary of such member, the contribution to be placed
by the treasurer to the credit of such fund, subject to the order of the
board. The percent rate shall not be changed without the affirmative vote
of a majority of the entire board. (RSMo 1939 § 9479, A.L. 1947 V. II p.
327, A.L. 1953 p. 300 § 86.340, A.L. 1979 H.B. 850)

Prior revision: 1929 § 8921

Effective 8-1-79

In the event of resignation or dismissal from the force, any
member who has faithfully served at least five years and less than
twenty-five years in the department shall receive a refund from the
pension fund of all moneys he may have theretofore paid in as salary
contribution, except thirty-three and one-third percent of his salary
contribution the member shall have paid into the fund, except that no
refund shall be made from the fund because of the death or retirement of
members or when the resignation or dismissal of a member from the force
was occasioned or required by the culpable misconduct of the member.
(RSMo 1939 § 9479, A.L. 1947 V. II p. 327, A.L. 1961 p. 210)

Said board shall hear and decide all applications for such relief
or pensions under sections 86.510 to 86.577, and its decisions on such
applications shall be final and conclusive and not subject to a review
and reversal except by the board, and a record shall be kept by its
secretary of all meetings and proceedings of the board which may convene
at any time, by order of the president of the board or a majority of the
members of said board. Said board of trustees shall serve without pay.
(RSMo 1939 § 9479, A.L. 1947 V. II p. 327)

Prior revision: 1929 § 8921

All rewards in money, fees, gifts and endowments that may be paid
or given for or on account of extraordinary services by said police
department or any member thereof, except when permitted by the board of
police commissioners to be retained by said member, shall be paid into
said pension fund. The board of trustees may take by gift, grant, devise
or bequest of any money, real estate, personal property, right of
property or other valuable things, and the same shall be treated as a
part of and for the uses of said fund. All fines and penalties imposed
upon members of the department for dereliction of duty or violating any
order or regulation, shall form part of said fund. (RSMo 1939 § 9480)

The said board of trustees shall have power by a majority vote to
draw said pension money from the treasury of such city and invest such
funds or any part thereof in the name of "Board of Trustees of the
Policemen's Pension Fund", in interest-bearing bonds of the United
States, of the state of Missouri, of any county, township or municipal
corporation of the state, or for the purchase of any judgment in any
court of record in this state, or loan same on real estate in the city
when such pension fund is established, not, however, exceeding sixty
percent of the assessed taxpaying valuation of such real estate, and all
such securities shall be deposited with the treasurer, which shall be
subject to the order of the board. No loans on real estate shall be made
drawing less than four percent net interest and such interest shall
become a part of the fund when received; provided, that no member of the
board of trustees shall obtain a loan directly or indirectly from this
fund. (RSMo 1939 § 9481)

Prior revision: 1929 § 8922

CROSS REFERENCE: Multinational banks, securities and obligations of,
investment in, when, RSMo 409.950

If any member of the police department of any such city shall,
while in the performance of his duty and not otherwise, become and be
found upon examination by a medical officer selected by such board and
authorized by said applicant, to be physically or mentally permanently
disabled by reason of service in such department, so as to render
necessary his retirement from service from said department, said board of
trustees may, if it finds such applicant is entitled to be pensioned, pay
the said disabled member from said pension fund the sum equal to one-half
the average monthly rate of salary which such member shall have received
on said force during three years immediately preceding the date of his
retirement; except, if such member shall have served less than three
years in said department, the average monthly rate of salary shall be
computed by the board of trustees. On the other hand, if said physician
or physicians shall find the applicant is disabled from further service
from disease contracted or injuries sustained outside of the services of
the police department then said applicant shall be permitted to receive
as a refund the amount he would receive under section 86.523 if he should
be dismissed or resign from the police department; provided, that any
pension granted to any member of such pension fund for disability
provided in this section shall cease if such member shall recover from
said disability, provided such member shall be restored to active duty in
such force, the said board of trustees to be at all times the final
authority in determining all matters pertaining to the granting or
termination of the pensions, refunds, or allowances, awarded as provided
for in this section. (RSMo 1939 § 9482)

Prior revision: 1929 § 8923

1. Any member of the police department of any such city having
served faithfully twenty-five years or more in the department, of which
the last three years shall be continuous, may make application to be
relieved from the department, and in such event or if any such member is
removed, suspended or discharged from the department after such tenure of
service the board of trustees shall order and direct that the person
shall be paid a monthly pension equal to one-half the average monthly
rate of salary which the member received on the force during the twelve
months immediately preceding the date of his retirement.

2. Any member who remains on active duty in the department and continues
to make regular and periodic payments into the pension fund as provided
in sections 86.510 to 86.577 for a period of time beyond twenty-five
years, shall, upon subsequent retirement, be paid monthly, in addition to
the retirement benefit provided in subsection 1 of this section, a sum
equal to one percent of the average monthly salary of the member during
the twelve months immediately preceding the effective date of his
retirement for each full twelve month period beyond twenty-five years but
not to exceed ten additional twelve month periods.

3. After the decease of the member, his wife while single, and children
under eighteen years of age, if any survive him, shall be entitled to the
pension provided for in sections 86.510 to 86.577. (RSMo 1939 § 9483,
A.L. 1973 H.B. 106)

Prior revision: 1929 § 8926

If any member of the police department of any such city, who
shall have served faithfully twenty years and less than twenty-five years
in such department of which the last six years shall be continuous, be
removed, suspended or discharged from such department, or become or be
found upon examination by a medical officer selected by such board and
authorized by said applicant to be superannuated, by age, permanently
insane or mentally incapacitated or disabled physically or mentally so as
to be unfitted or unable to perform full police duty by reason of such
disability or disease so as to render necessary his retirement from
service in such department, if the said board of trustees find such
incapacity does not result from misconduct on the part of such member, it
shall pay to the said member from said pension fund, a sum equal to
four-fifths of one-half the average monthly rate of salary which such
member shall have received on said force during three years immediately
preceding the date of his retirement. After the decease of such member,
his wife while single, and children under sixteen years of age, if any
survive him, shall be entitled to the pension provided for in sections
86.510 to 86.577. (RSMo 1939 § 9484)

1. When a member of the department dies from any cause whatever
while a member of the department or after retirement under the provisions
of sections 86.510 to 86.577, and leaves a widow surviving, the board of
trustees shall pay such widow from the pension fund, monthly, while
unmarried, a sum equal to one-half the monthly pension which her husband
received or would have received had he been retired on the date of his
death or the sum of seventy-five dollars monthly, whichever is the
greater amount. No pension shall be paid to any widow of a pensioner who
has been retired on account of twenty years or more of service, unless
she was married to the deceased pensioner at least five years immediately
prior to the date of his retirement.

2. If there be any surviving children of the deceased member or pensioner
under eighteen years of age, the pension payable to the widow shall be
increased ten dollars per month for each dependent child if the decedent
leave no widow, but does leave an orphan child or children, under the age
of eighteen years, the child or children, collectively, shall receive a
pension of thirty dollars monthly until the youngest child attains the
age of eighteen years, but no child shall receive any pension after
attaining the age of eighteen years. (RSMo 1939 § 9485, A.L. 1947 V. II
p. 327, A.L. 1961 p. 210, A.L. 1973 H.B. 106)

Prior revision: 1929 § 8924

1. Any person who, on September 28, 1973, is receiving retirement
benefits under the provisions of sections 86.510 to 86.577, upon
application to the board of trustees, shall be made, constituted,
appointed, and employed by the board as a special consultant on the
problems of retirement, aging, and other retirement system matters, for
the remainder of his life, and upon request of the board give opinions in
writing, or orally, in response to the request, as may be required, and
for such services shall be compensated monthly in an amount not to exceed
fifteen percent of his monthly retirement benefits payable under the
provisions of this chapter.

2. This compensation shall be consolidated with any other retirement
benefits payable to such person under the provisions of this chapter, and
shall be paid out of the same funds as are those other retirement
benefits.

3. The employment provided for by sections 86.540, 86.547, 86.549 and
86.557 shall in no way affect any person's eligibility for retirement
benefits under this chapter, or in any way have the effect of reducing
retirement benefits, other provisions of law to the contrary
notwithstanding. (L. 1973 H.B. 106)

On and after the effective date of sections 86.510 to 86.577 no
member of the police department thereafter appointed who is over the age
of thirty-five years, that is, who has attained his thirty-sixth
birthday, and who is unable to pass a physical examination by a physician
designated by the board of trustees of the police pension fund, shall be
eligible to become a member of such fund, except persons who had
theretofore served not less than four years in said department, the last
service being not more than five years before their reappointment to the
department. If a member of the police department is appointed by the
board of police commissioners, who is over thirty-five years of age, that
is, has attained his thirty-sixth birthday, or is unable to pass a
physical examination provided by sections 86.510 to 86.577, such member
shall not be permitted to become a member of the police pension fund, nor
shall he be liable for any assessments for the support of such fund;
provided, that nothing in this section shall be construed to apply to the
reappointment of any member of such force at the expiration of his term
of appointment in such department. (RSMo 1939 § 9486, A.L. 1947 V. II p.
327)

If at any time there shall not be sufficient money in such
pension fund to pay each person the full amount per month as herein
provided, then an equal percentage of such monthly payment shall be made
to each beneficiary until the said fund in the judgment of the board of
trustees shall be sufficient in amount to resume the payment in full of
such pension awards and the payment of sums previously deducted. (RSMo
1939 § 9487)

Prior revision: 1929 § 8925

Whenever an active or retired policeman shall die as aforesaid,
the board of trustees may appropriate from the fund, a sum not exceeding
three hundred dollars to his widow or legal heirs for funeral expenses.
(RSMo 1939 § 9492, A.L. 1973 H.B. 106)

Prior revision: 1929 § 8931

All moneys ordered to be paid from such pension fund to any
person or persons shall be paid by the treasurer only upon warrants
signed by the president of the board and countersigned by the secretary
thereof, and no warrants shall be drawn except by the order of the board,
duly entered upon the records of the proceedings of the board. (RSMo 1939
§ 9489)

Prior revision: 1929 § 8928

No portion of said pension fund shall before or after its order
of distribution by the board of trustees to the person entitled thereto,
be held, seized, taken, subjected to or detained or levied on by virtue
of any attachment, execution, injunction, writ, interlocutory or other
order or decree or any process or proceedings whatever issued out of or
by any court for the payment or satisfaction in whole or in part of any
debt, damage, claim, demand or judgment against the beneficiary of this
fund and no assignment by said beneficiary shall be valid, but the same
shall be null and void, and said fund shall be held and distributed for
the purpose of sections 86.510 to 86.577 solely to the persons entitled
thereto and for no other purpose whatever. (RSMo 1939 § 9491)

Prior revision: 1929 § 8930

The board of police commissioners shall have the right to recall
any person receiving a pension under sections 86.510 to 86.577 to active
duty in an emergency, said person to receive full pay for the rank in
which he may serve, but such person shall not be entitled to any payments
out of such pension fund while serving on active duty. (RSMo 1939 § 9493)

The board of trustees of the police pension fund may in their
discretion terminate and cease all pensions awarded to any member of the
police department under the provisions of sections 86.510 to 86.577 if
the pensioner is convicted of a felony or infamous crime. (RSMo 1939 §
9494)

The treasurer shall be the custodian of said pension fund,
subject to the control and direction of the board and shall keep a
separate rate book and complete account concerning said fund, in such
manner as may be prescribed by the board, and the books and accounts
shall always be subject to the inspection of the board or any member
thereof, and said treasurer shall be personally liable, and also liable
on his bond executed to the city for the purpose of becoming said officer
of the city. On the expiration of his term of office, he will surrender
and deliver over to his successor all unexpended moneys and all property
and evidence of indebtedness, and all other papers and records which may
have come to his possession as treasurer of such funds. (RSMo 1939 § 9488)

Prior revision: 1929 § 8927

The board of trustees shall make report to the legislative body
of said city of the condition of said pension fund on the first day of
January on each and every year. (RSMo 1939 § 9490)

Prior revision: 1929 § 8929

In all systems or plans heretofore or hereafter established by
law or ordinance for the pensioning of the salaried members of the
organized police force or fire department and the widows and minor
children of deceased members, of any municipality of this state, for all
honorably discharged members of the armed services of the United States
in any war, who reenter or have reentered the service of any such police
force or fire department within one year after such honorable discharge,
service in such armed services shall be counted as service on such police
force or fire department in determining the right to any pension. (L.
1947 V. II p. 330 § 1)

1. Any municipality in any county of the first class, and any
other municipality in this state which now contains or may hereafter
contain not more than one hundred thousand inhabitants nor less than
three thousand inhabitants as determined by the last preceding federal
census is hereby authorized to provide for the pensioning of the salaried
members of its organized police force or fire department and the widows
and minor children of deceased members; provided, however, that nothing
in this section shall be construed to affect any pension or retirement
system for members of an organized police force or fire department, and
their widows or minor children, which has been established previously
under authority of an act of the general assembly and which is in
operation at the time of the passage of this section, and the provisions
of law applicable to any such pension or retirement system shall not be
deemed to be repealed or superseded by the provisions of this section.
This section shall not take effect in any such city until approved by the
voters thereof as herein provided. On order of the city council, or on
petition of five percent of the voters of said city, the question shall
be submitted to the voters.

2. The question shall be submitted in substantially the following form:

Shall the (police or firemen's insert one) pension plan be

approved?

3. If a majority of the voters casting votes thereon is in favor of the
question, this section shall take effect in said city thirty days after
the submission of the question. (L. 1945 p. 1267 § 1, A.L. 1955 p. 276,
A.L. 1978 H.B. 971)

If the police and firemen's pension system established under the
provisions of section 86.583 requires a contribution from the members of
the organized police or fire department, then at least one voting member
of the board of trustees shall be a member of the organized police
department or fire department elected by the contributing members, and if
the system serves both the police and the fire departments, a member of
both the organized police department and of the fire department shall be
voting members of the board of trustees elected by the contributing
members. (L. 1990 H.B. 1675)

The board of trustees of police and firemen's pension systems,
established under the provisions of section 86.583, may invest and
reinvest the moneys of the system, and may hold, purchase, sell, assign,
transfer or dispose of any of the securities and investments in which
such moneys shall have been invested, as well as the proceeds of such
investments and such moneys; except that such investment and
reinvestments shall be subject to all the terms, conditions, limitations,
and restrictions imposed by law upon life insurance or casualty companies
in the state of Missouri in making and disposing of their investments,
except that the percentage limitations of subsection 2 of section
376.305, RSMo, shall not apply. The board of trustees of police and
firemen's pension systems, established under the provisions of section
86.583, shall comply with the prudent investor standard for investment
fiduciaries as provided in section 105.688, RSMo, when investing the
assets* of the system. (L. 1965 p. 212, A.L. 1969 p. 156, A.L. 1974 S.B.
423, A.L. 1995 H.B. 260 merged with H.B. 416, et al.)

*Word "asset" appears in original rolls.

CROSS REFERENCE: Multinational banks, securities and obligations of,
investments in, when, RSMo 409.950

The provisions of any other law notwithstanding, the board of
trustees of any retirement system, the provisions of which are governed
by this chapter, or any political subdivision which funds such retirement
system, shall have standing to seek a declaratory judgment concerning the
application of article X, section 21 of the Missouri Constitution to the
provisions of this chapter. In the event a final judgment is rendered by
a court which judgment determines that any provision of this chapter
constitutes a new activity or service or increase in the level of an
activity or service beyond that required by existing law under article X,
section 21 of the Missouri Constitution, or any successor to that
section, that provision of this chapter shall be void ab initio and any
new benefit or feature required by such provision of this chapter shall
be deemed not to have accrued and shall not be payable to members. (L.
1997 H.B. 331, A.L. 1999 S.B. 308 & 314)

The following words and phrases as used in sections 86.900 to
86.1280 shall have the following meanings unless a different meaning is
plainly required by the context:

(1) "Accumulated contributions", the sum of all amounts deducted from the
compensation of a member and paid to the retirement board, together with
all amounts paid to the retirement board by a member or by a member's
beneficiary, for the purchase of prior service credits or any other
purpose permitted under sections 86.900 to 86.1280;

(2) "Beneficiary", any person entitled, either currently or
conditionally, to receive pension or other benefits provided in sections
86.900 to 86.1280;

(3) "Board of police commissioners", the board composed of police
commissioners authorized by law to employ and manage an organized police
force in the cities;

(4) "City" or "cities", any city which now has or may hereafter have a
population of more than three hundred thousand and less than seven
hundred thousand inhabitants, or any city that has made an election under
section 86.910 to continue a police retirement system maintained under
sections 86.900 to 86.1280;

(5) "Compensation", the basic wage or salary paid a member for any period
on the basis of the member's rank and position, excluding bonuses,
overtime pay, expense allowances, and other extraordinary compensation;
except that, notwithstanding such provision, compensation for any year
for any member shall not exceed the amount permitted to be taken into
account under Section 401(a)(17) of the Internal Revenue Code as
applicable to such year;

(6) "Consultant", unless otherwise specifically defined, a person
retained by the retirement system as a special consultant on the problems
of retirement, aging and related matters who, upon request of the
retirement board, shall give opinions and be available to give opinions
in writing or orally in response to such requests, as may be needed by
the board;

(7) "Creditable service", service qualifying as a determinant of a
member's pension or other benefit under sections 86.900 to 86.1280 by
meeting the requirements specified in said sections or section 105.691,
RSMo;

(8) "Final compensation", the average annual compensation of a member
during the member's service if less than two years, or the twenty-four
months of service for which the member received the highest salary
whether consecutive or otherwise. In computing the average annual
compensation of a member, no compensation for service after the thirtieth
full year of membership service shall be included. For any period of time
when a member is paid on a frequency other than monthly, the member's
salary for such period shall be deemed to be the monthly equivalent of
the member's annual rate of compensation for such period;

(9) "Fiscal year", for the retirement system, the fiscal year of the
cities;

(10) "Internal Revenue Code", the United States Internal Revenue Code of
1986, as amended;

(11) "Medical board", not less than one nor more than three physicians
appointed by the retirement board to arrange for and conduct medical
examinations as directed by the retirement board;

(12) "Member", a member of the police retirement system as described in
section 86.1090;

(13) "Pension", annual payments for life, payable monthly, beginning with
the date of retirement or other applicable commencement date and ending
with death;

(14) "Pension fund", the fund resulting from contributions made thereto
by the cities affected by sections 86.900 to 86.1280 and by the members
of the police retirement system;

(15) "Police officer", an officer or member of the police department of
the cities employed for compensation by the boards of police
commissioners of the cities for police duty who holds a rank or position
for which an annual salary range is provided in section 84.480 or 84.510,
RSMo; in case of dispute as to whether any person is a police officer
qualified for membership in the retirement system, the decision of the
board of police commissioners shall be final;

(16) "Retirement board" or "board", the board provided in section 86.920
to administer the retirement system;

(17) "Retirement system", the police retirement system of the cities as
defined in section 86.910;

(18) "Surviving spouse", when determining whether a person is entitled to
benefits under sections 86.900 to 86.1280 by reason of surviving a
member, shall include only:

(a) A person who was married to a member at the time of the member's
death in the line of duty or from an occupational disease arising out of
and in the course of the member's employment and who had not, after the
member's death and prior to August 28, 2000, remarried;

(b) With respect to a member who retired or died prior to August 28,
1997, a spouse who survives such member, whose marriage to such member
occurred at least two years before the member's retirement or at least
two years before the member's death while in service, and who had not
remarried anyone other than the member prior to August 28, 2000;

(c) With respect to a member who retired or died while in service after
August 28, 1997, and before August 28, 2000, a spouse who survives such
member, was married to such member at the time of such member's
retirement or of such member's death while in service, and had not, after
the member's death and prior to August 28, 2000, remarried; and

(d) With respect to a member who retires or dies in service after August
28, 2000, a spouse who survives a member and was married to such member
at the time of such member's retirement or death while in service. (L.
2005 H.B. 323)

In all cities that now have or may hereafter attain a population
of more than three hundred thousand and less than seven hundred thousand
inhabitants according to the last preceding federal decennial census,
there are hereby created and established retirement or pension systems
for the purpose of providing retirement allowances for police officers of
such cities. Any city which has established a police retirement system
under the provisions of sections 86.370 to 86.497 or sections 86.900 to
86.1280 may elect to continue its police retirement system under the
provisions of sections 86.900 to 86.1280 even though the city may cease
to have the population described in this section, and any city so
electing to continue its established police retirement system shall be
excused from creating or maintaining any other police retirement system
under any other provisions of the Missouri statutes. Each system shall be
under the management of a retirement board to be known as the "Police
Retirement System of (name of city)", and by such name all of its
business shall be transacted, and all of its cash and other property
held. The retirement systems so created shall begin operation on the
effective date of sections 86.370 to 86.497. (L. 2005 H.B. 323)

The general administration and the responsibility for the proper
operation of the retirement system and for making effective the
provisions of sections 86.900 to 86.1280 are hereby vested in a
retirement board of nine persons. (L. 2005 H.B. 323)

1. The retirement board shall be constituted as follows:

(1) Two members, one of whom shall be of the political party casting the
highest number of votes statewide for governor in the election next
preceding such member's selection and the other of whom shall be of the
political party casting the next highest number of votes statewide for
governor at the election next preceding such member's selection, shall be
selected by the board of police commissioners of such cities to serve
one- and two-year terms respectively. All such subsequent members shall
serve for terms of two years each or to fill an unexpired term;

(2) Two members, one of whom shall be of the political party casting the
highest number of votes statewide for governor in the election next
preceding such member's selection and the other of whom shall be of the
political party casting the next highest number of votes statewide for
governor at the election next preceding such member's selection, shall be
selected by the city council of such city, one of whom may be the
director of finance of such city to act as ex officio member, and the
other to serve for a term of two years; and

(3) Five members shall be elected for three-year terms respectively or to
fill an unexpired term in annual elections in which each member of the
police retirement system, each person receiving benefits as a surviving
spouse of a member of the police retirement system, and, if such city has
established a civilian employees' retirement system of the police
department of such city pursuant to the provisions of sections 86.1310 to
86.1640, each member of such civilian employees' retirement system and
each person receiving benefits as a surviving spouse of a member of such
civilian employees' retirement system shall be entitled to one vote.

2. Commencing with the first annual election for members of the
retirement board in 2004, the five elected members of the board shall be
designated and elected as follows:

(1) If a city has established a civilian employees' retirement system of
the police department of such city under the provisions of sections
86.1310 to 86.1640, the elected members of the retirement board of such
city shall consist of three restricted members and two open members:

(a) One restricted member shall be a member of the police retirement
system who has retired from active service with the police department as
of the date of such member's election to the board;

(b) One restricted member shall be a member of the police retirement
system who, as of the date of such member's election to the board, is in
active service as a police officer and has not attained the rank of
sergeant or higher; and

(c) One restricted member shall be a member of the civilian employees'
retirement system of the police department of such city.

There shall be no required qualifications for open members. At the annual
election in 2004 and each third year thereafter, one open member shall be
elected to a three-year term. At the annual election in 2005 and each
third year thereafter, one open member shall be elected to a three-year
term. At the annual election in 2006 and each third year thereafter, the
three restricted members shall be elected to a three-year term. Such
elections shall be conducted simultaneously but as elections for three
separate offices, in which only persons qualified for a respective office
may be a candidate for such office;

(2) If a city has not established a civilian employees' retirement system
of the police department of such city under the provisions of sections
86.1310 to 86.1640, the elected members of the retirement board of such
city shall consist of two restricted members and three open members. All
provisions of subdivision (1) of this subsection shall apply, except that
the restricted membership provided for a member of a civilian employees'
retirement system shall be an open membership;

(3) In every election in which more than one position is to be filled,
either for a three-year term or for the unexpired portion of the term of
a position which has become vacant, every candidate in such election must
declare the position to which such candidate desires to be elected; and
no person may be a candidate for more than one such position in any given
election;

(4) Any person elected to a restricted position on the retirement board
who at the time of such election meets the qualifications for such
position shall be deemed to continue to meet such qualifications
throughout the term to which such person was elected, regardless of any
change in the rank, classification or other employment status of such
person.

3. If a vacancy occurs in the office of a member of the retirement board
the vacancy shall be filled for the unexpired term in the same manner as
the vacated office was previously filled.

4. Each member of the retirement board shall, within ten days after
appointment or election, take an oath of office that such member will
diligently and honestly administer the affairs of the board, and will not
knowingly violate or willingly permit to be violated any of the
provisions of the law applicable to the police retirement system. Such
oath shall be signed by the member and filed with the clerk of such city.
(L. 2005 H.B. 323)

Each member of the retirement board shall be entitled to one vote
in the decisions of the board. Five votes or more in favor shall be
necessary to pass a motion by the retirement board at any meeting of the
board. (L. 2005 H.B. 323)

1. Subject to the limitations of sections 86.900 to 86.1280, the
retirement board shall from time to time establish policies for the
administration of its assets, for the transaction of its business and for
the conduct of nominations and elections of the elected members of the
retirement board.

2. The retirement board shall elect from its membership a chairman, a
vice chairman, and a treasurer, and shall by majority vote of its members
appoint a secretary, who may be, but need not be, one of its members. The
offices of secretary and of treasurer shall not be held by the same
person. The retirement board may employ such actuarial, legal, and other
services as may be necessary to transact the business of the retirement
system. The compensation of all persons employed by the retirement board
and all other expenses of the board necessary for the operation of the
retirement system shall be paid in such manner as the retirement board
shall determine; provided that the compensation of such persons as may be
employed by the retirement board shall not be greater than the
compensation paid for comparable abilities by the governments of the
cities in which the retirement board is located. (L. 2005 H.B. 323)

The retirement board shall be deemed to be a state agency within
the meaning of chapter 536, RSMo. Any rule or portion of a rule, as that
term is defined in section 536.010, RSMo, that is created under the
authority delegated in sections 86.900 to 86.1280 shall become effective
only if it complies with and is subject to all of the provisions of
chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This
section and chapter 536, RSMo, are nonseverable and if any of the powers
vested with the general assembly pursuant to chapter 536, RSMo, to
review, to delay the effective date, or to disapprove and annul a rule
are subsequently held unconstitutional, then the grant of rulemaking
authority and any rule proposed or adopted after August 28, 2005, shall
be invalid and void. (L. 2005 H.B. 323)

1. The retirement board shall keep in convenient form such data
as is necessary for administration of the retirement system. The
retirement board shall keep a record of all its proceedings which shall
be open to public inspection.

2. The retirement board shall publish annually a statement reporting the
operations of the retirement system for the year, including income and
disbursements during the year and the financial condition of the
retirement system at the end of the year, including actuarial valuation
and valuations of its assets and liabilities as of April thirtieth of
each year. Such statement shall be consistent with results reviewed and
approved by independent certified public accountants selected by the
board. One copy of the annual report shall be delivered to each member of
the retirement board and each member of the board of police
commissioners, and one copy shall be filed with the city clerk. Copies of
the report shall be made conveniently available to each member of the
retirement system.

3. The retirement board shall cause an actuarial study and calculation to
be made annually based upon the experiences of the retirement system by
an independent firm of pension actuaries.

4. The retirement board shall appoint a medical board of not more than
three physicians, each of whom shall serve at the pleasure of the
retirement board, to arrange for and conduct medical examinations as
requested by the retirement board.

5. The retirement board shall adopt a common seal. (L. 2005 H.B. 323)

The members of the retirement board shall be compensated in full
for all services rendered under the provisions of sections 86.900 to
86.1280 at the rate of ten dollars per business session actually attended
but no member shall be so compensated in an amount exceeding one hundred
fifty dollars in any fiscal year regardless of the amount of services
rendered or the number of business sessions actually attended. The
members of the board shall be reimbursed from the funds of the police
retirement system for all necessary expenses which they may incur on such
board, in addition to their compensation for services. (L. 2005 H.B. 323)

Each member of the retirement board who is in active service with
the police department of a city as either a police officer, as defined in
section 86.900, or as an employee, as defined in section 86.1310, shall
be granted authorized leave with pay by such police department to attend
any and all educational seminars and like functions that have been
authorized by the retirement board, including travel time to and from
such functions, not to exceed ten days in any calendar year. Leave
granted under this section shall not reduce vacation or other authorized
leave time to which such member may be entitled without reference to this
section. (L. 2005 H.B. 323)

The retirement board shall before January tenth of each year
certify to the chief financial officer of such city the amount to be paid
by the city under the retirement pension system for the succeeding fiscal
year, as otherwise provided by sections 86.900 to 86.1280. (L. 2005 H.B.
323)

1. The city shall contribute to the pension fund quarter-
annually or at such lesser intervals as may be agreed upon by the city
and the retirement board. Such contribution shall be in addition to and
separate from the appropriations made by the city for the operation of
the police department. For each fiscal year of the operation of the
pension system, the city's contribution to the pension fund shall be a
percentage of the compensation paid to members of the pension system from
which a member's deduction has been made under section 86.1010. The
city's contribution shall be such percentage as shall be agreed upon by
the board of police commissioners and the city, but in no event shall
such contribution be less than twelve percent.

2. On or before the tenth day of January of each year the retirement
board shall certify to the board of police commissioners the amount of
money that will likely be required to comply with the provisions of this
section during the next succeeding fiscal year including administration
expenses. The amounts so certified shall be included by the board of
police commissioners in their annual budget estimate, and shall be
appropriated by the cities and transferred to the pension fund during the
ensuing fiscal year. (L. 2005 H.B. 323)

The board of police commissioners shall cause to be deducted
from the compensation of each member until retirement a percentage of
such member's compensation, which shall not be less than six percent, as
determined by the retirement board, as such member's contribution to the
pension fund. The sum so deducted shall be paid by the board of police
commissioners promptly after each payroll to the retirement board to be
credited to the member's account. Every member shall be deemed to consent
to the deductions made and provided for herein. The board of police
commissioners shall certify to the retirement board on every payroll the
amount deducted, and such amounts shall be paid into the pension fund and
shall be credited to the individual pension account of the member from
whose compensation such deduction was made. (L. 2005 H.B. 323)

1. The retirement board shall act as trustee of the funds
created by or collected under the provisions of sections 86.900 to
86.1280. With appropriate safeguards against loss by the retirement
system, the board may designate one or more banks or trust companies to
serve as a depository of retirement system funds, and as an intermediary
in the investment of those funds and payment of system obligations. The
board shall promptly deposit the funds with any such designated bank or
trust company.

2. The retirement board shall have power, in the name and on behalf of
the retirement pension system, to purchase, acquire, hold, invest, lend,
lease, sell, assign, transfer, and dispose of all property, rights, and
securities, and enter into written contracts, all as may be necessary or
proper to carry out the purposes of sections 86.900 to 86.1280. No
investment transaction authorized by the retirement board shall be
handled by any company or firm in which a member of the board has an
interest, nor shall any member of the board profit directly or indirectly
from any such investment. All investments shall be made for the account
of the retirement system, and any securities or other properties obtained
by the retirement board may be held by a custodian in the name of the
retirement system, or in the name of a nominee in order to facilitate the
expeditious transfer of such securities or other properties. Such
securities or other properties may be held by such custodian in bearer
form or in book entry form. The retirement system is further authorized
to deposit, or have deposited for its account, eligible securities in a
central depository system or clearing corporation or in a federal reserve
bank under a book entry system as defined in the uniform commercial code,
sections 400.8-102 and 400.8-117, RSMo. When such eligible securities of
the retirement system are so deposited with the central depository system
they may be merged and held in the name of the nominee of such securities
depository and title to such securities may be transferred by bookkeeping
entry on the books of such securities depository or federal reserve bank
without physical delivery of the certificates or documents representing
such securities.

3. The retirement board may contract with a bank or trust company to act
as the custodian of bonds and securities acquired by the board, in which
case the retirement board may authorize such custodian bank or trust
company to order purchases, loans or sales of investments by such
custodian bank or trust company, and may also appoint one or more
investment managers to manage investments of the retirement pension
system and in the course of such management to order purchases, loans, or
sales of investments by such custodian bank or trust company, subject to
such limitations, reporting requirements and other terms and restrictions
as the retirement board may include in the terms of each such
appointment. The income from investments shall be credited to the funds
of the retirement system at frequent intervals satisfactory to the
retirement board. All payments from the funds shall be made by the bank
or trust company only upon orders signed by the secretary and treasurer
of the retirement board, except as otherwise provided in this subsection.
No order shall be drawn unless it shall have previously been allowed by a
specific or an ongoing generalized resolution of the retirement board. In
the case of payments for benefits, services, supplies or similar items in
the ordinary course of business, such board resolutions may be ongoing
generalized authorizations, provided that each payment other than
payments to members or beneficiaries for benefits shall be reported to
the board at its next following meeting and shall be subject to
ratification and approval by the board.

4. Before assuming the duties of the office, the secretary and treasurer
shall each be bonded for an amount determined by the retirement board at
the cost of the retirement system, conditioned upon the faithful
performance of the duties as such officer, and to account for all moneys,
securities, and property which may come into their respective hands or
under their respective control by virtue of such office, with a corporate
surety duly licensed to transact business in this state. Such bonds shall
be subject to the approval of the presiding judge of the circuit court of
the county in which such cities are located. (L. 2005 H.B. 323)

All benefits and all necessary administrative expenses of the
retirement system shall be paid from the funds of the retirement system.
(L. 2005 H.B. 323)

The right of any person to pension or pensions, to the return of
contributions, disability or death benefits, or any other right accrued
or accruing to any person under the provisions of sections 86.900 to
86.1280 and the moneys in the various funds created under sections 86.900
to 86.1280 shall not be subject to execution, garnishment, attachment, or
any other process whatsoever, and shall be unassignable except as
specifically provided in sections 86.900 to 86.1280, and except for court
orders or assignments approved by a court to provide support for family
members or a former spouse of any person entitled to benefits under
sections 86.900 to 86.1280. The moneys in the various funds created under
sections 86.900 to 86.1280 are hereby exempt from any tax of the state of
Missouri or of any municipality or political subdivision thereof. A
revocable request or authorization by a member or a beneficiary to
withhold and apply for the requester's convenience some portion or all of
a benefit payment shall not be deemed an assignment prohibited under this
section provided that any such request shall remain revocable at all
times except as to payments or withholdings effected prior to any such
revocation. The retirement system may, but shall not be obligated to,
comply with any such request. (L. 2005 H.B. 323)

Nothing contained in sections 86.900 to 86.1280 shall in any way
limit the criminal liability of any person subject to prosecution under
any law which is now or may hereafter be in force. Should any change or
error in records result in any member or beneficiary receiving from the
pension system more or less than such person would have been entitled to
receive had the records been correct, the retirement board shall correct
such error and, as far as practicable, shall adjust the payments in such
a manner that the benefit to which said member or beneficiary was
correctly entitled shall be paid. (L. 2005 H.B. 323)

1. The retirement board may sue and be sued in its own name.
Such suits shall constitute suits by or against the members of the
retirement board in their representative capacities and not as
individuals.

2. Service of process on the retirement board shall be sufficient if ten
copies of the pleading or other document to be served shall be served
upon the secretary of the retirement board at the principal office of the
retirement system during business hours. (L. 2005 H.B. 323)

1. In any hearing conducted by the retirement board, the board's
findings on all issues of fact shall be final and conclusive upon all
parties concerned when such findings are supported by competent and
substantial evidence.

2. Any ruling of the retirement board on a question of law and whether
the same is supported by substantial evidence shall, at the option of the
plaintiff, be reviewed upon application of any party by the circuit court
of Cole County, or in the county of the residence of the plaintiff or one
of the plaintiffs, or in the county in which the principal office of the
retirement system is located. (L. 2005 H.B. 323)

1. The retirement board may purchase with retirement system
assets from one or more insurers licensed to do business in this state
one or more insurance policies that provide for reimbursement of the
retirement system and any trustee, member of the retirement board,
officer, or employee of the retirement system for liability imposed or
damages because of an alleged act, error, or omission committed in the
trustee's, board member's, officer's, or employee's capacity as a
fiduciary, officer, or employee of the retirement system and for costs
and expenses, including attorney fees, incurred as a trustee, board
member, officer, or employee in defense of a claim for an alleged act,
error, or omission, as long as the insurance policy does not provide for
reimbursement of a trustee, board member, officer, or employee for
liability imposed or expenses incurred because of the trustee's, board
member's, officer's, or employee's personal dishonesty, fraud, lack of
good faith, or intentional failure to act prudently.

2. If the insurance coverage described in subsection 1 of this section is
insufficient or is not in effect, the retirement board may indemnify any
person who was or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit, or proceeding, whether
civil, criminal, administrative, or investigative, by reason of the fact
that the person is or was a member of the retirement board, or is or was
serving at the request of the retirement board in the capacity which
caused the person's relationship to such action, suit, or proceeding,
against expenses, including attorneys' fees, judgments, fines, and
amounts paid in settlement actually and reasonably incurred by the person
in connection with such action, suit, or proceeding, if the person acted
in good faith and without willful malfeasance, and, with respect to any
criminal action or proceeding, had reasonable cause to believe the
relevant conduct was lawful. The termination of any action, suit, or
proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent shall not, of itself, create a
presumption that the person did not act in good faith, or, with respect
to any criminal action or proceeding, that the person did not have
reasonable cause to believe that the relevant conduct was lawful.

3. To the extent that a member of the retirement board has been
successful on the merits or otherwise in defense of any action, suit, or
proceeding referred to in subsections 1 and 2 of this section, or in
defense of any claim, issue, or matter therein, the person shall be
indemnified against expenses, including attorneys' fees, actually and
reasonably incurred in connection with the action, suit, or proceeding
that are not covered by the insurance described in subsection 1 of this
section.

4. Any indemnification under this section, unless ordered by a court,
shall be made by the retirement board only as authorized in each specific
case upon a determination that indemnification of any person potentially
entitled to indemnification hereunder is proper in the circumstances
because the person has met the applicable standard of conduct set forth
in this section. The determination shall be made by the retirement board
by a majority vote of a quorum consisting of members of the retirement
board who are not parties to the action, suit, or proceeding, or if such
a quorum is not obtainable, or even if obtainable and a quorum of
disinterested members of the retirement board so directs, by independent
legal counsel in a written opinion. Such legal counsel may but need not
be counsel to the retirement system.

5. Expenses incurred in defending a civil or criminal action, suit, or
proceeding may be paid by the retirement board in advance of the final
disposition of the action, suit, or proceeding as authorized by the
retirement board in the specific case upon receipt of an undertaking by
or on behalf of the person potentially entitled to indemnification
hereunder to repay such amount unless it shall ultimately be determined
that the person is entitled to be indemnified by the retirement board as
authorized in this section. (L. 2005 H.B. 323)

1. All persons who enter or reenter the service of the such
cities as police officers for compensation after the date this police
retirement system becomes effective shall become members thereof as a
condition of their employment.

2. Members of the police retirement system shall receive no retirement or
pension allowance from any other retirement or pension system supported
wholly or in part by such cities or the state of Missouri, nor shall they
be required to make contributions under any other retirement or pension
system of such cities or the state.

3. Nothing in sections 86.900 to 86.1280 shall be construed to prevent
the inauguration of the federal Social Security laws for police officers,
nor to prevent the contribution to such Social Security administration or
fund established by the federal government, nor by it the pensioning of
such police officers. In the event that federal Social Security benefits
are made available to police officers covered by sections 86.900 to
86.1280, then any benefits payable to any member or the dependents of
such member under sections 86.900 to 86.1280 shall be in addition to the
amount of such Social Security benefits, and any contributions required
by a member under this section shall be in addition to the amount of such
member's contribution under such Social Security system. (L. 2005 H.B.
323)

1. The retirement board shall fix and determine by proper rules
and regulations how much service in any year is equivalent to one year of
service. In no case shall more than one year of service be creditable for
all service rendered in one calendar year. The retirement board shall not
allow credit as service for any period of more than thirty consecutive
days during which the member was absent without compensation, except as
provided in subsection 3 of section 86.1140.

2. Creditable service at retirement on which the retirement allowance of
a member is based consists of the membership service rendered by such
member since such member last became a member.

3. Creditable service also includes any prior service credit to which a
member may be entitled by virtue of an authorized purchase of such credit
or as otherwise provided in sections 86.900 to 86.1280.

4. Creditable service shall not include any time a member was suspended
from service without compensation. No contribution is required from
either the member under section 86.1010 or from the city under section
86.1000 for such time.

5. Any member who has completed thirty years of creditable service may
continue in service by permission of the board of police commissioners.
Contributions shall not be required of, and no service shall be credited
to, any member for more than thirty years of service. (L. 2005 H.B. 323)

1. Whenever a member is given a leave of absence for military
service and returns to employment after discharge from the service, such
member shall be entitled to creditable service for the years of
employment prior to the leave of absence.

2. Any member who served on active duty in the armed forces of the United
States and who became a member, or returned to membership, after
discharge under honorable conditions, may elect prior to retirement to
purchase creditable service equivalent to such service in the armed
forces, not to exceed two years, provided the member is not receiving and
is not eligible to receive retirement credits or benefits from any other
public or private retirement plan for the service to be purchased, other
than a United States military service retirement system or United States
Social Security benefits attributable to such military service, and an
affidavit so stating is filed by the member with the retirement system. A
member electing to make such purchase shall pay to the retirement system
an amount equal to the actuarial value of the additional benefits
attributable to the additional service credit to be purchased, as of the
date the member elects to make such purchase. The retirement system shall
determine such value using accepted actuarial methods and the same
assumptions with respect to interest rates, mortality, future salary
increases, and all related factors used in performing the most recent
regular actuarial valuation of the retirement system. Payment in full of
the amount due from a member electing to purchase creditable service
under this subsection shall be made over a period not to exceed five
years, measured from the date of election, or prior to the commencement
date for payment of benefits to the member from the retirement system,
whichever is earlier, including interest on unpaid balances compounded
annually at the interest rate assumed from time to time for actuarial
valuations of the retirement system. If payment in full including
interest is not made within the prescribed period, any partial payments
made by the member shall be refunded, and no creditable service
attributable to such election, or as a result of any such partial
payments, shall be allowed; provided that if a benefit commencement date
occurs because of the death or disability of a member who has made an
election under this subsection and if the member is current in payments
under an approved installment plan at the time of the death or
disability, such election shall be valid if the member, the surviving
spouse, or other person entitled to benefit payments pays the entire
balance of the remaining amount due, including interest to the date of
such payment, within sixty days after the member's death or disability.
The time of a disability shall be deemed to be the time when such member
is retired by the board of police commissioners for reason of disability
as provided in sections 86.900 to 86.1280. (L. 2005 H.B. 323)

Members who terminate membership with five years or more of
creditable service and later return to membership may be given credit
toward retirement for prior creditable service, subject to the condition
that such member deposit in the pension fund a sum equal to the
accumulated contributions which had been paid to such member upon the
prior termination. Such repayment of withdrawn contributions shall be
accompanied by an additional payment of interest equal to the amount of
the actual net yield earned or incurred by the pension fund, including
both net income after expenses and net appreciation or depreciation in
values of the fund, whether realized or unrealized, during the period of
time from the date upon which such contributions had been withdrawn to
the date of repayment thereof, determined in accordance with such rules
for valuation and accounting as may be adopted by the retirement board
for such purposes. (L. 2005 H.B. 323)

Each person who becomes a member of the police retirement system
under the provisions of sections 86.900 to 86.1280 shall remain a member
until the earliest to occur of the following events:

(1) The termination of service of such person and the payment to such
person of all benefits due such person under the provisions of sections
86.900 to 86.1280; or

(2) The death of such person. (L. 2005 H.B. 323)

1. Should any member be granted leave of absence by the board of
police commissioners, such member shall not, because of such absence,
cease to be a member.

2. If a member is on leave of absence by authority of the board of police
commissioners for thirty consecutive days or less, such member shall
receive creditable service for such time.

3. If a member is on leave of absence for more than thirty consecutive
days without compensation, such member shall not receive service credits
for such time unless such member shall, within one year after returning
from such absence, pay into the retirement system an amount equal to the
member's contribution percentage at the time such absence began times an
assumed salary figure for the period of such absence, computed by
assuming that such member received a salary during such absence at the
rate of the base annual salary the member was receiving immediately prior
to such absence. (L. 2005 H.B. 323)

1. Any member may retire when such member has completed
twenty-five or more years of creditable service and, except as otherwise
provided in section 86.1100, shall retire when such member has completed
thirty years of creditable service. Upon such retirement such member
shall receive a base pension equal to:

(1) For a member retiring prior to August 28, 2000, two percent of such
member's final compensation, as defined in section 86.900, multiplied by
the number of years of such member's total creditable service; or

(2) For a member retiring on or after August 28, 2000, two and one- half
percent of such member's final compensation, as defined in section
86.900, multiplied by the number of years of such member's total
creditable service. Such pension shall not exceed seventy-five percent of
the member's final compensation.

2. Every member not having thirty years of service must retire at sixty
years of age except that on recommendation of the chief of police, the
board of police commissioners may permit such member who is sixty years
of age or over to remain in service until such member reaches the age of
sixty-five years. Such member shall continue to make contributions and
receive credit for service until reaching sixty-five years of age, until
retirement, or until completion of thirty years of creditable service,
whichever occurs first. If such member shall reach sixty-five years of
age or shall retire prior to completion of twenty-five years of service,
the base pension of such member shall be calculated under subsection 3 of
this section.

3. Except as provided in section 86.1100 or in subsection 2 of this
section, any member in service who shall have attained sixty years of age
and at that time shall have completed at least ten but less than thirty
years of creditable service shall retire and shall receive a base pension
equal to:

(1) For a member retiring prior to August 28, 2000, two percent of such
member's final compensation, as defined in section 86.900, multiplied by
the number of years of such member's total creditable service; or

(2) For a member retiring on or after August 28, 2000, two and one- half
percent of such member's final compensation as defined in section 86.900
multiplied by the number of years of such member's total creditable
service.

4. Subject to the provisions of subsection 5 of this section, whenever
the service of a member is terminated for any reason prior to death or
retirement and the member has fifteen or more years of creditable
service, the member may elect not to withdraw such member's accumulated
contributions and shall become entitled to a base pension beginning at
the age of fifty-five, if then living, equal to:

(1) For a member whose service so terminates prior to August 28, 2001,
two percent of such member's final compensation multiplied by the number
of years of such member's creditable service; or

(2) For a member whose service so terminates on or after August 28, 2001,
two and one-half percent of such member's final compensation multiplied
by the number of years of such member's creditable service.

5. Notwithstanding any other provisions of sections 86.900 to 86.1280,
any member who is convicted of a felony prior to separation from active
service shall not be entitled to any benefit from this retirement system
except the return of such member's accumulated contributions. (L. 2005
H.B. 323)

Whenever a member's service is terminated for any reason prior
to death or retirement and such member has less than fifteen years of
creditable service, or a member's service is terminated after conviction
of a felony, or a member's service is terminated for any reason and such
member requests the withdrawal of all such member's accumulated
contributions to the retirement system, such member shall be paid the
amount of such member's accumulated contributions in one lump sum,
without interest, and such payment shall be in lieu of any and all other
benefits to which such member or any beneficiary or survivor thereof
might otherwise be or become entitled under sections 86.900 to 86.1280.
(L. 2005 H.B. 323)

Any member who retires after August 28, 2000, who is entitled to
a pension benefit under the provisions of sections 86.900 to 86.1280 and
who either has at least twenty-five years of creditable service or is
retired as a result of an injury or illness occurring in the line of duty
or course of employment under section 86.1180, shall receive a pension
benefit which, without including any supplemental retirement benefits
paid such member by the retirement system, shall be not less than six
hundred dollars monthly. Any member who retired on or before August 28,
2000, who is entitled to a pension benefit under the provisions of
sections 86.900 to 86.1280 and who either had at least twenty-five years
of creditable service or was retired as a result of an injury or illness
occurring in the line of duty or course of employment under section
86.1180, shall upon application to the retirement board be appointed by
the retirement board as a consultant and shall, beginning the later of
August 28, 2000, or the time of such appointment under this section or a
previously applicable statute, be compensated in an amount which, without
including any supplemental retirement benefits provided by this system,
shall be not less than six hundred dollars monthly. A pension benefit
under this section shall be paid in lieu of such member's base pension as
increased by cost-of-living adjustments granted under section 86.1220.
The benefit under this section shall not be subject to cost-of-living
adjustments, but shall be terminated and replaced by the member's base
pension and cost-of-living adjustments at such time as the total base
pension and such adjustments exceed six hundred dollars monthly. (L. 2005
H.B. 323)

1. Any member who is permanently unable to perform the full and
unrestricted duties of a police officer as the natural, proximate, and
exclusive result of an accident occurring within the actual performance
of duty at some definite time and place or through an occupational
disease arising exclusively out of and in the course of his or her
employment shall be retired by the board of police commissioners upon
certification by one or more physicians of the medical board that the
member is mentally or physically unable to perform the full and
unrestricted duties of a police officer, that the inability is permanent
or likely to become permanent, and that the member should be retired. The
inability to perform the full and unrestricted duties of a police officer
means that the member is unable to perform all the essential job
functions for the position of police officer as established by the board
of police commissioners.

2. Upon such retirement on or after August 28, 2001, a member shall
receive a base pension equal to seventy-five percent of his or her final
compensation for so long as the permanent disability shall continue,
during which time such member shall for purposes of this section be
referred to as a disability beneficiary. Such pension may be subject to
offset or reduction under section 86.1190 by amounts paid or payable
under any workers' compensation law.

3. Once each year during the first five years following his or her
retirement, and at least once in every three-year period thereafter, the
retirement board may, and upon the member's application shall, require
any disability beneficiary who has not yet attained the age of sixty
years to undergo a medical examination at a place designated by the
medical board or some member thereof. If any disability beneficiary who
has not attained the age of sixty years refuses to submit to a medical
examination his or her disability pension may be discontinued until his
or her withdrawal of such refusal, and if his or her refusal continues
for one year, all rights in and to such pension may be revoked by the
retirement board.

4. If one or more members of the medical board certify to the retirement
board that a disability beneficiary is able to perform the full and
unrestricted duties of a police officer, and if the retirement board
concurs on the report, then such beneficiary's disability pension shall
cease.

5. If upon cessation of a disability pension under subsection 4 of this
section, the former disability beneficiary is restored to active service,
such member shall contribute to this retirement system thereafter at the
same rate as other members. Upon subsequent retirement, such member shall
be credited with all his or her creditable service, including any years
in which such member received a disability pension under this section.

6. If upon cessation of a disability pension under subsection 4 of this
section, the former disability beneficiary is not restored to active
service, such member shall be entitled to the retirement benefit to which
such member would have been entitled if such member had terminated
service at the time of such cessation of the disability pension. For the
purpose of such retirement benefits, such former disability beneficiary
will be credited with all his or her creditable service, including any
years in which such member received a disability pension under this
section. (L. 2005 H.B. 323)

1. Any periodic payment, excluding payments for medical
treatment, which may be paid or payable by cities under the provisions of
any workers' compensation or similar law to a member or to the dependents
of a member on account of any disability or death shall be offset against
any benefits payable to the recipient of the workers' compensation
payments from funds provided by cities under the provisions of sections
86.900 to 86.1280 on account of the same disability or death; except
that, amounts payable under subsection 1 of section 86.1250 and section
86.1260 shall not be offset or reduced by any amount paid or payable
under any workers' compensation or similar law. However, in no event
shall the amount paid from funds under the provisions of sections 86.900
to 86.1280 be less than the amount which represents the member's
percentage, as defined in this section, of total benefits payable under
sections 86.900 to 86.1280, other than under subsection 1 of section
86.1250 and section 86.1260 and before any offset for workers'
compensation benefits.

2. Any lump sum amount, excluding payments for medical treatments, which
may be paid or payable by the cities under the provisions of any workers'
compensation or similar law to a member or to the dependents of a member
on account of any disability or death shall be offset against any
benefits payable from funds provided by cities under the provisions of
sections 86.900 to 86.1280 on account of the same disability or death;
except that, amounts payable under subsection 1 of section 86.1250 and
section 86.1260 shall not be offset or reduced by any amounts paid or
payable under any workers' compensation or similar law. The amount by
which each periodic payment made under the provisions of sections 86.900
to 86.1280 is offset or reduced shall be computed as the periodic amount
necessary to amortize as an annuity over the period of time represented
by the respective workers' compensation benefits the total amount of the
lump sum settlement received as a workers' compensation benefit by a
beneficiary of the retirement system. Such computation shall be based
upon the same interest rate and mortality assumptions as used for the
retirement system at the time of such computation. However, in no event
shall the amount paid from funds under the provisions of sections 86.900
to 86.1280 be less than the amount which represents the member's
percentage, as defined in this section, of total benefits payable under
sections 86.900 to 86.1280, other than under subsection 1 of section
86.1250 and section 86.1260 and before any offset for workers'
compensation benefits.

3. As used in this section, the term "member's percentage" shall be the
fraction of which the numerator is the percentage of compensation
contributed by a working member to the retirement pension system under
section 86.1010 during the pay period immediately preceding such member's
death or disability which created entitlement to benefits and the
denominator is the sum of the percentages of a member's compensation
contributed by a working member under section 86.1010 and the city under
section 86.1000 to the retirement pension system during such pay period.
Such percentage shall identify the portion of any benefits due under the
provisions of sections 86.900 to 86.1280 which is deemed to have been
provided by the member's own contributions. (L. 2005 H.B. 323)

1. Any member who has completed ten or more years of creditable
service and who has become permanently unable to perform the full and
unrestricted duties of a police officer as the result of an injury or
illness not exclusively caused or induced by the actual performance of
his or her official duties or by his or her own negligence shall be
retired by the board of police commissioners upon certification by one or
more physicians of the medical board of the retirement board that the
member is mentally or physically unable to perform the full and
unrestricted duties of a police officer, that the inability is permanent
or likely to become permanent, and that the member should be retired. The
inability to perform the full and unrestricted duties of a police officer
means that the member is unable to perform all the essential job
functions for the position of police officer as established by the board
of police commissioners.

2. Upon such retirement on or after August 28, 2001, a member shall
receive a base pension equal to two and one-half percent of final
compensation multiplied by the number of years of creditable service.
Such pension shall be paid for so long as the permanent disability shall
continue, during which time such member shall for purposes of this
section be referred to as a nonduty disability beneficiary.

3. Once each year during the first five years following such member's
retirement, and at least once in every three-year period thereafter, the
retirement board may, and upon the member's application shall, require
any nonduty disability beneficiary who has not yet attained the age of
sixty years to undergo a medical examination at a place designated by the
medical board. If any nonduty disability beneficiary who has not attained
the age of sixty years refuses to submit to a medical examination, his or
her nonduty disability pension may be discontinued until his or her
withdrawal of such refusal, and if his or her refusal continues for one
year, all rights in and to such pension may be revoked by the retirement
board.

4. If one or more members of the medical board certify to the retirement
board that a nonduty disability beneficiary is able to perform the full
and unrestricted duties of a police officer, and if the retirement board
concurs in the report, then such beneficiary's nonduty disability pension
shall cease. (L. 2005 H.B. 323)

1. Any member entitled to commence a pension under section
86.1150 with twenty-six years or more of creditable service may elect an
optional distribution under the partial lump sum option plan provided in
this section if the member:

(1) Notifies the retirement system in writing of the member's retirement
date at least ninety days in advance thereof and requests an explanation
of the member's rights under this section; and

(2) Notifies the retirement system of the member's election hereunder at
least thirty days in advance of the member's retirement date.

Following receipt of an initial notice of a member's retirement date and
request for an explanation under this section, the retirement system
shall, at least sixty days in advance of such retirement date, provide
the member a written explanation of the member's rights under this
section and an estimate of the amount by which the member's regular
monthly base pension would be reduced in the event of the member's
election of any of the options available to the member under this section.

2. (1) A member entitled to make an election under this section may elect
to receive a lump sum distribution with the member's initial monthly
pension payment under section 86.1150, subject to all the terms of this
section. The member may elect the amount of the member's lump sum
distribution from one, but not more than one, of the following options
for which the member qualifies:

(a) A member having twenty-six or more years of creditable service may
elect a lump sum amount equal to twelve times the initial monthly base
pension the member would receive if no election were made under this
section;

(b) A member having twenty-seven or more years of creditable service may
elect a lump sum amount equal to twenty-four times the initial monthly
base pension the member would receive if no election were made under this
section; or

(c) A member having twenty-eight or more years of creditable service may
elect a lump sum amount equal to thirty-six times the initial monthly
base pension the member would receive if no election were made under this
section.

(2) When a member makes an election to receive a lump sum distribution
under this section, the base pension which the member would have received
in the absence of the election shall be reduced on an actuarially
equivalent basis to reflect the payment of the lump sum distribution, and
the reduced base pension shall be the member's base pension thereafter
for all purposes relating to base pension amounts under sections 86.900
to 86.1280.

3. An election under this section to receive a lump sum distribution and
reduced monthly base pension shall be void if the member dies before
retirement, and in such case amounts due a surviving spouse or other
beneficiary of the member shall be determined without regard to such
election. (L. 2005 H.B. 323)

1. Provided that the retirement system shall remain actuarially
sound, each of the following persons may receive each year, in addition
to such person's base pension, a cost-of-living adjustment in an amount
not to exceed three percent of such person's base pension during any one
year:

(1) Every member who is retired and receiving a base pension from the
retirement system;

(2) Every surviving spouse who is receiving a base pension from the
retirement system; and

(3) Every child who, under subsection 2 of section 86.1250, is receiving
the benefit, or a portion thereof, which would be payable to a surviving
spouse of the member who was such child's parent.

2. Upon the death of a member who has been retired and receiving a
pension and who dies after September 28, 1987, the surviving spouse of
such member entitled to receive a base pension under section 86.1240 or
children of such member entitled to receive a base pension under
subsection 2 of section 86.1250 shall receive an immediate percentage
cost-of-living adjustment to their respective base pension equal to the
total percentage cost-of-living adjustments received during such member's
lifetime under this section, except that the adjustment provided by this
subsection shall not be made to a base pension calculated under either
subdivision (1) or paragraph (b) of subdivision (2) of subsection 2 of
section 86.1240, either for a surviving spouse or for a child or children
entitled to a base pension measured by the pension to which a qualified
surviving spouse would be entitled, wherein such base pension is
determined by a percentage of the amount being received by the deceased
member at death.

3. For purposes of this section, the term "base pension" shall mean:

(1) For a member, the pension computed under the provisions of the law as
of the date of retirement without regard to cost-of-living adjustments,
as adjusted, if applicable, for any election made under section 86.1210,
but in all events not including any supplemental benefit under section
86.1230;

(2) For a surviving spouse, the base pension calculated for such spouse
in accordance with the provisions of section 86.1240, including any
compensation as a consultant to which such surviving spouse is entitled
under said section in lieu of a pension thereunder, but not including any
supplemental benefit under section 86.1230; and

(3) For a member's surviving child who is entitled to receive part or all
of the pension which would be received by the surviving spouse, if
living, the base pension calculated for such surviving spouse in
accordance with the provisions of section 86.1240, including any
compensation as a consultant to which such spouse would be entitled under
said section, if living, divided by the number of surviving children
entitled to share in such pension under subsection 2 of section 86.1250.

4. The cost-of-living adjustment shall be an increase or decrease
computed on the base pension amount by the retirement board in an amount
that the board, in its discretion, determines to be satisfactory, but in
no event shall the adjustment be more than three percent or reduce the
pension to an amount less than the base pension. In determining and
granting the cost-of-living adjustments, the retirement board shall adopt
such rules and regulations as may be necessary to effectuate the purposes
of this section, including provisions for the manner of computation of
such adjustments and the effective dates thereof. The retirement board
shall provide for such adjustments to be determined once each year and
granted on a date or dates to be chosen by the board, and may apply such
adjustments in full to members who have retired during the year prior to
such adjustments but who have not been retired for one full year and to
the surviving spouse or applicable children of a member who has died
during the year prior to such adjustments.

5. The determination of whether the retirement system will remain
actuarially sound shall be made at the time any cost-of-living adjustment
is granted. If at any time the retirement system ceases to be actuarially
sound, pension payments shall continue as adjusted by increases
theretofore granted. A member of the retirement board shall have no
personal liability for granting increases under this section if that
retirement board member in good faith relied and acted upon advice of a
qualified actuary that the retirement system would remain actuarially
sound.

6. If any benefit under subsection 1 of section 86.1250 on August 27,
2005, would be reduced by application of this section, such benefit shall
continue thereafter without reduction, but any benefit so continued shall
terminate at the time prescribed in subsection 1 of section 86.1250. (L.
2005 H.B. 323)

1. Any member who retires subsequent to August 28, 1991, with
entitlement to a pension under sections 86.900 to 86.1280, shall receive
each month, in addition to such member's base pension and cost-of- living
adjustments thereto under section 86.1220, and in addition to any other
compensation or benefit to which such member may be entitled under
sections 86.900 to 86.1280, a supplemental retirement benefit of fifty
dollars per month. The amount of such supplemental retirement benefit may
be adjusted by cost-of-living adjustments determined by the retirement
board not more frequently than annually. Such determination shall be
based on advice of the plan's actuary that the increase in the benefit
will not cause the present value of anticipated future plan benefits,
calculated on the actuarial assumptions used for the most recent annual
valuation, to exceed the sum of the trust fund assets plus the present
value of anticipated contributions to the trust fund.

2. Any member who was retired on or before August 28, 1991, and is
receiving retirement benefits from the retirement system shall, upon
application to the retirement board, be retained as a consultant, and for
such services such member shall receive each month, in addition to such
member's base pension and cost-of-living adjustments thereto under
section 86.1220, and in addition to any other compensation or benefit to
which such member may be entitled under sections 86.900 to 86.1280, a
supplemental compensation in the amount of fifty dollars per month. This
appointment as a consultant shall in no way affect any member's
eligibility for retirement benefits under the provisions of sections
86.900 to 86.1280, or in any way have the effect of reducing retirement
benefits otherwise payable to such member. The amount of such
supplemental compensation under this subsection may be adjusted by
cost-of-living adjustments determined by the retirement board not more
frequently than annually. Such determination shall be based on advice of
the plan's actuary that the increase in the benefit will not cause the
present value of anticipated future plan benefits, calculated on the
actuarial assumptions used for the most recent annual valuation, to
exceed the sum of the trust fund assets plus the present value of
anticipated contributions to the trust fund.

3. In determining and granting the cost-of-living adjustments under this
section, the retirement board shall adopt such rules and regulations as
may be necessary to effectuate the purposes of this section, including
provisions for the manner of computation of such adjustments and the
effective dates thereof. The retirement board shall provide for such
adjustments to be determined once each year and granted on a date or
dates to be chosen by the board. The retirement board shall not be
required to prorate the initial adjustment to any supplemental retirement
benefit or any supplemental compensation under this section for any
member.

4. For purposes of subsections 1 and 2 of this section, the term "member"
shall include a surviving spouse entitled to a benefit under sections
86.900 to 86.1280 who shall be deemed to have retired for purposes of
this section on the date of retirement of the member of whom such person
is the surviving spouse or on the date of death of such member if such
member died prior to retirement; provided, that if the surviving spouse
of any member who retired prior to August 28, 2000, shall not have
remarried prior to August 28, 2000, but remarries thereafter, such
surviving spouse shall thereafter receive benefits under subsection 2 of
this section, and provided further, that no benefits shall be payable
under this section to the surviving spouse of any member who retired
prior to August 28, 2000, if such surviving spouse was at any time
remarried after the member's death and prior to August 28, 2000. All
benefits payable to a surviving spouse under this section shall be in
addition to all other benefits to which such surviving spouse may be
entitled under other provisions of sections 86.900 to 86.1280. Any such
surviving spouse of a member who dies while entitled to payments under
this section shall succeed to the full amount of payment under this
section to which such member was entitled at the time of such member's
death, including any cost-of-living adjustments received by such member
in the payment under this section prior to such member's death. In all
events, the term "member" shall not include any children of the member
who would be entitled to receive part or all of the pension which would
be received by a surviving spouse if living.

5. The determination of whether the retirement system will remain
actuarially sound shall be made at the time any cost-of-living adjustment
under this section is granted. If at any time the retirement system
ceases to be actuarially sound, supplemental retirement benefit payments
under subsection 1 of this section and supplemental compensation payments
as a consultant under subsection 2 of this section shall continue as
adjusted by increases or decreases theretofore granted. A member of the
retirement board shall have no personal liability for granting increases
under this section if that retirement board member in good faith relied
and acted upon advice of a qualified actuary that the retirement system
would remain actuarially sound. (L. 2005 H.B. 323)

1. Upon receipt of the proper proofs of death of a member in
service for any reason whatsoever, there shall be paid to such member's
surviving spouse, if any, in addition to all other benefits but subject
to subsection 6 of this section, a base pension equal to forty percent of
the final compensation of such member, subject to adjustments, if any, as
provided in section 86.1220.

2. (1) Upon receipt of the proper proofs of death of a member who was
retired or terminated service after August 28, 1999, and died after
commencement of benefits to such member from this retirement system,
there shall be paid to such member's surviving spouse, if any, in
addition to all other benefits but subject to subsection 6 of this
section, a base pension equal to eighty percent of the pension being
received by such member, including cost-of-living adjustments to such
pension but excluding supplemental retirement benefits, at the time of
such member's death, subject to subsequent adjustments, if any, as
provided in section 86.1220. The pension provided by this subdivision
shall terminate upon remarriage by the surviving spouse prior to August
28, 2000.

(2) (a) Upon receipt of the proper proof of death of a member who retired
or terminated service on or before August 28, 1999, and who died after
August 28, 1999, and after commencement of benefits to such member from
this retirement system, such member's surviving spouse, if any, shall be
entitled to a base pension equal to forty percent of the final
compensation of such member.

(b) Such a surviving spouse shall, upon application to the retirement
board, be appointed by the retirement board as a consultant and be
compensated in an amount equal to the benefits such spouse would receive
under subdivision (1) of this subsection if the member had retired or
terminated service after August 28, 1999.

(c) The benefits provided by this subdivision shall terminate upon
remarriage by the surviving spouse prior to August 28, 2000.

3. In the case of any member who, prior to August 28, 2000, died in
service or retired, the surviving spouse who would qualify for benefits
under subsection 1 or 2 of this section but for remarriage, and who has
not remarried prior to August 28, 2000, but remarries thereafter, shall
upon application be appointed by the retirement board as a consultant.
For services as such consultant, such surviving spouse shall be
compensated in an amount equal to the benefits such spouse would have
received under sections 86.900 to 86.1280 in the absence of such
remarriage.

4. For purposes of this section, commencement of benefits shall begin,
for any benefit, at such time as all requirements of sections 86.900 to
86.1280 have been met entitling the member to a payment of such benefit
at the next following payment date with the amount thereof established,
regardless of whether the member has received the initial payment of such
benefit.

5. Upon the death of any member who is in service after August 28, 2000,
and who either had at least twenty-five years of creditable service or
was retired or died as a result of an injury or illness occurring in the
line of duty or course of employment under section 86.1180, the surviving
spouse's benefit provided under this section, without including any
supplemental retirement benefits paid such surviving spouse by this
retirement system, shall not be less than six hundred dollars per month.
For any member who died, retired or terminated service on or before
August 28, 2000, and who either had at least twenty-five years of
creditable service or was retired or died as a result of an injury or
illness occurring in the line of duty or course of employment under
section 86.1180, the surviving spouse shall upon application to the
retirement board be appointed by the retirement board as a consultant.
For services as such consultant, the surviving spouse shall, beginning
the later of August 28, 2000, or the time the appointment is made under
this subsection, be compensated in an amount which without including
supplemental retirement benefits provided by this system shall be not
less than six hundred dollars monthly. A pension benefit under this
subsection shall be paid in lieu of any base pension as increased by
cost-of-living adjustments granted under section 86.1220. The benefit
under this subsection shall not be subject to cost-of-living adjustments,
but shall be terminated and replaced by the base pension and
cost-of-living adjustments to which such spouse would otherwise be
entitled at such time as the total base pension and such adjustments
exceed six hundred dollars monthly.

6. Any beneficiary of benefits under sections 86.900 to 86.1280 who
becomes the surviving spouse of more than one member shall be paid all
benefits due a surviving spouse of that member whose entitlements produce
the largest surviving spouse benefits for such beneficiary but shall not
be paid surviving spouse benefits as the surviving spouse of more than
one member. (L. 2005 H.B. 323)

1. (1) Upon the death of a member in service or after retirement
and commencement of benefits, such member's child or children under the
age of eighteen years at the time of the member's death shall be paid
fifty dollars per month each until he or she shall attain the age of
eighteen years; however, each such child who is or becomes a full-time
student at an accredited educational institution shall continue to
receive payments under this section for so long as such child shall
remain such a full-time student or shall be in a summer or other vacation
period scheduled by the institution with intent by such child,
demonstrated to the satisfaction of the retirement board, to return to
such full-time student status upon the resumption of the institution's
classes following such vacation period, but in no event shall such
payments be continued after such child shall attain the age of twenty-one
years except as hereinafter provided.

(2) Any child eighteen years of age or older, who is physically or
mentally incapacitated from wage earning, so long as such incapacity
exists as certified by a member of the medical board, shall be entitled
to the same benefits as a child under the age of eighteen. For purposes
of this section, a determination of whether a child of a member is
physically or mentally incapacitated from wage earning so that the child
is entitled to benefits under this section shall be made at the time of
the member's death. If a child becomes incapacitated after the member's
death, or if a child's incapacity existing at the member's death is
removed and such child later becomes incapacitated again, such child
shall not be entitled to benefits as an incapacitated child under the
provisions of this section. A child shall be deemed incapacitated only
for so long as the incapacity existing at the time of the member's death
continues.

(3) Notwithstanding any other law to the contrary, amounts payable under
subdivision (1) or (2) of this subsection shall not be subject to offset
or reduction by amounts paid or payable under any workers' compensation
or similar law.

2. Upon or after the death of a member in service or after retirement and
commencement of benefits, if there is no surviving spouse or if a
surviving spouse dies, the total amount, including any amounts receivable
as consulting compensation, but not including any supplemental benefits
under section 86.1230, which would be received by a qualified surviving
spouse or which is being received by the surviving spouse at the date of
death of such surviving spouse shall be added to the amounts received by
and shall be divided among the children of such member under the age of
eighteen years and the incapacitated children in equal shares. As each
such child attains the age of eighteen years or has such incapacity
removed, such total amount shall then be divided among the remaining such
children, until there is no remaining child of such member under the age
of eighteen years or incapacitated, at which time all benefits for
children of such member under this subsection shall cease.

3. Upon the death of a member in service or after retirement and
commencement of benefits, a funeral benefit of one thousand dollars shall
be paid to the person or entity who provided or paid for the funeral
services for such member.

4. If no benefits are otherwise payable to a surviving spouse or child of
a deceased member, the member's accumulated contributions, to any extent
not fully paid to such member prior to the member's death or to the
surviving spouse or child of such member, shall be paid in one lump sum
to the member's named beneficiary or, if none, to the member's estate,
and such payment shall constitute full and final payment of any and all
claims for benefits under the retirement system.

5. For purposes of this section, commencement of benefits shall begin,
for any benefit, at such time as all requirements of sections 86.900 to
86.1280 have been met entitling the member to a payment of such benefit
at the next following payment date with the amount established,
regardless of whether the member has received the initial payment of such
benefit. (L. 2005 H.B. 323)

1. Upon the receipt of the proper proof that the death of a
member in service was the natural and proximate result of an event
occurring within the performance of duty or of an occupational disease
arising out of and in the course of such member's employment, there shall
be paid to the surviving spouse, or if there be no surviving spouse, then
to the child or children of such member under the age of twenty-one years
and those, if any, over the age of twenty-one years if mentally or
physically incapacitated from wage earning, in equal shares or divided
between or among them as the retirement board in its sole discretion
shall direct, the sum of fifty thousand dollars.

2. If a member dies in such manner that a surviving spouse or child would
be entitled to benefits under this section but there is no surviving
spouse or child eligible to receive payments under this section, no
payments under this section shall be paid.

3. Notwithstanding any other law to the contrary, amounts payable under
this section shall not be subject to offset or reduction by amounts paid
or payable under any workers' compensation or similar law. (L. 2005 H.B.
323)

1. A retirement plan under sections 86.900 to 86.1280 is a
qualified plan under the provisions of applicable federal law. The
benefits and conditions of a retirement plan under sections 86.900 to
86.1280 shall always be adjusted to ensure that the tax-exempt status is
maintained.

2. The retirement board shall administer the retirement system in a
manner as to retain at all times qualified status under Section 401(a) of
the Internal Revenue Code.

3. The retirement board shall hold in trust the assets of the retirement
system for the exclusive benefit of the members and their beneficiaries
and for defraying reasonable administrative expenses of the system. No
part of such assets shall, at any time prior to the satisfaction of all
liabilities with respect to members and their beneficiaries, be used for
or diverted to any purpose other than such exclusive benefit or to any
purpose inconsistent with sections 86.900 to 86.1280.

4. A member's benefit shall be one hundred percent vested and
nonforfeitable upon the member's attainment of normal retirement age,
which shall be the earlier of:

(1) Completion of twenty-five years of service;

(2) Age sixty if the member has completed at least ten years of
creditable service;

(3) Age seventy without regard to years of service; or

(4) To the extent funded, upon the termination of the system established
under sections 86.900 to 86.1280 or any partial termination which affects
the members or any complete discontinuance of contributions by the city
to the system.

Amounts representing forfeited nonvested benefits of terminated members
shall not be used to increase benefits payable from the system but may be
used to reduce contributions for future plan years.

5. Distribution of benefits shall begin not later than April first of the
year following the later of the calendar year during which the member
becomes seventy and one-half years of age or the calendar year in which
the member retires, and shall otherwise conform to Section 401(a)(9) of
the Internal Revenue Code.

6. A member or beneficiary of a member shall not accrue a service
retirement annuity, disability retirement annuity, death benefit, whether
death occurs in the line of duty or otherwise, or any other benefit under
sections 86.900 to 86.1280 in excess of the benefit limits applicable to
the fund under Section 415 of the Internal Revenue Code. The retirement
board shall reduce the amount of any benefit that exceeds those limits by
the amount of the excess. If the total benefits under the retirement
system and the benefits and contributions to which any member is entitled
under any other qualified plan or plans maintained by the board of police
commissioners that employs the member would otherwise exceed the
applicable limits under Section 415 of the Internal Revenue Code, the
benefits the member would otherwise receive from the retirement system
shall be reduced to the extent necessary to enable the benefits to comply
with Section 415 of the Internal Revenue Code.

7. The total salary taken into account for any purpose for any member of
the retirement system shall not exceed two hundred thousand dollars per
year, subject to periodic adjustments in accordance with guidelines
provided by the United States Secretary of the Treasury, and shall not
exceed such other limits as may be applicable at any given time under
Section 401(a)(17) of the Internal Revenue Code.

8. If the amount of any benefit is to be determined on the basis of
actuarial assumptions that are not otherwise specifically set forth for
that purpose in sections 86.900 to 86.1280, the actuarial assumptions to
be used are those earnings and mortality assumptions being used on the
date of the determination by the retirement system's actuary and approved
by the retirement board. The actuarial assumptions being used at any
particular time shall be attached as an addendum to a copy of the
retirement system's statute that is maintained by the retirement board
and shall be treated for all purposes as a part of sections 86.900 to
86.1280. The actuarial assumptions may be changed by the retirement
system's actuary annually if approved by the retirement board, but a
change in actuarial assumptions shall not result in any decrease in
benefits accrued as of the effective date of the change.

9. Any member or beneficiary who is entitled to receive any distribution
that is an eligible rollover distribution, as defined by Section
402(c)(4) of the Internal Revenue Code, is entitled to have that
distribution transferred directly to another eligible retirement plan of
the member's or beneficiary's choice upon providing direction to the
secretary of this retirement system regarding the transfer in accordance
with procedures established by the retirement board.

10. For all distributions made after December 31, 2001:

(1) For the purposes of subsection 9 of this section, an eligible
retirement plan shall also mean an annuity contract described in Section
403(b) of the Internal Revenue Code and an eligible plan under Section
457(b) of the Internal Revenue Code which is maintained by the state,
political subdivision of a state, or any agency or instrumentality of a
state or political subdivision of a state and which agrees to separately
account for amounts transferred into such plan from the retirement
system. The definition of eligible retirement plan shall also apply in
the case of a distribution to a surviving spouse or to a spouse or former
spouse who is the alternate payee under a qualified domestic relations
order, as defined in Section 414(p) of the Internal Revenue Code; and

(2) For purposes of subsection 9 of this section, a portion of a
distribution shall not fail to be an eligible rollover distribution
merely because the portion consists of after-tax employee contributions
which are not includable in gross income. However, such portion may be
paid only to an individual retirement account or annuity described in
Section 408(a) or 408(b) of the Internal Revenue Code, or to a qualified
defined contribution plan described in Section 401(a) or 403(a) of the
Internal Revenue Code that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such
distribution that is includable in gross income and the portion of such
distribution that is not so includable. (L. 2005 H.B. 323)

If a city and the police department of such city adopt any
program of incentives to authorize or encourage early retirements,
whether for employees not yet eligible for regular retirement or for
employees who are eligible but have not yet chosen to retire or for both,
the retirement board shall be authorized to administer and pay such
incentives for retirees who accept such incentives and are members of the
retirement system under sections 86.900 to 86.1280, in addition to such
other benefits as such members or their beneficiaries are entitled to
receive under sections 86.900 to 86.1280, provided such city shall so
request and shall agree to increase the city's contribution under section
86.1000 sufficiently to provide the full actuarial cost of any such
incentives in addition to the contribution required of such city
necessary, in conjunction with members' contributions under section
86.1010, to provide all other benefits provided under sections 86.900 to
86.1280. (L. 2005 H.B. 323)

The following words and phrases as used in sections 86.1310 to
86.1640 shall have the following meanings unless a different meaning is
plainly required by the context:

(1) "Accumulated contributions", the sum of all amounts deducted from the
compensation of a member and paid to the retirement board, together with
all amounts paid to the retirement board by a member or by a member's
beneficiary for the purchase of prior service credits or any other
purpose permitted under sections 86.1310 to 86.1640, in all cases with
interest thereon at a rate determined from time to time for such purpose
by the retirement board;

(2) "Beneficiary", any person entitled, either currently or
conditionally, to receive pension or other benefits provided in sections
86.1310 to 86.1640;

(3) "Board of police commissioners", the board composed of police
commissioners authorized by law to employ and manage an organized police
force in the cities;

(4) "City" or "cities", any city which now has or may hereafter have a
population of more than three hundred thousand and less than seven
hundred thousand inhabitants, or any city that has made an election under
section 86.1320 to continue a civilian employees' retirement system
theretofore maintained under sections 86.1310 to 86.1640;

(5) "Compensation", the basic wage or salary paid a member for any
period, excluding bonuses, overtime pay, expense allowances, and other
extraordinary compensation; except that, notwithstanding such provision,
compensation for any year for any member shall not exceed the amount
permitted to be taken into account under Section 401(a)(17) of the
Internal Revenue Code as applicable to such year;

(6) "Consultant", unless otherwise specifically defined, means a person
retained by the retirement system as a special consultant on the problems
of retirement, aging and related matters who, upon request of the
retirement board, shall give opinions and be available to give opinions
in writing or orally in response to such requests, as may be needed by
the board;

(7) "Creditable service", service qualifying as a determinant of a
member's pension or other benefit under sections 86.1310 to 86.1640 by
meeting the requirements specified in such sections, or section 105.691,
RSMo;

(8) "Employee", any regularly appointed civilian employee of the police
department of the city as specified in sections 86.1310 to 86.1640 who is
not eligible to receive a pension from the police retirement system of
said city;

(9) "Final compensation", the average annual compensation of a member
during the member's service if less than two years, or the twenty-four
months of service for which the member received the highest salary
whether consecutive or otherwise. For any period of time when a member is
paid on a frequency other than monthly, the member's salary for such
period shall be deemed to be the monthly equivalent of the member's
annual rate of compensation for such period;

(10) "Internal Revenue Code", the United States Internal Revenue Code of
1986, as amended;

(11) "Medical board", not less than one nor more than three physicians
appointed by the retirement board to arrange for and conduct medical
examinations as directed by the retirement board;

(12) "Member", a member of the civilian employees' retirement system as
described in section 86.1480;

(13) "Pension", annual payments for life, payable monthly, beginning with
the date of retirement or other applicable commencement date and ending
with death;

(14) "Pension fund", the fund resulting from contributions made thereto
by the cities affected by sections 86.1310 to 86.1640 and by the members
of the civilian employees' retirement system;

(15) "Retirement", termination of a member's status as an employee of the
police department of the city at a time when the member or the member's
beneficiary is immediately entitled to one or more benefits under
sections 86.1310 to 86.1640;

(16) "Retirement board" or "board", the board provided in section 86.1330
to administer the retirement system;

(17) "Retirement system", the civilian employees' retirement system of
the police department of the cities as defined in section 86.1320;

(18) "Surviving spouse", when determining whether a person is entitled to
benefits under sections 86.1310 to 86.1640 by reason of surviving a
member, shall include only:

(a) The person who was married to the member at the time of the member's
death in service prior to August 28, 2001, and who had not remarried
prior to August 28, 2001;

(b) The person who was married to the member at the time of the member's
death in service on or after August 28, 2001;

(c) In the case of any member who both retired and died prior to August
28, 2001, the person who was married to the member at the time of the
member's death and who had not remarried prior to August 28, 2001;

(d) In the case of any member who retired prior to August 28, 2001, and
died on or after that date, the person who was married to the member at
the time of the member's death; or

(e) In the case of any member who retired on or after August 28, 2001,
the person who was married to the member at both the time of the member's
retirement and the time of the member's death. (L. 2005 H.B. 323)

In all cities that now have or may hereafter attain a population
of more than three hundred thousand and less than seven hundred thousand
inhabitants according to the last preceding federal decennial census,
there are hereby created and established retirement or pension systems
for the purpose of providing retirement allowances for civilian employees
of police departments of such cities. Any city which has established a
civilian employees' retirement system under the provisions of sections
86.600 to 86.790 or sections 86.1310 to 86.1640 may elect to continue its
civilian employees' retirement system under the provisions of sections
86.1310 to 86.1640 even though the city may cease to have the population
described in this section, and any city so electing to continue its
established civilian employees' retirement system shall be excused from
creating or maintaining any other civilian employees' retirement system
under any other provisions of the Missouri statutes. Each system shall be
under the management of a retirement board to be known as the "Civilian
Employees' Retirement System of the Police Department of (name of city),"
and by such name all of its business shall be transacted, and all of its
cash and other property held. The retirement systems so created shall
begin operation on October 13, 1965, on which date contributions of
employees shall be payable to the pension fund. (L. 2005 H.B. 323)

1. There shall be a retirement board whose members shall serve
without compensation but shall be reimbursed from the pension fund for
any necessary expenses which they may incur for service on the board. The
board shall adopt policies for the administration of the affairs of the
retirement system. The members of the retirement board for the civilian
employees' retirement system herein enacted shall be the same as the
members of the retirement board for police officers as provided in
section 86.930 and upon election or appointment as provided in section
86.930, shall be vested with full authority to administer the retirement
system provided in sections 86.1310 to 86.1640, and shall be vested with
full authority to do all things necessary and required herein; but all
funds received for the administration of the retirement system shall be
kept separately and not commingled with funds included in retirement
systems provided in sections 86.900 to 86.1280. The members of the
retirement system provided in sections 86.1310 to 86.1640 and a surviving
spouse receiving benefits from the retirement system shall be entitled to
vote in the election of elected members of the retirement board as
provided in section 86.930.

2. Each member of the retirement board shall, within ten days after
appointment or election, take an oath of office that such member will
diligently and honestly administer the affairs of such board, and will
not knowingly violate or willingly permit to be violated any of the
provisions of the law applicable to the civilian employees' retirement
system. Such oath shall be signed by the member and filed with the clerk
of such city. (L. 2005 H.B. 323)

Each member of the retirement board shall be entitled to one
vote in the decisions of the board. Five votes or more in favor shall be
necessary to pass a motion by the retirement board at any meeting of the
board. (L. 2005 H.B. 323)

1. Subject to the limitations of sections 86.1310 to 86.1640,
the retirement board shall, from time to time, establish policies for the
administration of its assets, for the transaction of its business and for
the conduct of nominations and elections of the elected members of the
retirement board. The retirement board shall be deemed to be a state
agency within the meaning of chapter 536, RSMo. Any rule or portion of a
rule, as that term is defined in section 536.010, RSMo, that is created
under the authority delegated in this section shall become effective only
if it complies with and is subject to all of the provisions of chapter
536, RSMo, and, if applicable, section 536.028, RSMo. This section and
chapter 536, RSMo, are nonseverable and if any of the powers vested with
the general assembly pursuant to chapter 536, RSMo, to review, to delay
the effective date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking authority and any
rule proposed or adopted after August 28, 2005, shall be invalid and void.

2. The retirement board shall elect from its membership a chairman, a
vice chairman, and a treasurer and shall, by majority vote of its
members, appoint a secretary, who may be, but need not be, one of its
members. The offices of secretary and of treasurer shall not be held by
the same person. It may employ such actuarial, legal, and other services
as may be necessary to transact the business of the retirement system.
The compensation of all persons employed by the retirement board and all
other expenses of the board necessary for the operation of the retirement
system shall be paid in such manner as the retirement board shall
determine; provided, that the compensation of such persons as may be
employed by the retirement board shall not be greater than the
compensation paid for comparable abilities by the governments of the
cities in which the retirement board is located. (L. 2005 H.B. 323)

1. The retirement board shall keep in convenient form such data
as is necessary for administration of the retirement system. The
retirement board shall keep a record of all its proceedings which shall
be open to public inspection.

2. The retirement board shall publish annually a statement reporting the
operations of the retirement system for the year, including income and
disbursements during the year and the financial condition of the
retirement system at the end of the year, including actuarial valuation
and valuations of its assets and liabilities as of April thirtieth of
each year. Such statement shall be consistent with results reviewed and
approved by independent certified public accountants selected by the
board. One copy of the annual report shall be delivered to each member of
the retirement board and each member of the board of police
commissioners, and one copy shall be filed with the city clerk. Copies of
the report shall be made conveniently available to each member of the
retirement system.

3. The retirement board shall cause an actuarial study and calculation to
be made annually based upon the experiences of the retirement system by
an independent firm of pension actuaries.

4. The retirement board shall appoint a medical board of not more than
three physicians, each of whom shall serve at the pleasure of the
retirement board, to arrange for and conduct medical examinations as
requested by the retirement board.

5. The retirement board shall adopt a common seal. (L. 2005 H.B. 323)

The retirement board shall before January tenth of each year
certify to the chief financial officer of such city the amount to be paid
by the city to the retirement pension system for the succeeding fiscal
year, as otherwise provided by sections 86.1310 to 86.1640. (L. 2005 H.B.
323)

The cities specified in sections 86.1310 to 86.1640 shall
contribute to the retirement pension system such an amount as may be
necessary to pay the pensions as they accrue from year to year, and such
additional amounts as may be necessary to maintain the system on a sound
actuarial basis as determined by the retirement board and certified as
provided in section 86.1380. (L. 2005 H.B. 323)

The board of police commissioners shall cause to be deducted
from the compensation of each member until retirement a percentage of
such member's compensation, which shall not be less than five percent, as
determined by the retirement board, as such member's contribution to the
pension fund. The sum so deducted shall be paid by the board of police
commissioners promptly after each payroll to the retirement board to be
credited to the member's account. Every member shall be deemed to consent
to the deductions made and provided for herein. The board of police
commissioners shall certify to the retirement board on each payroll the
amount deducted, and such amounts shall be paid into the pension fund and
shall be credited to the individual pension account of the member from
whose compensation such deduction was made. (L. 2005 H.B. 323)

1. The retirement board shall act as trustee of the funds
created by or collected under the provisions of sections 86.1310 to
86.1640. With appropriate safeguards against loss by the retirement
system, the board may designate one or more banks or trust companies to
serve as a depository of retirement system funds and as an intermediary
in the investment of those funds and payment of system obligations. The
board shall promptly deposit the funds with any such designated bank or
trust company.

2. The retirement board shall have power, in the name and on behalf of
the retirement pension system, to purchase, acquire, hold, invest, lend,
lease, sell, assign, transfer, and dispose of all property, rights, and
securities, and enter into written contracts, all as may be necessary or
proper to carry out the purposes of sections 86.1310 to 86.1640. No
investment transaction authorized by the retirement board shall be
handled by any company or firm in which a member of the board has an
interest, nor shall any member of the board profit directly or indirectly
from any such investment. All investments shall be made for the account
of the retirement system, and any securities or other properties obtained
by the retirement board may be held by a custodian in the name of the
retirement system, or in the name of a nominee in order to facilitate the
expeditious transfer of such securities or other properties. Such
securities or other properties may be held by such custodian in bearer
form or in book entry form. The retirement system is further authorized
to deposit, or have deposited for its account, eligible securities in a
central depository system or clearing corporation or in a federal reserve
bank under a book entry system as defined in the uniform commercial code,
sections 400.8-102 and 400.8-117, RSMo. When such eligible securities of
the retirement system are so deposited with the central depository system
they may be merged and held in the name of the nominee of such securities
depository and title to such securities may be transferred by bookkeeping
entry on the books of such securities depository or federal reserve bank
without physical delivery of the certificates or documents representing
such securities.

3. The retirement board may contract with a bank or trust company to act
as the custodian of bonds and securities acquired by the board, in which
case the retirement board may authorize such custodian bank or trust
company to order purchases, loans, or sales of investments by such
custodian bank or trust company, and may also appoint one or more
investment managers to manage investments of the retirement pension
system and in the course of such management to order purchases, loans, or
sales of investments by such custodian bank or trust company, subject to
such limitations, reporting requirements and other terms and restrictions
as the retirement board may include in the terms of each such
appointment. The income from investments shall be credited to the funds
of the retirement system at frequent intervals satisfactory to the
retirement board. All payments from the funds shall be made by the bank
or trust company only upon orders signed by the secretary and treasurer
of the retirement board, except as otherwise provided in this subsection.
No order shall be drawn unless it shall have previously been allowed by a
specific or an ongoing generalized resolution of the retirement board. In
the case of payments for benefits, services, supplies, or similar items
in the ordinary course of business, such board resolutions may be ongoing
generalized authorizations, provided that each payment other than
payments to members or beneficiaries for benefits shall be reported to
the board at its next following meeting and shall be subject to
ratification and approval by the board.

4. Before assuming the duties of office, the secretary and treasurer
shall each be bonded for an amount determined by the retirement board at
the cost of the retirement system, conditioned upon the faithful
performance of the duties as such officer, and to account for all moneys,
securities, and property which may come into their respective hands or
under their respective control by virtue of such office, with a corporate
surety duly licensed to transact business in this state. Such bonds shall
be subject to the approval of the presiding judge of the circuit court of
the county in which such cities are located. (L. 2005 H.B. 323)

All benefits and all necessary administrative expenses of the
retirement system shall be paid from the funds of the retirement system.
(L. 2005 H.B. 323)

The right of any person to pension or pensions, to the return of
contributions, disability or death benefits, or any other right accrued
or accruing to any person under the provisions of sections 86.1310 to
86.1640 and the moneys in the various funds created under sections
86.1310 to 86.1640 shall not be subject to execution, garnishment,
attachment, or any other process whatsoever and shall be unassignable
except as specifically provided in sections 86.1310 to 86.1640, and
except for court orders or assignments approved by a court to provide
support for family members or a former spouse of any person entitled to
benefits under sections 86.1310 to 86.1640. The moneys in the various
funds created under sections 86.1310 to 86.1640 are hereby exempt from
any tax of the state of Missouri or of any municipality or political
subdivision thereof. A revocable request or authorization by a member or
a beneficiary to withhold and apply for the requester's convenience some
portion or all of a benefit payment shall not be deemed an assignment
prohibited under this section provided that any such request shall remain
revocable at all times except as to payments or withholdings effected
prior to any such revocation. The retirement system may, but shall not be
obligated to, comply with any such request. (L. 2005 H.B. 323)

Nothing contained in sections 86.1310 to 86.1640 shall in any
way limit the criminal liability of any person subject to prosecution
under any law which is now or may hereafter be in force. Should any
change or error in records result in any member or beneficiary receiving
from the pension system more or less than such person would have been
entitled to receive had the records been correct, the retirement board
shall correct such error and, as far as practicable, shall adjust the
payments in such a manner that the benefit to which said member or
beneficiary was correctly entitled shall be paid. (L. 2005 H.B. 323)

1. The retirement board may sue and be sued in its own name.
Such suits shall constitute suits by or against the members of the
retirement board in their representative capacities and not as
individuals.

2. Service of process on the retirement board shall be sufficient if ten
copies of the pleading or other document to be served shall be served
upon the secretary of the retirement board at the principal office of the
retirement system during business hours. (L. 2005 H.B. 323)

1. In any hearing conducted by the retirement board, the board's
findings on all issues of fact shall be final and conclusive upon all
parties concerned, when such findings are supported by competent and
substantial evidence.

2. Any ruling of the retirement board on a question of law and whether
the same is supported by substantial evidence shall, at the option of the
plaintiff, be reviewed upon application of any party by the circuit court
of Cole County, or in the county of the residence of the plaintiff or one
of the plaintiffs, or in the county in which the principal office of the
retirement system is located. (L. 2005 H.B. 323)

1. The retirement board may purchase with retirement system
assets from one or more insurers licensed to do business in this state
one or more insurance policies that provide for reimbursement of the
retirement system and any trustee, member of the retirement board,
officer, or employee of the retirement system for liability imposed or
damages because of an alleged act, error, or omission committed in the
trustee's, board member's, officer's, or employee's capacity as a
fiduciary, officer, or employee of the retirement system and for costs
and expenses, including attorney fees, incurred as a trustee, board
member, officer, or employee in defense of a claim for an alleged act,
error, or omission, as long as the insurance policy does not provide for
reimbursement of a trustee, board member, officer, or employee for
liability imposed or expenses incurred because of the trustee's, board
member's, officer's, or employee's personal dishonesty, fraud, lack of
good faith, or intentional failure to act prudently.

2. If the insurance coverage described in subsection 1 of this section is
insufficient or is not in effect, the retirement board may indemnify any
person who was or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit, or proceeding, whether
civil, criminal, administrative, or investigative, by reason of the fact
that the person is or was a member of the retirement board, or is or was
serving at the request of the retirement board in the capacity which
caused the person's relationship to such action, suit, or proceeding,
against expenses, including attorneys' fees, judgments, fines, and
amounts paid in settlement actually and reasonably incurred by the person
in connection with such action, suit, or proceeding, if the person acted
in good faith and without willful malfeasance, and, with respect to any
criminal action or proceeding, had reasonable cause to believe the
relevant conduct was lawful. The termination of any action, suit, or
proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself, create a
presumption that the person did not act in good faith, or, with respect
to any criminal action or proceeding, that the person did not have
reasonable cause to believe that the relevant conduct was lawful.

3. To the extent that a member of the retirement board has been
successful on the merits or otherwise in defense of any action, suit, or
proceeding referred to in subsections 1 and 2 of this section, or in
defense of any claim, issue, or matter therein, the person shall be
indemnified against expenses, including attorneys' fees, actually and
reasonably incurred in connection with the action, suit, or proceeding
that are not covered by the insurance described in subsection 1 of this
section.

4. Any indemnification under this section, unless ordered by a court,
shall be made by the retirement board only as authorized in each specific
case upon a determination that indemnification of any person potentially
entitled to indemnification hereunder is proper in the circumstances
because the person has met the applicable standard of conduct set forth
in this section. The determination shall be made by the retirement board
by a majority vote of a quorum consisting of members of the retirement
board who are not parties to the action, suit, or proceeding, or if such
a quorum is not obtainable, or even if obtainable and a quorum of
disinterested members of the retirement board so directs, by independent
legal counsel in a written opinion. Such legal counsel may but need not
be counsel to the retirement system.

5. Expenses incurred in defending a civil or criminal action, suit, or
proceeding may be paid by the retirement board in advance of the final
disposition of the action, suit, or proceeding as authorized by the
retirement board in the specific case upon receipt of an undertaking by
or on behalf of the person potentially entitled to indemnification
hereunder to repay such amount unless it shall ultimately be determined
that the person is entitled to be indemnified by the retirement board as
authorized in this section. (L. 2005 H.B. 323)

1. Every person who becomes an employee, as defined in
subdivision (8) of section 86.1310, after August 28, 2001, shall become a
member of the retirement system defined in sections 86.1310 to 86.1640 as
a condition of such employment.

2. Every person who was a member of the retirement system on or before
August 28, 2001, shall remain a member.

3. Every person who was an employee, as defined in subdivision (8) of
section 86.1310, on August 28, 2001, but was not a member, shall become a
member as a condition of employment upon the completion of six months'
continuous employment. (L. 2005 H.B. 323)

1. Creditable service at retirement on which the retirement
allowance of a member is based consists of the membership service
rendered by such member for which such member received compensation since
such member last became a member.

2. Creditable service also includes any prior service credit to which a
member may be entitled by virtue of an authorized purchase of such credit
or as otherwise provided in sections 86.1310 to 86.1640.

3. Creditable service shall not include any time a member was suspended
from service without compensation. No contribution is required from
either the member under section 86.1400 or from the city under section
86.1390 for such time. (L. 2005 H.B. 323)

1. Whenever a member is given a leave of absence for military
service and returns to employment after discharge from the service, such
member shall be entitled to creditable service for the years of
employment prior to the leave of absence.

2. Any member who served on active duty in the armed forces of the United
States and who became a member, or returned to membership, after
discharge under honorable conditions, may elect prior to retirement to
purchase creditable service equivalent to such service in the armed
forces, not to exceed two years, provided the member is not receiving and
is not eligible to receive retirement credits or benefits from any other
public or private retirement plan for the service to be purchased, other
than a United States military service retirement system or United States
Social Security benefits attributable to such military service, and an
affidavit so stating is filed by the member with the retirement system. A
member electing to make such purchase shall pay to the retirement system
an amount equal to the actuarial value of the additional benefits
attributable to the additional service credit to be purchased, as of the
date the member elects to make such purchase. The retirement system shall
determine such value using accepted actuarial methods and the same
assumptions with respect to interest rates, mortality, future salary
increases, and all related factors used in performing the most recent
regular actuarial valuation of the retirement system. Payment in full of
the amount due from a member electing to purchase creditable service
under this subsection shall be made over a period not to exceed five
years, measured from the date of election, or prior to the commencement
date for payment of benefits to the member from the retirement system,
whichever is earlier, including interest on unpaid balances compounded
annually at the interest rate assumed from time to time for actuarial
valuations of the retirement system. If payment in full including
interest is not made within the prescribed period, any partial payments
made by the member shall be refunded, and no creditable service
attributable to such election, or as a result of any such partial
payments, shall be allowed; provided that if a benefit commencement date
occurs because of the death or disability of a member who has made an
election under this subsection and if the member is current in payments
under an approved installment plan at the time of the death or
disability, such election shall be valid if the member, the surviving
spouse or other person entitled to benefit payments pays the entire
balance of the remaining amount due, including interest to the date of
such payment, within sixty days after the member's death or disability.
The time of a disability shall be deemed to be the time when such member
is determined by the retirement board to be totally and permanently
disabled as provided in section 86.1560. (L. 2005 H.B. 323)

Members who terminate membership with three years or more of
creditable service and later return to membership may be given credit
toward retirement for prior creditable service, subject to the condition
that such member deposit in the pension fund a sum equal to the
accumulated contributions which had been paid to such member upon the
prior termination. Such repayment of withdrawn contributions shall be
accompanied by an additional payment of interest equal to the amount of
the actual net yield earned or incurred by the pension fund, including
both net income after expenses and net appreciation or depreciation in
values of the fund, whether realized or unrealized, during the period of
time from the date upon which such contributions had been withdrawn to
the date of repayment thereof, determined in accordance with such rules
for valuation and accounting as may be adopted by the retirement board
for such purposes. (L. 2005 H.B. 323)

Each person who becomes a member of the civilian employees'
retirement system under the provisions of sections 86.1310 to 86.1640
shall remain a member until the earliest to occur of the following events:

(1) The termination of service of such person and the payment to such
person of all benefits due such person under the provisions of sections
86.1310 to 86.1640; or

(2) The death of such person. (L. 2005 H.B. 323)

The normal retirement date of a member shall be the later of the
date such member attains the age of sixty-five years, or the tenth
anniversary of such member's employment. (L. 2005 H.B. 323)

1. (1) Upon retirement on or after a member's normal retirement
date, such member shall receive a base pension in the amount of two
percent of such member's final compensation times the number of years,
including fractions thereof, of such member's creditable service.

(2) Such member may elect to receive a different base pension under an
election permitted under this section or section 86.1580.

2. Members may elect early retirement as follows:

(1) Beginning at age fifty-five, if the member has completed at least ten
years of creditable service or at any later age after the member has
completed at least ten years of creditable service. Unless subdivision
(3) of this subsection shall be applicable, the benefit as computed under
subsection 1 of this section shall be reduced by one-half of one percent
for each month the effective date is prior to the first day of the month
following that in which such member will attain age sixty;

(2) Beginning at age sixty, if the member has completed at least five but
not more than ten years of creditable service or at any later age after
the member has completed at least five years of creditable service.
Unless subdivision (3) of this subsection shall be applicable, the
benefit as computed under subsection 1 of this section shall be reduced
by one-half of one percent for each month the effective date is prior to
the first day of the month following that in which such member will
attain age sixty-five; or

(3) At any time after the member's total of age and years of creditable
service equals or exceeds eighty, in which event the benefit shall be as
computed under subsection 1 of this section without any reduction.

If an election for early retirement results in a reduced benefit under
subdivision (1) or (2) of this subsection, such reduced benefit shall
become the member's base pension, subject to all other adjustments
described in this section.

3. (1) A member who is married at the time of retirement may by a written
election, with the written consent of such member's spouse, elect an
optional benefit calculated as follows: such optional benefit shall be a
monthly pension in the initial amount which shall be actuarially
equivalent to the actuarial value of the pension described in subdivision
(1) of subsection 1 of this section for such member at the date of
retirement (including the value of survivorship rights of a surviving
spouse, where applicable, under section 86.1610), upon the basis that the
initial annuity for the member's spouse, if such spouse survives the
member, shall be the same as the amount being paid the member on such
annuity at the member's death, and, subject to cost-of-living adjustments
thereafter declared on the spouse's base pension under section 86.1590,
shall be paid to such surviving spouse for the lifetime of such spouse
without regard to remarriage. If a member who makes an election of an
optional benefit under this subsection has also elected an early
retirement under either subdivision (1) or (2) of subsection 2 of this
section, any reduction in benefit required for such early retirement
election shall be calculated before calculating the initial amount of the
optional benefit under this subsection.

(2) If a member who makes the election permitted by this subsection also
makes an election permitted under section 86.1580, such optional benefit
shall be reduced as provided in subdivision (3) of subsection 2 of
section 86.1580.

(3) If a member makes the election permitted by this subsection, the
amount calculated for such optional benefit under either subdivision (1)
or (2) of this subsection shall be the base pension for such member and
for such member's spouse for all purposes of sections 86.1310 to 86.1640.

(4) An election for an optional benefit under this subsection shall be
void if the member dies within thirty days after filing such election
with the retirement system or if the member dies before the due date of
the first payment of such member's pension.

4. Subject to the provisions of subsection 7 of this section, whenever
the service of a member is terminated after August 28, 1999, for any
reason prior to death or retirement and the member has five or more years
of creditable service, the member may elect not to withdraw such member's
accumulated contributions and shall become entitled to receive a pension
upon such member's normal retirement date under subdivision (1) of
subsection 1 of this section or may elect to receive a pension commencing
upon or after any date, prior to his or her normal retirement date, upon
which early retirement would have been permitted under subsection 2 of
this section if such member had remained a civilian employee of such
police department, except that in calculating any qualification under
subsection 2 of this section, such member shall not be entitled to count
any year of creditable service in excess of such member's total years of
creditable service at the time of such member's termination of
employment. The amount of any pension commenced upon the basis of a date
permitted under subsection 2 of this section shall be computed on the
basis of the member's final compensation and number of years of
creditable service, subject to such adjustments as may be applicable
under the subdivision of subsection 2 of this section upon which such
member relies in electing the commencement of such member's pension and
subject to any other adjustments that such member may elect under this
section. The amount of the initial pension calculated after all
applicable adjustments shall be the base pension for such member, and for
such member's spouse if such member shall elect the optional benefit
permitted under subsection 3 of this section, for all purposes of
sections 86.1310 to 86.1640.

5. A member whose service was terminated on or before August 28, 1999,
after five or more years of creditable service, and who permitted such
member's accumulated contributions to remain in the pension fund, shall
upon application to the retirement board be appointed as a consultant.
For services as such consultant, such member shall, beginning the later
of August 28, 1999, or the time of such appointment under this
subsection, be entitled to elect to receive compensation in such amount
and commencing at such time as such member would have been entitled to
elect under any of the provisions of subsection 4 of this section if such
member had terminated service after August 28, 1999. Such member shall be
entitled to the same cost-of-living adjustments following the
commencement of such compensation as if such member's compensation had
been a base pension.

6. All payments of any pension shall be paid on the first day of each
month for that month. The first payment shall be paid on the first day of
the first month in which the member's benefit can be determined and
processed for payment, and shall include benefits from the date of
retirement to the date of such first payment. The final payment due a
retired member shall be the payment due on the first day of the month in
which such member's death occurs.

7. Notwithstanding any other provisions of sections 86.1310 to 86.1640,
any member who is convicted of a felony prior to separation from active
service shall not be entitled to any benefit from this retirement system
except the return of such member's accumulated contributions. (L. 2005
H.B. 323)

Whenever a member's service is terminated for any reason prior
to death or retirement and such member has less than five years of
creditable service, or a member's service is terminated after conviction
of a felony, or a member's service is terminated for any reason and such
member requests the withdrawal of all such member's accumulated
contributions to the retirement system, such member shall be paid the
amount of such member's accumulated contributions in one lump sum and
such payment shall be in lieu of any and all other benefits to which such
member or any beneficiary or survivor thereof might otherwise be or
become entitled under sections 86.1310 to 86.1640. (L. 2005 H.B. 323)

1. A member who becomes totally and permanently disabled, as
defined in this section, shall be entitled to retire and to receive a
base pension determined in accordance with the terms of this section.
Members who are eligible and totally and permanently disabled shall
receive a disability pension computed as follows:

(1) Duty disability, fifty percent of final compensation as of the date
of disability;

(2) Nonduty disability, thirty percent of final compensation as of the
date of disability, provided that a nonduty disability pension shall not
be available to any member with less than ten years creditable service;

(3) In no event shall the disability pension be less than the amount to
which the member would be entitled as a pension if the member retired on
the same date with equivalent age and creditable service.

2. The final payment due a member receiving a disability pension shall be
the payment due on the first day of the month in which such member's
death occurs. Such member's surviving spouse, if any, shall be entitled
to such benefits as may be provided under section 86.1610.

3. For purposes of sections 86.1310 to 86.1640, the following terms shall
mean:

(1) "Duty disability", total and permanent disability directly due to and
caused by actual performance of employment with the police department;

(2) "Nonduty disability", total and permanent disability arising from any
other cause than duty disability;

(3) "Total and permanent disability", a state or condition which
presumably prevents for the rest of a member's life the member's engaging
in any occupation or performing any work for remuneration or profit. Such
disability, whether duty or nonduty, must not have been caused by the
member's own negligence or willful self-infliction.

4. The retirement board in its sole judgment shall determine whether the
status of total and permanent disability exists. Its determination shall
be binding and conclusive. The retirement board shall rely upon the
findings of a medical board of three physicians, and shall procure the
written recommendation of at least one member thereof in each case
considered by the retirement board. The medical board shall be appointed
by the retirement board and expense for such examinations as are required
shall be paid from funds of the retirement system.

5. From time to time, the retirement board shall have the right to
require proof of continuing disability which may include further
examination by the medical board. Should the retirement board determine
that disability no longer exists, it shall terminate the disability
pension. A member who immediately returns to work with the police
department shall again earn creditable service beginning on the first day
of such return. Creditable service prior to disability retirement shall
be reinstated. A member who does not return to work with the police
department shall be deemed to have terminated employment at the time
disability retirement commenced; but in calculating any benefits due upon
such presumption, the retirement system shall receive credit for all
amounts paid such member during the period of disability, except that
such member shall not be obligated in any event to repay to the
retirement system any amounts properly paid during such period of
disability. (L. 2005 H.B. 323)

1. Any periodic payment, excluding payments for medical
treatment, which may be paid or payable by cities under the provisions of
any workers' compensation or similar law to a member or to the dependents
of a member on account of any disability or death shall be offset against
any benefits payable to the recipient of the workers' compensation
payments from funds provided by cities under the provisions of sections
86.1310 to 86.1640 on account of the same disability or death. However,
in no event shall the amount paid from funds under the provisions of
sections 86.1310 to 86.1640 be less than the amount which represents the
member's percentage, as defined in this section, of total benefits
payable under sections 86.1310 to 86.1640, before any offset for workers'
compensation benefits.

2. Any lump sum amount, excluding payments for medical treatments, which
may be paid or payable by cities under the provisions of any workers'
compensation or similar law to a member or to the dependents of a member
on account of any disability or death shall be offset against any
benefits payable from funds provided by cities under the provisions of
sections 86.1310 to 86.1640 on account of the same disability or death.
The amounts by which each periodic payment made under the provisions of
sections 86.1310 to 86.1640 is offset or reduced shall be computed as the
periodic amount necessary to amortize as an annuity over the period of
time represented by the respective workers' compensation benefits the
total amount of the lump sum settlement received as a workers'
compensation benefit by a beneficiary of the retirement system. Such
computation shall be based upon the same interest rate and mortality
assumptions as used for the retirement system at the time of such
computation. However, in no event shall the amount paid from funds under
the provisions of sections 86.1310 to 86.1640 be less than the amount
which represents the member's percentage, as defined in this section, of
total benefits payable under sections 86.1310 to 86.1640, before any
offset for workers' compensation benefits.

3. As used in this section, the term "member's percentage" shall be the
fraction of which the numerator is the percentage of compensation
contributed by a working member to the retirement pension system under
section 86.1400 during the pay period immediately preceding such member's
death or disability which created entitlement to benefits and the
denominator is the sum of percentages of a member's compensation
contributed by a working member under section 86.1400 and the city under
section 86.1390 to the retirement pension system during such pay period.
Such percentage shall identify the portion of any benefits due under the
provisions of sections 86.1310 to 86.1640 which is deemed to have been
provided by the member's own contributions. (L. 2005 H.B. 323)

1. Any member in active service entitled to commence a pension
under section 86.1540 may elect an optional distribution under the
partial lump sum option plan provided in this section if the member:

(1) Notifies the retirement system in writing of the member's retirement
date at least ninety days in advance thereof and requests an explanation
of the member's rights under this section; and

(2) Notifies the retirement system of the member's election hereunder at
least thirty days in advance of the retirement date.

Following receipt of an initial notice of a member's retirement date and
request for an explanation, the retirement system shall, at least sixty
days in advance of such retirement date, provide the member a written
explanation of such member's rights under this section and an estimate of
the amount by which the member's regular monthly base pension would be
reduced in the event of the member's election of any of the options
available to the member under this section.

2. (1) A member entitled to make an election under this section may elect
to receive a lump sum distribution with the member's initial monthly
pension payment under section 86.1540, subject to all the terms of this
section. The member may elect the amount of the member's lump sum
distribution from one, but not more than one, of the following options
for which the member qualifies:

(a) A member having one or more years of creditable service after the
member's eligible retirement date may elect a lump sum amount equal to
twelve times the initial monthly base pension the member would receive if
no election were made under this section;

(b) A member having two or more years of creditable service after the
member's eligible retirement date may elect a lump sum amount equal to
twenty-four times the initial monthly base pension the member would
receive if no election were made under this section; or

(c) A member having three or more years of creditable service after the
member's eligible retirement date may elect a lump sum amount equal to
thirty-six times the initial monthly base pension the member would
receive if no election were made under this section.

For purposes of this section, "eligible retirement date" for a member
shall mean the earliest date on which the member could elect to retire
and be entitled to receive a pension under section 86.1540.

(2) When a member makes an election to receive a lump sum distribution
under this section, the base pension that the member would have received
in the absence of an election shall be reduced on an actuarially
equivalent basis to reflect the payment of the lump sum distribution, and
the reduced base pension shall be the member's base pension thereafter
for all purposes relating to base pension amounts under sections 86.1310
to 86.1640, unless the member has also elected an optional benefit
permitted under subsection 3 of section 86.1540.

(3) If a member electing a lump sum distribution under this section has
elected the optional benefit permitted under subsection 3 of section
86.1540, the calculation of the member's pension shall be made in the
following order:

(a) The amount of the member's normal pension under subdivision (1) of
subsection 1 of section 86.1540 shall be reduced if applicable by any
reductions required under subsection 2 of section 86.1540;

(b) The amount of the pension as determined under paragraph (a) of this
subdivision shall be reduced to the actuarially equivalent amount to
produce the optional form of benefit described in subdivision (1) of
subsection 3 of section 86.1540;

(c) The amount of reduced pension as determined under paragraph (b) of
this subdivision shall be further reduced as required to produce an
actuarially equivalent benefit in the form of the lump sum distribution
option elected under this section and a remaining monthly annuity which
shall be paid on the basis that the initial annuity for the member's
spouse, if such spouse survives the member, shall be the same as the
amount being paid the member on this annuity at the member's death, and,
subject to cost-of-living adjustments thereafter declared on the spouse's
base pension under section 86.1590, shall be paid to such surviving
spouse for the lifetime of such spouse without regard to remarriage.

3. An election under this section to receive a lump sum distribution and
reduced monthly base pension shall be void if the member dies before
retirement, in which case amounts due a surviving spouse or other
beneficiary of the member shall be determined without regard to such
election. (L. 2005 H.B. 323)

1. Provided that the retirement system shall remain actuarially
sound, each of the following persons may receive each year, in addition
to such person's base pension, a cost-of-living adjustment in an amount
not to exceed three percent of such person's base pension during any one
year:

(1) Every member who is retired and receiving a base pension from this
retirement system; and

(2) Every surviving spouse who is receiving a base pension from this
retirement system.

2. Upon the death of a member who has been retired and receiving a
pension, and who dies after August 28, 2001, the surviving spouse of such
member entitled to receive a base pension under section 86.1610 shall
receive an immediate percentage cost-of-living adjustment to his or her
base pension equal to the total percentage cost-of-living adjustments
received during such member's lifetime under this section, but such
adjustment shall not be deemed to change the base pension amount to which
subsequent cost-of-living adjustments may be made.

3. For purposes of this section, the term "base pension" shall mean:

(1) For a member, the pension computed under the provisions of the law as
of the date of retirement without regard to cost-of-living adjustments,
as adjusted if applicable, for any optional elections made under sections
86.1540 and 86.1580, but in all events not including any supplemental
benefit under section 86.1600;

(2) For a surviving spouse whose pension is prescribed by section
86.1610, the base pension calculated for such spouse in accordance with
the provisions of section 86.1610, including any compensation as a
consultant to which such surviving spouse is entitled under said section
in lieu of a pension, but not including any supplemental benefit under
section 86.1600;

(3) For a surviving spouse entitled to the continuation of an optional
benefit elected under subsection 3 of section 86.1540, the base pension
determined in accordance with subdivision (3) of subsection 3 of section
86.1540.

4. The cost-of-living adjustment shall be an increase or decrease
computed on the base pension amount by the retirement board in an amount
that the board, in its discretion, determines to be satisfactory, but in
no event shall the adjustment be more than three percent or reduce the
pension to an amount less than the base pension. In determining and
granting the cost-of-living adjustments, the retirement board shall adopt
such rules and regulations as may be necessary to effectuate the purposes
of this section, including provisions for the manner of computation of
such adjustments and the effective dates thereof. The retirement board
shall provide for such adjustments to be determined once each year and
granted on a date or dates to be chosen by the board, and may apply such
adjustments in full to members who have retired during the year prior to
such adjustments but who have not been retired for one full year and to
the surviving spouse of a member who has died during the year prior to
such adjustments.

5. The determination of whether the retirement system will remain
actuarially sound shall be made at the time any cost-of-living adjustment
is granted. If at any time the retirement system ceases to be actuarially
sound, pension payments shall continue as adjusted by increases
theretofore granted. A member of the retirement board shall have no
personal liability for granting increases under this section if that
retirement board member in good faith relied and acted upon advice of a
qualified actuary that the retirement system would remain actuarially
sound. (L. 2005 H.B. 323)

1. Any member who retires subsequent to August 28, 1997, with
entitlement to a pension under sections 86.1310 to 86.1640, shall receive
each month, in addition to such member's base pension and cost-of- living
adjustments thereto under section 86.1590, and in addition to any other
compensation or benefit to which such member may be entitled under
sections 86.1310 to 86.1640, a supplemental retirement benefit of fifty
dollars per month. The amount of such supplemental retirement benefit may
be adjusted by cost-of-living adjustments determined by the retirement
board not more frequently than annually. Such determination shall be
based on advice of the plan's actuary that the increase in the benefit
will not cause the present value of anticipated future plan benefits,
calculated on the actuarial assumptions used for the most recent annual
valuation, to exceed the sum of the trust fund assets plus the present
value of anticipated contributions to the trust fund.

2. Any member who was retired on or before August 28, 1997, and is
receiving retirement benefits from the retirement system shall, upon
application to the retirement board, be retained as a consultant, and for
such services such member shall receive each month, in addition to such
member's base pension and cost-of-living adjustments thereto under
section 86.1590, and in addition to any other compensation or benefit to
which such member may be entitled under sections 86.1310 to 86.1640, a
supplemental compensation in the amount of fifty dollars per month. This
appointment as a consultant shall in no way affect any member's
eligibility for retirement benefits under the provisions of sections
86.1310 to 86.1640, or in any way have the effect of reducing retirement
benefits otherwise payable to such member. The amount of such
supplemental compensation under this subsection may be adjusted by
cost-of-living adjustments determined by the retirement board not more
frequently than annually. Such determination shall be based on advice of
the plan's actuary that the increase in the benefit will not cause the
present value of anticipated future plan benefits, calculated on the
actuarial assumptions used for the most recent annual valuation, to
exceed the sum of the trust fund assets plus the present value of
anticipated contributions to the trust fund.

3. In determining and granting the cost-of-living adjustments under this
section, the retirement board shall adopt such rules and regulations as
may be necessary to effectuate the purposes of this section, including
provisions for the manner of computation of such adjustments and the
effective dates thereof. The retirement board shall provide for such
adjustments to be determined once each year and granted on a date or
dates to be chosen by the board. The retirement board shall not be
required to prorate the initial adjustment to any supplemental retirement
benefit or any supplemental compensation under this section for any
member.

4. For purposes of subsections 1 and 2 of this section, the term "member"
shall include a surviving spouse who is entitled to a benefit under
sections 86.1310 to 86.1640, who shall be deemed to have retired for
purposes of this section on the date of retirement of the member of whom
such person is the surviving spouse or on the date of death of such
member if such member died prior to retirement. All benefits payable to a
surviving spouse under this section shall be in addition to all other
benefits to which such surviving spouse may be entitled under other
provisions of sections 86.1310 to 86.1640. Any such surviving spouse of a
member who dies while entitled to payments under this section shall
succeed to the full amount of payment under this section to which such
member was entitled at the time of such member's death, including any
cost-of-living adjustments received by such member in the payment under
this section prior to such member's death.

5. The determination of whether the retirement system will remain
actuarially sound shall be made at the time any cost-of-living adjustment
under this section is granted. If at any time the retirement system
ceases to be actuarially sound, supplemental retirement benefit payments
under subsection 1 of this section and supplemental compensation payments
as a consultant under subsection 2 of this section shall continue as
adjusted by increases or decreases theretofore granted. A member of the
retirement board shall have no personal liability for granting increases
under this section if that retirement board member in good faith relied
and acted upon advice of a qualified actuary that the retirement system
would remain actuarially sound. (L. 2005 H.B. 323)

1. Upon receipt of the proper proofs of death of a member in
service for any reason whatsoever, the following amounts shall be payable
subject to subsection 4 of this section, and if a pension shall be
elected, the initial amount thereof shall be the base pension for such
surviving spouse:

(1) If the member has less than five years of creditable service, the
member's surviving spouse shall be paid, in one lump sum, the amount of
the member's accumulated contributions. If there is no surviving spouse,
the member's accumulated contributions shall be paid to the member's
designated beneficiary, or if none, to the executor or administrator of
the member's estate, and such payment shall be full and final settlement
for all amounts due from the retirement system with respect to such
member except as provided in subsection 1 of section 86.1620;

(2) If the member has at least five but fewer than twenty years of
creditable service, the member's surviving spouse may elect the lump sum
settlement in subdivision (1) of this subsection or a pension. Such
pension shall be fifty percent of the member's accrued pension at date of
death as computed in subdivision (1) of subsection 1 of section 86.1540,
commencing on the later of the day after the member's death, or the date
which would have been the member's earliest possible retirement date
permitted under subsection 2 of section 86.1540;

(3) If the member has at least twenty years of creditable service, the
member's surviving spouse may elect any one of:

(a) The lump sum settlement in subdivision (1) of this subsection;

(b) The pension as computed in subdivision (2) of this subsection; or

(c) A pension in the monthly amount determined on a joint and survivor's
basis from the actuarial value of the member's accrued annuity at date of
death;

(4) Any death of a retired member occurring before the first payment of
the retirement pension shall be deemed to be a death prior to retirement;

(5) For the surviving spouse of a member who died in service after August
28, 2001, benefits payable under subsection 1 of this section shall
continue for the lifetime of such surviving spouse without regard to
remarriage.

2. Upon death of a member after retirement who has not elected the
optional annuity permitted under subsection 3 of section 86.1540, the
surviving spouse shall receive a base pension payable for life, equaling
fifty percent of the member's base pension, as of the member's retirement
date, subject to the following:

(1) No surviving spouse of a member who retires after August 28, 2001,
shall be entitled to receive any benefits under sections 86.1310 to
86.1640 unless such spouse was married to the member at the time of the
member's retirement; and

(2) Any surviving spouse who was married to such a member at the time of
the member's retirement shall be entitled to all benefits for surviving
spouses under sections 86.1310 to 86.1640 for the life of such surviving
spouse without regard to remarriage.

3. In the case of any member who, prior to August 28, 2001, died in
service or retired, the surviving spouse who would qualify for benefits
under subsection 1 or 2 of this section but for remarriage, and has not
remarried prior to August 28, 2001, but remarries thereafter, shall upon
application be appointed by the retirement board as a consultant. For
services as such consultant, such surviving spouse shall be compensated
in an amount equal to the benefits such spouse would have received under
sections 86.1310 to 86.1640 in the absence of such remarriage.

4. Any beneficiary of benefits under sections 86.1310 to 86.1640 who
becomes the surviving spouse of more than one member shall be paid all
benefits due a surviving spouse of that member whose entitlements produce
the largest surviving spouse benefits for such beneficiary but shall not
be paid surviving spouse benefits as the surviving spouse of more than
one member, except that any surviving spouse for whom an election has
been made for an optional benefit under subsection 3 of section 86.1540
shall be entitled to every optional benefit for which such surviving
spouse has so contracted.

5. The final payment due any surviving beneficiary shall be the payment
due on the first day of the month in which such beneficiary dies or
otherwise ceases to be entitled to benefits under this section.

6. If there is no surviving spouse, payment of the member's accumulated
contributions less the amount of any prior payments from the retirement
system to the member or to any beneficiary of the member shall be made to
the member's designated beneficiary or, if none, to the personal
representative of the member's estate. (L. 2005 H.B. 323)

1. (1) Upon the death after August 28, 2003, of a member in
service, or upon the death of a member who was in service on or after
August 28, 2003, and who dies after having been retired and pensioned,
there shall be paid, in addition to all other benefits, a funeral benefit
of one thousand dollars to the person or entity who provided or paid for
the funeral services for such member.

(2) Any member who was retired on or before August 28, 2003, and is
receiving retirement benefits from the retirement system, upon
application to the retirement board, shall be appointed by the retirement
board as a consultant for the remainder of such member's life. Upon the
death of such member, there shall be paid, in addition to all other
benefits, a funeral benefit of one thousand dollars to the person or
entity who provided or paid for the funeral services for such member.

2. If no benefits are otherwise payable to a surviving spouse of a
deceased member, the member's accumulated contributions, to any extent
not fully paid to such member prior to the member's death or to the
surviving spouse of such member, shall be paid in one lump sum to the
member's named beneficiary or, if none, to the member's estate, and such
payment shall constitute full and final payment of any and all claims for
benefits under the retirement system. (L. 2005 H.B. 323)

1. A retirement plan under sections 86.1310 to 86.1640 is a
qualified plan under the provisions of applicable federal law. The
benefits and conditions of a retirement plan under sections 86.1310 to
86.1640 shall always be adjusted to ensure that the tax-exempt status is
maintained.

2. The retirement board shall administer this retirement system in such
manner as to retain at all times qualified status under Section 401(a) of
the Internal Revenue Code.

3. The retirement board shall hold in trust the assets of the retirement
system for the exclusive benefit of the members and their beneficiaries
and for defraying reasonable administrative expenses of the system. No
part of such assets shall, at any time prior to the satisfaction of all
liabilities with respect to members and their beneficiaries, be used for
or diverted to any purpose other than such exclusive benefit or to any
purpose inconsistent with sections 86.1310 to 86.1640.

4. A member's benefit shall be one hundred percent vested and
nonforfeitable upon the member's attainment of normal retirement age,
which shall be the earlier of:

(1) The attaining of the age of sixty-five or the member's tenth
anniversary of employment, whichever is later;

(2) When the total sum of age and years of service equals or exceeds
eighty; or

(3) To the extent funded, upon the termination of the system established
under sections 86.1310 to 86.1640 or any partial termination which
affects the member or any complete discontinuance of contributions by the
city to the system.

Amounts representing forfeited nonvested benefits of terminated members
shall not be used to increase benefits payable from the system but may be
used to reduce contributions for future plan years.

5. Distribution of benefits shall begin not later than April first of the
year following the later of the calendar year during which the member
becomes seventy and one-half years of age or the calendar year in which
the member retires, and shall otherwise conform to Section 401(a)(9) of
the Internal Revenue Code.

6. A member or beneficiary of a member shall not accrue a service
retirement annuity, disability retirement annuity, death benefit, whether
death occurs in the line of duty or otherwise, or any other benefit under
sections 86.1310 to 86.1640 in excess of the benefit limits applicable to
the fund under Section 415 of the Internal Revenue Code. The retirement
board shall reduce the amount of any benefit that exceeds the limits of
this section by the amount of the excess. If the total benefits under the
retirement system and the benefits and contributions to which any member
is entitled under any other qualified plan or plans maintained by the
board of police commissioners that employs the member would otherwise
exceed the applicable limits under Section 415 of the Internal Revenue
Code, the benefits the member would otherwise receive from the retirement
system are reduced to the extent necessary to enable the benefits to
comply with Section 415 of the Internal Revenue Code.

7. The total salary taken into account for any purpose for any member of
the retirement system shall not exceed two hundred thousand dollars per
year, subject to periodic adjustments in accordance with guidelines
provided by the United States Secretary of the Treasury and may not
exceed such other limits as may be applicable at any given time under
Section 401(a)(17) of the Internal Revenue Code.

8. If the amount of any benefit is determined on the basis of actuarial
assumptions that are not specifically set forth for that purpose in
sections 86.1310 to 86.1640, the actuarial assumptions to be used are
those earnings and mortality assumptions used on the date of the
determination by the retirement system's actuary and approved by the
retirement board. The actuarial assumptions used at any particular time
shall be attached as an addendum to a copy of the retirement system's
statute maintained by the retirement board and shall be treated for all
purposes as part of sections 86.1310 to 86.1640. The actuarial
assumptions may be changed by the retirement system's actuary annually if
approved by the retirement board, but a change in actuarial assumptions
shall not result in any decrease in benefits accrued as of the effective
date of the change.

9. Any member or beneficiary who is entitled to receive any distribution
that is an eligible rollover distribution, as defined by Section
402(c)(4) of the Internal Revenue Code, is entitled to have that
distribution transferred directly to another eligible retirement plan of
the member's or beneficiary's choice upon providing direction to the
secretary of the retirement system regarding the transfer in accordance
with procedures established by the retirement board.

10. For all distributions made after December 31, 2001:

(1) For the purposes of subsection 9 of this section, an eligible
retirement plan shall also mean an annuity described in Section 403(b) of
the Internal Revenue Code and an eligible plan under Section 457(b) of
the Internal Revenue Code that is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state and which agrees to separately account
for amounts transferred into such plan from the retirement system. The
definition for eligible retirement plan shall also apply in the case of a
distribution to a surviving spouse or to a spouse or former spouse who is
the alternate payee under a qualified domestic relations order, as
defined in Section 414(p) of the Internal Revenue Code; and

(2) For the purposes of subsection 9 of this section, a portion of a
distribution shall not fail to be an eligible rollover distribution
merely because the portion consists of after-tax employee contributions
which are not includable in gross income. However, such portion may be
paid only to an individual retirement account or annuity described in
Section 408(a) or 408(b) of the Internal Revenue Code, or to a qualified
defined contribution plan described in Section 401(a) or 403(a) of the
Internal Revenue Code that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such
distribution that is includable in gross income and the portion of such
distribution that is not so includable. (L. 2005 H.B. 323)

If a city and the police department of such city adopt any
program of incentives to authorize or encourage early retirements,
whether for employees not yet eligible for regular retirement or for
employees who are eligible but have not yet chosen to retire or for both,
the retirement board shall be authorized to administer and pay such
incentives for retirees who accept such incentives and are members of the
retirement system under sections 86.1310 to 86.1640, in addition to such
other benefits as such members or their beneficiaries are entitled to
receive under sections 86.1310 to 86.1640, provided such city shall so
request and shall agree to increase said city's contribution under
section 86.1390 sufficiently to provide the full actuarial cost of any
such incentives in addition to the contribution required of such city
necessary, in conjunction with members' contributions under section
86.1400, to provide all other benefits provided under sections 86.1310 to
86.1640. (L. 2005 H.B. 323)

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