Missouri Statute | Act | Code |Education And Libraries| US Code - US Statute | Chapter 169 Teacher And School Employee Retirement Systems

The following words and phrases, as used in sections 169.010 to
169.130, unless a different meaning is plainly required by the context,
shall have the following meanings:

(1) "Accumulated contributions" shall mean the sum of the annual
contributions a member has made to the retirement system through
deductions from the member's salary, plus interest compounded annually on
each year's contributions from the end of the school year during which
such contributions were made;

(2) "Board" shall mean the board of trustees provided for in sections
169.010 to 169.130;

(3) "Creditable service" shall mean prior service or membership service,
or the sum of the two, if the member has both to the member's credit;

(4) "District" shall mean public school, as herein defined;

(5) "Employ" shall have a meaning agreeable with that herein given to
employer and employee;

(6) "Employee" shall be synonymous with the term "teacher" as the same is
herein defined;

(7) "Employer" shall mean the district that makes payment directly to the
teacher or employee for such person's services;

(8) "Final average salary" shall mean the total compensation payable to a
member for any three consecutive years of creditable service, as elected
by the member, divided by thirty-six; with the proviso that any annual
compensation entering into the total compensation shall not exceed twelve
thousand six hundred dollars for any year prior to July 1, 1967; and with
the proviso that the board may set a maximum percentage of increase in
annual compensation from one year to the next in the final average salary
period;

(9) "Member" shall mean a person who holds membership in the retirement
system;

(10) "Membership service" shall mean service rendered by a member of the
retirement system after the system becomes operative, and may include a
period of service in the armed forces of the United States as provided
for in section 169.055;

(11) "Prior service" shall mean service rendered by a member of the
retirement system before the system becomes operative, and may include
service rendered by a member of the armed forces if the member was a
teacher at the time the member was inducted, for which credit has been
approved by the board of trustees;

(12) "Public school" shall mean any school conducted within the state
under the authority and supervision of a duly elected district or city or
town board of directors or board of education and the board of regents of
the several state teachers' colleges, or state colleges, board of
trustees of the public school retirement system of Missouri, and also the
state of Missouri and each county thereof, to the extent that the state
and the several counties are employers of teachers as herein designated;

(13) "Retirement allowance" shall mean a monthly payment for life during
retirement;

(14) "Retirement system" or "system" shall mean the public school
retirement system of Missouri created by sections 169.010 to 169.130;

(15) "Salary", "salary rate" or "compensation" shall mean the regular
remuneration, including any payments made pursuant to sections 168.500 to
168.515, RSMo, which is earned by a member as an employee of a district,
but not including employer-paid fringe benefits except the value of
employer-paid medical benefits (including dental and vision) for members,
and not including employer-paid medical benefits (including dental and
vision) for anyone other than the member, employer contributions to any
deferred compensation plan, consideration for agreeing to terminate
employment or other nonrecurring or unusual payments that are not a part
of regular remuneration. The board by its rules may further define
salary, salary rate and compensation in a manner consistent with this
definition and with sections 169.010 to 169.141;

(16) "School year" shall mean the year from July first of one year to
June thirtieth of next year, inclusive, which shall also be the fiscal
year of the system;

(17) "Teacher" shall mean any person who shall be employed by any public
school, on a full-time basis and who shall be duly certificated under the
law governing the certification of teachers; any person employed in the
state department of elementary and secondary education or by the state
board of education on a full-time basis who shall be duly certificated
under the law governing the certification of teachers and who did not
become a member of the Missouri state employees' retirement system
pursuant to section 104.342, RSMo; and persons employed by the board of
trustees of the public school retirement system of Missouri on a
full-time basis who shall be duly certified under the law governing the
certification of teachers. The term "teacher" shall be synonymous with
the term "employee" as defined in this section. (L. 1945 p. 1353 § 1,
A.L. 1945 p. 1378, A.L. 1945 p. 1381, A.L. 1949 p. 525, A.L. 1953 p. 480,
A.L. 1957 p. 432, A.L. 1965 p. 288, A.L. 1967 p. 250, A.L. 1972 S.B. 491,
A.L. 1977 S.B. 325, A.L. 1981 H.B. 33, et al., A.L. 1984 S.B. 407, A.L.
1987 H.B. 713, A.L. 1996 S.B. 857, A.L. 1997 S.B. 309, A.L. 1999 S.B. 308
& 314, A.L. 2005 H.B. 443)

1. For the purpose of providing retirement allowances and other
benefits for public school teachers, there is hereby created and
established a retirement system which shall be a body corporate, shall be
under the management of a board of trustees herein described, and shall
be known as "The Public School Retirement System of Missouri". Such
system shall, by and in such name, sue and be sued, transact all of its
business, invest all of its funds, and hold all of its cash, securities,
and other property. The system so created shall include all school
districts in this state, except those in cities that had populations of
four hundred thousand or more according to the latest United States
decennial census, and such others as are or hereafter may be included in
a similar system or in similar systems established by law and made
operative; provided, that teachers in school districts of more than four
hundred thousand inhabitants who are or may become members of a local
retirement system may become members of this system with the same legal
benefits as accrue to present members of such state system on the terms
and under the conditions provided for in section 169.021. The system
hereby established shall begin operations on the first day of July next
following the date upon which sections 169.010 to 169.130 shall take
effect.

2. The general administration and the responsibility for the proper
operation of the retirement system and for making effective the
provisions of sections 169.010 to 169.141 are hereby vested in a board of
trustees of seven persons as follows: four persons to be elected as
trustees by the members and retired members of the public school
retirement system created by sections 169.010 to 169.141 and the public
education employee retirement system created by sections 169.600 to
169.715; and three members appointed by the governor with the advice and
consent of the senate. The first member appointed by the governor shall
replace the commissioner of education for a term beginning August 28,
1998. The other two members shall be appointed by the governor at the
time each member's, who was appointed by the state board of education,
term expires.

3. Trustees appointed and elected shall be chosen for terms of four years
from the first day of July next following their appointment or election,
except that one of the elected trustees shall be a member of the public
education employee retirement system and shall be initially elected for a
term of three years from July 1, 1991. The initial term of one other
elected trustee shall commence on July 1, 1992.

4. Trustees appointed by the governor shall be residents of school
districts included in the retirement system, but not employees of such
districts or a state employee or a state elected official. At least one
trustee so appointed shall be a retired member of the public school
retirement system or the public education employee retirement system.
Three elected trustees shall be members of the public school retirement
system and one elected trustee shall be a member of the public education
employee retirement system.

5. The elections of the trustees shall be arranged for, managed and
conducted by the board of trustees of the retirement system.

6. 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.

7. Trustees of the retirement system shall serve without compensation but
they shall be reimbursed for expenses necessarily incurred through
service on the board of trustees.

8. Each trustee shall be commissioned by the governor, and before
entering upon the duties of the trustee's office, shall take and
subscribe to an oath or affirmation to support the Constitution of the
United States, and of the state of Missouri and to demean himself or
herself faithfully in the trustee's office. Such oath as subscribed to
shall be filed in the office of secretary of state of this state.

9. Each trustee shall be entitled to one vote in the board of trustees.
Four votes shall be necessary for a decision by the trustees at any
meeting of the board of trustees. Unless otherwise expressly provided
herein, a meeting need not be called or held to make any decision on a
matter before the board. Each member must be sent by the executive
director a copy of the matter to be decided with full information from
the files of the board of trustees. The unanimous decision of four
trustees may decide the issue by signing a document declaring their
decision and sending such written instrument to the executive director of
the board, provided that no other member of the board of trustees shall
send a dissenting decision to the executive director of the board within
fifteen days after such document and information was mailed to the
trustee. If any member is not in agreement with four members the matter
is to be passed on at a regular board meeting or a special meeting called
for the purpose.

10. The board of trustees shall elect one of their number as chairman,
and shall employ a full-time executive director, not one of their number,
who shall be the executive officer of the board. Other employees of the
board shall be chosen only upon the recommendation of the executive
director.

11. The board of trustees shall employ an actuary who shall be its
technical advisor on matters regarding the operation of the retirement
system, and shall perform such duties as are essential in connection
therewith, including the recommendation for adoption by the board of
mortality and other necessary tables, and the recommendation of the level
rate of contributions required for operation of the system.

12. As soon as practicable after the establishment of the retirement
system, and annually thereafter, the actuary shall make a valuation of
the system's assets and liabilities on the basis of such tables as have
been adopted.

13. At least once in the three-year period following the establishment of
the retirement system, and in each five-year period thereafter, the board
of trustees shall cause to be made an actuarial investigation into the
mortality, service, and compensation experience of the members and
beneficiaries of the system, and shall make any changes in the mortality,
service, and other tables then in use which the results of the
investigation show to be necessary.

14. Subject to the limitations of sections 169.010 to 169.141 and 169.600
to 169.715, the board of trustees shall formulate and adopt rules and
regulations for the government of its own proceedings and for the
administration of the retirement system.

15. The board of trustees shall determine and decide all questions of
doubt as to what constitutes employment within the meaning of sections
169.010 to 169.141 and 169.600 to 169.715, the amount of benefits to be
paid to members, retired members, beneficiaries and survivors and the
amount of contributions to be paid by employer and employee. The
executive director shall notify by certified mail both employer and
member, retired member, beneficiary or survivor interested in such
determination. Any member, retired member, beneficiary or survivor,
district or employer adversely affected by such determination, at any
time within thirty days after being notified of such determination, may
appeal to the circuit court of Cole County. Such appeal shall be tried
and determined anew in the circuit court and such court shall hear and
consider any and all competent testimony relative to the issues in the
case, which may be offered by either party thereto. The circuit court
shall determine the rights of the parties under sections 169.010 to
169.141 and 169.600 to 169.715 using the same standard provided in
section 536.150, RSMo, and the judgment or order of such circuit court
shall be binding upon the parties and the board shall carry out such
judgment or order unless an appeal is taken from such decision of the
circuit court. Appeals may be had from the circuit court by the employer,
member, retired member, beneficiary, survivor or the board, in the manner
provided by the civil code.

16. The board of trustees shall keep a record of all its proceedings,
which shall be open to public inspection. It shall prepare annually a
comprehensive annual financial report, the financial section of which
shall be prepared in accordance with applicable accounting standards and
shall include the independent auditor's opinion letter. The report shall
also include information on the actuarial status and the investments of
the system. The reports shall be preserved by the executive director and
made available for public inspection.

17. The board of trustees shall provide for the maintenance of an
individual account with each member, setting forth such data as may be
necessary for a ready determination of the member's earnings,
contributions, and interest accumulations. It shall also collect and keep
in convenient form such data as shall be necessary for the preparation of
the required mortality and service tables and for the compilation of such
other information as shall be required for the valuation of the system's
assets and liabilities. All individually identifiable information
pertaining to members, retirees, beneficiaries and survivors shall be
confidential.

18. The board of trustees shall meet regularly at least twice each year,
with the dates of such meetings to be designated in the rules and
regulations adopted by the board. Such other meetings as are deemed
necessary may be called by the chairman of the board or by any four
members acting jointly.

19. The headquarters of the retirement system shall be in Jefferson City,
where suitable office space, utilities and other services and equipment
necessary for the operation of the system shall be provided by the board
of trustees and all costs shall be paid from funds of the system. All
suits in which the board of trustees, the board's members or employees or
the retirement system established by sections 169.010 to 169.141 or
169.600 to 169.715 are parties shall be brought in Cole County.

20. The board may appoint an attorney or firm of attorneys to be the
legal advisor to the board and to represent the board in legal
proceedings, however, if the board does not make such an appointment, the
attorney general shall be the legal advisor of the board of trustees, and
shall represent the board in all legal proceedings.

21. The board of trustees shall arrange for adequate surety bonds
covering the executive director. When approved by the board, such bonds
shall be deposited in the office of the secretary of state of this state.

22. The board shall arrange for annual audits of the records and accounts
of the system by a firm of certified public accountants, the state
auditor shall review the audit of the records and accounts of the system
at least once every three years and shall report the results to the board
of trustees and the governor.

23. The board by its rules may establish an interest charge to be paid by
the employer on any payments of contributions which are delinquent. The
rate charged shall not exceed the actuarially assumed rate of return on
invested funds of the pertinent system. (L. 1945 p. 1353 § 2, A.L. 1951
p. 520, A.L. 1953 p. 467, A.L. 1967 p. 250, A.L. 1973 H.B. 270, A.L. 1983
S.B. 3, A.L. 1990 H.B. 1347, et al., A.L. 1995 S.B. 378, A.L. 1996 S.B.
860, A.L. 1998 S.B. 501, A.L. 2005 H.B. 443)

1. Whenever two-thirds of the teachers of a school district
having a population of more than seventy-five thousand and which has,
pursuant to law, a local retirement system, shall file a petition with
the board of trustees of the local retirement system and with the local
board of education of such school district requesting that their
membership in the local retirement system be transferred to the public
school retirement system of Missouri, said petition if and when approved
by the board of trustees of the local retirement system and the board of
education of the local school district shall be transmitted to the board
of trustees of the state retirement system. Thereupon at such time as all
the terms and conditions of this section as apply to teachers, as
hereinafter set forth, are fulfilled the board of trustees of the state
retirement system shall in mutual agreement with the board of trustees of
the local retirement system and the local board of education set a date
which shall be not later than one year after the filing of the petition
with the state system, upon which the local system shall be declared
discontinued as to such teachers and all persons who are or may become
teachers, as hereinbefore defined, in such local district shall be
members of the state retirement system.

2. Prior to the date when the local system is discontinued as to teachers
under the provision of this section, the board of trustees of the local
retirement system shall transfer to the board of trustees of the public
school retirement system of Missouri such moneys, bonds and evidences of
indebtedness as represent the accumulated contributions of each teacher
member of the local retirement system, but not in excess of the amount of
the accumulated contributions of a teacher already a member of the state
system with the same period of membership service and same annual
salaries during such period, along with an equal amount representing
contributions by the local board of education on account of such
teachers; and these funds are to be credited by the board of trustees as
have other contributions received by the public school retirement system
of Missouri. If the accumulated contributions of any teacher member in
the local retirement system are in excess of these requirements, such
excess shall be refunded to the teacher by the local system.

3. There shall be further transferred to the state retirement system by
the board of trustees of such local retirement system, if available from
its funds, and if not by the board of education of the local school
district from school district funds, an amount of money sufficient to
place those teachers who so elect, on an equality of benefits with those
originally becoming members of such state system, providing that any
contributions from teachers transferred from such local retirement system
due the state retirement system to equalize contributions previously made
by teachers already members of the state system shall be paid to the
board of trustees of the state system by the local school district and
charged to such teacher's salary account and withheld by the local
district in equal monthly installments during the succeeding school year.
A like amount shall be transferred to the board of trustees of the state
system by the board of trustees of such local retirement system, if
available from its funds, and if not by the board of education of the
local school district from school district funds. If the full amount as
required by this subsection for any member is not paid to the board of
trustees of the state system, such member shall receive no credit for
prior service and shall receive credit only for such membership service
as the amount paid in his behalf will provide.

4. All teachers who have been placed on retirement pursuant to the
provisions of the law creating the local system previous to the date when
the local system is discontinued as to teachers under the provisions of
this section shall be entitled to receive from the state system after the
discontinuance of the local system the same monthly benefits they were
receiving from the local system; provided that prior to the date of
discontinuance of the local system, the board of trustees of the local
system shall pay to the extent of its available funds, and if such funds
are insufficient, the board of education of the local district shall pay
from school district funds to the board of trustees of the state system
the amount necessary to maintain such monthly payments to retired
teachers plus such amount as required to pay the benefits provided by the
state system to all teachers of the local system who have attained age
sixty-nine as of date of discontinuance but have not then retired, such
amounts to be agreed to by the board of trustees of the two retirement
systems and the board of education of the local school district;
provided, however, that in school districts having a population of not
less than two hundred thousand inhabitants, in lieu of the amount
required to be paid because of the teachers of the local system who have
attained age sixty-nine but have not retired an additional payment shall
be made of the amount necessary to prevent an increase in the required
contribution rate as provided for in section 169.030 as determined by the
actuary of the public school retirement system of Missouri and as agreed
to by the board of trustees of the two retirement systems and the board
of education of the local school district.

5. Any amount to be paid the board of trustees of the state system by the
board of education of the local school district in fulfillment of the
conditions of this section may be paid in a lump sum or in installments
within ten years from date of discontinuance of the local system with
interest payable annually on the unpaid balance at the rate of two
percent; provided, however, that in school districts having a population
of not less than two hundred thousand, the period within which payment in
installments may be made may be increased from ten to twenty-five years;
provided, further, that in districts having a population of not less than
two hundred thousand inhabitants the rate to be paid on unpaid balance
shall be the average rate which the investments of the state system earn
during the same year.

6. All employees in such school district having a population of more than
seventy-five thousand and less than one hundred thousand, other than
teachers and who are not on retirement, shall, upon two-thirds vote,
withdraw therefrom and shall receive from the local retirement system the
amount credited to their respective accounts, and equal amounts from
funds contributed by the local school district; and each employee, other
than a teacher, who is on retirement pursuant to provisions of the law
creating the local retirement system, shall receive in lieu of all his
rights and interest in such local retirement system an amount of money
mutually agreed to by the local board of education and the annuitant. The
effective date of dissolution of the local system under this subsection
shall be fixed by the local board of education and the local retirement
system.

7. All employees in school districts having a population of not less than
two hundred thousand inhabitants other than certificated teachers and who
are not on retirement shall continue to be members of the existing local
retirement system subject to the right of withdrawal therefrom at any
time, regardless of whether or not he continues to be an employee, with
right to be paid on demand the amount of his accumulated contributions
with interest standing to the credit of his individual account in the
employees' contribution fund but without any right to again become a
member of the system; and each employee of such school district other
than certificated teachers who is on retirement pursuant to provisions of
the law under which the local retirement system exists shall continue to
be entitled to receive his retirement benefits in accordance with the
terms and provisions of said system, and such local retirement system
shall continue in force and effect with respect to such employees who are
not certificated teachers until such time as all shall have withdrawn and
all obligations to such retirants shall have been discharged or released;
provided that any employee other than certificated teachers becoming such
an employee after the effective date of the transfer of the certificated
teachers to the state retirement system shall have the option of
refraining from becoming a member of the local system; provided further
if in any case where a certificated teacher, now a member of the local
retirement system, is transferred to the state system his actual or
potential retirement benefits would be less than the amounts he would
have received from the local system if he had continued therein, the
local retirement system or board of education shall make up the
difference. (L. 1951 p. 520, A.L. 1953 p. 467)

For the purpose of sections 169.020 and 169.021, as amended, the
phrase "board of education" shall with respect to school districts having
a population of more than two hundred thousand be deemed to mean and
refer to the board of directors of such school district. (L. 1953 p. 467
§ 3)

1. The funds required for the operation of the retirement system
created by sections 169.010 to 169.141 shall come from contributions made
in equal amounts by members of the system and their employers, except as
provided for certain members and employers by section 104.342, RSMo, and
from such interest as may be derived from the investment of any part of
such contributions. All contributions shall be transmitted to the board
of trustees by employers in such manner and at such time as the board by
rule shall require.

2. For each school year following the date on which the system becomes
operative, each and every employer of one or more persons who are members
of the system shall transmit to the board of trustees, in the manner and
accompanied by such supporting data as the board shall prescribe, twice
the amount that is deductible from the pay of such employee or employees
during the school year. Failure or refusal to transmit such amount as
required shall render the person or persons responsible therefor
individually liable for twice the amount so withheld. Suits for the
recovery of amounts for which individuals are thus rendered liable shall
be instituted and prosecuted by the board of trustees in the name of the
retirement system. In addition to such civil penalty, and not in lieu
thereof, any person or persons made responsible for the payment of
contributions who shall willfully and knowingly fail or refuse to
transmit such contributions or any part thereof to the board of trustees
shall be deemed guilty of a misdemeanor and upon conviction thereof shall
be punished by a fine of not less than twenty-five dollars and not more
than two hundred dollars, and each day such person or persons shall so
fail or refuse to transmit such contributions shall be deemed a separate
offense.

3. The contributions of members of the retirement system shall be
collected by their employers through appropriate deductions from
paychecks, except as provided for certain members and employers by
section 104.342, RSMo. The total amount deducted from the paychecks of
members during any school year shall equal such a percent of their salary
rates as may be required by the contribution rate then in effect.
Contributions transmitted to the retirement system before February 20,
1996, based on salary rates which either included or excluded
employer-paid medical benefits for members, shall be deemed to have been
in compliance with this section. The retirement system shall not refund
or adjust contributions or adjust benefit determinations with respect to
any period before February 20, 1996, solely because of the treatment of
employer-paid medical benefits for members. Effective December 31, 1995,
compensation in excess of the limitations set forth in Section 401(a)(17)
of Title 26 of the United States Code shall be disregarded for purposes
of determining contributions under this section and calculating benefits
paid by the public school retirement system of Missouri. The limitation
on compensation for eligible employees shall not be less than the amount
which was allowed to be taken into account under the system as in effect
on July 1, 1993. For this purpose, an "eligible employee" is an
individual who was a member of the system before July 1, 1996.

4. The board of trustees shall fix and certify to the employers the level
rate of contribution subject to the following:

(1) The level rate of contribution for a fiscal year shall not exceed the
level rate of contribution for the prior fiscal year by more than one-
half percent;

(2) The board shall fix and certify to the employers the rate of
contribution for a fiscal year no later than six months prior to the date
such rate is to be effective;

(3) The board shall fix and certify to the employers the rate of
contribution for a fiscal year based on an actuarial valuation of the
system as of a date not earlier than the last day of the second prior
fiscal year. Such actuarial valuation of the system shall be performed
using processes and actuarial assumptions that are in accordance with
actuarial standards of practice in effect at the time the valuation is
performed, as promulgated by the actuarial standards board or its
successor; provided that such actuarial valuation shall be based on the
entry age normal actuarial cost method and an asset valuation method
based on the market value of system assets that may provide for smoothing
of investment gains and losses, and, further, that the level rate of
contribution shall be the total of the normal cost rate and a rate which
shall amortize the unfunded actuarial accrued liability over a period
that shall not exceed thirty years from the date of the valuation,
subject to the limitations of this subsection; and

(4) Not less than once every ten years the board shall have an actuary,
other than the actuary performing the actuarial valuation pursuant to
this section, review such actuarial valuation and perform an additional
valuation of the system.

5. Regardless of the provisions of any law governing compensation and
contracts, every teacher or employee shall be deemed to consent and agree
to the deductions provided herein. Payment of salary or compensation less
such deduction shall be a full and complete discharge of all salary or
compensation claims and demands during the period covered by such
payment, except as to the benefits provided under sections 169.010 to
169.141.

6. Notwithstanding any other provision of sections 169.010 to 169.141 to
the contrary, no legislation shall be enacted after July 1, 2003, that
increases benefits provided to members or retirees of the public school
retirement system of Missouri above that which may be funded using a rate
of contribution of ten and one-half percent as determined using an
actuarial valuation as provided in subsection 4 of this section; provided
that, notwithstanding the provision of this subsection, legislation may
be enacted after July 1, 2003, that provides for an extension of time
within which a member may make an election pursuant to subdivisions (3)
to (8) of subsection 1 of section 169.070. (L. 1945 p. 1353 § 3, A.L.
1949 p. 525, A.L. 1953 p. 480, A.L. 1957 p. 432, A.L. 1965 p. 288, A.L.
1967 p. 250, A.L. 1972 S.B. 491, A.L. 1977 H.B. 477, A.L. 1990 H.B. 1347,
et al., A.L. 1994 S.B. 575, A.L. 1995 S.B. 378, A.L. 1996 S.B. 857, A.L.
2003 H.B. 346 & 174)

CROSS REFERENCE: Requires that certain persons must make an election if
they wish to remain members of the public school retirement system, RSMo
104.032

(1995) "Salary rate" does not include fringe benefits. Savannah R-III
School Dist. v. PSRS, 912 S.W.2d 574 (Mo.App.W.D.).

The board of trustees by regulation may adopt a plan wherein
each and every employer included within the retirement system shall
specify that contributions withheld from compensation to members are
being paid directly to the retirement system by the employer and that the
members had no option to receive the contributions directly. These
contributions shall be credited to member accounts as required by law,
shall be included in the individual member salaries reported to the
retirement system, and shall in all ways be considered member
contributions. (L. 1989 S.B. 146)

Effective 6-14-89

A member may at the member's option, and under such regulations
as the board of trustees may adopt, deposit additional sums in multiples
of twenty-five dollars but not to exceed in total in any one year ten
percent of the compensation on which contributions were collected during
that year. Such deposits, together with interest thereon compounded in
the same manner and at the same rate as for the member's contributions,
shall be available to provide at the date of the member's retirement at
net rates based on the actuarial assumptions then in use, a retirement
allowance in addition to that provided pursuant to section 169.070. In
the event of the death of a member before receiving a retirement
allowance, the total amount of such accumulated deposits with interest
shall be paid to the member's beneficiary, or to the member's estate if
there is no beneficiary. In the event of the termination of membership
before the member receives a retirement allowance, the member shall be
paid the total amount of such accumulated deposits with interest if the
member has contributed for more than five years, but without interest if
the member has contributed for not more than five years. Such deposits
may be withdrawn without interest by a member prior to the member's
retirement when the member is not terminating the member's membership, in
accordance with regulations of the board of trustees. In case a retired
member who is receiving such an additional retirement allowance pursuant
to this section dies without having received in additional retirement
allowances an amount equal to the amount of the member's accumulated
deposits at retirement, the difference shall be paid to the member's
beneficiary, or to the member's estate if there is no beneficiary. The
option provided by this section shall apply only to members who have
elected to begin such deposits before September 1, 1996. (L. 1953 p. 480
§ 169.030, A.L. 1996 S.B. 860)

1. All funds arising from the operation of sections 169.010 to
169.141 shall belong to the retirement system herein created and shall be
controlled by the board of trustees of that system which board shall
provide for the collection of such funds, shall see that they are safely
preserved, and shall permit their disbursement only for the purposes
herein authorized. Such funds and all other funds received by the
retirement system are declared and shall be deemed to be the moneys and
funds of the retirement system and not revenue collected or moneys
received by the state and shall not be commingled with state funds.

2. The board shall invest all funds under its control which are in excess
of a safe operating balance. The funds shall be invested only in those
investments which a prudent person acting in a like capacity and familiar
with these matters would use in the conduct of an enterprise of a like
character and with like aims, as provided in section 105.688, RSMo. The
board of trustees may delegate to duly appointed investment counselors
authority to act in place of the board in the investment and reinvestment
of all or part of the moneys of the system, and may also delegate to such
counselors the authority to act in place of the board in the holding,
purchasing, selling, assigning, transferring or disposing of any or all
of the securities and investments in which such moneys shall have been
invested, as well as the proceeds of such investments and such moneys.
Such investment counselors shall be registered as investment advisors
with the United States Securities and Exchange Commission. In exercising
or delegating its investment powers and authority, members of the board
shall exercise ordinary business care and prudence under the facts and
circumstances prevailing at the time of the action or decision. No member
of the board shall be liable for any action taken or omitted with respect
to the exercise of, or delegation of, these powers and authority if such
member shall have discharged the duties of his or her position in good
faith and with that degree of diligence, care and skill which a prudent
person acting in a like capacity and familiar with these matters would
use in the conduct of an enterprise of a like character and with like
aims.

3. No investment transaction authorized by the 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
board of trustees 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 property. Such
securities or other properties which are not available in registered form
may be held 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 400.8-109,
RSMo. When such eligible securities of the retirement system are so
deposited with a 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.

4. With appropriate safeguards against loss by the system in any
contingency, the board may designate a bank or trust company to serve as
a depository of system funds and intermediary in the investment of those
funds and payment of system obligations.

5. All retirement allowances or other periodic payments paid by the board
shall be paid to recipients of such payments by electronic funds
transfer, unless another method has been determined by the board to be
appropriate. Each recipient of retirement allowances or other periodic
payments shall designate a financial institution or other authorized
payment agent and provide the board information necessary for the
recipient to receive electronic funds transfer payments through the
institution or agent designated. This subsection shall apply to
retirement allowances and other periodic payments first paid on or after
January 1, 1998, and shall apply to all retirement allowances and other
periodic payments on and after January 1, 1999.

6. The board of trustees may deliberate about, or make tentative or final
decisions on, investments or other financial matters in a closed meeting
under chapter 610, RSMo, if disclosure of the deliberations or decisions
would jeopardize the ability to implement a decision or to achieve
investment objectives. A record of the retirement system that discloses
deliberations about, or a tentative decision on, investments or other
financial matters is not a public record under chapter 610, RSMo, to the
extent and so long as its disclosure would jeopardize the ability to
implement a decision or to achieve investment objectives. (L. 1945 p.
1353 § 4, A.L. 1951 p. 510, A.L. 1957 p. 432, A.L. 1961 p. 365, A.L. 1975
S.B. 149, A.L. 1984 S.B. 407, A.L. 1990 H.B. 1347, et al., A.L. 1995 S.B.
378, A.L. 1997 S.B. 309, A.L. 2005 H.B. 443)

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

Any money belonging to the public school retirement system of
Missouri which is deposited in any bank or trust company shall be secured
by the deposit with and for said retirement system of securities of like
kind and value as required by section 30.270, RSMo, as security for the
safekeeping and payment of deposits by the state treasurer. (L. 1959 H.B.
227 § 1)

1. On and after the effective date of sections 169.010 to
169.140, all employees as defined in sections 169.010 to 169.141 of
districts included in the retirement system thereby created shall be
members of the system by virtue of their employment, except as provided
by section 104.342, RSMo. Individuals who qualify as independent
contractors under the common law and are treated as such by their
employer shall not be considered employees for purposes of membership in
or contributions to the retirement system.

2. Any person who becomes a member before the end of the school year next
following the date on which the system becomes operative may claim credit
for service rendered as an employee in Missouri prior to such operative
date, or for service rendered in the armed forces of the United States
during a period of war, the same as if the person were a teacher,
provided the person was a teacher in Missouri at the time the person was
inducted, by filing with the board of trustees, within such time as the
board may specify, a complete and detailed record of the service for
which credit is claimed, together with such supporting evidence as the
board may require for verification of the record. To the extent that the
board finds the record correct, it shall credit the claimant with prior
service and shall notify the claimant of its decision, but the amount of
such credit shall not exceed thirty years.

3. No prior service credit shall be granted to any person who becomes a
member after the first year of the system's operation, except as provided
in subsection 5 of this section unless that person's failure to become a
member before or during that year was due either to service in the armed
forces of the United States or to attendance at a recognized educational
institution for professional improvement; provided, that the board of
trustees may grant prior service credit to a teacher who taught prior to
August 1, 1945, if the teacher returns to teaching before July 1, 1950,
and if such teacher teaches in the public schools of Missouri not less
than seven years after returning before retirement, or the board of
trustees may grant prior service credit to a teacher who taught prior to
August 1, 1945, if the teacher returns to teaching and teaches at least
one-half of the number of years between July 1, 1946, and age sixty but
not less than seven years after returning before retirement, except that
a member who will have thirty-five or more years of teaching service in
Missouri at retirement shall be required to teach not less than three
years after returning and before retirement. A person serving in the
armed forces of the United States shall have the same right to prior
service credit as one who became a member before the end of the first
year of the system's operation, if the person becomes a member within one
year of the date of the person's discharge from such service or within
one year of such date plus time spent as a student in a standard college
or university in further preparation for service as a public school
employee. A person attending a recognized educational institution for the
person's professional improvement shall have the same right to prior
service credit as one who became a member before the end of the first
year of the system's operation, if the person becomes a member within
three years following the date on which the system became operative, and
within one year of the date on which the person's attendance at such
institution ceased.

4. Membership shall be terminated by failure of a member to earn any
membership credit as a public school employee under this system for five
consecutive school years, by death, withdrawal of contributions, or
retirement.

5. If a member withdraws or is refunded the member's contributions, the
member shall thereby forfeit any creditable service the member may have;
provided, however, if such person again becomes a member of the system,
the person may elect to reinstate the creditable service forfeited at
times of previous withdrawals or refunds. The reinstatement shall be
effected by the member paying to the retirement system with interest the
total amount of accumulated contributions withdrawn by the member or
refunded to the member with respect to the service being reinstated. A
member may reinstate less than the total service previously forfeited, in
accordance with rules promulgated by the board of trustees. The payment
shall be completed prior to termination of membership with the retirement
system with interest on the unpaid balance; provided, however, that if a
member is retired on disability before completing such payments, the
balance due with interest may be deducted from the member's disability
retirement allowance. (L. 1945 p. 1353 § 5, A.L. 1945 p. 1381 § 5, A.L.
1949 p. 525, A.L. 1953 p. 480, A.L. 1957 p. 432, A.L. 1967 p. 250, A.L.
1978 S.B. 906, A.L. 1979 S.B. 38, A.L. 1981 H.B. 33, et al., A.L. 1984
S.B. 407, A.L. 1987 H.B. 558, et al., A.L. 1988 H.B. 1100, et al., A.L.
1990 H.B. 1347, et al., A.L. 1992 S.B. 499, et al., A.L. 1996 S.B. 860,
A.L. 1997 S.B. 309, A.L. 1998 S.B. 733, A.L. 2003 H.B. 346 & 174)

1. A member who is assigned to a leave of absence by the
member's employer, with compensation provided in the contract of
employment for the leave period to be not less than fifty percent of the
amount which would have been paid had the member not been on leave, may
acquire creditable service for the period of leave. A member may elect to
receive credit for the time spent on leave of absence at the time of the
leave of absence and shall retain continued membership in the system
during the leave period provided the full contributions are withheld and
remitted on the basis of the compensation which would have been received
if the member had not been on leave of absence and the employer's
matching amount is remitted on the basis of the same amount of
compensation which would have been paid if the member had not been on
leave of absence.

2. Notwithstanding any provision of this chapter to the contrary, any
person employed as of August 28, 1993, by the department of elementary
and secondary education whose employment is covered by the retirement
system provided by sections 169.010 to 169.141, and who without
terminating that employment subsequently becomes a part-time employee of
that department in a position requiring services for at least twenty
hours per week on a regular basis, may elect within ninety days of August
28, 1993, or within ninety days of the date upon which the part-time
employment begins, whichever is later, to be covered by that retirement
system and shall receive pro rata creditable service with that retirement
system for such part-time employment. Credit shall not be allowable in
both that retirement system and another Missouri public retirement system
for such employment. (L. 1945 p. 1353 § 5, A.L. 1945 p. 1381 § 5, A.L.
1949 p. 525, A.L. 1953 p. 480 § 169.050, A.L. 1957 p. 432, A.L. 1967 p.
250, A.L. 1981 H.B. 33, et al., A.L. 1984 H.B. 1470, A.L. 1985 H.B. 463,
A.L. 1986 S.B. 616, A.L. 1987 H.B. 558, et al., A.L. 1988 H.B. 1100, et
al., A.L. 1989 H.B. 610 merged with S.B. 146, A.L. 1990 H.B. 1347, et
al., A.L. 1992 H.B. 926, A.L. 1993 S.B. 126, A.L. 1994 S.B. 575, A.L.
1995 S.B. 378, A.L. 1996 S.B. 860)

Effective 7-1-98

(1987) Veteran of National Guard had no claim against Public School
Retirement System for updated pension rights where veteran failed to
plead facts essential to establish appellant's right to contribution
under this section or facts showing the noncompliance of the school
district with this section. Dailey v. Ferguson/Florissant Sch. Dist., 733
S.W.2d 861 (Mo. App.).

(1989) Pension credit may not be denied for periods in which teacher
received military service retirement credit. Federal statute which
provides the retirement credits due a reservist under federal law cannot
be excluded in determining eligibility for civilian employment pension
benefits under any other law preempts Missouri law. (E.D.Mo.) Dailey v.
Public School Retirement System of Mo., 707 F.Supp. 1087.

1. Members who have accrued at least one year of membership
service credit for employment in a position covered by this retirement
system and who have covered employment with this retirement system
following the service for which credit is being purchased may purchase
membership service credit under the circumstances, terms and conditions
provided in this section. With respect to each such purchase authorized
by this section the following provisions apply:

(1) The purchase shall be effected by the member paying to the retirement
system the amount the member would have contributed and the amount the
employer would have contributed had such member been an employee for the
number of years for which the member is electing to purchase credit, and
had the member's compensation during such period been the highest annual
salary rate on record with the retirement system on the date of election
to purchase credit. For purposes of this section, "annual salary rate"
means the annual salary rate for full-time service for the position of
employment. The contribution rate used in determining the amount to be
paid shall be the contribution rate in effect on the date of election to
purchase credit. Notwithstanding the provisions of this subsection, for
all elections to purchase credit received by the retirement system on or
after January 1, 2006, the member shall receive credit based on the
amount paid by the member for such credit and received by the retirement
system by the close of business on June thirtieth of each year. In lieu
of charging the member interest on such purchase of credit, the amount to
be paid by the member for any remaining credit the member has elected to
purchase but has not paid for by June thirtieth of each year shall be
recalculated on the following July first using the contribution rate in
effect on that July first and the highest salary of record for the member
as of that July first. For all elections to purchase credit received by
the retirement system prior to January 1, 2006, the retirement system
shall determine the cost of such purchase using the calculation method in
effect for elections to purchase credit received by the retirement system
on or after January 1, 2006, provided that the member shall have a
one-time, irrevocable option to continue to have the cost of such
purchase be determined using the calculation method in effect at the time
of such election to purchase such credit. To be effective, such option
must be elected by the member on a form approved by the retirement system
and such form must be received by the retirement system by the close of
business on June 30, 2006. The retirement system reserves the right to
limit the amount of credit purchased by the member in any year if the
amounts paid by the member in that year would exceed any applicable
contribution limits set forth in Section 415 of Title 26 of the United
States Code;

(2) Membership service credit purchased pursuant to this section shall be
deemed to be membership service in Missouri for purposes of subsection 7
of section 169.070;

(3) An election to purchase membership service credit pursuant to this
section and payment for the purchase shall be completed prior to
termination of membership with the retirement system with interest on the
unpaid balance;

(4) Members may purchase membership service credit in increments of
one-tenth of a year, and multiple elections to purchase may be made;

(5) Additional terms and conditions applicable to purchase made pursuant
to this section including, but not limited to, minimum payments, payment
schedules and provisions applicable when a member fails to complete
payment may be set by rules of the board.

2. Membership service credit shall not be allowed pursuant to this
section or sections 169.570 and 169.577 which exceeds in length the
member's membership service credit for employment in a position covered
by this system, and in no event may the member receive membership service
credit with both this system and another public retirement system for the
same service.

3. A member who was employed for at least twenty hours per week on a
regular basis by a public school district, public junior college, public
community college, public college, or public university, either inside or
outside of this state, may elect to purchase equivalent membership
service credit.

4. A member who has served in the armed forces of the United States of
America and who was discharged or separated from the armed forces by
other than a dishonorable discharge may elect to purchase membership
service for the period of active duty service in the armed forces.

5. Any member granted unpaid maternity or paternity leave for a period,
from a position covered by the retirement system, who returned to
employment in such a position, may elect to purchase membership service
credit for the period of leave.

6. Any member who is or was certified as a vocational-technical teacher
on the basis of having a college degree or who was required to have a
period of work experience of at least two years in the area of the
subject being taught in order to qualify for such certification may, upon
written application to the board, purchase equivalent membership service
credit for such work experience which shall not exceed the two years
necessary for certification if the work experience was in the area that
the member taught or is teaching and was completed in two years.

7. Any member who had membership service credit with the public education
employee retirement system of Missouri governed by sections 169.600 to
169.715 but which membership service credit was forfeited by withdrawal
or refund may elect to purchase credit for such service. The public
education employee retirement system of Missouri shall transfer to this
system an amount equal to the employer contributions for the forfeited
service being purchased, plus interest, which shall be applied to reduce
the amount the member would otherwise pay for the purchase, provided that
the amount transferred shall not exceed one-half of the purchase cost.

8. A member may elect to purchase membership service credit for service
rendered while on leave from an employer, as defined in section 169.010,
for a not-for-profit corporation or agency whose primary purpose is
support of education or education research, if the member was employed by
that organization to serve twenty or more hours per week on a regular
basis.

9. A member who was employed by a private school, private junior college,
private community college, private college, or private university, either
inside or outside of this state, for at least twenty hours per week on a
regular basis, may elect to purchase equivalent membership service credit
for such service rendered.

10. A member who was employed in nonfederal public employment for at
least twenty hours a week on a regular basis shall be permitted to
purchase equivalent creditable service in the retirement system for such
employment subject to provisions of this section.

11. A member who, while eighteen years of age or older, was employed in a
position covered by Social Security for at least twenty hours a week on a
regular basis shall be permitted to purchase equivalent creditable
service in the retirement system for such employment subject to
provisions of this section. (L. 1994 S.B. 575, A.L. 1995 S.B. 378, A.L.
1996 S.B. 860, A.L. 1998 S.B. 733, A.L. 2003 H.B. 346 & 174, A.L. 2005
H.B. 443)

1. On and after the first day of July next following the
operative date, any member who is sixty or more years of age and whose
creditable service is five years or more, or whose sum of age and
creditable service equals eighty years or more, or who has attained age
fifty-five and whose creditable service is twenty-five years or more, or
whose creditable service is thirty years or more regardless of age, may
retire upon written application to the board of trustees and receive the
full retirement benefits on the member's creditable service. Any other
member whose creditable service is twenty-five or more years, or who has
attained age fifty-five and whose creditable service is at least five
years but less than twenty-five years, may retire upon written
application to the board of trustees and receive the actuarial equivalent
of the benefit to which the member would be entitled if the member was
sixty years of age.

2. On and after the first day of July next following the operative date,
any member who is teaching in a district included in the retirement
system at the time the member becomes disabled, or who has taught in such
a district at some time in the twelve months immediately preceding the
member becoming disabled, and whose disability is traceable to an injury
or sickness which was sustained or commenced prior to the cessation of
such teaching, and whose age is less than sixty and whose creditable
service in districts included in the retirement system is five years or
more, may be retired with disability benefits as provided in sections
169.010 to 169.141 upon written application to the board of trustees, if
the member is incapacitated because of physical or mental disability as
such disability is herein defined. If such disability shall cease to
exist before the recipient of such benefits reaches age sixty, the
member's membership status as of the date of the member's disability
retirement shall be restored. If the member seeks, before becoming
eligible for such retirement allowance, to withdraw the member's
accumulated contributions, the total of such disability payments shall be
deducted from the amount otherwise due the member.

3. Disability, as a basis for retirement, shall render the individual
incapable of earning a livelihood in any occupation and shall be of such
a nature as to warrant the assumption that it will be permanent. Whether
or not such disability exists in any case shall be adjudged in the manner
provided in subsection 15 of section 169.020 by the board of trustees on
the basis of reports made by two or more physicians selected by the board
to examine the member. Until the member reaches age sixty, the recipient
of a disability retirement allowance may be required to submit to
periodic examinations by physicians selected by the board, and if any
such examination shows that the recipient is no longer incapable of
earning a livelihood in any occupation, the member's disability
retirement shall be terminated. For the purposes of adjustments to Social
Security Administration disability benefits pursuant to 20 CFR 404.408
any member receiving disability benefits pursuant to this section who is
at least fifty-five years of age and whose creditable service is at least
twenty- five years shall be considered to be receiving a normal
retirement benefit pursuant to this section. (L. 1945 p. 1353 § 6, A.L.
1953 p. 480, A.L. 1957 p. 432, A.L. 1967 p. 250, A.L. 1972 S.B. 491, A.L.
1975 S.B. 149, A.L. 1977 H.B. 477, A.L. 1979 S.B. 40, A.L. 1984 S.B. 407,
A.L. 1987 H.B. 558, et al., A.L. 1991 S.B. 242, et al., A.L. 1995 S.B.
378, A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808)

Effective 7-1-00

1. The retirement allowance of a member whose age at retirement
is sixty years or more and whose creditable service is five years or
more, or whose sum of age and creditable service equals eighty years or
more, or who has attained age fifty-five and whose creditable service is
twenty-five years or more or whose creditable service is thirty years or
more regardless of age, may be the sum of the following items, not to
exceed one hundred percent of the member's final average salary:

(1) Two and five-tenths percent of the member's final average salary for
each year of membership service;

(2) Six-tenths of the amount payable for a year of membership service for
each year of prior service not exceeding thirty years.

In lieu of the retirement allowance otherwise provided in subdivisions
(1) and (2) of this subsection, a member may elect to receive a
retirement allowance of:

(3) Between July 1, 1998, and July 1, 2008, two and four-tenths percent
of the member's final average salary for each year of membership service,
if the member's creditable service is twenty-nine years or more but less
than thirty years, and the member has not attained age fifty-five;

(4) Between July 1, 1998, and July 1, 2008, two and
thirty-five-hundredths percent of the member's final average salary for
each year of membership service, if the member's creditable service is
twenty-eight years or more but less than twenty-nine years, and the
member has not attained age fifty-five;

(5) Between July 1, 1998, and July 1, 2008, two and three-tenths percent
of the member's final average salary for each year of membership service,
if the member's creditable service is twenty-seven years or more but less
than twenty-eight years, and the member has not attained age fifty-five;

(6) Between July 1, 1998, and July 1, 2008, two and
twenty-five-hundredths percent of the member's final average salary for
each year of membership service, if the member's creditable service is
twenty-six years or more but less than twenty-seven years, and the member
has not attained age fifty-five;

(7) Between July 1, 1998, and July 1, 2008, two and two-tenths percent of
the member's final average salary for each year of membership service, if
the member's creditable service is twenty-five years or more but less
than twenty-six years, and the member has not attained age fifty-five;

(8) Between July 1, 2001, and July 1, 2008, two and fifty-five hundredths
percent of the member's final average salary for each year of membership
service, if the member's creditable service is thirty-one years or more
regardless of age.

2. In lieu of the retirement allowance provided in subsection 1 of this
section, a member whose age is sixty years or more on September 28, 1975,
may elect to have the member's retirement allowance calculated as a sum
of the following items:

(1) Sixty cents plus one and five-tenths percent of the member's final
average salary for each year of membership service;

(2) Six-tenths of the amount payable for a year of membership service for
each year of prior service not exceeding thirty years;

(3) Three-fourths of one percent of the sum of subdivisions (1) and (2)
of this subsection for each month of attained age in excess of sixty
years but not in excess of age sixty-five.

3. (1) In lieu of the retirement allowance provided either in subsection
1 or 2 of this section, collectively called "option 1", a member whose
creditable service is twenty-five years or more or who has attained the
age of fifty-five with five or more years of creditable service may elect
in the member's application for retirement to receive the actuarial
equivalent of the member's retirement allowance in reduced monthly
payments for life during retirement with the provision that:

Option 2. Upon the member's death the reduced retirement allowance shall
be continued throughout the life of and paid to such person as has an
insurable interest in the life of the member as the member shall have
nominated in the member's election of the option, and provided further
that if the person so nominated dies before the retired member, the
retirement allowance will be increased to the amount the retired member
would be receiving had the retired member elected option 1;

OR

Option 3. Upon the death of the member three-fourths of the reduced
retirement allowance shall be continued throughout the life of and paid
to such person as has an insurable interest in the life of the member and
as the member shall have nominated in an election of the option, and
provided further that if the person so nominated dies before the retired
member, the retirement allowance will be increased to the amount the
retired member would be receiving had the member elected option 1;

OR

Option 4. Upon the death of the member one-half of the reduced retirement
allowance shall be continued throughout the life of, and paid to, such
person as has an insurable interest in the life of the member and as the
member shall have nominated in an election of the option, and provided
further that if the person so nominated dies before the retired member,
the retirement allowance shall be increased to the amount the retired
member would be receiving had the member elected option 1;

OR

Option 5. Upon the death of the member prior to the member having
received one hundred twenty monthly payments of the member's reduced
allowance, the remainder of the one hundred twenty monthly payments of
the reduced allowance shall be paid to such beneficiary as the member
shall have nominated in the member's election of the option or in a
subsequent nomination. If there is no beneficiary so nominated who
survives the member for the remainder of the one hundred twenty monthly
payments, the total of the remainder of such one hundred twenty monthly
payments shall be paid to the estate of the last person to receive a
monthly allowance. If the total of the one hundred twenty payments paid
to the retired individual and the beneficiary of the retired individual
is less than the total of the member's accumulated contributions, the
difference shall be paid to the beneficiary in a lump sum;

OR

Option 6. Upon the death of the member prior to the member having
received sixty monthly payments of the member's reduced allowance, the
remainder of the sixty monthly payments of the reduced allowance shall be
paid to such beneficiary as the member shall have nominated in the
member's election of the option or in a subsequent nomination. If there
is no beneficiary so nominated who survives the member for the remainder
of the sixty monthly payments, the total of the remainder of such sixty
monthly payments shall be paid to the estate of the last person to
receive a monthly allowance. If the total of the sixty payments paid to
the retired individual and the beneficiary of the retired individual is
less than the total of the member's accumulated contributions, the
difference shall be paid to the beneficiary in a lump sum.

(2) The election of an option may be made only in the application for
retirement and such application must be filed prior to the date on which
the retirement of the member is to be effective. If either the member or
the person nominated to receive the survivorship payments dies before the
effective date of retirement, the option shall not be effective, provided
that:

(a) If the member or a person retired on disability retirement dies after
acquiring twenty-five or more years of creditable service or after
attaining the age of fifty-five years and acquiring five or more years of
creditable service and before retirement, except retirement with
disability benefits, and the person named by the member as the member's
beneficiary has an insurable interest in the life of the deceased member,
the designated beneficiary may elect to receive either survivorship
benefits under option 2 or a payment of the accumulated contributions of
the member. If survivorship benefits under option 2 are elected and the
member at the time of death would have been eligible to receive an
actuarial equivalent of the member's retirement allowance, the designated
beneficiary may further elect to defer the option 2 payments until the
date the member would have been eligible to receive the retirement
allowance provided in subsection 1 or 2 of this section;

(b) If the member or a person retired on disability retirement dies
before attaining age fifty-five but after acquiring five but fewer than
twenty-five years of creditable service, and the person named as the
member's beneficiary has an insurable interest in the life of the
deceased member, the designated beneficiary may elect to receive either a
payment of the member's accumulated contributions, or survivorship
benefits under option 2 to begin on the date the member would first have
been eligible to receive an actuarial equivalent of the member's
retirement allowance, or to begin on the date the member would first have
been eligible to receive the retirement allowance provided in subsection
1 or 2 of this section.

4. If the total of the retirement or disability allowance paid to an
individual before the death of the individual is less than the
accumulated contributions at the time of retirement, the difference shall
be paid to the beneficiary of the individual, or to the (1) surviving
spouse, (2) surviving children in equal shares, (3) surviving parents in
equal shares, or (4) estate of the individual in that order of
precedence. If an optional benefit as provided in option 2, 3 or 4 in
subsection 3 of this section had been elected, and the beneficiary dies
after receiving the optional benefit, and if the total retirement
allowance paid to the retired individual and the beneficiary of the
retired individual is less than the total of the contributions, the
difference shall be paid to the (1) surviving spouse, (2) surviving
children in equal shares, (3) surviving parents in equal shares, or (4)
estate of the beneficiary, in that order of precedence, unless the
retired individual designates a different recipient with the board at or
after retirement.

5. If a member dies before receiving a retirement allowance, the member's
accumulated contributions at the time of the death of the member shall be
paid to the beneficiary of the member or, if there is no beneficiary, to
the (1) surviving spouse, (2) surviving children in equal shares, (3)
surviving parents in equal shares, or (4) to the estate of the member in
that order of precedence; except that, no such payment shall be made if
the beneficiary elects option 2 in subsection 3 of this section, unless
the beneficiary dies before having received benefits pursuant to that
subsection equal to the accumulated contributions of the member, in which
case the amount of accumulated contributions in excess of the total
benefits paid pursuant to that subsection shall be paid to the (1)
surviving spouse, (2) surviving children in equal shares, (3) surviving
parents in equal shares, or (4) estate of the beneficiary, in that order
of precedence.

6. If a member ceases to be a public school employee as herein defined
and certifies to the board of trustees that such cessation is permanent,
or if the membership of the person is otherwise terminated, the member
shall be paid the member's accumulated contributions with interest.

7. Notwithstanding any provisions of sections 169.010 to 169.141 to the
contrary, if a member ceases to be a public school employee after
acquiring five or more years of membership service in Missouri, the
member may at the option of the member leave the member's contributions
with the retirement system and claim a retirement allowance any time
after reaching the minimum age for voluntary retirement. When the
member's claim is presented to the board, the member shall be granted an
allowance as provided in sections 169.010 to 169.141 on the basis of the
member's age, years of service, and the provisions of the law in effect
at the time the member requests the member's retirement to become
effective.

8. The retirement allowance of a member retired because of disability
shall be nine-tenths of the allowance to which the member's creditable
service would entitle the member if the member's age were sixty, or fifty
percent of one-twelfth of the annual salary rate used in determining the
member's contributions during the last school year for which the member
received a year of creditable service immediately prior to the member's
disability, whichever is greater, except that no such allowance shall
exceed the retirement allowance to which the member would have been
entitled upon retirement at age sixty if the member had continued to
teach from the date of disability until age sixty at the same salary rate.

9. Notwithstanding any provisions of sections 169.010 to 169.141 to the
contrary, from October 13, 1961, the contribution rate pursuant to
sections 169.010 to 169.141 shall be multiplied by the factor of
two-thirds for any member of the system for whom federal Old Age and
Survivors Insurance tax is paid from state or local tax funds on account
of the member's employment entitling the person to membership in the
system. The monetary benefits for a member who elected not to exercise an
option to pay into the system a retroactive contribution of four percent
on that part of the member's annual salary rate which was in excess of
four thousand eight hundred dollars but not in excess of eight thousand
four hundred dollars for each year of employment in a position covered by
this system between July 1, 1957, and July 1, 1961, as provided in
subsection 10 of this section as it appears in RSMo, 1969, shall be the
sum of:

(1) For years of service prior to July 1, 1946, six-tenths of the full
amount payable for years of membership service;

(2) For years of membership service after July 1, 1946, in which the full
contribution rate was paid, full benefits under the formula in effect at
the time of the member's retirement;

(3) For years of membership service after July 1, 1957, and prior to July
1, 1961, the benefits provided in this section as it appears in RSMo,
1959; except that if the member has at least thirty years of creditable
service at retirement the member shall receive the benefit payable
pursuant to that section as though the member's age were sixty-five at
retirement;

(4) For years of membership service after July 1, 1961, in which the
two-thirds contribution rate was paid, two-thirds of the benefits under
the formula in effect at the time of the member's retirement.

10. The monetary benefits for each other member for whom federal Old Age
and Survivors Insurance tax is or was paid at any time from state or
local funds on account of the member's employment entitling the member to
membership in the system shall be the sum of:

(1) For years of service prior to July 1, 1946, six-tenths of the full
amount payable for years of membership service;

(2) For years of membership service after July 1, 1946, in which the full
contribution rate was paid, full benefits under the formula in effect at
the time of the member's retirement;

(3) For years of membership service after July 1, 1957, in which the
two-thirds contribution rate was paid, two-thirds of the benefits under
the formula in effect at the time of the member's retirement.

11. Any retired member of the system who was retired prior to September
1, 1972, or beneficiary receiving payments under option 1 or option 2 of
subsection 3 of this section, as such option existed prior to September
1, 1972, will be eligible to receive an increase in the retirement
allowance of the member of two percent for each year, or major fraction
of more than one-half of a year, which the retired member has been
retired prior to July 1, 1975. This increased amount shall be payable
commencing with January, 1976, and shall thereafter be referred to as the
member's retirement allowance. The increase provided for in this
subsection shall not affect the retired member's eligibility for
compensation provided for in section 169.580 or 169.585, nor shall the
amount being paid pursuant to these sections be reduced because of any
increases provided for in this section.

12. If the board of trustees determines that the cost of living, as
measured by generally accepted standards, increases two percent or more
in the preceding fiscal year, the board shall increase the retirement
allowances which the retired members or beneficiaries are receiving by
two percent of the amount being received by the retired member or the
beneficiary at the time the annual increase is granted by the board with
the provision that the increases provided for in this subsection shall
not become effective until the fourth January first following the
member's retirement or January 1, 1977, whichever later occurs, or in the
case of any member retiring on or after July 1, 2000, the increase
provided for in this subsection shall not become effective until the
third January first following the member's retirement, or in the case of
any member retiring on or after July 1, 2001, the increase provided for
in this subsection shall not become effective until the second January
first following the member's retirement. Commencing with January 1, 1992,
if the board of trustees determines that the cost of living has increased
five percent or more in the preceding fiscal year, the board shall
increase the retirement allowances by five percent. The total of the
increases granted to a retired member or the beneficiary after December
31, 1976, may not exceed eighty percent of the retirement allowance
established at retirement or as previously adjusted by other subsections.
If the cost of living increases less than five percent, the board of
trustees may determine the percentage of increase to be made in
retirement allowances, but at no time can the increase exceed five
percent per year. If the cost of living decreases in a fiscal year, there
will be no increase in allowances for retired members on the following
January first.

13. The board of trustees may reduce the amounts which have been granted
as increases to a member pursuant to subsection 12 of this section if the
cost of living, as determined by the board and as measured by generally
accepted standards, is less than the cost of living was at the time of
the first increase granted to the member; except that, the reductions
shall not exceed the amount of increases which have been made to the
member's allowance after December 31, 1976.

14. Any application for retirement shall include a sworn statement by the
member certifying that the spouse of the member at the time the
application was completed was aware of the application and the plan of
retirement elected in the application.

15. Notwithstanding any other provision of law, any person retired prior
to September 28, 1983, who is receiving a reduced retirement allowance
under option 1 or option 2 of subsection 3 of this section, as such
option existed prior to September 28, 1983, and whose beneficiary
nominated to receive continued retirement allowance payments under the
elected option dies or has died, shall upon application to the board of
trustees have his or her retirement allowance increased to the amount he
or she would have been receiving had the option not been elected,
actuarially adjusted to recognize any excessive benefits which would have
been paid to him or her up to the time of application.

16. Benefits paid pursuant to the provisions of the public school
retirement system of Missouri shall not exceed the limitations of Section
415 of Title 26 of the United States Code except as provided pursuant to
this subsection. Notwithstanding any other law to the contrary, the board
of trustees may establish a benefit plan pursuant to Section 415(m) of
Title 26 of the United States Code. Such plan shall be created solely for
the purpose described in Section 415(m)(3)(A) of Title 26 of the United
States Code. The board of trustees may promulgate regulations necessary
to implement the provisions of this subsection and to create and
administer such benefit plan.

17. Notwithstanding any other provision of law to the contrary, any
person retired before, on, or after May 26, 1994, shall be made,
constituted, appointed and employed by the board as a special consultant
on the matters of education, retirement and aging, and upon request shall
give written or oral opinions to the board in response to such requests.
As compensation for such duties the person shall receive an amount based
on the person's years of service so that the total amount received
pursuant to sections 169.010 to 169.141 shall be at least the minimum
amounts specified in subdivisions (1) to (4) of this subsection. In
determining the minimum amount to be received, the amounts in
subdivisions (3) and (4) of this subsection shall be adjusted in
accordance with the actuarial adjustment, if any, that was applied to the
person's retirement allowance. In determining the minimum amount to be
received, beginning September 1, 1996, the amounts in subdivisions (1)
and (2) of this subsection shall be adjusted in accordance with the
actuarial adjustment, if any, that was applied to the person's retirement
allowance due to election of an optional form of retirement having a
continued monthly payment after the person's death. Notwithstanding any
other provision of law to the contrary, no person retired before, on, or
after May 26, 1994, and no beneficiary of such a person, shall receive a
retirement benefit pursuant to sections 169.010 to 169.141 based on the
person's years of service less than the following amounts:

(1) Thirty or more years of service, one thousand two hundred dollars;

(2) At least twenty-five years but less than thirty years, one thousand
dollars;

(3) At least twenty years but less than twenty-five years, eight hundred
dollars;

(4) At least fifteen years but less than twenty years, six hundred
dollars.

18. Notwithstanding any other provisions of law to the contrary, any
person retired prior to May 26, 1994, and any designated beneficiary of
such a retired member who was deceased prior to July 1, 1999, shall be
made, constituted, appointed and employed by the board as a special
consultant on the matters of education, retirement or aging and upon
request shall give written or oral opinions to the board in response to
such requests. Beginning September 1, 1996, as compensation for such
service, the member shall have added, pursuant to this subsection, to the
member's monthly annuity as provided by this section a dollar amount
equal to the lesser of sixty dollars or the product of two dollars
multiplied by the member's number of years of creditable service.
Beginning September 1, 1999, the designated beneficiary of the deceased
member shall as compensation for such service have added, pursuant to
this subsection, to the monthly annuity as provided by this section a
dollar amount equal to the lesser of sixty dollars or the product of two
dollars multiplied by the member's number of years of creditable service.
The total compensation provided by this section including the
compensation provided by this subsection shall be used in calculating any
future cost-of-living adjustments provided by subsection 12 of this
section.

19. Any member who has retired prior to July 1, 1998, and the designated
beneficiary of a deceased retired member shall be made, constituted,
appointed and employed by the board as a special consultant on the
matters of education, retirement and aging, and upon request shall give
written or oral opinions to the board in response to such requests. As
compensation for such duties the person shall receive a payment
equivalent to eight and seven-tenths percent of the previous month's
benefit, which shall be added to the member's or beneficiary's monthly
annuity and which shall not be subject to the provisions of subsections
12 and 13 of this section for the purposes of the limit on the total
amount of increases which may be received.

20. Any member who has retired shall be made, constituted, appointed and
employed by the board as a special consultant on the matters of
education, retirement and aging, and upon request shall give written or
oral opinions to the board in response to such request. As compensation
for such duties, the beneficiary of the retired member, or, if there is
no beneficiary, the (1) surviving spouse, (2) surviving children in equal
shares, (3) surviving parents in equal shares, or (4) estate of the
retired member, in that order of precedence, shall receive as a part of
compensation for these duties a death benefit of five thousand dollars.

21. Any member who has retired prior to July 1, 1999, and the designated
beneficiary of a retired member who was deceased prior to July 1, 1999,
shall be made, constituted, appointed and employed by the board as a
special consultant on the matters of education, retirement and aging, and
upon request shall give written or oral opinions to the board in response
to such requests. As compensation for such duties, the person shall have
added, pursuant to this subsection, to the monthly annuity as provided by
this section a dollar amount equal to five dollars times the member's
number of years of creditable service.

22. Any member who has retired prior to July 1, 2000, and the designated
beneficiary of a deceased retired member shall be made, constituted,
appointed and employed by the board as a special consultant on the
matters of education, retirement and aging, and upon request shall give
written or oral opinions to the board in response to such requests. As
compensation for such duties, the person shall receive a payment
equivalent to three and five-tenths percent of the previous month's
benefit, which shall be added to the member or beneficiary's monthly
annuity and which shall not be subject to the provisions of subsections
12 and 13 of this section for the purposes of the limit on the total
amount of increases which may be received.

23. Any member who has retired prior to July 1, 2001, and the designated
beneficiary of a deceased retired member shall be made, constituted,
appointed and employed by the board as a special consultant on the
matters of education, retirement and aging, and upon request shall give
written or oral opinions to the board in response to such requests. As
compensation for such duties, the person shall receive a dollar amount
equal to three dollars times the member's number of years of creditable
service, which shall be added to the member's or beneficiary's monthly
annuity and which shall not be subject to the provisions of subsections
12 and 13 of this section for the purposes of the limit on the total
amount of increases which may be received. (L. 1945 p. 1353 § 7, A.L.
1949 p. 525, A.L. 1953 p. 480, A.L. 1957 p. 432, A.L. 1961 p. 367, A.L.
1967 p. 250, A.L. 1972 H.B. 1429, A.L. 1975 S.B. 149, A.L. 1977 H.B. 477,
A.L. 1978 S.B. 542, A.L. 1980 S.B. 507, A.L. 1983 S.B. 3, A.L. 1984 S.B.
407, A.L. 1986 S.B. 616, A.L. 1987 H.B. 558, et al. merged with S.B. 264,
A.L. 1988 H.B. 1100, et al., A.L. 1989 H.B. 610 merged with S.B. 146
merged with H.B. 600, A.L. 1990 H.B. 1347, et al., A.L. 1991 S.B. 242, et
al., A.L. 1992 H.B. 926, A.L. 1993 S.B. 126, A.L. 1994 H.B. 1544 merged
with S.B. 575, A.L. 1995 S.B. 378, A.L. 1996 S.B. 860, A.L. 1997 S.B.
309, A.L. 1998 S.B. 501, A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808,
A.L. 2001 H.B. 660, A.L. 2003 H.B. 346 & 174, A.L. 2005 H.B. 443)

1. Any member eligible for a retirement allowance pursuant to
section 169.070 and who has not previously received a retirement
allowance, including an allowance under disability retirement under
section 169.070, and whose sum of age and creditable service equals
eighty-six years or more or whose creditable service is thirty-three
years or more or whose age is sixty-three years or more and who has eight
years or more of creditable service may elect a distribution under the
partial lump sum option plan provided in this section if the member
notifies the retirement system on the application for retirement.

2. A member entitled to make an election pursuant to this section may
elect to receive a lump sum distribution in addition to the member's
monthly retirement allowance pursuant to section 169.070, as reduced
pursuant to this section. Such member may elect the amount of the
member's lump sum distribution from one, but not more than one, of the
following options:

(1) A lump sum amount equal to twelve times the retirement allowance the
member would receive if no election were made pursuant to this section
and the member had chosen option 1 pursuant to section 169.070;

(2) A lump sum amount equal to twenty-four times the retirement allowance
the member would receive if no election were made pursuant to this
section and the member had chosen option 1 pursuant to section 169.070; or

(3) A lump sum amount equal to thirty-six times the retirement allowance
the member would receive if no election were made pursuant to this
section and the member had chosen option 1 pursuant to section 169.070.

3. When a member makes an election to receive a lump sum distribution
pursuant to this section, the retirement allowance that 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 retirement allowance shall be the member's
retirement allowance thereafter for all purposes in relation to
retirement allowance amounts pursuant to section 169.070. A retirement
allowance increased due to the death of a person nominated by the member
to receive benefits pursuant to the provisions of option 2, 3, or 4 of
subsection 3 of section 169.070 shall be increased pursuant to such
provisions to the amount the retired member would be receiving had the
retired member elected option 1 as actuarially reduced due to the lump
sum distribution made pursuant to this section. Any payment of
accumulated contributions pursuant to the provisions of sections 169.010
to 169.141 shall be reduced by the amount of any lump sum distribution
made pursuant to this section in addition to any other reductions
required by sections 169.010 to 169.141.

4. If the member dies before receiving a lump sum distribution pursuant
to this section, the lump sum distribution shall be paid in accordance
with rules adopted by the board of trustees.

5. Benefits paid pursuant to this section, in addition to all other
provisions of the public school retirement system of Missouri, shall not
exceed the limitations of Section 415 of Title 26 of the United States
Code except as provided in subsection 16 of section 169.070. (L. 2003
H.B. 346 & 174, A.L. 2005 H.B. 443)

1. Certain survivors specified in this section and meeting the
requirements of this section may elect to forfeit any payments payable
pursuant to subsection 3 or 5 of section 169.070 and to receive certain
other benefits described in this section upon the death of a member prior
to retirement, except retirement with disability benefits, whose period
of creditable service in districts included in the retirement system is
(1) five years or more, or (2) two years but less than five years and who
dies (a) while teaching in a district included in the retirement system,
or (b) as a result of an injury or sickness incurred while teaching in
such a district and within one year of the commencement of such injury or
sickness, or (c) while eligible for a disability retirement allowance
hereunder.

2. Upon an election pursuant to subsection 1 of this section, a surviving
spouse sixty years of age, or upon attainment of age sixty, or a
surviving spouse who has been totally and permanently disabled for not
less than five years immediately preceding the death of a member if
designated as the sole beneficiary, and if married to the member at least
three years, and if living with such member at the time of the member's
death, shall be entitled to a monthly payment equal to twenty percent of
one-twelfth of the annual salary rate on which the member contributed for
the member's last full year of creditable service as a teacher in a
district included in the retirement system until death or recovery prior
to age sixty from the disability which qualified the spouse for the
benefit, whichever first occurs; provided that the monthly payment shall
not be less than five hundred seventy-five dollars or more than eight
hundred sixty dollars. A surviving spouse, who is eligible for benefits
pursuant to this subsection and also pursuant to subsection 3 of this
section may receive benefits only pursuant to subsection 3 of this
section as long as the surviving spouse remains eligible pursuant to both
subsections, but shall not be disqualified for the benefit provided in
this subsection because the surviving spouse may have received payments
pursuant to subsection 3 of this section. Beginning August 28, 2001, a
surviving spouse who otherwise meets the requirements of this subsection
but who remarried prior to August 28, 1995, shall be entitled, upon an
election pursuant to subsection 1 of this section, to any remaining
benefits that would otherwise have been received had the surviving spouse
not remarried before the change in law permitting remarried surviving
spouses to continue receiving benefits. Such surviving spouses may, upon
application, become special consultants whose benefit will be to receive
the remaining benefits described in this subsection. No benefit shall be
paid to such surviving spouse unless he or she files a valid application
for such benefit with the retirement system postmarked on or before June
30, 2002. In no event shall any retroactive benefits be paid.

3. Upon an election pursuant to subsection 1 of this section, a surviving
spouse, if designated as the sole beneficiary, who has in the surviving
spouse's care a dependent unmarried child, including a stepchild or
adopted child, of the deceased member, under eighteen years of age, shall
be entitled to a monthly payment equal to twenty percent of one-twelfth
of the annual salary rate on which the member contributed for the
member's last full year of creditable service as a teacher in a district
included in the retirement system until the surviving spouse's death, or
the first date when no such dependent unmarried child under age eighteen,
or age twenty-four if the child is enrolled in school on a full-time
basis, remains in the surviving spouse's care, whichever first occurs;
provided that the monthly payment shall not be less than five hundred
seventy-five dollars or more than eight hundred sixty dollars. In
addition the surviving spouse shall be entitled to a monthly payment
equal to one-half this amount, provided that the monthly payment shall
not be less than three hundred dollars, for each such dependent unmarried
child under eighteen years of age, or age twenty-four if the child is
enrolled in school on a full-time basis, who remains in the surviving
spouse's care. Further, in addition to the monthly payment to the
surviving spouse as provided for in this subsection, each dependent
unmarried child under the age of eighteen years of the deceased member
not in the care of such surviving spouse shall be entitled to a monthly
payment equal to one-half of the surviving spouse's monthly payment which
shall be paid to the child's primary custodial parent or legal guardian;
provided that the payment because of an unmarried dependent child shall
be made until the child attains age twenty-four if the child is enrolled
in school on a full-time basis; provided, however, that the total of all
monthly payments to the surviving spouse, primary custodial parent or
legal guardian, including payments for such dependent unmarried children,
shall in no event exceed two thousand one hundred sixty dollars, the
amount of the children's share to be allocated equally as to each
dependent unmarried child eligible to receive payments pursuant to this
subsection.

4. Upon an election pursuant to subsection 1 of this section if the
designated beneficiary is a dependent unmarried child as defined in this
section or automatically upon the death of a surviving spouse receiving
benefits pursuant to subsection 3 of this section, each surviving
dependent unmarried child, including a stepchild or adopted child, of the
deceased member, under eighteen years of age, or such a child under age
twenty-four if the child is enrolled in school on a full-time basis,
shall be entitled to a monthly payment equal to sixteen and two-thirds
percent of one-twelfth of the annual salary rate on which the member
contributed for the member's last full year of creditable service as a
teacher in a district included in the retirement system until death,
marriage, adoption, or attainment of age eighteen or age twenty-four if
enrolled in school on a full-time basis, whichever first occurs; provided
that the monthly payment shall not be less than five hundred dollars or
more than seven hundred twenty dollars, and provided further that any
child of the deceased member who is disabled before attainment of age
eighteen because of a physical or mental impairment which renders the
child unable to engage in any substantial gainful activity and which
disability continues after the child has attained age eighteen shall be
entitled to a like monthly payment, until death, marriage, adoption, or
recovery from the disability, whichever first occurs; provided, however,
that the total of all monthly payments to the surviving dependent
unmarried children shall in no event exceed two thousand one hundred
sixty dollars.

5. In lieu of receiving any benefit or lump sum from the retirement
system, the designated beneficiary may elect under subsection 1 of this
section to direct that each surviving dependent unmarried child,
including a stepchild or adopted child, of the deceased member, under
eighteen years of age, or such a child under age twenty-four if the child
is enrolled in school on a full-time basis, shall be entitled to a
monthly payment equal to sixteen and two-thirds percent of one-twelfth of
the annual salary rate on which the member contributed for the member's
last full year of creditable service as a teacher in a district included
in the retirement system until death, marriage, adoption, or attainment
of age eighteen or age twenty-four if enrolled in school on a full-time
basis, whichever first occurs; provided that the monthly payment shall
not be less than five hundred dollars or more than seven hundred twenty
dollars, and provided further that any child of the deceased member who
is disabled before attainment of age eighteen because of a physical or
mental impairment which renders the child unable to engage in any
substantial gainful activity and which disability continues after the
child has attained age eighteen shall be entitled to a like monthly
payment, until death, marriage, adoption, or recovery from the
disability, whichever first occurs; provided, however, that the total of
all monthly payments to the surviving dependent unmarried children shall
in no event exceed two thousand one hundred sixty dollars.

6. Upon an election pursuant to subsection 1 of this section, a surviving
dependent parent of the deceased member, over sixty-five years of age or
upon attainment of age sixty-five if designated as the sole beneficiary,
provided such dependent parent was receiving at least one-half of the
parent's support from such member at the time of the member's death and
provided the parent files proof of such support within two years of such
death, shall be entitled to a monthly payment equal to sixteen and
two-thirds percent of one-twelfth of the annual salary rate on which the
member contributed for the member's last full year as a teacher in a
district included in the retirement system until death; provided that the
monthly payment shall not be less than five hundred dollars or more than
seven hundred twenty dollars. If the other parent also is a dependent, as
defined in this section, the same amount shall be paid to each until
death.

7. All else in this section to the contrary notwithstanding, a survivor
may not be eligible to benefit pursuant to this section because of more
than one terminated membership, and be it further provided that the board
of trustees shall determine and decide all questions of doubt as to what
constitutes dependency within the meaning of this section.

8. The provisions added to subsection 3 of this section in 1991 are
intended to clarify the scope and meaning of this section as originally
enacted and shall be applied in all cases in which such an election has
occurred or will occur.

9. After July 1, 2000, all benefits payable pursuant to subsections 1 to
8 of this section shall be payable to eligible current and future
survivor beneficiaries in accordance with this section.

10. The system shall pay a monthly retirement allowance for the month in
which a retired member, beneficiary or survivor receiving a retirement
allowance or survivor benefit dies.

11. If the total of all payments made under this section is less than the
total of the member's accumulated contributions, the difference shall be
paid to the person making the election under subsection 1 of this
section. If such person does not survive until all payments are made
under this section, such difference shall be paid in accordance with
section 169.076. (L. 1945 p. 1353 § 7, A.L. 1949 p. 525, A.L. 1953 p. 480
§ 169.070, A.L. 1957 p. 432, A.L. 1967 p. 250, A.L. 1972 S.B. 491, A.L.
1975 S.B. 149, A.L. 1979 S.B. 40, A.L. 1984 S.B. 407, A.L. 1989 H.B. 600,
A.L. 1991 S.B. 242, et al., A.L. 1993 S.B. 126, A.L. 1995 S.B. 378, A.L.
1996 S.B. 860, A.L. 1997 S.B. 309, A.L. 1999 S.B. 308 & 314, A.L. 2000
H.B. 1808, A.L. 2001 H.B. 660, A.L. 2005 H.B. 443)

(1973) Held that where surviving spouse was ineligible to elect monthly
benefits and renounced right to receive accumulated contributions,
surviving children became eligible to so elect. Williams v. Board of
Trustees of Public School Retirement System (A.), 500 S.W.2d 31.

1. If a member dies before service retirement and is not
survived by a beneficiary under a valid beneficiary designation filed
with the retirement system or all designated beneficiaries have
disclaimed the right to receive benefits from the retirement system, the
following individuals shall be deemed to be the member's designated
beneficiaries, in the following order of precedence, for the purpose of
making an election and receiving benefits under paragraph (a) or (b) of
subdivision (2) of subsection 3 of section 169.070 or section 169.075:

(1) Surviving spouse at the time of the member's death;

(2) Surviving children eligible to receive benefits under section 169.075
at the time of the member's death, share and share alike;

(3) Surviving children not eligible to receive benefits under section
169.075 at the time of the member's death, share and share alike;

(4) Surviving dependent parents eligible for a benefit under section
169.075 at the time of the member's death, share and share alike;

(5) Surviving parents, share and share alike;

(6) Estate.

2. The member's most recent valid designation of a beneficiary received
by the retirement system prior to the member's death revokes all previous
designations in their entirety. The member's marriage, divorce,
withdrawal of accumulated contributions, or the birth of the member's
child, or the member's adoption of a child, shall result in an automatic
revocation of the member's previous designation in its entirety upon the
retirement system receiving actual notice of such event before or after
the member's death and prior to any payments being made under the
provisions of this chapter. This section applies to all beneficiary
designations filed with the retirement system before or after August 28,
2005, under which payments have not been made under this chapter. This
section shall not apply to the member's designation of a beneficiary to
receive a monthly benefit upon the death of the member under subdivision
(1) of subsection 3 of section 169.070. (L. 2005 H.B. 443)

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 have the power to correct such error and, as far
as practicable, may adjust the payments in such manner that the actuarial
equivalent of the benefit to which such member or beneficiary was
correctly entitled shall be paid. (L. 1945 p. 1353 § 8, A.L. 1955 p. 524)

Neither the funds belonging to the retirement system nor any
benefit accrued or accruing to any person under the provisions of
sections 169.010 to 169.130 shall be subject to execution, garnishment,
attachment or any other process whatsoever, nor shall they be assignable,
except as in sections 169.010 to 169.130 specifically provided. (L. 1945
p. 1353 § 9)

Gifts, devises, bequests and legacies may be accepted by the
board of trustees, to be held and invested and, except where specific
direction for the use of a gift is made by a donor, used at its
discretion for the benefit of the retirement system. (L. 1945 p. 1353 §
10)

To meet the requirements of the retirement system for the period
between the time when sections 169.010 to 169.130 shall take effect and
the time when sufficient contributions to the system are transmitted by
employers, the board of trustees shall have authority to accept on behalf
of the system such grants or appropriations as may be made to them or it
by the general assembly of Missouri and to repay and return the same to
the state treasury when funds of the system sufficient therefor are
available; provided, that any funds appropriated by the general assembly
shall be repaid within two years after the effective date of sections
169.010 to 169.130; and provided further, that the state of Missouri
shall contribute no funds directly or indirectly to finance the plan to
pay retirement allowances by appropriation bills or otherwise, except for
payments or contributions of persons employed by the state board of
education as provided in subsection 6 of section 169.010, and except
those funds which the district may receive from time to time under a law
or laws providing for a general apportionment of school moneys throughout
all the state. (L. 1945 p. 1353 § 11)

1. Any person, duly certified under the law governing the
certification of teachers, employed full time as a teacher by the
division of youth services prior to August 13, 1986, who did not become a
member of the Missouri state employees' retirement system under section
104.342, RSMo, is a member of the public school retirement system of
Missouri. Any such person who becomes a member before the end of the
school year next following July 18, 1948, may claim and receive credit
for prior service. The contributions required to be made by the member's
employer shall be paid from appropriations to the institution by which
the member is employed.

2. Any person, duly certified under the law governing the certification
of teachers, employed full time as a teacher by a division of the state
department of social services prior to August 13, 1986, who did not
become a member of the Missouri state employees' retirement system under
section 104.342, RSMo, who renders services in a school whose standards
of education are set and which is supervised by a public school officer
of the county in which the school is located, by the department of
elementary and secondary education or by the coordinating board for
higher education is a member of the public school retirement system of
Missouri. Any such member who becomes a member before the end of the
school year next following August 29, 1953, may claim and receive credit
for prior service.

3. Any person, duly certified under the law governing the certification
of teachers, employed full time as a teacher by the section of inmate
education of the department of corrections prior to August 13, 1986, who
did not become a member of the Missouri state employees' retirement
system under section 104.342, RSMo, is a member of the public school
retirement system of Missouri. Any such person who becomes a member
before the end of the school year next following August 29, 1959, may
claim and receive credit for prior service. For purposes of this
subsection "prior service" means service rendered by a member of the
retirement system before the system becomes operative with respect to
persons employed by the section of inmate education, and may include
service rendered by a member of the armed forces during a period of war,
if the member was a teacher at the time he was inducted, for which credit
has been approved by the board of trustees.

4. Any person, duly certificated under the law governing the
certification of teachers, employed full time by any statewide nonprofit
educational association or organization serving on an educational
professional basis through its membership the active members of the
public school retirement system of Missouri or the public school
districts maintaining high schools in this state, may be a member of the
public school retirement system of Missouri. Any such person who becomes
a member before July 1, 1955, may claim and receive credit for prior
service. The contributions required to be made by the member's employer
shall be paid by the association or organization.

5. Any person, duly certificated under the law governing the
certification of teachers, employed full time, and whose duties include
participation in the educational program of the department of mental
health, in either a teaching or supervisory teaching capacity prior to
August 13, 1986, who did not become a member of the Missouri state
employees' retirement system under section 104.342, RSMo, shall, after
August 7, 1969, be a member of the public school retirement system, but
any such person whose employment with the department of mental health
commenced prior to August 7, 1969, may elect not to become a member by so
notifying the department of mental health in writing within thirty days
after August 7, 1969. (L. 1947 V. II p. 325 § 15, A.L. 1953 p. 480, A.L.
1955 p. 525, A.L. 1959 H.B. 258, A.L. 1969 p. 281, A.L. 1978 S.B. 906,
A.L. 1986 H.B. 1496, A.L. 1990 H.B. 974)

Any person employed in a public junior college upon a full-time
basis and who shall be duly certificated under the law governing the
certification of teachers, or any person employed in said public junior
college in a full-time teaching, supervisory or educational
administrative position certified by the executive officer of the
institution for such full-time duties shall be a member of the public
school retirement system of Missouri; except that, if the employee is a
member of the public education employees' retirement system at the time
such employment would qualify him for membership under this section, he
may elect to continue in that system if he makes the election to continue
at the time he becomes eligible for membership in the public school
retirement system. (L. 1977 S.B. 325, A.L. 1987 H.B. 713, A.L. 1990 H.B.
1347, et al., A.L. 2005 H.B. 443)

1. Any person receiving a retirement allowance under sections
169.010 to 169.140, and who elected a reduced retirement allowance under
subsection 3 of section 169.070 with his spouse as the nominated
beneficiary, may nominate a successor beneficiary under either of the
following circumstances:

(1) If the nominated beneficiary precedes the retired person in death,
the retired person may, upon remarriage, nominate the new spouse under
the same option elected in the application for retirement;

(2) If the marriage of the retired person and the nominated beneficiary
is dissolved, and if the dissolution decree provides for sole retention
by the retired person of all rights in the retirement allowance, the
retired person may, upon remarriage, nominate the new spouse under the
same option elected in the application for retirement.

2. Any nomination of a successor beneficiary under subdivision (1) or (2)
of subsection 1 of this section must be made in accordance with
procedures established by the board of trustees, and must be filed within
ninety days of May 6, 1993, or within ninety days of the remarriage,
whichever later occurs. Upon receipt of a successor nomination filed in
accordance with those procedures, the board shall adjust the retirement
allowance to reflect actuarial considerations of that nomination as well
as previous beneficiary and successor beneficiary nominations. (L. 1993
H.B. 496 § 1)

Effective 5-6-93

Unless a different meaning is clearly required by the context,
the following words and phrases as used in sections 169.270 to 169.400
shall have the following meanings:

(1) "Accumulated contributions", the sum of all amounts deducted from the
compensation of a member or paid on behalf of the member by the employer
and credited to the member's individual account together with interest
thereon in the employees' contribution fund. The board of trustees shall
determine the rate of interest allowed thereon as provided for in section
169.295;

(2) "Actuarial equivalent", a benefit of equal value when computed upon
the basis of formulas and/or tables which have been approved by the board
of trustees;

(3) "Average final compensation", the highest average annual compensation
received for any four consecutive years of service. In determining
whether years of service are "consecutive", only periods for which
creditable service is earned shall be considered, and all other periods
shall be disregarded;

(4) "Beneficiary", any person designated by a member for a retirement
allowance or other benefit as provided by sections 169.270 to 169.400;

(5) "Board of education", the board of directors or corresponding board,
by whatever name, having charge of the public schools of the school
district in which the retirement system is established;

(6) "Board of trustees", the board provided for in section 169.291 to
administer the retirement system;

(7) "Break in service", an occurrence when a regular employee ceases to
be a regular employee for any reason other than retirement (including
termination of employment, resignation, or furlough but not including
vacation, sick leave, excused absence or leave of absence granted by an
employer) and such person does not again become a regular employee until
after sixty consecutive calendar days have elapsed, or after fifteen
consecutive school or work days have elapsed, whichever occurs later. A
break in service also occurs when a regular employee retires under the
retirement system established by section 169.280 and does not again
become a regular employee until after fifteen consecutive school or work
days have elapsed. A "school or work day" is a day on which the
employee's employer requires (or if the position no longer exists, would
require, based on past practice) employees having the former employee's
last job description to report to their place of employment for any
reason;

(8) "Charter school", any charter school established pursuant to sections
160.400 to 160.420, RSMo, and located, at the time it is established,
within the school district;

(9) "Compensation", the regular compensation as shown on the salary and
wage schedules of the employer, including any amounts paid by the
employer on a member's behalf pursuant to subdivision (5) of subsection 1
of section 169.350, but such term is not to include extra pay, overtime
pay, consideration for entering into early retirement, or any other
payments not included on salary and wage schedules. For any year
beginning after December 31, 1988, the annual compensation of each member
taken into account under the retirement system shall not exceed the
limitation set forth in Section 401(a)(17) of the Internal Revenue Code
of 1986, as amended;

(10) "Creditable service", the amount of time that a regular employee is
a member of the retirement system and makes contributions thereto in
accordance with the provisions of sections 169.270 to 169.400;

(11) "Employee", any person who is classified by the school district, a
charter school, the library district or the retirement system established
by section 169.280 as an employee of such employer and is reported
contemporaneously for federal and state tax purposes as an employee of
such employer. A person is not considered to be an employee for purposes
of such retirement system with respect to any service for which the
person was not reported contemporaneously for federal and state tax
purposes as an employee of such employer, regardless of whether the
person is or may later be determined to be or to have been a common law
employee of such employer, including but not limited to a person
classified by the employer as independent contractors and persons
employed by other entities which contract to provide staff and services
to the employer. In no event shall a person reported for federal tax
purposes as an employee of a private, for-profit entity be deemed to be
an employee eligible to participate in the retirement system established
by section 169.280 with respect to such employment;

(12) "Employer", the school district, any charter school, the library
district, or the retirement system established by section 169.280, or any
combination thereof, as required by the context to identify the employer
of any member, or, for purposes only of subsection 2 of section 169.324,
of any retirant;

(13) "Employer's board", the board of education, the governing board of
any charter school, the board of trustees of the library district, the
board of trustees, or any combination thereof, as required by the context
to identify the governing body of an employer;

(14) "Library district", any urban public library district created from
or within a school district under the provisions of section 182.703, RSMo;

(15) "Medical board", the board of physicians provided for in section
169.291;

(16) "Member", any person who is a regular employee after the retirement
system has been established hereunder ("active member"), and any person
who (i) was an active member, (ii) has vested retirement benefits
hereunder, and (iii) is not receiving a retirement allowance hereunder
("inactive member");

(17) "Minimum normal retirement age", the earlier of the date the member
attains the age of sixty or the date the member has a total of at least
seventy-five credits, with each year of creditable service and each year
of age equal to one credit, with both years of creditable service and
years of age prorated for fractional years;

(18) "Prior service", service prior to the date the system becomes
operative which is creditable in accordance with the provisions of
section 169.311. Prior service in excess of thirty-eight years shall be
considered thirty-eight years;

(19) "Regular employee", any employee who is assigned to an established
position which requires service of not less than twenty-five hours per
week, and not less than nine calendar months a year. Any regular employee
who is subsequently assigned without break in service to a position
demanding less service than is required of a regular employee shall
continue the employee's status as a regular employee. Except as stated in
the preceding sentence, a temporary, part-time, or furloughed employee is
not a regular employee;

(20) "Retirant", a former member receiving a retirement allowance
hereunder;

(21) "Retirement allowance", annuity payments to a retirant or to such
beneficiary as is entitled to same;

(22) "School district", any school district in which a retirement system
shall be established under section 169.280. (L. 1943 p. 787 § 1, A.L.
1951 p. 477, A.L. 1957 p. 396, A.L. 1961 p. 369, A.L. 1967 1st Ex. Sess.
p. 885, A.L. 1971 S.B. 140, A.L. 1973 H.B. 375, A.L. 1974 S.B. 574, A.L.
1977 S.B. 160, A.L. 1982 H.B. 1522, A.L. 1986 H.B. 1615, A.L. 1989 S.B.
146, A.L. 1990 H.B. 1347, et al., A.L. 1993 S.B. 126, A.L. 1994 S.B. 575,
A.L. 1995 S.B. 378, A.L. 1998 S.B. 761, A.L. 2001 H.B. 660, A.L. 2004
H.B. 1502 merged with S.B. 1242)

1. In each school district of this state (i) that now has or may
hereafter have a population of not more than seven hundred thousand and
(ii) not less than seventy percent of whose population resides in a city
other than a city not within a county which now has or may hereafter have
a population of four hundred thousand or more, according to the latest
United States decennial census, there is hereby created and established a
retirement system for the purpose of providing retirement allowances and
related benefits for employees of the employer. Each such system shall be
under the management of a board of trustees herein described, and shall
be known as "The Public School Retirement System of (name of school
district)", 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. When a school district first satisfies the foregoing
population conditions, the board of education shall adopt a resolution
certifying the same and take all actions necessary to cause the
retirement system to begin operation on the thirtieth day of September
following such certification.

2. In the event that (i) the population of a school district having a
retirement system created hereunder should increase to a number greater
than seven hundred thousand, or (ii) the population of the city in which
not less than seventy percent of the population of the school district
resides should decrease to a number less than four hundred thousand, or
(iii) less than seventy percent of the population of the school district
should reside in a city having a population of at least four hundred
thousand, or (iv) the corporate organization of the school district shall
lapse in accordance with subsections 1 and 4 of section 162.081, RSMo,
the retirement system of such school district shall continue to be
governed by and subject to sections 169.270 to 169.400 and all other
statutes, rules, and regulations applicable to retirement systems in
school districts having a population of not more than seven hundred
thousand and not less than seventy percent of whose population resides in
a city, other than a city not within a county, of four hundred thousand
or more, as if the population of such school district and city continued
to be within such numerical limits. (L. 1943 p. 787 § 2, A.L. 1957 p.
396, A.L. 1961 p. 369, A.L. 1977 S.B. 160, A.L. 1982 H.B. 1522, A.L. 1990
H.B. 1347, et al., A.L. 2001 H.B. 660)

1. The general administration and the responsibility for the
proper operation of the retirement system are hereby vested in a board of
trustees of twelve persons who shall be resident taxpayers of the school
district, as follows:

(1) Four trustees to be appointed for terms of four years by the board of
education; provided, however, that the terms of office of the first four
trustees so appointed shall begin immediately upon their appointment and
shall expire one, two, three and four years from the date the retirement
system becomes operative, respectively;

(2) Four trustees to be elected for terms of four years by and from the
members of the retirement system; provided, however, that the terms of
office of the first four trustees so elected shall begin immediately upon
their election and shall expire one, two, three and four years from the
date the retirement system becomes operative, respectively;

(3) The ninth trustee shall be the superintendent of schools of the
school district;

(4) The tenth trustee shall be one retirant of the retirement system
elected for a term of four years beginning the first day of January
immediately following August 13, 1986, by the retirants of the retirement
system;

(5) The eleventh trustee shall be appointed for a term of four years
beginning the first day of January immediately following August 13, 1990,
by the board of trustees described in subdivision (3) of section 182.701,
RSMo;

(6) The twelfth trustee shall be a retirant of the retirement system
elected for a term of four years beginning the first day of January
immediately following August 28, 1992, by the retirants of the retirement
system.

2. If a vacancy occurs in the office of a trustee, the vacancy shall be
filled for the unexpired term in the same manner as the office was
previously filled, except that the board of trustees may appoint a
qualified person to fill the vacancy in the office of an elected member
until the next regular election at which time a member shall be elected
for the unexpired term. No vacancy or vacancies on the board of trustees
shall impair the power of the remaining trustees to administer the
retirement system pending the filling of such vacancy or vacancies.

3. In the event of a lapse of the school district's corporate
organization as described in subsections 1 and 4 of section 162.081,
RSMo, the general administration and responsibility for the proper
operation of the retirement system shall continue to be vested in a
twelve-person board of trustees, all of whom shall be resident taxpayers
of a city, other than a city not within a county, of four hundred
thousand or more. In such event, if vacancies occur in the offices of the
four trustees appointed, prior to the lapse, by the board of education,
or in the offices of the four trustees elected, prior to the lapse, by
the members of the retirement system, or in the office of trustee held,
prior to the lapse, by the superintendent of schools in the school
district, as provided in subdivisions (1), (2) and (3) of subsection 1 of
this section, the board of trustees shall appoint a qualified person to
fill each vacancy and subsequent vacancies in the office of trustee for
terms of up to four years, as determined by the board of trustees.

4. Each trustee shall, before assuming the duties of a trustee, take the
oath of office before the court of the judicial circuit or one of the
courts of the judicial circuit in which the school district is located
that so far as it devolves upon the trustee, such trustee shall
diligently and honestly administer the affairs of the board of trustees
and that the trustee 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
filed in the office of the clerk of the circuit court.

5. Each trustee shall be entitled to one vote in the board of trustees.
Seven trustees shall constitute a quorum at any meeting of the board of
trustees. At any meeting of the board of trustees where a quorum is
present, the vote of at least seven of the trustees in support of a
motion, resolution or other matter is necessary to be the decision of the
board; provided, however, that in the event of a lapse in the school
district's corporate organization as described in subsections 1 and 4 of
section 162.081, RSMo, a majority of the trustees then in office shall
constitute a quorum at any meeting of the board of trustees, and the vote
of a majority of the trustees then in office in support of a motion,
resolution or other matter shall be necessary to be the decision of the
board.

6. The board of trustees shall have 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 benefits or
refunds, and its action, decision or determination in any matter shall be
reviewable in accordance with chapter 536, RSMo, or chapter 621, RSMo.
Subject to the limitations of sections 169.270 to 169.400, the board of
trustees shall, from time to time, establish rules and regulations for
the administration of funds of the retirement system, for the transaction
of its business, and for the limitation of the time within which claims
may be filed.

7. The trustees shall serve without compensation. The board of trustees
shall elect from its membership a chairman and a vice chairman. The board
of trustees shall appoint an executive director who shall serve as the
administrative officer of the retirement system and as secretary to the
board of trustees. It shall employ one or more persons, firms or
corporations experienced in the investment of moneys to serve as
investment counsel to the board of trustees. 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,
and shall be paid from the investment income.

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

9. The board of trustees shall keep a record of all its proceedings which
shall be open to public inspection. It shall prepare annually and furnish
to the board of education and to each member of the retirement system who
so requests a report showing the fiscal transactions of the retirement
system for the preceding fiscal year, the amount of 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.

10. The board of trustees shall have, in its own name, power to sue and
to be sued, to enter into contracts, to own property, real and personal,
and to convey the same; but the members of such board of trustees shall
not be personally liable for obligations or liabilities of the board of
trustees or of the retirement system.

11. The board of trustees shall arrange for necessary legal advice for
the operation of the retirement system.

12. The board of trustees shall designate a medical board to be composed
of three or more physicians who shall not be eligible for membership in
the system and who shall pass upon all medical examinations required
under the provisions of sections 169.270 to 169.400, 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 matters referred to it.

13. The board of trustees shall designate an actuary who shall be the
technical advisor of the board of trustees on matters regarding the
operation of the retirement system and shall perform such other duties as
are required in connection therewith. Such person shall be qualified as
an actuary by membership as a Fellow of the Society of Actuaries or by
similar objective standards.

14. At least once in each five-year period the actuary shall make an
investigation into the actuarial experience of the members, retirants and
beneficiaries of the retirement system and, taking into account the
results of such investigation, the board of trustees shall adopt for the
retirement system such actuarial assumptions as the board of trustees
deems necessary for the financial soundness of the retirement system.

15. On the basis of such actuarial assumptions as the board of trustees
adopts, the actuary shall make annual valuations of the assets and
liabilities of the funds of the retirement system.

16. The rate of contribution payable by the employer shall equal one and
ninety-nine one-hundredths percent, effective July 1, 1993; three and
ninety-nine one-hundredths percent, effective July 1, 1995; five and
ninety-nine one-hundredths percent, effective July 1, 1996; seven and
one-half percent effective January 1, 1999, and for all subsequent years.

17. In the event of a lapse of a school district's corporate organization
as described in subsections 1 and 4 of section 162.081, RSMo, no
retirement system, nor any of the assets of any retirement system, shall
be transferred to or merged with another retirement system without prior
approval of such transfer or merge by the board of trustees of the
retirement system. (L. 1982 H.B. 1522, A.L. 1983 H.B. 447, A.L. 1986 H.B.
1673, A.L. 1989 S.B. 146, A.L. 1990 H.B. 1347, et al., A.L. 1992 H.B.
1035, A.L. 1993 S.B. 126, A.L. 1994 S.B. 575, A.L. 1995 S.B. 378, A.L.
1998 S.B. 761, A.L. 2001 H.B. 660, A.L. 2004 H.B. 1502 merged with S.B.
1242)

1. The board of trustees shall be the trustees of all the funds
of the system and shall have full power to invest and reinvest such
funds. The trustees shall have full power to hold, purchase, sell,
assign, transfer or dispose of any of the securities and investments in
which the funds shall have been invested, and the proceeds thereof.

2. The board of trustees shall allow interest annually on the balance in
each member's account at the beginning of the year at the rate approved
by the board. The board shall adjust the balance of the general reserve
fund for investment realized and unrealized gains, losses, income and
expenses, not so allowed as interest on members' accounts.

3. The board of trustees shall elect a treasurer who shall serve at the
board's pleasure. The treasurer shall be the custodian of the funds
provided for in section 169.350 and shall give such bond for the faithful
handling of the funds as the board of trustees shall determine. The board
of trustees may employ one or more banks having fiduciary powers for the
provisions of such custodial or clerical service as the board may deem
appropriate to assist the treasurer. Disbursement of funds of the
retirement system shall be under the supervision of the treasurer and
shall be in accordance with procedures established or approved by the
board of trustees with the concurrence of the system's auditors.

4. For the purpose of meeting disbursements for retirement allowances and
other payments, there may be kept available cash, not exceeding ten
percent of the total amount in the funds of the retirement system, on
deposit in one or more banks or trust companies in the school district,
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, and for all deposits in excess of
ten thousand dollars the board of trustees shall require of the banks or
trust companies as security for the safekeeping and payment of the
deposits securities of a like kind and character as may be required by
law for the safekeeping and payment of deposits made by the state
treasurer.

5. Except as herein provided, no trustee and no employee of the board of
trustees shall have any direct interest in the gains or profits of any
investment made by the board of trustees. No trustee or employee of the
board of trustees shall directly or indirectly for such person 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 of trustees
become in any manner an obligor for moneys loaned by or borrowed from the
board of trustees.

6. In the event that any employer offers to its employees an early
retirement option, or any other form of group exit incentive program, the
board of trustees is hereby authorized to permit such employer or any
active member who participates in such group exit incentive program to
purchase additional creditable service, in increments of not less than
one month, and shall fix and determine by proper rules and regulations,
which may be amended from time to time, the amount of service that may be
purchased and the cost thereof. Under no circumstance, however, shall:

(1) The amount of such purchased creditable service exceed twenty-four
months;

(2) The cost of purchasing such creditable service be less than the
amount necessary to pay the full actuarial cost to the retirement system
of the additional purchased service;

(3) The purchasing employer or active member be permitted to elect to
purchase such creditable service after the expiration of a reasonable
time period, which time period shall be specified in the above-referenced
rules and regulations;

(4) Such purchased creditable service count toward the vesting
requirements of section 169.301; or

(5) This subsection be applied in any manner that would not be in
compliance with applicable provisions of the Internal Revenue Code. (L.
1982 H.B. 1522, A.L. 1990 H.B. 1347, et al., A.L. 1993 S.B. 126, A.L.
1994 S.B. 575, A.L. 2004 H.B. 1502 merged with S.B. 1242)

1. To the extent determined appropriate by the board of
trustees, the retirement system established under sections 169.270 to
169.400 may indemnify and protect any trustee or employee of the
retirement system against any or all claims or liabilities, including
defense thereof, arising out of his or her responsibilities with respect
to the retirement system, provided, however, that no trustee or employee
shall be indemnified for his or her own gross negligence or willful
misconduct. This section shall apply whether the claim is made against
the employee or trustee in his or her individual or official capacity.

2. The board of trustees is authorized to obtain and maintain insurance
and/or indemnity policies to insure the trustees and employees of the
retirement system against any liability or losses incurred as a result of
their responsibilities with respect to the retirement system.

3. No employee or trustee shall be entitled to indemnification under this
section unless within fifteen days after receipt of service of process he
or she shall give written notice of such proceeding to the board of
trustees. (L. 1994 S.B. 575)

Effective 5-26-94

1. Any active member who has completed five or more years of
actual (not purchased) creditable service shall be entitled to a vested
retirement benefit equal to the annual service retirement allowance
provided in sections 169.270 to 169.400 payable after attaining the
minimum normal retirement age and calculated in accordance with the law
in effect on the last date such person was a regular employee; provided,
that such member does not withdraw such person's accumulated
contributions pursuant to section 169.328 prior to attaining the minimum
normal retirement age.

2. Any member who elected on October 13, 1961, or within thirty days
thereafter, to continue to contribute and to receive benefits under
sections 169.270 to 169.400 may continue to be a member of the retirement
system under the terms and conditions of the plan in effect immediately
prior to October 13, 1961, or may, upon written request to the board of
trustees, transfer to the present plan, provided that the member pays
into the system any additional contributions with interest the member
would have credited to the member's account if such person had been a
member of the current plan since its inception or, if the person's
contributions and interest are in excess of what the person would have
paid, such person will receive a refund of such excess. The board of
trustees shall adopt appropriate rules and regulations governing the
operation of the plan in effect immediately prior to October 13, 1961.

3. Should a retirant again become an active member, such person's
retirement allowance payments shall cease during such membership and
shall be recalculated upon subsequent retirement to include any
creditable service earned during the person's latest period of active
membership in accordance with subsection 2 of section 169.324. (L. 1982
H.B. 1522, A.L. 1989 S.B. 146, A.L. 1990 H.B. 1347, et al., A.L. 1993
S.B. 126, A.L. 1994 S.B. 575, A.L. 2001 H.B. 660)

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
creditable 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 pay
period's duration, as shown on the salary and wage schedules of the
employer, during all of which the member was absent without pay unless
such member pays the employee contributions, including contributions by
the employer in lieu of employee contributions, for such period as
permitted by the board of trustees in accordance with the provisions of
section 169.315. (L. 1982 H.B. 1522 § 169.311 subsecs. 1 to 4, A.L. 1989
S.B. 146, A.L. 1994 S.B. 575, A.L. 1995 S.B. 378, A.L. 2004 H.B. 1502
merged with S.B. 1242)

1. The board of trustees shall adopt rules and regulations which
shall permit members to purchase creditable service under the
circumstances provided for in this section. Such rules and regulations
shall specify, for each such designated circumstance:

(1) The manner in which the employee contributions required to purchase
such service shall be calculated;

(2) The manner in which any employer contributions required for such
service shall be calculated;

(3) The maximum amount of service that may be purchased, if any;

(4) The time by which the election to purchase service shall be made and
the period over which such contributions shall be paid; and

(5) Any other requirements the member must satisfy in order to be
eligible to purchase service in such circumstance.

All such rules and regulations shall be applied on a uniform and
nondiscriminatory basis so that all members are treated similarly under
similar circumstances.

2. Any active member who ceased to be a regular employee and received a
refund of contributions and interest attributable to a prior period of
service with any employer may, after reemployment as a regular employee
and prior to retirement, elect to reinstate any creditable service the
member forfeited by purchasing such service in accordance with the rules
and regulations adopted by the board of trustees.

3. Any active member who has rendered service in a public school district
or public library within the state of Missouri but outside of the
district in which the retirement system is established, or in a college,
junior college or university within the state of Missouri may elect to
purchase and receive credit for such service in accordance with the rules
and regulations adopted by the board of trustees.

4. Any active member who has rendered service in a public school
district, public library, college, junior college or university outside
the state of Missouri may elect to purchase and receive credit for such
service in accordance with the rules and regulations adopted by the board
of trustees; provided that, such member shall pay to the retirement
system, in addition to all required employee contributions, the required
amount of employer contributions, plus interest, for each year of
creditable service being purchased.

5. Any active member who was, prior to becoming a member, employed by a
private school, college or university on a full-time basis and duly
certified under the law governing the certification of teachers during
all of such employment may elect to purchase and receive credit for such
private school service in accordance with the rules and regulations
adopted by the board of trustees; provided that, such member shall pay to
the retirement system, in addition to all required employee
contributions, the required amount of employer contributions, plus
interest, for each year of creditable service being purchased. As used in
this section, the term "private school" means a school which is not a
part of the public school system of the state of Missouri and which
charges tuition for the rendering of elementary, secondary educational or
postsecondary educational services.

6. Any active member who, voluntarily or involuntarily, enters service in
the armed forces of the United States or other national defense service
may, after reemployment and prior to retirement, elect to purchase and
receive credit for such military service in accordance with the rules and
regulations adopted by the board of trustees and with the laws governing
the reemployment rights of veterans.

7. Any active member who is granted a period of approved, unpaid leave of
absence by the employer's board for academic study at a college, junior
college, university or otherwise, illness or such other circumstances as
may be authorized by the board of trustees, may elect to purchase and
receive creditable service for such period of leave in accordance with
the rules and regulations adopted by the board of trustees. (L. 1982 H.B.
1522 § 169.311 subsec. 7, A.L. 1989 S.B. 146, A.L. 1990 H.B. 1347, et
al., A.L. 1994 S.B. 575, A.L. 1995 S.B. 378, A.L. 1997 H.B. 169 merged
with S.B. 309, A.L. 2001 H.B. 660)

The board of trustees shall allow retirement of a member on a
service retirement allowance under the following circumstances: Any
vested member may retire on an annual service retirement allowance upon
written application to the board of trustees setting forth at what future
time the person desires to be retired; provided, that the member at the
time so specified for retirement shall have attained the minimum normal
retirement age, notwithstanding that during such period of notification
or at any other time the person may have separated from service. Any
member having thirty years of creditable service regardless of age may
voluntarily retire upon giving advance written notice to the board of
trustees and shall thereafter be entitled to receive monthly payments
which are the actuarial equivalent of the monthly payments to which the
person would have been entitled had the person's retirement been at the
minimum normal retirement age. Any member who desires to retire under the
provisions of section 169.563 shall give the board of trustees at least
sixty days' written notice of his or her desire to do so. (L. 1943 p. 787
§ 6, A.L. 1945 p. 1342, A.L. 1951 p. 477, A.L. 1957 p. 396, A.L. 1961 p.
369, A.L. 1967 1st Ex. Sess. p. 885, A.L. 1978 H.B. 1503, A.L. 1982 H.B.
1522, A.L. 1984 H.B. 1470, A.L. 1989 S.B. 146, A.L. 1993 S.B. 126, A.L.
1994 S.B. 575, A.L. 1995 S.B. 378)

1. Upon the written application of an active member or of the
person's employer's board, any active member who has five or more years
of creditable service shall be retired by the board of trustees on a
disability retirement allowance, if the medical board after a medical
examination of such member, or based on such other medical information as
the medical board may require, shall certify that such member is mentally
or physically unable to perform such member's employment duties and that
such incapacity is likely to be permanent. Application for a disability
retirement allowance may be made after the member ceases to be an active
member; provided that, the disability commenced while the member was an
active member, and further provided that application is made no later
than six months after the disabled member ceases to be an employee of his
or her employer. The first monthly payment of such disability retirement
allowance shall not be made to such member so long as the member receives
compensation from the member's employer.

2. Upon retirement for disability, a member shall receive a disability
retirement allowance which shall be determined in the same manner as the
service retirement allowance as set forth in section 169.324, but not
less than the minimum disability retirement allowance provided in this
section. The minimum disability retirement allowance shall be the lesser
of:

(1) Twenty-five percent of the person's average final compensation; or

(2) The member's service retirement allowance calculated based on the
member's final average compensation and the maximum number of years of
creditable service the member would have earned had the member remained
an employee until attaining the age of sixty.

3. Once each year during the first five years following a member's
retirement on a disability retirement allowance and once in every
three-year period thereafter, the board of trustees may require any
disability retirant who has not yet attained minimum normal retirement
age to undergo a medical examination at a place designated by the medical
board, such examination to be made by the medical board or by a physician
or physicians designated by such board. Should any such disability
retirant refuse to submit to such medical examination, the person's
disability allowance may be discontinued until the person's withdrawal of
such refusal, and should the person's refusal continue for one year all
rights in and to the person's disability allowance shall be revoked by
the board of trustees.

4. Should the board of trustees determine that any disability retirant
who has not yet attained minimum normal retirement age is engaged in or
is able to engage in a gainful occupation paying more than the difference
between the person's monthly disability retirement allowance plus any
Social Security benefits to which the person is eligible and the current
rate of monthly compensation for the position the person held at
retirement, then the amount of the person's disability retirement
allowance shall be reduced to an amount which together with Social
Security benefits and the amount earnable by the person shall equal such
current rate of monthly compensation. Should the person's earning
capacity be later changed, the amount of the person's disability
retirement allowance may be further modified. The board of trustees may
engage those persons, firms or corporations which it deems necessary to
assist the board of trustees in making any determination under this
subsection.

5. Should any member retired for disability be restored to active service
as a regular employee, the member's disability retirement allowance shall
cease and the member shall again become a member of the retirement
system, and contribute thereunder. Anything in sections 169.270 to
169.400 to the contrary notwithstanding, a disability retirant who has
not attained the minimum normal retirement age at the date of again
becoming a member shall have the person's creditable service at the time
of the person's disability retirement restored, and the excess of the
person's accumulated contributions at time of retirement over the total
payments which the person received during retirement shall be credited to
the person's account. Upon subsequent retirement, the person shall be
entitled to a service retirement allowance to the extent the person meets
the requisite qualifications, and the person's prior disability
retirement allowance shall not be resumed. If a disability retirant has
attained the minimum normal retirement age at the date of again becoming
a member, the disability retirement allowance the person was receiving
immediately prior to restoration of membership shall be resumed on
subsequent retirement, together with such retirement allowances as shall
accrue by reason of the person's latest period of membership. For the
sole purpose of determining the person's eligibility for such additional
retirement allowance, but not for determining the amount, all of the
person's years of creditable service, whether before or after the
person's period of disability, for which the person has made
contributions which have not been withdrawn, shall be considered. (L.
1943 p. 787 § 6, A.L. 1945 p. 1342, A.L. 1951 p. 477, A.L. 1957 p. 396 §
169.320, A.L. 1961 p. 369, A.L. 1967 1st Ex. Sess. p. 885, A.L. 1982 H.B.
1522, A.L. 1984 H.B. 1470, A.L. 1989 S.B. 146, A.L. 1993 S.B. 126, A.L.
1994 S.B. 575, A.L. 1998 H.B. 1299 merged with S.B. 761, A.L. 2004 H.B.
1502 merged with S.B. 1242)

1. The annual service retirement allowance payable pursuant to
section 169.320 in equal monthly installments for life shall be the
retirant's number of years of creditable service multiplied by one and
three-fourths percent of the person's average final compensation, subject
to a maximum of sixty percent of the person's average final compensation.
For any member who retires as an active member on or after June 30, 1999,
the annual service retirement allowance payable pursuant to section
169.320 in equal monthly installments for life shall be the retirant's
number of years of creditable service multiplied by two percent of the
person's average final compensation, subject to a maximum of sixty
percent of the person's average final compensation. Any member whose
number of years of creditable service is greater than thirty-four and
one-quarter on August 28, 1993, shall receive an annual service
retirement allowance payable pursuant to section 169.320 in equal monthly
installments for life equal to the retirant's number of years of
creditable service as of August 28, 1993, multiplied by one and
three-fourths percent of the person's average final compensation but
shall not receive a greater annual service retirement allowance based on
additional years of creditable service after August 28, 1993. Provided,
however, that, effective January 1, 1996, any retiree who retired on,
before or after January 1, 1996, with at least twenty years of creditable
service shall receive at least three hundred dollars each month as a
retirement allowance, or the actuarial equivalent thereof if the retiree
elected any of the options available under section 169.326. Provided,
further, any retiree who retired with at least ten years of creditable
service shall receive at least one hundred fifty dollars each month as a
retirement allowance, plus fifteen dollars for each additional full year
of creditable service greater than ten years but less than twenty years
(or the actuarial equivalent thereof if the retiree elected any of the
options available under section 169.326). Any beneficiary of a deceased
retiree who retired with at least ten years of creditable service and
elected one of the options available under section 169.326 shall also be
entitled to the actuarial equivalent of the minimum benefit provided by
this subsection, determined from the option chosen.

2. Except as otherwise provided in sections 169.331, 169.580 and 169.585,
payment of a retirant's retirement allowance will be suspended for any
month for which such person receives remuneration from the person's
employer or from any other employer in the retirement system established
by section 169.280 for the performance of services except any such person
other than a person receiving a disability retirement allowance under
section 169.322 may serve as a nonregular substitute, part-time or
temporary employee for not more than six hundred hours in any school year
without becoming a member and without having the person's retirement
allowance discontinued. If a retirant is reemployed by any employer in
any capacity, whether pursuant to this section, or section 169.331,
169.580, or 169.585, or as a regular employee, the amount of such
person's retirement allowance attributable to service prior to the
person's first retirement date shall not be changed by the reemployment.
If the person again becomes an active member and earns additional
creditable service, upon the person's second retirement the person's
retirement allowance shall be the sum of:

(1) The retirement allowance the person was receiving at the time the
person's retirement allowance was suspended, pursuant to the payment
option elected as of the first retirement date, plus the amount of any
increase in such retirement allowance the person would have received
pursuant to subsection 3 of this section had payments not been suspended
during the person's reemployment; and

(2) An additional retirement allowance computed using the benefit formula
in effect on the person's second retirement date, the person's creditable
service following reemployment, and the person's average annual
compensation as of the second retirement date.

The sum calculated pursuant to this subsection shall not exceed the
greater of sixty percent of the person's average final compensation as of
the second retirement date or the amount determined pursuant to
subdivision (1) of this subsection. Compensation earned prior to the
person's first retirement date shall be considered in determining the
person's average final compensation as of the second retirement date if
such compensation would otherwise be included in determining the person's
average final compensation.

3. The board of trustees shall determine annually whether the investment
return on funds of the system can provide for an increase in benefits for
retirants eligible for such increase. A retirant shall and will be
eligible for an increase awarded pursuant to this section as of the
second January following the date the retirant commenced receiving
retirement benefits. Any such increase shall also apply to any monthly
joint and survivor retirement allowance payable to such retirant's
beneficiaries, regardless of age. The board shall make such determination
as follows:

(1) After determination by the actuary of the investment return for the
preceding year as of December thirty-first (the "valuation year"), the
actuary shall recommend to the board of trustees what portion of the
investment return is available to provide such benefits increase, if any,
and shall recommend the amount of such benefits increase, if any, to be
implemented as of the first day of the thirteenth month following the end
of the valuation year, and the first payable on or about the first day of
the fourteenth month following the end of the valuation year. The actuary
shall make such recommendations so as not to affect the financial
soundness of the retirement system, recognizing the following safeguards:

(a) The retirement system's funded ratio as of January first of the year
preceding the year of a proposed increase shall be at least one hundred
percent after adjusting for the effect of the proposed increase. The
funded ratio is the ratio of assets to the pension benefit obligation;

(b) The actuarially required contribution rate, after adjusting for the
effect of the proposed increase, may not exceed the statutory
contribution rate;

(c) The actuary shall certify to the board of trustees that the proposed
increase will not impair the actuarial soundness of the retirement system;

(d) A benefit increase, under this section, once awarded, cannot be
reduced in succeeding years;

(2) The board of trustees shall review the actuary's recommendation and
report and shall, in their discretion, determine if any increase is
prudent and, if so, shall determine the amount of increase to be awarded.

4. This section does not guarantee an annual increase to any retirant.

5. If an inactive member becomes an active member after June 30, 2001,
and after a break in service, unless the person earns at least four
additional years of creditable service without another break in service,
upon retirement the person's retirement allowance shall be calculated
separately for each separate period of service ending in a break in
service. The retirement allowance shall be the sum of the separate
retirement allowances computed for each such period of service using the
benefit formula in effect, the person's average final compensation as of
the last day of such period of service and the creditable service the
person earned during such period of service; provided, however, if the
person earns at least four additional years of creditable service without
another break in service, all of the person's creditable service prior to
and including such service shall be aggregated and, upon retirement, the
retirement allowance shall be computed using the benefit formula in
effect and the person's average final compensation as of the last day of
such period of four or more years and all of the creditable service the
person earned prior to and during such period.

6. Notwithstanding anything contained in this section to the contrary,
the amount of the annual service retirement allowance payable to any
retirant pursuant to the provisions of sections 169.270 to 169.400,
including any adjustments made pursuant to subsection 3 of this section,
shall at all times comply with the provisions and limitations of Section
415 of the Internal Revenue Code of 1986, as amended, and the regulations
thereunder, the terms of which are specifically incorporated herein by
reference.

7. All retirement systems established by the laws of the state of
Missouri shall develop a procurement action plan for utilization of
minority and women money managers, brokers and investment counselors.
Such retirement systems shall report their progress annually to the joint
committee on public employee retirement and the governor's minority
advocacy commission. (L. 1943 p. 787 § 6, A.L. 1945 p. 1342, A.L. 1951 p.
477, A.L. 1957 p. 396 § 169.320, A.L. 1961 p. 369, A.L. 1967 1st Ex.
Sess. p. 885, A.L. 1973 H.B. 375, A.L. 1977 S.B. 160, A.L. 1978 H.B.
1503, A.L. 1981 H.B. 530, A.L. 1982 H.B. 1522, A.L. 1989 S.B. 146, A.L.
1990 H.B. 1347, et al., A.L. 1993 S.B. 126, A.L. 1994 S.B. 575, A.L. 1995
S.B. 378, A.L. 1998 H.B. 1299 merged with S.B. 761, A.L. 2001 H.B. 660,
A.L. 2004 H.B. 1502 merged with S.B. 1242)

1. Until the first payment on account of any benefit becomes
due, any retirant may elect, by delivering written notice duly
acknowledged to the board of trustees, to receive the actuarial
equivalent of the person's annual service retirement allowance or
disability retirement allowance in the form of one of the options set
forth below. No optional selection shall become effective in case a
retirant dies within thirty days after retirement or within thirty days
after filing such election; in such event the retirant shall be
considered as an active member at the time of the retirant's death.

Option 1. Upon the person's death, the person's retirement allowance
shall be continued throughout the life of and paid to such person as the
person shall nominate by written designation duly acknowledged and
delivered to the board of trustees at or prior to the time of the
person's retirement, provided that in the event the person's designated
beneficiary predeceases the person, then the person's retirement
allowance shall be adjusted at that time to the amount determined
pursuant to subsection 1 of section 169.324 at the time of the retirement
of the person, or

Option 2. Upon the person's death, one-half of the person's retirement
allowance shall be continued throughout the life of and paid to such
person as the person shall nominate by written designation duly
acknowledged and filed with the board of trustees at or prior to the time
of the person's retirement, provided that in the event the person's
designated beneficiary predeceases the person, then the person's
retirement allowance shall be adjusted at that time to the amount
determined under subsection 1 of section 169.324 at the time of the
person's retirement, or

Option 3. Upon the person's death, no benefits shall be paid to any
beneficiary or estate of the retired member. This optional benefit is
actuarially increased over the benefit formula providing for benefits at
death.

2. If the death of any member who has not elected an option occurs before
the person has received total benefits at least as large as accumulated
contributions at retirement, the difference shall be paid in one lump sum
to the person's designated beneficiary, if living, otherwise to the
estate of the retired member.

3. If an active member dies, or if an inactive member dies before
retirement but after becoming eligible to retire and commence receiving
retirement benefits, and a dependent of the member (spouse, dependent
child under age nineteen or dependent parent) is designated as primary
beneficiary to receive the member's accumulated contributions, the
beneficiary may, in lieu thereof, at the beneficiary's option, request
that the benefit be paid under option 1 in subsection 1 of this section
as if the member had retired as of the date of death and designated such
beneficiary as the option 1 beneficiary; except that if the beneficiary
is a dependent child, the option 1 benefit shall be payable only until
the child attains age nineteen and not throughout the life of such child.
If the designated beneficiary elects the option 1 benefit and if the
member was an active member at the time of death, such benefit shall be
calculated as if the deceased member had, at the time of death, at least
ten years' creditable service. If more than one dependent is designated
as beneficiary, the benefit shall be shared equally as determined by the
actuary. The determination of the board of trustees as to whether a
person is a dependent for the purpose of this subsection shall be final.

4. Notwithstanding anything contained in sections 169.270 to 169.400 to
the contrary, the payment of the annual service retirement allowance, or
the actuarial equivalent of the annual service retirement allowance
payable under any option prescribed in this section, shall at all times
comply with the distribution rules of Section 401(a)(9) of the Internal
Revenue Code of 1986, as amended, and the regulations thereunder, the
terms of which are specifically incorporated herein by reference.

5. No person who would otherwise qualify as a dependent or beneficiary
shall be eligible for, or entitled to, any benefits when such person is
the principal or an accomplice in willfully bringing about the death of a
member, retirant, or another dependent or beneficiary whose death would
otherwise have resulted in payment of a benefit or a benefit increase to
such person. The determination of the board of trustees that such person
willfully brought about such death shall be made from a preponderance of
the evidence presented and shall not be controlled by any contrary
finding by any other forum, whether considered under the same or another
degree of proof.

6. Any retirant or dependent or beneficiary who is entitled to or
receiving benefits from the retirement system may, on a form prescribed
by the board of trustees and filed with the board, irrevocably waive all
or any portion of his or her retirement allowance or survivor benefit or
any other benefit payable hereunder. Such waiver shall apply only to
benefits that are payable on or after the date the waiver is filed. If a
retirant files an irrevocable waiver in accordance with this subsection,
the waiver shall apply only with respect to the retirant and shall not
affect the rights of any dependents or other beneficiaries upon the
retirant's death. If a dependent or beneficiary files an irrevocable
waiver in accordance with this subsection, any benefits payable hereunder
as a result of the death of a member or retirant shall be paid as if such
dependent or beneficiary did not exist. (L. 1943 p. 787 § 6, A.L. 1945 p.
1342, A.L. 1951 p. 477, A.L. 1957 p. 396 § 169.320, A.L. 1961 p. 369,
A.L. 1971 S.B. 140, A.L. 1973 H.B. 375, A.L. 1974 S.B. 574, A.L. 1977
S.B. 160, A.L. 1982 H.B. 1522, A.L. 1993 S.B. 126, A.L. 1994 S.B. 575,
A.L. 1995 S.B. 378, A.L. 1997 H.B. 169 merged with S.B. 309, A.L. 1998
H.B. 1299 merged with S.B. 761)

1. Should a member cease to be a regular employee, except by
retirement, the member, if living, shall be paid on demand, made by
written notice to the board of trustees, the amount of the person's
accumulated contributions (with interest as determined by the board of
trustees as provided in sections 169.270 to 169.400) standing to the
credit of the person's individual account in the employees' contribution
fund. The accumulated contributions with interest shall not be paid to a
member so long as the person remains a regular employee or before the
member incurs a break in service. If the member dies before retirement
such accumulated contributions (with interest) shall be paid to the
member's estate or designated beneficiary unless the provisions of
subsection 3 of section 169.326 apply.

2. If a former unvested member's accumulated contributions have not been
withdrawn four years after the person has ceased to be a member (other
than by reason of death or retirement), the board of trustees shall pay
the same to such former member within a reasonable time after the
expiration of such four-year period.

3. If, on account of undeliverability, improper mailing or forwarding
address, or other similar problem, the board of trustees is unable to
refund the accumulated contributions of a former unvested member or to
commence payment of retirement benefits within four years after the end
of the calendar year in which such former member ceased to be a regular
employee, the board may transfer the accumulated contributions to the
general reserve fund. If, thereafter, written application is made to the
board of trustees for such refund or benefits, the board shall cause the
same to be paid from the general reserve fund, but no interest shall be
accrued after the end of the fourth year following the end of the
calendar year in which such former member ceased to be a regular employee.

4. In its discretion the board of trustees may approve extensions of any
time periods in this section on account of a former member's military or
naval service, academic study or illness. (L. 1943 p. 787 § 6, A.L. 1945
p. 1342, A.L. 1951 p. 477, A.L. 1957 p. 396 § 169.320, A.L. 1961 p. 369,
A.L. 1982 H.B. 1522, A.L. 1994 S.B. 575, A.L. 1995 S.B. 378, A.L. 1997
H.B. 169 merged with S.B. 309, A.L. 1998 H.B. 1299 merged with S.B. 761,
A.L. 2004 H.B. 1502 merged with S.B. 1242)

1. Notwithstanding any other provision of sections 169.270 to
169.400 to the contrary, a retired certificated teacher receiving a
retirement benefit from the retirement system established pursuant to
sections 169.270 to 169.400 may, without losing his or her retirement
benefit, teach full time for up to two years for a school district
covered by such retirement system; provided that the school district has
a shortage of certified teachers, as determined by the school district.
The total number of such retired certificated teachers shall not exceed,
at any one time, fifteen certificated teachers.

2. The employer's contribution rate shall be paid by the hiring school
district and the employee's contribution rate shall be paid by the
employee.

3. Any additional actuarial costs resulting from the hiring of a retired
certificated teacher pursuant to the provisions of this section shall be
paid by the hiring school district.

4. In order to hire teachers pursuant to the provisions of this section,
the school district shall:

(1) Show a good faith effort to fill positions with nonretired
certificated teachers;

(2) Post the vacancy for at least one month;

(3) Have not offered early retirement incentives for either of the
previous two years;

(4) Solicit applications through the local newspaper, other media, or
teacher education programs;

(5) Determine there is an insufficient number of eligible applicants for
the advertised position; and

(6) Declare a critical shortage of certificated teachers that is active
for one year.

5. Any person hired pursuant to this section shall be included in the
State Director of New Hires for purposes of income and eligibility
verification pursuant to 42 U.S.C. Section 1320b-7. (L. 2003 H.B. 346 &
174)

1. All of the assets of the retirement system (other than
tangible real or personal property owned by the retirement system for use
in carrying out its duties, such as office supplies and furniture) shall
be credited, according to the purpose for which they are held, in either
the employees' contribution fund or the general reserve fund.

(1) The employees' contribution fund shall be the fund in which shall be
accumulated the contributions of the members. The employer shall, except
as provided in subdivision (5) of this subsection, cause to be deducted
from the compensation of each member on each and every payroll, for each
and every payroll period, the pro rata portion of five and nine-tenths
percent of his annualized compensation. Effective January 1, 1999, the
employer shall deduct an additional one and six-tenths percent of the
member's annualized compensation.

(2) The employer shall pay all such deductions and any amount it may
elect to pay pursuant to subdivision (5) of this subsection to the
retirement system at once. The retirement system shall credit such
deductions and such amounts to the individual account of each member from
whose compensation the deduction was made or with respect to whose
compensation the amount was paid pursuant to subdivision (5) of this
subsection. In determining the deduction for a member in any payroll
period, the board of trustees may consider the rate of compensation
payable to such member on the first day of the payroll period as
continuing throughout such period.

(3) The deductions provided for herein are declared to be a part of the
compensation of the member and the making of such deductions shall
constitute payments by the member out of the person's compensation and
such deductions shall be made notwithstanding that the amount actually
paid to the member after such deductions is less than the minimum
compensation provided by law for any member. Every member shall be deemed
to consent to the deductions made and provided for herein, and shall
receipt for the person's full compensation, and the making of the
deduction and the payment of compensation less the 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 169.270 to 169.400.

(4) The accumulated contributions with interest of a member withdrawn by
the person or paid to the person's estate or designated beneficiary in
the event of the person's death before retirement shall be paid from the
employees' contribution fund. Upon retirement of a member the member's
accumulated contributions with interest shall be transferred from the
employees' contribution fund to the general reserve fund.

(5) The employer may elect to pay on behalf of all members all or part of
the amount that the members would otherwise be required to contribute to
the employees' contribution fund pursuant to subdivision (1) of this
subsection. Such amounts paid by the employer shall be in lieu of
members' contributions and shall be treated for all purposes of sections
169.270 to 169.400 as contributions made by members. Notwithstanding any
other provision of this chapter to the contrary, no member shall be
entitled to receive such amounts directly. The election shall be made by
a duly adopted resolution of the employer's board and shall remain in
effect for at least one year from the effective date thereof. The
election may be thereafter terminated only by an affirmative act of the
employer's board notwithstanding any limitation in the term thereof in
the adopting resolution. Any such termination resolution shall be adopted
at least sixty days prior to the effective date thereof, and the
effective date thereof shall coincide with a fiscal year-end of the
employer. In the absence of such a termination resolution, the election
shall remain in effect from fiscal year to fiscal year.

2. The general reserve fund shall be the fund in which shall be
accumulated all reserves for the payment of all benefit expenses and
other demands whatsoever upon the retirement system except those items
heretofore allocated to the employees' contribution fund.

(1) All contributions by the employer, except those the employer elects
to make on behalf of the members pursuant to subdivision (5) of
subsection 1 of this section, shall be credited to the general reserve
fund.

(2) Should a retirant be restored to active service and again become a
member of the retirement system, the excess, if any, of the person's
accumulated contributions over benefits received by the retirant shall be
transferred from the general reserve fund to the employees' contribution
fund and credited to the person's account.

3. Gifts, devises, bequests and legacies may be accepted by the board of
trustees and deposited in the general reserve fund to be held, invested
and used at its discretion for the benefit of the retirement system
except where specific direction for the use of a gift is made by a donor.
(L. 1943 p. 787 § 9, A.L. 1951 p. 477, A.L. 1957 p. 396, A.L. 1961 p.
369, A.L. 1965 p. 291, A.L. 1967 lst Ex. Sess. p. 885, A.L. 1971 S.B.
140, A.L. 1973 H.B. 375, A.L. 1974 S.B. 574, A.L. 1978 H.B. 1503, A.L.
1982 H.B. 1522, A.L. 1989 S.B. 146, A.L. 1990 H.B. 1347, et al., A.L.
1993 S.B. 126, A.L. 1994 S.B. 575, A.L. 1998 S.B. 761)

Before the first of July of each year, the board of trustees
shall certify to each employer the amounts which will become due and
payable from each during the school year next following to the general
reserve fund. The amount so certified shall be appropriated by each
employer's board by a resolution explicitly directing the appropriate
officials to pay the same, not later than July twenty-fifth of each year
and transferred to the retirement system on or before December
thirty-first of the same year. (L. 1943 p. 787 § 10, A.L. 1951 p. 477,
A.L. 1961 p. 369, A.L. 1973 H.B. 375, A.L. 1982 H.B. 1522, A.L. 1989 S.B.
146)

Effective 6-14-89

1. Interest charges payable, the creation and maintenance of
reserves in the general reserve fund and the payment of all retirement
allowances, refunds and other benefits and expenses are hereby made
obligations chargeable against the general reserve fund and not of the
school district, and the moneys placed in the general reserve fund shall
not be diverted or used for other purposes.

2. No alteration, amendment or repeal of sections 169.270 to 169.400
shall be deemed to affect the rights of members of any retirement system
established thereunder with reference to deposits previously made, or to
reduce any accrued or potential benefits to those who are members at the
time when such alterations, amendments, or repeal becomes effective or to
reduce the amount of any retirement allowance then payable. (L. 1943 p.
787 § 11, A.L. 1961 p. 369)

Any funds in the charge and custody of the board of trustees of
the retirement system under the provisions of sections 169.270 to 169.400
shall not be subject to execution, garnishment, attachment or any other
process whatsoever and shall be unassignable, unless otherwise
specifically provided in sections 169.270 to 169.400. (L. 1943 p. 787 §
12, A.L. 1982 H.B. 1522)

The state of Missouri shall contribute no funds directly or
indirectly to finance the plan to pay retirement allowances by
appropriation bills or otherwise, except those funds which the school
district may receive from time to time under a law or laws providing for
a general apportionment of school moneys throughout all the state. (L.
1943 p. 787 § 14, A.L. 1982 H.B. 1522)

The board of trustees or its duly authorized representatives
may, at any time, in its or their sole discretion, waive compliance by
members, retirants, or beneficiaries with any procedural requirements
imposed by sections 169.270 to 169.400 upon its or their determination
that, under the circumstances, compliance with such procedural
requirements would be impractical or infeasible and would be unnecessary
for the protection of the interest of the retirement system and its
members. (L. 1989 S.B. 146, A.L. 1990 H.B. 1347, et al.)

Effective 5-31-90

Should any change or error in records result in any member or
beneficiary receiving from the retirement system more or less than the
person would have been entitled to receive had the records been correct,
the board of trustees shall have the power to correct such error and, as
far as practicable, may 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. 1943 p. 787 § 13, A.L. 1955 p.
524, A.L. 1967 1st Ex. Sess. p. 885, A.L. 1994 S.B. 575)

Effective 5-26-94

The following words and phrases as used in sections 169.410 to
169.540, unless a different meaning is plainly required by the context,
shall have the following meanings:

(1) "Accumulated contributions", the sum of all amounts deducted from the
compensation of a member and credited to the member's individual account
together with interest allowed on such an account;

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

(3) "Average final compensation", the highest average annual compensation
of the member received for any three consecutive years of credited
service of the member's last ten years of credited service or if the
member has had less than three years of such credited service, during the
member's entire period of credited service;

(4) "Beneficiary", any person other than a retired member receiving a
pension benefit, optional pension benefit or other benefit;

(5) "Board of education", the board of education or corresponding board
having charge of the public schools of the school district other than
those public schools which are operated by the board of regents;

(6) "Board of regents", the board of regents or corresponding board
having charge of a public city teacher training school within the school
district which was operated by its board of education prior to September
1, 1978;

(7) "Board of trustees", the board which administers the retirement
system;

(8) "Charter school", any charter school established pursuant to sections
160.400 to 160.420, RSMo, and located, at the time it is established,
within the school district;

(9) "Compensation", the regular compensation which a member has earned as
an employee during any period, excluding, however, any compensation
earned by a person who became a member after December 31, 1995, which is
in excess of the limitation set forth in Section 401(a)(17) of the
Internal Revenue Code;

(10) "Consumer price index", the Consumer Price Index for All Urban
Consumers for the United States, or its successor index, as approved by
the board of trustees, as such index is defined and officially reported
by the United States Department of Labor, or its successor agency;

(11) "Credited service", prior service plus membership service plus
service purchased pursuant to applicable Missouri statute;

(12) "Employee", any person regularly employed by (a) the board of
education, or (b) the board of trustees, or (c) the board of regents who
was employed at a public teacher training school within the school
district prior to September 1, 1978, and who did not become a member of
the Missouri state employees' retirement system pursuant to section
104.342, RSMo, or (d) a charter school. In case of doubt as to whether
any person is an employee, the decision of the board of education, or the
board of trustees, or the board of regents shall be final and conclusive;

(13) "Employer", the board of education, the board of trustees, the board
of regents or a charter school;

(14) "Medical board", the board of physicians;

(15) "Member", a member of the retirement system defined as an:

(a) "Active member", a person who is an employee;

(b) "Inactive member", a former active member who has accumulated
contributions with the retirement system; or

(c) "Retired member", a former active member who has retired and is
receiving benefits;

(16) "Membership service", service rendered as an employee for which the
employee received compensation. For the purpose of computing creditable
service at retirement, membership service shall include a member's
accumulated and unused days of sick leave. The decision of the employing
board as to the number of accumulated and unused days of sick leave held
by a member shall be final and conclusive;

(17) "Pension benefit" or "pension", monthly payments for life to a
retired member or to such beneficiary as is entitled to the payments;

(18) "Prior service", service prior to the date the system became
operative which is credited;

(19) "Public school", any school for elementary, secondary or higher
education, open and public, which is supported and maintained from public
funds and which is operated by the board of education of the school
district, by the board of regents, or as a charter school as defined
pursuant to sections 160.400 to 160.420, RSMo;

(20) "Retired member", a member receiving a retirement benefit or other
benefit;

(21) "Retirement system", the public school retirement system of a school
district;

(22) "School administrator", an employee whose job classification is
included on the school administrators' position schedule of the employing
board;

(23) "School district", any metropolitan school district as defined
pursuant to section 160.011, RSMo;

(24) "Teacher", any teacher, substitute teacher, supervisor, principal,
supervising principal, superintendent or assistant superintendent, who
shall teach or be employed on a full-time basis in the public schools of
a school district or charter school, except those teachers electing to
become members of the Missouri state employees' retirement system
pursuant to section 104.342, RSMo. In case of doubt as to whether any
person is a teacher, the decision of the board of education, or the board
of regents with respect to individuals within its charge, shall be final
and conclusive. (L. 1943 p. 805 § 1, A.L. 1949 p. 532, A.L. 1951 p. 513,
A.L. 1953 pp. 438, 496, A.L. 1957 p. 462, A.L. 1961 p. 384, A.L. 1965 p.
293, A.L. 1967 p. 263, A.L. 1978 S.B. 542, A.L. 1979 S.B. 392, A.L. 1981
H.B. 33, et al., A.L. 1987 H.B. 558, et al. merged with H.B. 713, A.L.
1989 S.B. 146, A.L. 1995 S.B. 378, A.L. 1996 S.B. 860, A.L. 2001 H.B. 660)

In all metropolitan school districts of this state, there are
hereby created and established retirement systems for the purpose of
providing retirement benefits for employees of said school districts.
Each such system shall be a body corporate, and shall be under the
management of a board of trustees herein described, and shall be known as
"The Public School Retirement System of ........ (name of school
district)". Such system shall, by and in such name, sue and be sued,
transact all of its business, invest all of its funds and hold all of its
cash, securities and other property; provided, however, that such
securities and other property may be held on behalf of the retirement
system in the name of a nominee in order to facilitate the expeditious
transfer of such securities or other property. (L. 1943 p. 805 § 2, A.L.
1978 S.B. 542, A.L. 2001 H.B. 660)

All persons who shall hereafter become employees shall become
members as a condition of their employment and shall receive no pension
or retirement benefit from any pension or retirement system other than
the retirement system established pursuant to sections 169.410 to 169.540
because of credited years of service in the school district, nor shall
they be required to make contributions under any other pension or
retirement system of any school district or state because of such years,
except that this section does not prohibit the extension of the benefits
and liabilities of Title II of the Social Security Act of the United
States (42 U.S.C.A. Section 401 et seq.) to the employees of the school
district for the purpose of supplementing the benefits provided by this
law, through agreement by the district and the state pursuant to sections
105.300 to 105.440, RSMo. (L. 1943 p. 805 § 3, A.L. 1953 pp. 438, 496,
A.L. 1955 p. 546, A.L. 1957 p. 462, A.L. 1961 p. 384, A.L. 1981 H.B. 33,
et al., A.L. 2001 H.B. 660)

Any member, who elected on October 13, 1961, or within ninety
days thereafter to continue contributions and receive benefits as
provided by the law theretofore, may revoke such election by written
application to the board of trustees and, upon making the payment of such
amount, including interest, as is required to make his total accumulated
contributions equal to what they would have been had he not made such
prior election but instead had made contributions to the retirement
system established by sections 169.410 to 169.540, shall receive credit
in such system for equivalent service. (L. 1961 p. 384 § 169.431, A.L.
1972 H.B. 1266, A.L. 1973 S.B. 256 Revision, A.L. 1981 H.B. 33, et al.,
A.L. 1987 H.B. 558, et al.)

Effective 6-19-87

1. In no case shall more than one year of service be credited
for all service in one calendar year.

2. The board of trustees shall include an employee's accumulated and
unused days of sick leave, if any, in computing the employee's credited
service upon the employee's retirement.

3. Any member inducted into the armed forces of the United States while
an employee, and discharged or separated from such service by other than
dishonorable discharge, shall be credited with such period or periods of
time, not exceeding a total of four years, spent in such service during
time of war or national emergency, and any additional period or periods
of involuntary service as if such member had been for all effects and
purposes in active service as an employee during such period or periods
of time. Periods of national emergency, as that term is used in this
section, shall be prescribed by rule of the board of trustees, giving due
regard to the acts and resolutions of Congress and the proclamations and
orders of the President.

4. Any member who is granted a leave of absence with reduced pay may
authorize deduction of contributions based on full compensation, the same
as if not on leave, and in such case the full compensation shall be used
as annual compensation in determining the final average compensation for
calculation of benefits.

5. A member may elect to purchase and receive credit for service in
accordance with the following conditions and limitations:

(1) The member must have a minimum of five years of continuous credited
membership service in this retirement system prior to the member's
election to purchase;

(2) The member must have one year of credited service in this retirement
system for each year to be credited;

(3) The member must purchase the entire amount of credited service the
member is eligible to purchase in a given category;

(4) Eligible categories of credited service that can be purchased are:

(a) Service rendered in a public school district in the state of
Missouri, or outside the state of Missouri;

(b) Service as an employee which at the time was not classified as
membership service nor were contributions paid but which would be
classified as membership service under later law and regulations;

(c) The period during which an employee's membership was terminated
during the years 1944 to 1947, inclusive, pursuant to a rule of the board
of education prohibiting the employment of married women teachers,
provided the member was reemployed on or before January 1, 1950, and was
a member as of October 13, 1969;

(d) A period of up to five years during which a member was involuntarily
laid off in a staff reduction by the board of education after 1980,
provided the member was restored to full-time employment and the member
did not receive a refund of the member's accumulated contributions for
credited service rendered prior to the layoff;

(e) Service for which the member received a refund of the member's
accumulated contributions;

(f) Up to three years of service rendered in a school, which is not part
of the public school system of this state and which charged tuition for
the rendering of elementary and secondary educational services, as a
full-time employee who was duly certified under the law governing the
certification of teachers during all of such years of employment;

(5) The member must pay for the purchase of service the amount required
by the rules and regulations established by the board of trustees of the
retirement system;

(6) The retirement system may accept a transfer of funds from a plan
qualified under Section 401(a) or 403(b) of the Internal Revenue Code in
full or partial payment of the amount required to purchase the credited
service;

(7) A member shall receive credit at retirement for only such service as
has met the conditions of this subsection. If the member has paid for any
service which has not been credited, the member shall receive a refund of
the excess payment. If the member has not completed such member's payment
at time of retirement, the first benefits from the retirement system
shall be applied to pay the balance of the amount due and thereafter the
full benefits shall be payable. (L. 1943 p. 805 § 4, A.L. 1949 p. 532,
A.L. 1953 p. 438, A.L. 1957 p. 462, A.L. 1961 p. 384, A.L. 1969 p. 282,
A.L. 1972 H.B. 1266, A.L. 1973 S.B. 256, A.L. 1978 S.B. 542, A.L. 1979
S.B. 392, A.L. 1981 H.B. 33, et al., A.L. 1983 S.B. 3, A.L. 1996 S.B.
860, A.L. 1997 H.B. 612 merged with S.B. 309, A.L. 2001 H.B. 660)

1. The general administration and responsibility for the proper
operation of the retirement system and for making effective the
provisions of sections 169.410 to 169.540 are hereby vested in a board of
trustees of eleven persons, as follows:

(1) Four trustees to be appointed for terms of four years by the board of
education; provided, however, that their terms shall be fixed so the
terms of one of the trustees so appointed shall expire each year. The
members of such board of trustees appointed by the board of education may
be members of the board of education or other individuals deemed
qualified to hold such positions by the board of education;

(2) Four trustees to be elected for terms of four years by and from the
active members of the retirement system who shall hold office as trustees
only while active members; provided, however, that their terms shall be
fixed so that the terms of one of the trustees so elected shall expire
each year; and provided further, that not more than two of such persons
shall be teachers and two shall be nonteachers. For the purposes of this
subsection, a school administrator shall not be eligible for the
positions established pursuant to this subdivision and shall be eligible
for the position established pursuant to subdivision (4) of this
subsection;

(3) Two trustees, who shall be retired members, to be elected for terms
of four years by and from the retired members of the retirement system;
provided, however, that the terms of office of the first two trustees so
elected shall begin immediately upon their election and shall expire two
and four years from the date of their election, respectively; and
provided further, that not more than one of such persons shall be a
teacher and one shall be a nonteacher;

(4) One member, who shall be a school administrator, to be elected for a
term of four years by and from the active members of the retirement
system who shall hold office as a trustee only while an active member;
except that, the initial term of office of such trustee shall expire on
December 31, 1999.

2. 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. No vacancy or vacancies on the board of trustees shall
impair the power of the remaining trustees to administer the retirement
system pending the filling of such vacancies.

3. In the event of a lapse of a school district's corporate organization
as described in subsections 1 and 4 of section 162.081, RSMo, or for any
other reason, the general administration and the responsibility for the
proper operation of the retirement system shall continue to be fully
vested in the trustees then currently serving and such trustees shall
continue to serve and be elected in the same manner as set forth in this
statute as if no lapse had occurred, except that in the event of
vacancies occurring in the office of trustees appointed by the board of
education prior to the lapse, the board of trustees shall appoint a
qualified person or persons to fill such vacancy or vacancies for terms
of up to four years.

4. Trustees shall serve without compensation, and any trustee shall be
reimbursed from the expense fund for all necessary expenses which the
trustee may incur through service on the board of trustees.

5. Each trustee shall, within ten days after such trustee's appointment
or election, take an oath of office before the clerk of the circuit court
of the judicial circuit in which the school district is located that, so
far as it devolves upon the trustee, the trustee will diligently and
honestly administer the affairs of the board of trustees and that the
trustee 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 filed in the
office of the clerk of the circuit court.

6. The circuit court of the judicial circuit in which the school district
is located shall have jurisdiction over the members of the board of
trustees to require them to account for their official conduct in the
management and disposition of the funds and property committed to their
charge; to order, decree and compel payment by them to the public school
retirement system of their school district of all sums of money, and of
the value of all property which may have been improperly retained by
them, or transferred to others, or which may have been lost or wasted by
any violation of their duties or abuse of their powers as such members of
such board; to remove any such member upon proof that the trustee has
abused the trustee's trust or has violated the duties of the trustee's
office; to restrain and prevent any alienation or disposition of property
of such public school retirement system by the members, in cases where it
may be threatened, or there is good reason to apprehend that it is
intended to be made in fraud of the rights and interests of such public
school retirement system. The jurisdiction conferred by sections 169.410
to 169.540 shall be exercised as in ordinary cases upon petition, filed
by the board of education of such school district, or by any two members
of the board of trustees. Such petition shall be heard in a summary
manner after ten days' notice in writing to the member complained of, and
an appeal shall lie from the judgment of the circuit court as in other
causes and be speedily determined, but such appeal shall not operate
under any condition as a supersedeas of a judgment of removal from office.

7. Each trustee shall be entitled to one vote in the board of trustees.
Six votes shall be necessary for a decision by the trustees at any
meeting of the board of trustees.

8. Subject to the limitations of sections 169.410 to 169.540, the board
of trustees shall, from time to time, establish rules and regulations for
the administration of the retirement system, for eligibility for and
determination of benefits under the retirement system, for the investment
of retirement system assets, and for the transaction of the retirement
system's business.

9. 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. It shall also engage an investment counselor who shall
be experienced in the investment of moneys to advise the trustees on
investments 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.

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

11. The board of trustees shall keep a record of all its proceedings
which shall be open to public inspection. It shall prepare annually and
send to the board of education and to each member of the retirement
system a report showing the fiscal transactions of the retirement system
for the preceding fiscal year, a detailed listing of all salaries and
expenditures incurred by the trustees for its operation, 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. The board of trustees shall also prepare or cause to be prepared
an annual report concerning the operation of the retirement system herein
provided for, which report shall be sent by the chairman of the board of
trustees to the board of education.

12. The board of trustees shall arrange for necessary legal advice for
the operation of the retirement system.

13. The board of trustees shall designate a medical board to be composed
of three physicians, none of whom shall be eligible for benefits pursuant
to sections 169.410 to 169.540, who shall arrange for and pass upon all
medical examinations required pursuant to the provisions of sections
169.410 to 169.540, 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 matters
referred to it.

14. The actuary shall be the technical adviser of the board of trustees
on matters regarding the operation of the system created by sections
169.410 to 169.540 and shall perform such other duties as are required in
connection therewith. Such person shall be qualified as an actuary by
membership as a fellow in the Society of Actuaries or by objective
standards which are no less stringent than those established by the
Society of Actuaries.

15. At least once in each five-year period the actuary shall make an
investigation into the actuarial experience of the retirement system, and
taking into account the results of such investigation of the experience,
the board of trustees shall adopt for the retirement system such
actuarial assumptions as shall be deemed necessary.

16. On the basis of such actuarial assumptions as the board of trustees
shall adopt, the actuary shall make an annual valuation of the assets and
liabilities of the funds of the retirement system.

17. On the basis of the valuation the board of trustees shall certify the
rates of contribution payable by the board of education. (L. 1943 p. 805
§ 5, A.L. 1953 pp. 438, 496, A.L. 1957 p. 462, A.L. 1961 p. 384, A.L.
1967 p. 263, A.L. 1978 S.B. 542, A.L. 1981 H.B. 33, et al., A.L. 1987
H.B. 558, et al., A.L. 1996 S.B. 860, A.L. 1999 H.B. 979, A.L. 2001 H.B.
660)

1. Any member may retire and receive a normal pension upon his
written application to the board of trustees setting forth at what time
not less than fifteen days nor more than one hundred eighty days
subsequent to the execution and filing of such application he desires to
be retired; provided, that the member at the time so specified for his
retirement either (a) shall have attained age sixty-five or (b) shall
have attained an age which when added to the number of years of credited
service of such member shall total a sum not less than eighty-five. For
purposes of computing any member's age under this section, the board
shall, if necessary, add to his actual age any accumulated and unused
days of sick leave included in his credited service.

2. Upon retirement pursuant to subsection 1 of this section, a member
shall receive an annual pension payable in monthly installments equal to
his number of years of credited service multiplied by two percent of his
average final compensation subject to a maximum pension of sixty percent
of his average final compensation.

3. A member who is not eligible for normal pension pursuant to subsection
1 of this section but who has attained age sixty and has five or more
years of credited service may make application in the same manner as
pursuant to subsection 1 of this section for an early pension. His early
pension shall be computed pursuant to subsection 2 of this section, but
shall be reduced by five-ninths of one percent for each month such
member's early retirement date precedes the earliest date he could have
received a normal pension pursuant to subsection 1 of this section had
his service continued.

4. Upon the written application of the member or of the employing board,
any active member who has five or more years of credited service with
such board and does not qualify for a normal pension pursuant to
subsection 1 of this section may be retired by the board of trustees, not
less than fifteen days and not more than one hundred eighty days next
following the date of filing such application, and receive a disability
pension, provided, that the medical board after a medical examination of
such member or such member's medical records shall certify that such
member is unable to further perform his duties due to mental or physical
incapacity, and that such incapacity is likely to be permanent and that
such member should be retired; or, provided the member furnishes evidence
of the receipt of disability benefits under the federal Old Age,
Survivors and Disability Insurance System of the Social Security Act. The
determination of the board of trustees in the matter shall be final and
conclusive. A member being retired pursuant to this subsection who has
accumulated unused vacation and sick leave may elect to have the
commencement of his disability pension deferred for more than one hundred
eighty days during the period he is entitled to vacation and sick pay.

5. Upon retirement for disability, a member shall receive a disability
pension until such time as he meets the requirements for a normal pension
pursuant to subsection 1 of this section, at which time his disability
pension will be deemed to be a normal pension. The member's disability
pension shall be the larger of:

(1) A normal pension based on his credited service to the date of his
retirement for disability and calculated as if he were age sixty-five; or

(2) One-fourth of his average final compensation; except that such
benefit shall not exceed the normal pension which he would have received
upon retirement if his service had continued and he had satisfied the
eligibility requirements of subsection 1 of this section and had his
final average compensation been unchanged.

6. Once each year during the first five years following retirement for
disability and once in every three-year period thereafter while receiving
a disability pension, the board of trustees may, and shall, require any
member receiving a disability pension who has not yet become eligible for
a normal pension pursuant to subsection 1 of this section to undergo a
medical examination at a place designated by the medical board or by a
physician or physicians designated by such board. If any such member
receiving a disability pension refuses to submit to such medical
examination, his benefit may be discontinued until his withdrawal of such
refusal, and if his refusal continues for one year, all rights in and to
his pension may be revoked by the board of trustees.

7. If the board of trustees finds that any member receiving a disability
pension is engaged in or is able to engage in a gainful occupation paying
more than the difference between his disability pension plus benefits, if
any, to which he and his family are eligible under the federal Old Age,
Survivors and Disability Insurance System of the Social Security Act and
the current rate of monthly compensation for the position he held at
retirement, then the amount of his disability pension shall be reduced to
an amount which together with the amount earnable by him shall equal such
current rate of monthly compensation. The decisions of the board of
trustees in regard to such modification of disability benefits shall be
final and conclusive.

8. If any member receiving a disability pension is restored to service as
an employee, he shall again become an active member of the retirement
system and contribute thereunder. His credited service at the time of his
retirement for disability shall be restored and the excess of his
accumulated contributions at his retirement for disability over the total
disability pension payments which he received shall be credited to his
account.

9. If a member with fewer than five years credited service ceases to be
an employee, except by death, he shall be paid the amount of his
accumulated contributions in accordance with applicable provisions of the
Internal Revenue Code.

10. If a member with five years or more credited service ceases to be an
employee, except by death or retirement, he shall be paid on demand the
amount of his accumulated contributions, or he may leave his accumulated
contributions with the retirement system and be an inactive member and
claim a retirement benefit at any time after he reaches the minimum age
for retirement, except that if such a member's accumulated contributions
do not exceed the involuntary distribution limits under provisions of the
Internal Revenue Code, the member must elect to become an inactive member
within thirty days of employment separation to avoid application of the
involuntary distribution provisions of the Internal Revenue Code. When an
inactive member presents his valid claim to the board of trustees, he
shall be granted a benefit at such time and for such amount as is
available pursuant to subsection 2 or 3 of this section in accordance
with the provisions of law in effect at the time his active membership
ceased. The accumulated contributions of an inactive member may be
withdrawn at any time upon ninety days' notice or such shorter notice as
is approved by the board of trustees. If an inactive member dies before
retirement, his accumulated contributions shall be paid to his designated
beneficiary, if living, otherwise to the estate of the member. A member's
accumulated contributions shall not be paid to him so long as he remains
in service as an employee.

11. Any member upon retirement shall receive his pension payable
throughout life subject to the provision that if his death occurs before
he has received total benefits at least as large as his accumulated
contributions at retirement, the difference shall be paid in one sum to
his designated beneficiary, if living, otherwise to the estate of the
retired member.

12. Prior to the date of retirement pursuant to subsection 2, 3, or 4 of
this section, a member may elect to receive the actuarial equivalent of
his pension in a lesser amount, payable throughout life under one of the
following options with the provision that:

Option 1. Upon his death, his pension shall be continued throughout the
life of and paid to his beneficiary, or

Option 2. Upon his death, one-half of his pension shall be continued
throughout the life of and paid to his beneficiary, or

Option 3. Upon his death, his pension shall be continued throughout the
life of and paid to his beneficiary, provided that in the event his
designated beneficiary predeceases him, then his pension shall be
adjusted effective the first day of the month following the month in
which his designated beneficiary died to the amount determined pursuant
to subsection 2 or 3 of this section at the time of his retirement, or

Option 4. Upon his death, one-half of his pension shall be continued
throughout the life of and paid to his beneficiary, provided that in the
event his designated beneficiary predeceases him, then his pension shall
be adjusted effective the first day of the month following the month in
which his designated beneficiary died to the amount determined pursuant
to subsection 2 or 3 of this section at the time of his retirement.

Option 5. Prior to age sixty-two the member will receive an increased
pension, where the total pension prior to age sixty-two is approximately
equal to the pension after age sixty-two plus the member's estimated
federal Social Security benefit, provided that the reduced pension after
age sixty-two is not less than one-half the pension the member could have
received had no option been elected.

A member may elect a combination of Option l and Option 5, or Option 2
and Option 5. The survivor benefits payable to a beneficiary, other than
the spouse of the retired member, under any of the foregoing options
shall in no event exceed fifty percent of the actuarial equivalent of the
pension determined pursuant to subsection 2 or 3 of this section at the
time of retirement.

13. If an option has been elected pursuant to subsection 12 of this
section, and both the retired member and beneficiary die before receiving
total benefits as large as the member's accumulated contributions at
retirement, the difference shall be paid to the designated beneficiary of
the person last entitled to benefits, if living, otherwise to the estate
of the person last entitled to benefits.

14. If an active member dies while an employee and with five or more
years of credited service and a dependent of the member is designated as
beneficiary to receive his accumulated contributions, such beneficiary
may, in lieu thereof, request that benefits be paid under option 1,
subsection 12 of this section, as if the member had attained age sixty,
if the member was less than sixty years of age at the time of his death,
and had retired under such option as of the date of death, provided that
under the same circumstances a member may provide by written designation
that benefits must be paid pursuant to option 1 to such beneficiary. In
addition to benefits received under option 1, subsection 12 of this
section, a surviving spouse receiving benefits under this subsection
shall receive sixty dollars per month for each unmarried dependent child
of the deceased member who is under twenty-two years of age and is in the
care of the surviving spouse; provided, that if there are more than three
such unmarried dependent children one hundred eighty dollars shall be
divided equally among them. A "dependent beneficiary" for the purpose of
this subsection only shall mean either the surviving spouse or a person
who at the time of the death of the member was receiving at least
one-half of his support from the member, and the determination of the
board of trustees as to whether a person is a dependent shall be final.

15. In lieu of accepting the payment of the accumulated contributions of
a member who dies after having at least eighteen months of credited
service and while an employee, an eligible beneficiary or, if no
surviving eligible beneficiary, the unmarried dependent children of the
member under twenty-two years of age may elect to receive the benefits
pursuant to subdivision (1), (2), (3), or (4) of this subsection. An
"eligible beneficiary" is the surviving spouse, unmarried dependent
children under twenty-two years of age or dependent parents of the
member, if designated as beneficiary. A "dependent" is one receiving at
least one-half of his support from the member at his death.

(1) A surviving spouse who is sixty-two years of age at the death of the
member or upon becoming such age thereafter, and who was married to the
member at least one year, may receive sixty dollars per month for life. A
spouse may receive this benefit after receiving benefits pursuant to
subdivision (2) of this subsection;

(2) A surviving spouse who has in his or her care an unmarried dependent
child of the deceased member under twenty-two years of age may receive
sixty dollars per month plus sixty dollars per month for each child under
twenty-two years of age but not more than a total of two hundred forty
dollars per month;

(3) If no benefits are payable pursuant to subdivision (2) of this
subsection, unmarried dependent children under the age of twenty-two may
receive sixty dollars each per month; provided that if there are more
than three such children one hundred eighty dollars per month shall be
divided equally among them;

(4) A dependent parent upon attaining sixty-two years of age may receive
sixty dollars per month as long as not remarried provided no benefits are
payable at any time pursuant to subdivision (1), (2), or (3) of this
subsection. If there are two dependent parents entitled to benefits,
sixty dollars per month shall be divided equally between them;

(5) If the benefits pursuant to this subsection are elected and the total
amount paid is less than an amount equal to the accumulated contributions
of a member at his death, the difference shall be payable to the
beneficiary or the estate of the beneficiary last entitled to benefits.

16. If a member receiving a normal pension again becomes an active
member, his pension benefit payments shall cease during such membership
and shall be resumed upon subsequent retirement together with such
pension benefit as shall accrue by reason of his latest period of
membership. Except as otherwise provided in section 105.269, RSMo, a
retired member may not receive a pension benefit for any month for which
he receives compensation from an employing board, except he may serve as
a part-time or temporary employee for not to exceed sixty days in any
calendar year without becoming a member and without having his pension
benefit discontinued. A retired member may also serve as a member of the
board of trustees and receive any reimbursement for expenses allowed him
because of such service without becoming an active member and without
having his pension benefit discontinued or reduced.

17. Upon approval of the board of trustees, any member may make
contributions in addition to those required. Any additional contributions
shall be accumulated at interest and paid in addition to the benefits
provided hereunder. The board of trustees shall make such rules and
regulations as it deems appropriate in connection with additional
contributions including limitations on amounts of contributions and
methods of payment of benefits.

18. Notwithstanding any other provisions of this section, any member
retiring on or after age sixty-five who has five or more years of
credited service shall be entitled to an annual pension of the lesser of
(a) an amount equal to his number of years of credited service multiplied
by one hundred twenty dollars, or (b) one thousand eight hundred dollars.
Upon the death of such member, any benefits payable to the beneficiary of
such member shall be computed as otherwise provided. (L. 1943 p. 805 § 6,
A.L. 1949 p. 532, A.L. 1953 p. 438, A.L. 1957 p. 462, A.L. 1961 p. 384,
A.L. 1965 p. 293, A.L. 1967 p. 263, A.L. 1972 H.B. 1266, A.L. 1973 S.B.
256, A.L. 1978 S.B. 542, A.L. 1979 S.B. 392, A.L. 1981 H.B. 33, et al.,
A.L. 1983 S.B. 3, A.L. 1986 H.B. 1216, A.L. 1987 H.B. 558, et al. merged
with H.B. 384 Revision, A.L. 1988 H.B. 1100, et al., A.L. 1989 S.B. 146,
A.L. 1990 H.B. 1347, et al., A.L. 2001 H.B. 660)

1. Any retired member with fifteen or more years of creditable
service at retirement receiving a pension on August 28, 1997, shall
receive on January first of each year, commencing on January 1, 1998, an
increase in the amount of pension received by the retired member pursuant
to sections 169.410 to 169.540 during the preceding year of one hundred
percent of the increase in the consumer price index calculated in the
manner provided in this section; except that, no such increase in pension
benefits shall be paid for any year if such increase in the consumer
price index is less than one percent. Such annual pension increase,
however, shall not exceed three percent and the total increases in the
amount of pension benefits received by any retired member shall not, in
the aggregate, exceed ten percent of the pension benefits such retired
member received during the year preceding January first of the first year
the retired member is entitled to receive an increase pursuant to this
section. A retired member qualified to receive an annual pension increase
pursuant to this section shall not be eligible to receive an additional
benefit until the January first after the first anniversary of the date
on which he or she commenced receiving a pension pursuant to sections
169.410 to 169.540. Benefits shall not be decreased in the case of a
decrease in the consumer price index for any year.

2. For the purpose of this section, any increase in the consumer price
index shall be determined by the board of trustees in November of each
year based on the consumer price index for the twelve-month period ended
on September thirtieth of such year over the consumer price index for the
twelve-month period ended on September thirtieth of the year immediately
prior thereto. Any increase so determined shall be applied by the board
of trustees in calculating increases in pension benefits that become
payable pursuant to this section for the twelve-month period beginning on
the January first immediately following such determination.

3. An annual increase in pension benefits, if any, shall be payable
monthly with monthly installments of other pension benefits pursuant to
sections 169.410 to 169.540. (L. 1996 S.B. 860, A.L. 1997 H.B. 612 merged
with S.B. 309, A.L. 2001 H.B. 660)

The board of education is authorized from time to time, in its
discretion, to increase the pension benefits now or hereafter provided
pursuant to sections 169.410 to 169.540 and to adopt and implement
additional pension benefits and plans, including without limitation,
early retirement plans, deferred retirement option plans and
cost-of-living adjustments, but excluding compensation to retired members
pursuant to section 169.475, and for such purpose the contribution rate
of members of the retirement system may be increased to provide part of
the cost thereof, subject to the following conditions:

(1) Any such increase in pension benefits and additional pension benefits
and plans shall be approved by the board of trustees;

(2) The board of trustees shall have presented to the board of education
the projected increases in rates of contribution which will be required
to be made by members and the board of education to the retirement system
to pay the cost of such increases in pension benefits and additional
pension benefits and plans; and

(3) Any increase in the contribution rate of members of the retirement
system shall be approved by the board of trustees and shall be deducted
from the compensation of each member by the employing board and
transferred and credited to the individual account of each member from
whose compensation the deduction was made, and shall be administered in
accordance with sections 169.410 to 169.540; provided that, any such
increase in the members' contribution rate shall not exceed one-half of
one percent of compensation in any year for such increases to pension
benefits and additional pension benefits and plans adopted during such
year by the board of education pursuant to this section, and all such
increases in the members' contribution rate shall, in the aggregate, not
exceed two percent of compensation. (L. 1996 S.B. 860, A.L. 2001 H.B. 660)

1. Any retired member now receiving pension benefits, who served
five years or more as an employee of the school district and who retired
after June 30, 1957, and prior to January 1, 1971, shall, upon
application to the retirement system, be employed by that retirement
system as a special school advisor and supervisor. Any person so employed
shall perform such duties as the board of trustees directs, and shall
receive a salary of five dollars per month for each year of service not
to exceed seventy-five dollars per month, payable by the retirement
system as part of its administrative costs, but the payment to the
retired person for such services, together with the pension benefits the
person receives, shall not exceed one hundred fifty dollars per month.
The employment provided for by this subsection shall in no way affect any
person's eligibility for pension benefits or for employment pursuant to
other subsections of this section.

2. Any retired member now receiving pension benefits, who served ten
years or more as an employee of the school district and who retired prior
to January 1, 1955, shall, upon application to the retirement system be
employed by that retirement system as a special school advisor and
supervisor. Any person so employed shall perform such duties as the board
of trustees directs, and shall receive a salary of two hundred fifty
dollars per month payable by the retirement system as part of its
administrative costs, but payment to the retired person for such services
shall be reduced by the pension benefits the person receives. The
employment provided for by this subsection shall in no way affect any
person's eligibility for pension benefits or for employment pursuant to
other subsections of this section, subject to the limitation set forth in
subsection 3 of this section.

3. Any retired member now receiving pension benefits who retired prior to
January 1, 1976, shall, upon application to the retirement system, be
employed by that retirement system as a school consultant. Any person so
employed shall perform such duties as the board of trustees directs, and
shall receive a salary equal to four dollars per month for each year (or
major portion of a year) between the date of the person's retirement and
December 31, 1981, plus two dollars per month for each year (or major
portion of a year) between January 1, 1982, and December 31, 1984, and,
in addition, shall be entitled to receive the insurance benefits provided
retired members pursuant to section 169.476 payable by the retirement
system as part of its administrative costs. The employment provided for
by this subsection shall in no way affect any person's eligibility for
pension benefits or for employment pursuant to other subsections of this
section, provided that total salaries payable to any retired member
pursuant to subsections 2 and 3 of this section shall not exceed two
hundred fifty dollars per month.

4. Any retired member now receiving pension benefits who retired on or
after January 1, 1976, and prior to December 31, 1984, shall, upon
application to the retirement system, be employed by the retirement
system as a school consultant. Any person so employed shall perform such
duties as the board of trustees directs and shall receive a salary equal
to four dollars per month for each year (or major portion of a year)
between the date of the person's retirement and December 31, 1984, and,
in addition, shall be entitled to receive the insurance benefits provided
retired members pursuant to section 169.476 payable by the retirement
system as part of its administrative costs. The employment provided for
by this subsection shall in no way affect any person's eligibility for
pension benefits or for employment pursuant to other subsections of this
section.

5. Any retired member now receiving pension benefits or who retires prior
to December 31, 1986, shall, after application to the retirement system,
be employed by the retirement system as a school consultant. Any person
so employed shall perform such duties as the board of trustees directs
and shall receive a salary equal to two dollars per month for each year
(or major portion of a year) between the date of the person's retirement
and December 31, 1986, payable by the retirement system as part of its
administrative costs. The employment provided for by this subsection
shall in no way affect any person's eligibility for pension benefits or
for employment pursuant to other subsections of this section.

6. Any retired member now receiving pension benefits or who retires prior
to December 31, 1988, shall, after application to the retirement system,
be employed by the retirement system as a school consultant. Any person
so employed shall perform such duties as the board of trustees directs
and shall receive a salary equal to two dollars per month for each year
(or major portion of a year) between the date of the person's retirement
and December 31, 1988, payable by the retirement system as part of its
administrative costs. The employment provided for by this subsection
shall in no way affect any person's eligibility for pension benefits or
for employment pursuant to other subsections of this section.

7. Any retired member now receiving pension benefits or who retires prior
to December 31, 1990, shall, after application to the retirement system,
be employed by the retirement system as a school consultant. Any person
so employed shall perform such duties as the board of trustees directs
and shall receive a salary equal to two dollars per month for each year
(or major portion of a year) between the date of the person's retirement
and December 31, 1990, not to exceed ten years, payable by the retirement
system as part of its administrative costs. The employment provided for
by this subsection shall in no way affect any person's eligibility for
pension benefits or for employment pursuant to other subsections of this
section.

8. Any retired member now receiving pension benefits or who retires prior
to December 31, 1993, shall, after application to the retirement system,
be employed by the retirement system as a school consultant. Any person
so employed shall perform such duties as the board of trustees directs
and shall receive a salary equal to three dollars per month for each year
(or major portion of a year) between the date of the person's retirement
and December 31, 1993, payable by the retirement system as part of its
administrative costs. The employment provided by this subsection shall in
no way affect any person's eligibility for pension benefits or for
employment pursuant to other subsections of this section.

9. Any retired member now receiving pension benefits with fifteen years
or more creditable service at retirement, shall, after application to the
retirement system, be employed by the retirement system as a consultant.
Any person so employed shall, upon the request of the board of trustees,
give the board, orally or in writing, a short detailed statement of the
problems of retirement under the current monthly benefits. As
compensation for the obligation to perform the extra duty imposed by this
subsection, each consultant who meets the qualification prescribed in
subsection 7 of this section, shall receive, in addition to all other
compensation payable pursuant to this section, an increase in
compensation each year computed on the total amount which such consultant
receives pursuant to this section of one hundred percent of the increase
in the consumer price index calculated and payable in the manner
specified in section 169.466. A consultant otherwise qualified to receive
compensation pursuant to this subsection shall not be eligible to receive
such compensation until the January first after he or she has been
retired for at least twelve months. Any such annual increase in
compensation, however, shall not exceed three percent, and the total
increase in compensation pursuant to this subsection shall not exceed ten
percent of the total compensation such consultant was receiving pursuant
to this section on August 28, 1996. Additional compensation payable
pursuant to this subsection shall be payable by the retirement system as
part of its administrative costs. The employment provided for in this
subsection shall in no way affect any person's eligibility for pension
benefits or for employment pursuant to other subsections of this section.

10. Annually, immediately after the close of the fiscal year of the
retirement system, the actuary for the system shall determine if the
payments made pursuant to the provisions of this section have impaired
the actuarial soundness of the plan, and upon the actuary's certification
that the soundness has been so impaired, the system shall bill the school
district which last employed the retired person on a full-time basis for
reimbursement of the amount paid to that person during the preceding
fiscal year. The school district shall forthwith accordingly reimburse
the retirement system.

11. Effective January 1, 2002, all payments made pursuant to this section
shall be paid as cost-of-living benefits rather than as expenses of the
retirement system. (L. 1979 S.B. 392, A.L. 1981 H.B. 33, et al., A.L.
1983 S.B. 3, A.L. 1984 S.B. 407, A.L. 1986 H.B. 1216, A.L. 1988 H.B.
1100, et al., A.L. 1990 H.B. 1347, et al., A.L. 1993 S.B. 148, A.L. 1996
S.B. 860, A.L. 2001 H.B. 660)

The retirement system may contribute toward an insurance plan
for the benefit of retired members which may provide dental, hospital,
surgical, medical, life, accident, and similar insurance benefits as
approved by the board of trustees. Such contributions shall be a part of
the administrative costs of the retirement system. The board of trustees
shall make such rules and regulations as it deems appropriate in
connection with such plan. (L. 1981 H.B. 33, et al., A.L. 2001 H.B. 660)

1. The board of trustees shall be the trustees of all the funds
of the system and shall have full power to invest and reinvest such
funds, and such trustees shall have full power to hold, purchase, sell,
assign, transfer or dispose of any of the securities and investments in
which such funds shall have been invested, as well as of the proceeds of
such investments and any moneys belonging to such funds.

2. 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 rate determined by the board.

3. The board of trustees may employ a bank having fiduciary powers for
the provision of such custodial or clerical services as the board may
deem appropriate. Disbursement of funds of the retirement system shall be
under the general supervision of the board of trustees and shall be in
accordance with procedures established or approved by the board of
trustees with the concurrence of the system's auditors.

4. For the purpose of meeting disbursements for pensions and other
payments, there may be kept available cash on deposit in one or more
banks or trust companies in the school district, 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, and for all deposits the board of trustees shall require
of the banks or trust companies as security for the safekeeping and
payment of the deposits securities of a like kind and character as may be
required by law for the safekeeping and payment of deposits made by the
state treasurer.

5. Except as herein provided, no trustee, member of the board of
education or employee of either the board of trustees or the board of
education shall have any direct interest in the gains or profits of any
investment made by the board of trustees. Nor shall any of them 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 of said persons
become an endorser or surety or become in any manner an obligor for
moneys loaned by or borrowed from the board of trustees.

6. No member of the board of education shall be interested in any
contract with or claim against the public school retirement system in his
school district. If at any time after the election of any member of the
board he becomes interested in any contract or claim against said
retirement system, either directly or indirectly, or as agent or employee
of any individual, firm or corporation, which is so interested, he shall
thereupon be disqualified to continue as a member of the board. (L. 1943
p. 805 § 8, A.L. 1953 p. 438, A.L. 1961 p. 384, A.L. 1981 H.B. 33, et
al., A.L. 1987 H.B. 558, et al., A.L. 2001 H.B. 660)

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

All the assets of the retirement system shall be held as one
fund.

1. (1) The employing board shall cause to be deducted from the
compensation of each member at every payroll period five percent of his
compensation, and the amounts so deducted shall be transferred to the
board of trustees and credited to the individual account of each member
from whose compensation the deduction was made. In determining the amount
earnable by a member in any payroll period, the board of trustees may
consider the rate of earnable compensation payable to such member on the
first day of the payroll period as continuing throughout such payroll
period; it may omit deduction from compensation for any period less than
a full payroll period if the employee 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.

(2) The deductions provided for herein are declared to be a part of the
salary of the member and the making of such deductions shall constitute
payments by the member out of his salary or earnings and such deductions
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 the making of said
deductions and the 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 169.410 to 169.540.

(3) The employing board may elect to pay member contributions required by
this section as an employer pick up of employee contributions under
Section 414(h)(2) of the Internal Revenue Code of 1986, as amended, and
such contributions picked up by the employing board shall be treated as
contributions made by members for all purposes of sections 169.410 to
169.540.

2. If a retired member receiving a pension pursuant to sections 169.410
to 169.540 is restored to active service and again becomes an active
member of the retirement system, there shall be credited to his
individual account an amount equal to the excess, if any, of his
accumulated contributions at retirement over the total pension benefits
paid to him.

3. Annually, the actuary for the retirement system shall calculate each
employer's contribution as an amount equal to a certain percentage of the
total compensation of all members employed by that employer. The
percentage shall be fixed on the basis of the liabilities of the
retirement system as shown by the annual actuarial valuation. The annual
actuarial valuation shall be made on the basis of such actuarial
assumptions and the actuarial cost method adopted by the board of
trustees, provided that the actuarial cost method adopted shall be in
accordance with generally accepted actuarial standards and that the
unfunded actuarial accrued liability, if any, shall be amortized by level
annual payments over a period not to exceed thirty years.

4. The expense and contingency reserve shall be a reserve for investment
contingencies and estimated expenses of administration of the retirement
system as determined annually by the board of trustees.

5. Gifts, devises, bequests and legacies may be accepted by the board of
trustees to be held and invested as a part of the assets of the
retirement system and shall not be separately accounted for except where
specific direction for the use of a gift is made by a donor. (L. 1943 p.
805 § 9, A.L. 1951 p. 513, A.L. 1953 pp. 438, 496, A.L. 1957 p. 462, A.L.
1961 p. 384, A.L. 1967 p. 263, A.L. 1978 S.B. 542, A.L. 1981 H.B. 33, et
al., A.L. 1987 H.B. 558, et al., A.L. 1989 S.B. 146, A.L. 2001 H.B. 660)

On or before the first day of January of each year the board of
trustees shall certify to the board of education, the board of trustees
and the board of regents, and to the state of Missouri with respect to
the contribution for members employed by these employers, the amount
which will be paid to the retirement system on or before December
thirty-first of that year. On or before the first day of January of each
year the board of trustees shall certify to charter schools and to the
state of Missouri with respect to the contribution of members employed by
these employers, the amount which will be paid to the retirement system
on a monthly basis beginning January first of that year. The amount so
certified shall be included by the employers in their annual budget
estimates. (L. 1943 p. 805 § 10, A.L. 1953 p. 438, A.L. 1961 p. 384, A.L.
1981 H.B. 33, et al., A.L. 2001 H.B. 660)

1. The payment of all pension benefits, refunds and other
benefits or expenses pursuant to the provisions of sections 169.410 to
169.540 and all expenses in connection with the administration and
operation of the retirement system are hereby made obligations chargeable
against the assets of the retirement system and not of the employers, and
the assets of the retirement system shall not be diverted or used for any
purpose other than the payment of such obligations.

2. No alteration, amendment or repeal of sections 169.410 to 169.540
shall be deemed to affect the rights of members of any retirement system
established thereunder with reference to deposits previously made, or to
reduce any accrued or potential benefits to those who are members at the
time when such alterations, amendments, or repeal becomes effective or to
reduce the amount of any pension benefit then payable. (L. 1943 p. 805 §
11, A.L. 1953 p. 496, A.L. 1961 p. 384, A.L. 1969 p. 282, A.L. 1987 H.B.
558, et al., A.L. 2001 H.B. 660)

Any funds created by sections 169.410 to 169.540 while in the
charge and custody of the board of trustees of such retirement system
shall not be subject to execution, garnishment, attachment or any other
process whatsoever and shall be unassignable except as in sections
169.410 to 169.540 specifically provided or in the case of a proper order
of child support issued through the division of child support
enforcement. (L. 1943 p. 805 § 12, A.L. 2001 H.B. 660)

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. 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 have the power to
correct such error and, as far as practicable, may 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. 1943 p.
805 § 13, A.L. 1955 p. 524, A.L. 1961 p. 384)

The state of Missouri shall contribute no funds directly or
indirectly to finance the plan to pay pension benefits by appropriation
bills or otherwise, except those funds which the district may receive
from time to time under a law or laws providing for a general
apportionment of school moneys throughout all the state and except
employer contributions for members employed by the board of regents which
shall be made by the state of Missouri. (L. 1943 p. 805 § 14, A.L. 1981
H.B. 33, et al., A.L. 2001 H.B. 660)

Any person retired and currently receiving a retirement
allowance pursuant to sections 169.010 to 169.141, other than for
disability, may be employed in any capacity in a district included in the
retirement system created by those sections on either a part-time or
temporary-substitute basis not to exceed a total of five hundred fifty
hours in any one school year, and through such employment may earn up to
fifty percent of the annual compensation payable under the employing
district's salary schedule for the position or positions filled by the
retiree, given such person's level of experience and education, without a
discontinuance of the person's retirement allowance. If the employing
school district does not utilize a salary schedule, or if the position in
question is not subject to the employing district's salary schedule, a
retiree employed in accordance with the provisions of this section may
earn up to fifty percent of the annual compensation paid to the person or
persons who last held such position or positions. If the position or
positions did not previously exist, the compensation limit shall be
determined in accordance with rules duly adopted by the board of trustees
of the retirement system; provided that, it shall not exceed fifty
percent of the annual compensation payable for the position in the
employing school district that is most comparable to the position filled
by the retiree. In any case where a retiree fills more than one position
during the school year, the fifty-percent limit on permitted earning
shall be based solely on the annual compensation of the highest paid
position occupied by the retiree for at least one-fifth of the total
hours worked during the year. Such a person shall not contribute to the
retirement system or to the public education employee retirement system
established by sections 169.600 to 169.715 because of earnings during
such period of employment. If such a person is employed in any capacity
by such a district on a regular, full-time basis, the person shall not be
eligible to receive the person's retirement allowance for any month
during which the person is so employed and shall contribute to the
retirement system. (L. 1955 p. 568 § 1, A.L. 1967 p. 250, A.L. 1978 S.B.
542, A.L. 1979 S.B. 392, A.L. 1984 S.B. 407, A.L. 1991 S.B. 242, et al.,
A.L. 1992 H.B. 926, A.L. 1995 S.B. 378, A.L. 1996 S.B. 860, A.L. 1999
H.B. 514 merged with S.B. 308 & 314, A.L. 2005 H.B. 443)

Any person retired and currently receiving a retirement
allowance from either the public school retirement system of Missouri or
the public education employee retirement system of Missouri, other than
for disability, who elects to return to work in an employment capacity
covered by either of the aforementioned retirement systems shall
undertake such service under a new membership in the applicable system.
The new membership for such a person shall have a vesting period of one
year of creditable service, after which the person shall be eligible to
retire and receive a second or subsequent retirement allowance for the
service credit earned under the new membership in accordance with the law
governing such matters. Contributions shall be made to the retirement
system for any covered employment under the new membership at the same
time and in the same manner as contributions are made for covered
employment generally. Service credit shall be earned or may be acquired
under the new membership in accordance with the law governing such
matters. A second or subsequent membership or retirement allowance
established or earned pursuant to this section shall be separate from and
shall not be combined with any previous membership service credit or
retirement allowance earned from the aforementioned retirement systems.
Upon termination of covered employment under a second or subsequent
membership, and in lieu of application for and receipt of a retirement
allowance based on such service, the person may withdraw from the
retirement system and receive a refund of the person's contributions
during such membership in accordance with the law governing such matters;
provided that, by so doing, the person shall forfeit any creditable
service the person may have accrued under that membership. A person shall
not receive a retirement allowance from the aforementioned retirement
systems for any previous membership service while in covered employment
under a new membership established pursuant to this section, nor shall a
person receive such a retirement allowance in any month in which the
person earns service credit under the new membership. (L. 1999 H.B. 514
merged with S.B. 308 & 314, A.L. 2005 H.B. 443)

Any provision of this chapter to the contrary notwithstanding,
any member of one of the Missouri retirement systems as provided by
sections 169.270 to 169.400, or 169.600 to 169.710, who is fifty -five
years of age or older, and whose creditable service is five years or
more, may retire upon written application to the board of trustees of the
retirement system in which he or she is a member and receive retirement
benefits in an amount which is the actuarial equivalent of the normal
retirement benefits the member would have commencing at the earliest date
on which the member would be entitled to an unreduced benefit based on
the member's creditable service at the date of the member's termination
of employment. (L. 1988 H.B. 1100, et al. § 1, A.L. 1991 S.B. 242, et al.)

1. The public school retirement system of the Kansas City school
district, the public school retirement system of the St. Louis City
school district, and the public school retirement system shall jointly
undertake a feasibility study to include the following issues:

(1) Improving portability of benefits between systems;

(2) The technical issues involved in portability of benefits between
Social Security and nonSocial Security systems;

(3) Potential centralized administration of the systems. The overall goal
of the study is to suggest means by which portability of retirement
benefits may promote teacher recruitment and retention in all school
districts.

2. The joint committee on public employee retirement shall provide
necessary assistance in the coordination of the study.

3. The study shall be presented by the joint committee on public employee
retirement to the president pro tem of the senate and the speaker of the
house of representatives no later than November 1, 1999. (L. 1998 S.B.
781 § 2)

1. In accordance with the recommendations made pursuant to
section 169.566, the public school retirement system of Missouri, the
public school retirement system of the Kansas City school district, the
public school retirement system of the St. Louis City school district and
the public education employee retirement system of Missouri created
pursuant to this chapter shall promulgate joint rules, which shall
provide for the recognition of service toward retirement eligibility
rendered by certified and noncertified personnel under any of the four
systems. Such rules shall be limited to creditable service established
with each system and shall in no event permit any transfer of creditable
service or system assets.

2. Rules required pursuant to subsection 1 of this section shall be
approved, and may be amended, by a majority of all of the trustees of
each board of the four retirement systems. At least thirty days prior to
the meeting of any board of one of the four retirement systems to vote on
approving or amending such rules, a copy of the proposed rules or
amendments shall be filed with the joint committee on public employee
retirement.

3. 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,
2001, shall be invalid and void. (L. 2001 H.B. 660 merged with S.B. 316,
A.L. 2005 H.B. 443)

1. An employee having less than five years of membership service
under one of the Missouri retirement systems provided in sections 169.010
to 169.141, 169.270 to 169.400 or 169.410 to 169.540, who is subsequently
employed in a position covered by another of the Missouri retirement
systems, may elect within five years after employment in a district
included in another of the Missouri retirement systems to purchase
membership credit for service rendered under the first system; provided,
however, that the employee shall be entitled to apply the membership
credit thus purchased toward a service retirement only and not for any
other benefit. The purchase shall be effected by the member paying to the
retirement system the amount required by the rules and regulations
established by the respective retirement system, or, absent such rules
and regulations, an amount, with interest, based on the annual salary
rate of the employee's initial employment in a district under the system
in which credit is being purchased and the contribution rate in effect in
that system at the date of election to purchase credit. In the retirement
systems provided by sections 169.270 to 169.400 and 169.410 to 169.540,
the school district shall contribute the amount required by the statutes
and by the rules and regulations established by the system for each year
of creditable service purchased by the incoming member.

2. A member of any Missouri public school retirement system established
by sections 169.010 to 169.141, 169.270 to 169.400, 169.410 to 169.540,
or 169.600 to 169.715 who has previous credit in one of the other
Missouri public school retirement systems may elect to purchase
equivalent credit in the member's present system provided such credit
toward retirement is withdrawn and benefits terminated in the previous
system. The purchase shall be effected by the member paying to the
retirement system the amount required by the rules and regulations
established by the respective retirement system, or absent such rules and
regulations, an amount, with interest, based on the annual salary rate of
the member's initial employment in a district under the system in which
credit is being purchased and the contribution rate in effect in that
system at the date of election to purchase credit.

3. Nothing in this section shall decrease or discontinue the benefits
provided by the sections of the statutes relating to any of the public
school retirement systems in the state of Missouri.

4. Payment pursuant to the provisions of this section shall be completed
prior to termination of membership with the retirement system, with
interest on the unpaid balance, in accordance with rules and regulations
and statutes established by the respective retirement systems. The
individual purchasing credit must have service credit as a member of the
retirement system for at least as many years before retirement as the
number of years of credit being purchased. (L. 1957 p. 423 § 1, A.L. 1981
H.B. 33, et al., A.L. 1986 S.B. 616, A.L. 1989 H.B. 600, A.L. 1993 S.B.
126, A.L. 1995 H.B. 416, et al., S.B. 378, A.L. 1996 S.B. 860, A.L. 1997
H.B. 169 merged with S.B. 309, A.L. 2003 H.B. 346 & 174)

1. No court shall divide or set aside any federal old-age,
survivors or disability insurance benefit provided to any party pursuant
to the federal Social Security Act, 42 U.S.C. Section 200 et seq., in any
proceeding for dissolution of marriage.

2. Subsequent to August 28, 1991, a court of competent jurisdiction may
divide the pension, annuity, benefits, rights, and retirement allowance
provided pursuant to this chapter between the parties to any action for
dissolution of marriage, to the same extent and in the same manner the
court may divide any federal old-age, survivors or disability insurance
benefit of the parties provided pursuant to the federal Social Security
Act. (L. 1989 H.B. 610 § 2, A.L. 1991 S.B. 242, et al. § 169.142)

*Transferred 1991; formerly 169.142

(1993) Where statute provides that public school teacher's pension
benefits may be divided in action for dissolution of marriage to same
extent as Social Security benefits, public school teacher's pension
benefits are not marital property. Kieninger v. Catlett, 854 S.W.2d 59
(Mo. App. W.D.)

(2003) Provision that public school retirement system benefits are
non-divisible, nonmarital property does not violate substantive due
process or equal protection rights. In re Marriage of Woodson, 92 S.W.3d
780 (Mo.banc).

All retirement systems created in this chapter shall develop an
affirmative action plan for the utilization of minority and women money
managers, brokers, and investment counselors. Such retirement systems
shall report their progress annually to the joint committee on public
employee retirement. (L. 1994 S.B. 575 § 1)

Effective 5-26-94

Notwithstanding any other law to the contrary, in addition to
any options available to members or retired members pursuant to this
chapter, any such member or retired member may at any time designate an
existing revocable or irrevocable trust or any other legal entity as the
beneficiary to receive any accumulated contributions payable at the death
of the member, the retired member or a beneficiary receiving monthly
benefits under this chapter. Such designation shall be in writing and
shall comply with rules of the board of trustees of the affected
retirement system. (L. 1994 S.B. 575 § 2 and § 3)

Effective 5-26-94

The board of any retirement system established in this chapter
may enter into a cooperative agreement with the board of any retirement
system for education employees in any other state for the purpose of
allowing the transfer of creditable service. Any such agreement shall
meet the same terms as specified in section 105.691, RSMo, for agreements
with other retirement systems in Missouri. (L. 1996 S.B. 860)

Any member of a retirement system subject to the provisions of
this chapter, who is within five years of being eligible to retire with a
retirement allowance as provided in this chapter, may elect to purchase
additional creditable service of up to five-tenths of a year which shall,
when so purchased, be included in the total of the member's years of
creditable service, used to enable the member to achieve the minimum
creditable service time required for a retirement allowance, and applied
in the computation of the member's annual service retirement allowance.
For any member of a retirement system established by sections 169.010 to
169.141 or 169.600 to 169.715, and notwithstanding any other provision
within this section to the contrary, the purchase shall be effected in
the same manner as provided in section 169.056. The request for purchase
of the additional creditable service shall be made in writing to the
board of trustees of the system in which the applicant is a member. The
purchase shall be effected by the member paying to the retirement system
the amount required by the rules and regulations established by the
respective retirement system, or absent such rules and regulations, the
amount, with interest, the member would have contributed thereto and the
amount the member's employer would have contributed thereto had the
person been employed in a position covered by the retirement system for
the number of months for which the member is electing to purchase credit,
and had the member's compensation during such period been the same as the
annual salary rate at which the member is receiving at the time of
application, and the contribution rate in effect on the date of election
to purchase credit. The payment shall be completed prior to termination
of membership with the retirement system with interest on the unpaid
balance. Nothing in this section shall be construed to allow a member to
vest in the retirement system by using the creditable service purchased
pursuant to the provisions of this section to reach the time of vesting.
(L. 1995 S.B. 378 § 1, A.L. 1997 H.B. 169 merged with S.B. 309, A.L. 2003
H.B. 346 & 174)

Any person who served as a teacher in the public schools of this
state and who retired prior to July 1, 1957, under the provisions of
chapter 169, shall upon application to the state department of elementary
and secondary education be employed by the department as a special
advisor and supervisor in connection with state educational problems. Any
person so employed shall perform such duties as the commissioner of
education directs and shall receive a salary of seventy-five dollars per
month, payable in semimonthly or monthly installments, as designated by
the commissioner of administration, out of the general revenue of the
state pursuant to appropriations for the purpose, except that the payment
to the retired person for such services, together with the retirement
benefits he receives under chapter 169, shall not exceed one hundred
fifty dollars per month. The employment provided for by this section
shall in no way affect any person's eligibility for retirement benefits
under chapter 169. (L. 1965 p. 298 § 1, A.L. 1980 H.B. 1266)

1. Any retired teacher now receiving retirement benefits, who
served five years or more as a teacher in the public schools of this
state and who retired after June 30, 1957, and prior to January 1, 1971,
under the provisions of this chapter, shall, upon application to the
retirement system from which he is receiving retirement benefits be
employed by that retirement system as a special school advisor and
supervisor. Any person so employed shall perform such duties as the board
of trustees of the retirement system of which he becomes an employee
directs, and shall receive a salary of five dollars per month for each
year of teaching service not to exceed seventy-five dollars per month,
payable by the retirement system as part of its administrative costs, but
the payment to the retired person for such services, together with the
retirement benefits he receives under this chapter, shall not exceed one
hundred fifty dollars per month. The employment provided for by this
section shall in no way affect any person's eligibility for retirement
benefits under this chapter.

2. Annually, immediately after the close of the fiscal year of each
teacher retirement system, the actuary for the system shall determine if
the payments made pursuant to the provisions of this section have
impaired the actuarial soundness of the plan, and upon his certification
that the soundness has been so impaired, the system shall bill each of
the school districts which last employed each of these retired persons on
a full-time basis for reimbursement of the amount paid to that person
during the preceding fiscal year. The school districts shall forthwith
accordingly reimburse the appropriate retirement system. (L. 1972 H.B.
613 § 1)

(1975) Constitutionality upheld as not violating art. III, § 39, or art.
IV, § 25, of the constitution of Missouri. State ex rel. Dreer v. Public
School Retirement System (Mo.), 519 S.W.2d 290.

Any retirement allowance, benefit, funds, property, or rights
created by, or accruing to any person under the provisions of this
chapter, are hereby made and declared exempt from any tax of the state of
Missouri or any political subdivision or taxing body thereof and shall
not be subject to execution, garnishment, attachment, writ of
sequestration, or any other claim whatsoever and shall be unassignable.
(L. 1976 S.B. 721 § 1)

*Transferred 1978; formerly 169.691

CROSS REFERENCE: Taxation by state of annuities, pensions and retirement
allowances, RSMo 143.123, 143.124

1. A member of the system established by sections 169.010 to
169.141 or sections 169.600 to 169.715 who entered the uniformed services
of the United States of America, and who is reemployed pursuant to the
Uniformed Services Employment and Reemployment Rights Act of 1994, or any
subsequent revisions, shall be deemed to have been an employee for
purposes of vesting and because of qualifying service in the uniformed
services of the United States shall not be subject to the provisions of
subsection 4 of section 169.050 or subsection 3 of section 169.650 with
regard to termination of membership. In addition, such a member may elect
within the period allowed by the Uniformed Services Employment and
Reemployment Rights Act of 1994 to pay the contributions the member would
have paid but for service in the uniformed services. Upon completing
payment, the member shall be entitled at retirement to payment of
benefits based on the period of service. When a member has elected to
make contributions as described in this section, the school district
reemploying the member shall pay the employer contributions it would have
paid with respect to the individual, with interest. The board of trustees
of the retirement system may adopt rules for administration of this
section consistent with the Uniformed Services Employment and
Reemployment Rights Act of 1994.

2. For the purposes of this chapter, "discharge from the armed forces"
means the final date of discharge and shall not mean the last day of
active duty. (L. 1986 H.B. 1505 § 2, A.L. 1996 S.B. 860)

1. Any insurance contract or plan, including a noninsurance
health benefit program, which provides group health insurance or benefits
for employees who are members of any retirement system established
pursuant to this chapter shall contain provisions that permit:

(1) Any employee who retires, or who has retired, and is receiving or is
eligible to receive retirement benefits under this chapter to remain or
become a member of the group, including a noninsurance health benefit
program, and to receive benefits at the same rate as all other members of
the group;

(2) The spouse or surviving spouse of any employee to remain or become a
member of the group, including a noninsurance health benefit program, so
long as such spouse is receiving or is eligible to receive retirement
benefits under this chapter; and

(3) The children or children who survive any employee to remain or become
members of the group, including a noninsurance health benefit program, so
long as they are receiving or are eligible to receive retirement benefits
under this chapter.

2. The plan or contract may provide a different level of coverage for any
person electing to remain or become a member of an eligible group,
including a noninsurance health benefit program, as provided in
subsection 1 of this section if such person is eligible for Medicare
under the federal Health Insurance for the Aged Act, 42 U.S.C. 1395, as
amended.

3. A person electing to become or remain a member of a group, including a
noninsurance health benefit program, under subsection 1 of this section
shall pay the premium for such coverage, including the premium for any
covered dependents.

4. School districts entering into a contract with an insurance company
which provides group health insurance or benefits for employees,
including provisions for a noninsurance health benefit program, shall
specify that such contract provides coverage for persons who have
retired, their spouses and unmarried dependent children and that the
enrollment period for such coverage shall be clearly stated for a period
of time of not less than thirty days. Employees shall have one year from
the date last employed by a school district that is subject to coverage
pursuant to this section to qualify for the coverage provided.

5. School districts failing to comply with the provisions of this section
shall have deducted from the state aid due such school district an amount
equal to the premium for group health insurance, including a noninsurance
health benefit program, for those persons denied the benefits required
under the provisions of this section.

6. As used in this section, the term "noninsurance health benefit
program" includes all group health plans or programs providing coverage
on an expense-incurred basis, group service or indemnity type contracts
issued by a nonprofit corporation, and all self-insured group health
benefit plans or programs, of any type or description. (L. 1987 S.B. 264
§ 1, A.L. 1989 S.B. 352 merged with H.B. 610, A.L. 1990 H.B. 1513, A.L.
1992 H.B. 1425, A.L. 2003 H.B. 346 & 174)

Any employee of a school district who is a member of a system
pursuant to the provisions of this chapter shall remain a member of such
system during any period of leave under sick leave provisions of the
district or under workers' compensation and shall receive creditable
service credit, not otherwise allowable, for such leave time if the
employee makes contributions to the system equal to the amount of
contributions which would have been made by such employee if such
employee had been on active service status, in accordance with rules and
regulations established by the respective retirement system. The school
district shall make contributions on behalf of the employee as provided
in the applicable provisions of this chapter relating to the system
involved. The contributions of the member shall be made on a monthly or
other basis in the manner provided by the system. The creditable service
credit provided in this section shall be granted only for the actual time
of the period of leave under sick leave provisions of the district or
under workers' compensation and shall not be granted after the date the
member begins receiving retirement benefits from the system in which the
person is a member. (L. 1988 H.B. 1100, et al., A.L. 1991 S.B. 242, et
al., A.L. 1994 H.B. 1544 merged with S.B. 575, A.L. 1997 H.B. 169 merged
with S.B. 309)

1. Notwithstanding any other provision of this chapter to the
contrary, a retired certificated teacher receiving a retirement benefit
from the retirement system established pursuant to sections 169.010 to
169.141 may, without losing his or her retirement benefit, teach full
time for up to two years for a school district covered by such retirement
system; provided that the school district has a shortage of certified
teachers, as determined by the school district, and provided that no such
retired certificated teacher shall be employed as a superintendent. The
total number of such retired certificated teachers shall not exceed, at
any one time, the lesser of ten percent of the total teacher staff for
that school district, or five certificated teachers.

2. Notwithstanding any other provision of this chapter to the contrary, a
person receiving a retirement benefit from the retirement system
established pursuant to sections 169.600 to 169.715 may, without losing
his or her retirement benefit, be employed full time for up to two years
for a school district covered by such retirement system; provided that
the school district has a shortage of noncertificated employees, as
determined by the school district. The total number of such retired
noncertificated employees shall not exceed, at any one time, the lesser
of ten percent of the total noncertificated staff for that school
district, or five employees.

3. The employer's contribution rate shall be paid by the hiring school
district.

4. In order to hire teachers and noncertificated employees pursuant to
the provisions of this section, the school district shall:

(1) Show a good faith effort to fill positions with nonretired
certificated teachers or nonretired noncertificated employees;

(2) Post the vacancy for at least one month;

(3) Have not offered early retirement incentives for either of the
previous two years;

(4) Solicit applications through the local newspaper, other media, or
teacher education programs;

(5) Determine there is an insufficient number of eligible applicants for
the advertised position; and

(6) Declare a critical shortage of certificated teachers or
noncertificated employees that is active for one year.

5. Any person hired pursuant to this section shall be included in the
State Directory** of New Hires for purposes of income and eligibility
verification pursuant to 42 U.S.C. Section 1320b-7. (L. 2003 H.B. 346 &
174, A.L. 2005 S.B. 287)

*Effective 7-1-06

**Word "Director" appears in original rolls.

1. Notwithstanding any other provision of this chapter to the
contrary, a retired certificated teacher receiving a retirement benefit
from the retirement system established pursuant to sections 169.010 to
169.141 may, without losing his or her retirement benefit, teach full
time for up to two years for a school district covered by such retirement
system; provided that the school district has a shortage of certified
teachers, as determined by the school district. The total number of such
retired certificated teachers shall not exceed, at any one time, the
lesser of ten percent of the total teacher staff for that school
district, or five certificated teachers.

2. Notwithstanding any other provision of this chapter to the contrary, a
person receiving a retirement benefit from the retirement system
established pursuant to sections 169.600 to 169.715 may, without losing
his or her retirement benefit, be employed full time for up to two years
for a school district covered by such retirement system; provided that
the school district has a shortage of noncertificated employees, as
determined by the school district. The total number of such retired
noncertificated employees shall not exceed, at any one time, the lesser
of ten percent of the total noncertificated staff for that school
district, or five employees.

3. The employer's contribution rate shall be paid by the hiring school
district.

4. In order to hire teachers and noncertificated employees pursuant to
the provisions of this section, the school district shall:

(1) Show a good faith effort to fill positions with nonretired
certificated teachers or nonretired noncertificated employees;

(2) Post the vacancy for at least one month;

(3) Have not offered early retirement incentives for either of the
previous two years;

(4) Solicit applications through the local newspaper, other media, or
teacher education programs;

(5) Determine there is an insufficient number of eligible applicants for
the advertised position; and

(6) Declare a critical shortage of certificated teachers or
noncertificated employees that is active for one year.

5. Any person hired pursuant to this section shall be included in the
State Director of New Hires for purposes of income and eligibility
verification pursuant to 42 U.S.C. Section 1320b-7. (L. 2003 H.B. 346 &
174)

*This section was amended by S.B. 287, 2005, effective 7-1-06.

Notwithstanding any provision of this chapter to the contrary,
the board of trustees of any retirement system or the governing body of
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 pursuant to 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. 1996 S.B. 860, A.L.
1998 S.B. 501 merged with S.B. 761)

Effective 7-1-98 (S.B. 501) 8-28-98 (S.B. 761)

As used in sections 169.600 to 169.710, unless the context
clearly requires otherwise, the following words and phrases mean:

(1) "Accumulated contributions", the sum of the annual contributions a
member has made to the retirement system through deductions from the
member's salary, plus interest compounded annually on each year's
contributions from the end of the school year during which such
contributions were made;

(2) "Average compensation", as used in subdivision (3) of subsection 1 of
section 169.670, shall be the total compensation paid to a member for any
ten consecutive years of creditable service, or for the entire period of
creditable service if less than ten years, prior to July 1, 1973, divided
by one hundred twenty or by the number of months in the member's period
of creditable service if less than ten years; provided, that in
determining the total compensation, any annual compensation entering into
the total shall not be less than one thousand two hundred dollars and
shall not exceed ten thousand dollars;

(3) "Board", the board of trustees provided for in section 169.020;

(4) "Creditable service", prior service or membership service or the sum
of the two if the member has both to the member's credit;

(5) "Employee", any person regularly employed by a public school
district, junior college district or by the board of trustees, as defined
in sections 169.600 to 169.710, who devotes at least twenty hours per
week to such employment in a position which is not covered by the public
school retirement system of Missouri; provided, however, that no person
shall be required to contribute to, or shall receive benefits from both
the retirement system herein established and the public school retirement
system of Missouri for the same services;

(6) "Employer", the district or other employer that makes payment
directly to the employee for the employee's services;

(7) "Final average salary", the total compensation paid to a member for
any three consecutive years of creditable service divided by thirty-six;
provided, that in determining the total compensation, any annual
compensation less than one thousand two hundred dollars shall be regarded
as one thousand two hundred dollars and an annual compensation for
services prior to July 1, 1973, in excess of ten thousand dollars shall
be regarded as ten thousand dollars; and provided, that the board may set
a maximum percentage of increase in annual compensation from one year to
the next in the final average salary period;

(8) "Junior college district", any public junior college district
organized and operated pursuant to the provisions of sections 178.770 to
178.890, RSMo, which enters into an agreement with the board of trustees
of the retirement system to include its eligible employees in the system
immediately upon the effective date of the agreement;

(9) "Member", a person who holds membership in the retirement system;

(10) "Membership service", service rendered by a member of the system
after the system becomes operative;

(11) "Prior service", service rendered by a member of the retirement
system before the system becomes operative and may include service as a
teacher for which credit has not been claimed from the public school
retirement system of Missouri;

(12) "Public school district" or "district", any duly constituted public
school district under the authority and supervision of a duly elected
district or city or town board of directors or board of education, except
those school districts defined in sections 169.270 and 169.410;

(13) "Retirement allowance", a monthly payment for life, during
retirement;

(14) "Retirement system" or "system", the public education employee
retirement system of Missouri created by sections 169.600 to 169.710;

(15) "Salary", "salary rate" or "compensation" shall mean the regular
remuneration which is earned by a member as an employee of a district,
but not including employer-paid fringe benefits except the value of
employer-paid medical benefits (including dental and vision) for members,
and not including employer-paid medical benefits (including dental and
vision) for anyone other than the member, employer contributions to a
deferred compensation plan, consideration for agreeing to terminate
employment or other nonrecurring or unusual payments that are not a part
of regular remuneration. The board by its rules may further define
salary, salary rate and compensation in a manner consistent with this
definition and with sections 169.600 to 169.715;

(16) "School year", the year from July first of one year to June
thirtieth of the next year, inclusive, which shall also be the fiscal
year of the system. (L. 1965 p. 298 § 1, A.L. 1969 p. 284, A.L. 1973 H.B.
411, A.L. 1975 H.B. 352, A.L. 1977 H.B. 135, A.L. 1996 S.B. 857, A.L.
1997 S.B. 309, A.L. 2000 H.B. 1808, A.L. 2005 H.B. 443)

1. There is hereby created and established a retirement system
for nonteacher employees of all public school districts, as defined in
sections 169.600 to 169.710, which shall be a body corporate and which
shall be known as "The Public Education Employee Retirement System of
Missouri". The system shall, by and in its name, sue and be sued,
transact all its business, invest all of its funds, and hold all its
cash, securities and other property. The system hereby established shall
begin operations on the first day of November, 1965.

2. The general administration of and the responsibility for the proper
operation of this retirement system and for making effective the
provisions of sections 169.600 to 169.710 is hereby vested in the board
of trustees for the public school retirement system as established by
section 169.020.

3. Said board shall keep all funds belonging to this system separate and
apart from all other funds, but shall manage and administer this system
in all other respects as prescribed by section 169.020. (L. 1965 p. 298 §
2, A.L. 1977 H.B. 135, A.L. 2005 H.B. 443)

1. The board may enter into an agreement with the board of
trustees of any junior college district, which maintains a local
retirement system for its employees who are not members of the public
school retirement system of Missouri, to provide for the merger of the
local retirement system into the system and, in connection with such
merger, for the transfer of assets and liabilities from the local
retirement system to the system, the inclusion of members of the local
retirement system and all other eligible employees as members of the
system, and the continuation of retirement, disability and death benefits
to former members and beneficiaries of former members of the local
retirement system by the system.

2. The merger agreement shall require membership in the system as of the
effective date of the merger for all employees of the junior college
district who meet the definition of "employee" as set forth in section
169.600, RSMo 1978, including any employees who may not be members of the
local retirement system as of the date of the merger agreement.

3. If the separate boards of trustees of the public school retirement
system of Missouri and the junior college district enter into an
agreement for a merger of the local retirement system into the system,
the assets and liabilities of the local retirement system, as specified
in the merger agreement, existing at the effective date of the merger,
shall become the property of the system, and the local retirement system
shall cease to exist as of that date.

4. Members of the local retirement system of a junior college district
who become members of the system under this section shall receive credit
in the system for credit established with the local retirement system.

5. The separate boards of trustees of the public school retirement system
of Missouri and the junior college district may enter into an agreement
of merger under this section if the actuary employed by the public school
retirement system of Missouri certifies that the merger will not
actuarially impair the system. The merger agreement shall specify those
assets and liabilities of the local retirement system to be transferred
and shall provide for the payment of any necessary additional funds to
the system by the junior college district so that the merger will not
actuarially impair the system.

6. No employee of a junior college or member of the local retirement
system who becomes a member of the system, or his beneficiary, may
receive benefits greater or lesser in amount than that payable to any
other member, or his beneficiary, of the system with the same creditable
service and earnings records. This provision shall not apply to those
former members of the local retirement system, or their beneficiaries,
who are receiving monthly benefits from the local retirement system at
the effective date of the merger.

7. Any retirement, disability, or death benefits being paid by the local
retirement system to former members, or beneficiaries of such members, as
of the effective date of the merger shall be continued by the system, and
shall extend for the same period as was specified under the rules of the
local retirement system which initiated the benefits. (L. 1984 S.B. 481)

1. The funds required for the operation of the retirement system
created by sections 169.600 to 169.715 shall come from contributions made
in equal amounts by employees as herein defined and their employers,
beginning November 1, 1965, and from such interest or income as may be
derived from the investment of funds of the system. All contributions
shall be transmitted to the board of trustees by employers in such manner
and at such times as the board by rule shall require.

2. For each school year following the date on which the system becomes
operative, each and every employer of one or more persons who are members
of the system shall transmit to the board of trustees, in the manner and
accompanied by such supporting data as the board shall prescribe, twice
the amount that is deductible from the pay of such employee or employees
during the school year. Failure or refusal to transmit such amount as
required shall render the person or persons responsible therefor
individually liable for twice the amount so withheld. Suits for the
recovery of amounts for which individuals are thus rendered liable shall
be instituted and prosecuted by the board of trustees in the name of the
retirement system. In addition to such civil penalty, and not in lieu
thereof, any person or persons made responsible for the remittance of
contributions who shall willfully and knowingly fail or refuse to
transmit such contributions or any part thereof to the board of trustees
shall be deemed guilty of a misdemeanor and, upon conviction thereof,
shall be punished by a fine of not less than twenty-five dollars and not
more than two hundred dollars. Each day such person or persons shall so
fail or refuse to transmit such contributions shall be deemed a separate
offense. The board of trustees may request the employer to provide the
information necessary to administer the system and to advise each member
of such member's status.

3. The contributions of members of the retirement system shall be
collected by their employers through appropriate deductions from
paychecks. The total amount deducted from the paychecks of members during
any school year shall equal such a percent of their salary rates as may
be required by the contribution rate then in effect. For contribution
purposes any annual salary rate less than one thousand two hundred
dollars shall be regarded as one thousand two hundred dollars.
Contributions transmitted to the retirement system before February 20,
1996, based on salary rates which either included or excluded
employer-paid medical benefits for members, shall be deemed to have been
in compliance with this section. The retirement system shall not refund
or adjust contributions or adjust benefit determinations with respect to
any period before February 20, 1996, solely because of the treatment of
employer-paid medical benefits for members. Effective December 31, 1995,
compensation in excess of the limitations set forth in Section 401(a)(17)
of Title 26 of the United States Code shall be disregarded for purposes
of determining contributions pursuant to this section and calculating
benefits paid by the public education employee retirement system of
Missouri. The limitation on compensation for eligible employees shall not
be less than the amount which was allowed to be taken into account under
the system as in effect on July 1, 1993. For the purpose of this
subsection, an "eligible employee" is an individual who was a member of
the system before July 1, 1996.

4. The board of trustees shall fix and certify to the employers the level
rate of contribution subject to the following:

(1) The level rate of contribution for a fiscal year shall not exceed the
level rate of contribution for the prior fiscal year by more than
one-quarter percent;

(2) The board shall fix and certify to the employers the rate of
contribution for a fiscal year no later than six months prior to the date
such rate is to be effective;

(3) The board shall fix and certify to the employers the rate of
contribution for a fiscal year based on an actuarial valuation of the
system as of a date not earlier than the last day of the second prior
fiscal year. Such actuarial valuation of the system shall be performed
using processes and actuarial assumptions that are in accordance with
actuarial standards of practice in effect at the time the valuation is
performed, as promulgated by the actuarial standards board or its
successor; provided that such actuarial valuation shall be based on the
entry age normal actuarial cost method and an asset valuation method
based on the market value of system assets that may provide for smoothing
of investment gains and losses, and further, that the level rate of
contribution shall be the total of the normal cost and a rate which shall
amortize the unfunded actuarial accrued liability over a period that
shall not exceed thirty years from the date of the valuation, subject to
the limitations of this subsection; and

(4) Not less than once every ten years the board shall have an actuary,
other than the actuary performing the actuarial valuation pursuant to
this section, review such actuarial valuation and perform an additional
actuarial valuation of the system.

5. Regardless of the provisions of any law governing compensation and
contracts, every employee shall be deemed to consent and agree to the
deductions provided herein. Payment of salary or compensation less such
deduction shall be a full and complete discharge of all salary or
compensation claims and demands during the period covered by such
payment, except as to the benefits provided pursuant to sections 169.600
to 169.715.

6. A person serving as an employee as defined in section 169.600, who
became a member after November 1, 1965, and before July 1, 1974, and who
was regularly employed to serve for twenty or more hours per week at some
time during the period November 1, 1965, to July 1, 1974, may receive
membership service credit for such service by paying into the system the
amount, with interest at such rate as may be set by the board within the
limits set by law for interest rates, the person would have contributed
had the person been eligible for membership.

7. Notwithstanding any other provision of sections 169.600 to 169.715 to
the contrary, no legislation shall be enacted after July 1, 2003, that
increases benefits provided to members or retirees of the public
education employee retirement system of Missouri above that which may be
funded using a rate of contribution of five percent as determined using
an actuarial valuation as provided in subsection 4 of this section;
provided that, notwithstanding the provisions of this subsection,
legislation may be enacted after July 1, 2003, that provides for an
extension of time within which a member may make an election pursuant to
subdivision (4) of subsection 1 of section 169.670. (L. 1965 p. 298 § 3,
A.L. 1969 p. 284, A.L. 1973 H.B. 411, A.L. 1975 H.B. 352, A.L. 1977 H.B.
135, A.L. 1981 S.B. 242, A.L. 1991 S.B. 242, et al., A.L. 1995 S.B. 378,
A.L. 1996 S.B. 857, A.L. 1997 S.B. 309, A.L. 2000 H.B. 1808, A.L. 2003
H.B. 346 & 174, A.L. 2005 H.B. 443)

The board of trustees by regulation may adopt a plan wherein
each and every employer included within the retirement system shall
specify that contributions withheld from compensation to members are
being paid directly to the retirement system by the employer and that the
members had no option to receive the contributions directly. These
contributions shall be credited to member accounts as required by law,
shall be included in the individual member salaries reported to the
retirement system, and shall in all ways be considered member
contributions. (L. 1989 S.B. 146)

Effective 6-14-89

1. All funds arising from the operation of sections 169.600 to
169.715 shall belong to the retirement system created in sections 169.600
to 169.715 and shall be controlled by the board of trustees and that
board shall provide for the collection of these funds, see that they are
safely preserved, and shall permit their disbursement only for the
purposes authorized in sections 169.600 to 169.715. These funds are
declared and shall be deemed to be the moneys and funds of this
retirement system and not general funds of the state and shall not be
commingled with any state funds or other retirement funds. Solely for the
purpose of investing the funds of the retirement system, the funds may be
combined with the funds of the public school retirement system of
Missouri, but the funds of each system shall be accounted for separately
and for all other purposes shall be separate.

2. The board shall invest all funds under its control which are in excess
of a safe operating balance. The investment shall be made only in
securities authorized and pursuant to the same standards set for
investment by section 169.040.

3. No investment transaction authorized by the 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
board of trustees 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 property. Such
securities or other properties which are not available in registered form
may be held 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 400.8-108,
RSMo. When such eligible securities of the retirement system are so
deposited with a central depository system, the securities 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.

4. With appropriate safeguards against loss by the system in any
contingency, the board may designate a bank or trust company to serve as
a depository of system funds and intermediary in the investment of those
funds and payment of system obligations.

5. All retirement allowances or other periodic payments paid by the board
shall be paid to recipients of such payments by electronic funds
transfer, unless another method has been determined by the board to be
appropriate. Each recipient of retirement allowances or other periodic
payments shall designate a financial institution or other authorized
payment agent and provide the board information necessary for the
recipient to receive electronic funds transfer payments through the
institution or agent designated. This subsection shall apply to
retirement allowances and other periodic payments first paid on or after
January 1, 1998, and shall apply to all retirement allowances and other
periodic payments on and after January 1, 1999.

6. The board of trustees may deliberate about, or make tentative or final
decisions on, investments or other financial matters in a closed meeting
under chapter 610, RSMo, if disclosure of the deliberations or decisions
would jeopardize the ability to implement a decision or to achieve
investment objectives. A record of the retirement system that discloses
deliberations about, or a tentative or final decision on, investments or
other financial matters is not a public record under chapter 610, RSMo,
to the extent and so long as its disclosure would jeopardize the ability
to implement a decision or to achieve investment objectives. (L. 1965 p.
298 § 4, A.L. 1975 H.B. 352, A.L. 1977 H.B. 135, A.L. 1990 H.B. 1347, et
al., A.L. 1995 S.B. 378, A.L. 1996 S.B. 860, A.L. 1997 S.B. 309, A.L.
2005 H.B. 443)

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

Any funds belonging to this retirement system which are
deposited in any bank or trust company shall be secured by the deposit of
securities of the kind and value required by section 30.270, RSMo, as
security for the safekeeping and payment of deposits made by the board.
(L. 1965 p. 298 § 5)

1. On and after October 13, 1965, all employees as defined in
section 169.600 of districts included in this retirement system shall be
members of the system by virtue of their employment, and all persons who
had five years of prior service who were employees of districts included
in sections 169.600 to 169.710 during the school year next preceding
October 13, 1965, but who ceased to be employees prior to October 13,
1965, because of physical disability, shall be members of this system by
virtue of that prior service. Individuals who qualify as independent
contractors under the common law and are treated as such by their
employer shall not be considered employees for purposes of membership in
or contributions to the retirement system.

2. Any member who rendered service prior to November 1, 1965, as an
employee as defined in section 169.600 in a district or junior college
district included in the system may claim credit for that service by
filing with the board of trustees a complete and detailed record of the
service for which the credit is claimed, together with such supporting
evidence as the board may require for verification of the record. To the
extent that the board finds the record correct, it shall credit the
claimant with prior service and shall notify the claimant of its decision.

3. Membership shall be terminated by failure of a member to earn any
membership service credit as a public school employee under this system
for five consecutive school years, by death, withdrawal of contributions,
or retirement.

4. If a member withdraws or is refunded the member's contributions, the
member shall thereby forfeit any creditable service the member may have;
provided, however, if such person again becomes a member of the system,
the member may elect prior to retirement to reinstate any creditable
service forfeited at the times of previous withdrawals or refunds. The
reinstatement shall be effected by the member paying to the retirement
system, with interest, the amount of accumulated contributions withdrawn
by the member or refunded to the member with respect to the service being
reinstated. A member may reinstate less than the total service previously
forfeited, in accordance with rules promulgated by the board of trustees.
The payment shall be completed prior to termination of membership with
the retirement system with interest on the unpaid balance; provided,
however, that if a member is retired on disability before completing such
payments, the balance due, with interest, shall be deducted from the
member's disability retirement allowance.

5. Any person who is an employee of any statewide nonprofit educational
association or organization serving the active membership of the public
education employee retirement system of Missouri and who works at least
twenty hours per week on a regular basis in a position which is not
covered by the public school retirement system of Missouri may be a
member of the public education employee retirement system of Missouri.
Certificated employees of such statewide nonprofit educational
association or organization may not be members of the public school
retirement system of Missouri unless such association or organization
makes separate application pursuant to subsection 4 of section 169.130.
The contributions required to be made by the employee will be deducted
from salary and matched by the association or organization. (L. 1965 p.
298 § 6, A.L. 1975 H.B. 352, A.L. 1977 H.B. 135, A.L. 1981 S.B. 242, A.L.
1984 S.B. 407, A.L. 1991 S.B. 242, et al., A.L. 1996 S.B. 860, A.L. 1998
S.B. 733, A.L. 2001 H.B. 660, A.L. 2003 H.B. 346 & 174, A.L. 2005 H.B.
443)

1. Members who have accrued at least one year of membership
service credit for employment in a position covered by this retirement
system and who have covered employment with this retirement system
following the service for which credit is being purchased may purchase
membership service credit under the circumstances, terms and conditions
provided in this section. With respect to each such purchase authorized
by this section the following provisions apply:

(1) The purchase shall be effected by the member paying to the retirement
system the amount the member would have contributed and the amount the
employer would have contributed had such member been an employee for the
number of years for which the member is electing to purchase credit, and
had the member's compensation during such period been the highest annual
salary rate on record with the retirement system on the date of election
to purchase credit. The contribution rate used in determining the amount
to be paid shall be the contribution rate in effect on the date of
election to purchase credit. Notwithstanding the provisions of this
subsection, for all elections to purchase credit received by the
retirement system on or after January 1, 2006, the member shall receive
credit based on the amount paid by the member for such credit and
received by the retirement system by the close of business on June
thirtieth of each year. In lieu of charging the member interest on such
purchase of credit, the amount to be paid by the member for any remaining
credit the member has elected to purchase but has not paid for by June
thirtieth of each year shall be recalculated on the following July first
using the contribution rate in effect on that July first and the highest
salary of record for the member as of that July first. For all elections
to purchase credit received by the retirement system prior to January 1,
2006, the retirement system shall determine the cost of such purchase
using the calculation method in effect for elections to purchase credit
received by the retirement system on or after January 1, 2006, provided
that the member shall have a one-time, irrevocable option to continue to
have the cost of such purchase be determined using the calculation method
in effect at the time of such election to purchase such credit. To be
effective, such option must be elected by the member on a form approved
by the retirement system and such form must be received by the retirement
system by the close of business on June 30, 2006. The retirement system
reserves the right to limit the amount of credit purchased by the member
in any year if the amounts paid by the member in that year would exceed
any applicable contribution limits set forth in Section 415 of Title 26
of the United States Code;

(2) Membership service credit purchased pursuant to this section shall be
deemed to be membership service as defined in subdivision (10) of section
169.600;

(3) An election to purchase membership service credit pursuant to this
section and payment for the purchase shall be completed prior to
termination of membership with the retirement system with interest on the
unpaid balance;

(4) Members may purchase membership service credit in increments of
one-tenth of a year, and multiple elections to purchase may be made;

(5) Additional terms and conditions applicable to purchases made pursuant
to this section including, but not limited to, minimum payments, payment
schedules and provisions applicable when a member fails to complete
payment may be set by rules of the board.

2. Membership service credit shall not be allowed pursuant to this
section or sections 169.570 and 169.577 which exceeds in length the
member's membership service credit for employment in a position covered
by this system, and in no event may the member receive membership service
credit with both this system and another public retirement system for the
same service.

3. A member who was employed for at least twenty hours per week on a
regular basis by a public school district, public junior college, public
community college, public college, or public university, either inside or
outside of this state, may elect to purchase equivalent membership
service credit.

4. A member who has served in the armed forces of the United States of
America and who was discharged or separated from the armed forces by
other than a dishonorable discharge may elect to purchase membership
service credit for the period of active duty service in the armed forces.

5. Any member granted unpaid maternity or paternity leave for a period,
from a position covered by the retirement system, who returned to
employment in such a position, may elect to purchase membership service
credit for the period of leave.

6. Any member who is or was certified as a vocational-technical teacher
on the basis of having a college degree or who was required to have a
period of work experience of at least two years in the area of the
subject being taught in order to qualify for such certification may, upon
written application to the board, purchase equivalent membership service
credit for such work experience which shall not exceed the two years
necessary for certification if the work experience was in the area that
the member taught or is teaching and was completed in two years.

7. Any member who had membership service credit with the public school
retirement system of Missouri governed by sections 169.010 to 169.141 but
which membership service credit was forfeited by withdrawal or refund may
elect to purchase credit for such service. The public school retirement
system of Missouri shall transfer to this system an amount equal to the
employer contributions for the forfeited service being purchased, plus
interest, which shall be applied to reduce the amount the member would
otherwise pay for the purchase, provided that the amount transferred
shall not exceed one-half of the purchase cost.

8. A member may elect to purchase membership service credit for service
rendered while on leave from an employer, as defined in section 169.600,
for a not-for-profit corporation or agency whose primary purpose is
support of education or education research if the member was employed by
that organization to serve twenty or more hours per week on a regular
basis.

9. A member who was employed by a private school, private junior college,
private community college, private college, or private university, either
inside or outside of this state, for at least twenty or more hours per
week on a regular basis, may elect to purchase membership service credit
for such service rendered.

10. A member who was employed in nonfederal public employment for at
least twenty hours a week on a regular basis shall be permitted to
purchase equivalent creditable service in the retirement system for such
employment subject to provisions of this section.

11. A member who, while eighteen years of age or older, was employed in a
position covered by Social Security for at least twenty hours a week on a
regular basis shall be permitted to purchase equivalent creditable
service in the retirement system for such employment subject to
provisions of this section. (L. 1995 S.B. 378, A.L. 1996 S.B. 860, A.L.
1998 S.B. 733, A.L. 1999 H.B. 514 merged with S.B. 308 & 314, A.L. 2003
H.B. 346 & 174, A.L. 2005 H.B. 443)

1. On and after the first day of July next following the
operative date, any member who is sixty or more years of age and who has
at least five years of creditable service, or who has attained age
fifty-five and has at least twenty-five years of creditable service, or
who has at least thirty years of creditable service regardless of age may
retire and receive the full retirement benefits based on the member's
creditable service. A member whose creditable service at retirement is
less than five years shall not be entitled to a retirement allowance but
shall be entitled to receive the member's contributions.

2. Any person retired and currently receiving a retirement allowance
pursuant to sections 169.600 to 169.715, other than for disability, may
be employed on either a part-time or temporary-substitute basis by a
district included in the retirement system not to exceed a total of five
hundred fifty hours in any one school year, without a discontinuance of
the person's retirement allowance. Such a person shall not contribute to
the retirement system, or to the public school retirement system
established by sections 169.010 to 169.141, because of earnings during
such period of employment. If such a person is employed in any capacity
by such a district on a regular, full-time basis, or the person's
part-time or temporary-substitute service in any capacity exceeds five
hundred fifty hours in any one school year, the person shall not be
eligible to receive the person's retirement allowance for any month
during which the person is so employed.

3. The system shall pay a monthly retirement allowance for the month in
which a retired member or beneficiary receiving a retirement allowance
dies. (L. 1965 p. 298 § 7, A.L. 1973 H.B. 411, A.L. 1984 S.B. 407, A.L.
1987 H.B. 558, et al. merged with S.B. 264, A.L. 1988 H.B. 1100, et al.,
A.L. 1993 S.B. 126, A.L. 1995 S.B. 378, A.L. 1996 S.B. 860, A.L. 1997
S.B. 152 merged with S.B. 309)

1. On or after July first next following October 13, 1969, any
member who is serving an employer included in the system at the time the
member becomes disabled, or who has served in such a district at some
time in the twelve months immediately preceding the member's becoming
disabled, and whose disability is traceable to an injury or sickness
which was sustained or commenced prior to the cessation of such service,
and whose age is less than sixty and whose creditable service is five
years or more, may be retired with disability benefits upon written
application to the board of trustees, if the member is incapacitated
because of physical or mental disability as such disability is herein
defined. If such disability shall cease to exist before the recipient of
such benefits reaches age sixty, the member's membership status as of the
date of the member's disability retirement shall be restored. If the
member dies before becoming eligible for a retirement allowance, or if
the member seeks to withdraw the member's accumulated contributions, the
total of such disability payments shall be deducted from the amount
otherwise due the member, the member's beneficiary, or the member's
estate.

2. Disability, as a basis for retirement, shall render the individual
incapable of earning a livelihood in any occupation and shall be of such
nature as to warrant the assumption that it will be permanent. Whether or
not such disability exists, in any case, shall be adjudged in the manner
provided in subsection 15 of section 169.020 by the board of trustees on
the basis of evidence that the board by its regulations may require.

3. For the purposes of adjustments to Social Security Administration
disability benefits pursuant to 20 CFR 404.408 any member receiving
disability benefits pursuant to this section who is at least fifty-five
years of age and whose creditable service is at least twenty-five years
shall be considered to be receiving a normal retirement benefit pursuant
to this section. (L. 1969 p. 284, A.L. 1984 S.B. 407, A.L. 1995 S.B. 378,
A.L. 2000 H.B. 1808)

Effective 7-1-00

1. The retirement allowance of a member whose age at retirement
is sixty years or more and whose creditable service is five years or
more, or whose sum of age and creditable service equals eighty years or
more, or whose creditable service is thirty years or more regardless of
age, shall be the sum of the following items:

(1) For each year of membership service, one and sixty-one hundredths
percent of the member's final average salary;

(2) Six-tenths of the amount payable for a year of membership service for
each year of prior service;

(3) Eighty-five one-hundredths of one percent of any amount by which the
member's average compensation for services rendered prior to July 1,
1973, exceeds the average monthly compensation on which federal Social
Security taxes were paid during the period over which such average
compensation was computed, for each year of membership service credit for
services rendered prior to July 1, 1973, plus six-tenths of the amount
payable for a year of membership service for each year of prior service
credit;

(4) In lieu of the retirement allowance otherwise provided by
subdivisions (1) to (3) of this subsection, between July 1, 2001, and
July 1, 2008, a member may elect to receive a retirement allowance of:

(a) One and fifty-nine hundredths percent of the member's final average
salary for each year of membership service, if the member's creditable
service is twenty-nine years or more but less than thirty years and the
member has not attained the age of fifty-five;

(b) One and fifty-seven hundredths percent of the member's final average
salary for each year of membership service, if the member's creditable
service is twenty-eight years or more but less than twenty-nine years,
and the member has not attained the age of fifty-five;

(c) One and fifty-five hundredths percent of the member's final average
salary for each year of membership service, if the member's creditable
service is twenty-seven years or more but less than twenty-eight years
and the member has not attained the age of fifty-five;

(d) One and fifty-three hundredths percent of the member's final average
salary for each year of membership service, if the member's creditable
service is twenty-six years or more but less than twenty-seven years and
the member has not attained the age of fifty-five;

(e) One and fifty-one hundredths percent of the member's final average
salary for each year of membership service, if the member's creditable
service is twenty-five years or more but less than twenty-six years and
the member has not attained the age of fifty-five; and

(5) In addition to the retirement allowance provided in subdivisions (1)
to (3) of this subsection, a member retiring on or after July 1, 2001,
whose creditable service is thirty years or more or whose sum of age and
creditable service is eighty years or more, shall receive a temporary
retirement allowance equivalent to eight-tenths of one percent of the
member's final average salary multiplied by the member's years of service
until such time as the member reaches the minimum age for Social Security
retirement benefits.

2. If the board of trustees determines that the cost of living, as
measured by generally accepted standards, increases five percent or more
in the preceding fiscal year, the board shall increase the retirement
allowances which the retired members or beneficiaries are receiving by
five percent of the amount being received by the retired member or the
beneficiary at the time the annual increase is granted by the board;
provided that, the increase provided in this subsection shall not become
effective until the fourth January first following a member's retirement
or January 1, 1982, whichever occurs later, and the total of the
increases granted to a retired member or the beneficiary after December
31, 1981, may not exceed eighty percent of the retirement allowance
established at retirement or as previously adjusted by other provisions
of law. If the cost of living increases less than five percent, the board
of trustees may determine the percentage of increase to be made in
retirement allowances, but at no time can the increase exceed five
percent per year. If the cost of living decreases in a fiscal year, there
will be no increase in allowances for retired members on the following
January first.

3. The board of trustees may reduce the amounts which have been granted
as increases to a member pursuant to subsection 2 of this section if the
cost of living, as determined by the board and as measured by generally
accepted standards, is less than the cost of living was at the time of
the first increase granted to the member; provided that, the reductions
shall not exceed the amount of increases which have been made to the
member's allowance after December 31, 1981.

4. (1) In lieu of the retirement allowance provided in subsection 1 of
this section, called "option 1", a member whose creditable service is
twenty-five years or more or who has attained age fifty-five with five or
more years of creditable service may elect, in the application for
retirement, to receive the actuarial equivalent of the member's
retirement allowance in reduced monthly payments for life during
retirement with the provision that:

Option 2. Upon the member's death, the reduced retirement allowance shall
be continued throughout the life of and paid to such person as has an
insurable interest in the life of the member as the member shall have
nominated in the member's election of the option, and provided further
that if the person so nominated dies before the retired member, the
retirement allowance will be increased to the amount the retired member
would be receiving had the member elected option 1;

OR

Option 3. Upon the death of the member three-fourths of the reduced
retirement allowance shall be continued throughout the life of and paid
to such person as has an insurable interest in the life of the member and
as the member shall have nominated in an election of the option, and
provided further that if the person so nominated dies before the retired
member, the retirement allowance will be increased to the amount the
retired member would be receiving had the member elected option 1;

OR

Option 4. Upon the death of the member one-half of the reduced retirement
allowance shall be continued throughout the life of, and paid to, such
person as has an insurable interest in the life of the member and as the
member shall have nominated in an election of the option, and provided
further that if the person so nominated dies before the retired member,
the retirement allowance shall be increased to the amount the retired
member would be receiving had the member elected option 1;

OR

Option 5. Upon the death of the member prior to the member having
received one hundred twenty monthly payments of the member's reduced
allowance, the remainder of the one hundred twenty monthly payments of
the reduced allowance shall be paid to such beneficiary as the member
shall have nominated in the member's election of the option or in a
subsequent nomination. If there is no beneficiary so nominated who
survives the member for the remainder of the one hundred twenty monthly
payments, the reserve for the remainder of such one hundred twenty
monthly payments shall be paid to the estate of the last person to
receive a monthly allowance. If the total of the one hundred twenty
payments paid to the retired individual and the beneficiary of the
retired individual is less than the total of the member's accumulated
contributions, the difference shall be paid to the beneficiary in a lump
sum;

OR

Option 6. Upon the death of the member prior to the member having
received sixty monthly payments of the member's reduced allowance, the
remainder of the sixty monthly payments of the reduced allowance shall be
paid to such beneficiary as the member shall have nominated in the
member's election of the option or in a subsequent nomination. If there
is no beneficiary so nominated who survives the member for the remainder
of the sixty monthly payments, the reserve for the remainder of such
sixty monthly payments shall be paid to the estate of the last person to
receive a monthly allowance. If the total of the sixty payments paid to
the retired individual and the beneficiary of the retired individual is
less than the total of the member's accumulated contributions, the
difference shall be paid to the beneficiary in a lump sum;

OR

Option 7. A plan of variable monthly benefit payments which provides, in
conjunction with the member's retirement benefits under the federal
Social Security laws, level or near-level retirement benefit payments to
the member for life during retirement, and if authorized, to an
appropriate beneficiary designated by the member. Such a plan shall be
actuarially equivalent to the retirement allowance under option 1 and
shall be available for election only if established by the board of
trustees under duly adopted rules.

(2) The election of an option may be made only in the application for
retirement and such application must be filed prior to the date on which
the retirement of the member is to be effective. If either the member or
the person nominated dies before the effective date of retirement, the
option shall not be effective, provided that:

(a) If the member or a person retired on disability retirement dies after
attaining age fifty-five and acquiring five or more years of creditable
service or after acquiring twenty-five or more years of creditable
service and before retirement, except retirement with disability
benefits, and the person named by the member as the member's beneficiary
has an insurable interest in the life of the deceased member, the
designated beneficiary may elect to receive either survivorship payments
under option 2 or a payment of the member's accumulated contributions. If
survivorship benefits under option 2 are elected and the member at the
time of death would have been eligible to receive an actuarial equivalent
of the member's retirement allowance, the designated beneficiary may
further elect to defer the option 2 payments until the date the member
would have been eligible to receive the retirement allowance provided in
subsection 1 of this section.

(b) If the member or a person retired on disability retirement dies
before attaining age fifty-five but after acquiring five but fewer than
twenty-five years of creditable service, and the person named as the
beneficiary has an insurable interest in the life of the deceased member
or disability retiree, the designated beneficiary may elect to receive
either a payment of the person's accumulated contributions, or
survivorship benefits under option 2 to begin on the date the member
would first have been eligible to receive an actuarial equivalent of the
person's retirement allowance, or to begin on the date the member would
first have been eligible to receive the retirement allowance provided in
subsection 1 of this section.

5. If the total of the retirement or disability allowances paid to an
individual before the person's death is less than the person's
accumulated contributions at the time of the person's retirement, the
difference shall be paid to the person's beneficiary or, if there is no
beneficiary, to the (1) surviving spouse, (2) surviving children in equal
shares, (3) surviving parents in equal shares, or (4) person's estate in
that order of precedence; provided, however, that if an optional benefit,
as provided in option 2, 3 or 4 in subsection 4, had been elected and the
beneficiary dies after receiving the optional benefit, then, if the total
retirement allowances paid to the retired individual and the individual's
beneficiary are less than the total of the contributions, the difference
shall be paid to the (1) surviving spouse, (2) surviving children in
equal shares, (3) surviving parents in equal shares, or (4) estate of the
beneficiary, in that order of precedence, unless the retired individual
designates a different recipient with the board at or after retirement.

6. If a member dies before receiving a retirement allowance, the member's
accumulated contributions at the time of the member's death shall be paid
to the member's beneficiary or, if there is no beneficiary, to the (1)
surviving spouse, (2) surviving children in equal shares, (3) surviving
parents in equal shares, or (4) to the member's estate; provided,
however, that no such payment shall be made if the beneficiary elects
option 2 in subsection 4 of this section, unless the beneficiary dies
before having received benefits pursuant to that subsection equal to the
accumulated contributions of the member, in which case the amount of
accumulated contributions in excess of the total benefits paid pursuant
to that subsection shall be paid to the (1) surviving spouse, (2)
surviving children in equal shares, (3) surviving parents in equal
shares, or (4) estate of the beneficiary, in that order of precedence.

7. If a member ceases to be an employee as defined in section 169.600 and
certifies to the board of trustees that such cessation is permanent or if
the person's membership is otherwise terminated, the person shall be paid
the person's accumulated contributions with interest.

8. Notwithstanding any provisions of sections 169.600 to 169.715 to the
contrary, if a member ceases to be an employee as defined in section
169.600 after acquiring five or more years of creditable service, the
member may, at the option of the member, leave the member's contributions
with the retirement system and claim a retirement allowance any time
after the member reaches the minimum age for voluntary retirement. When
the member's claim is presented to the board, the member shall be granted
an allowance as provided in sections 169.600 to 169.715 on the basis of
the member's age and years of service.

9. The retirement allowance of a member retired because of disability
shall be nine-tenths of the allowance to which the member's creditable
service would entitle the member if the member's age were sixty.

10. Notwithstanding any provisions of sections 169.600 to 169.715 to the
contrary, any member who is a member prior to October 13, 1969, may elect
to have the member's retirement allowance computed in accordance with
sections 169.600 to 169.715 as they existed prior to October 13, 1969.

11. Any application for retirement shall include a sworn statement by the
member certifying that the spouse of the member at the time the
application was completed was aware of the application and the plan of
retirement elected in the application.

12. Notwithstanding any other provision of law, any person retired prior
to August 14, 1984, who is receiving a reduced retirement allowance under
option 1 or 2 of subsection 4 of this section, as the option existed
prior to August 14, 1984, and whose beneficiary nominated to receive
continued retirement allowance payments under the elected option dies or
has died, shall upon application to the board of trustees have the
person's retirement allowance increased to the amount the person would
have been receiving had the person not elected the option, actuarially
adjusted to recognize any excessive benefits which would have been paid
to the person up to the time of the application.

13. Benefits paid pursuant to the provisions of the public education
employee retirement system of Missouri shall not exceed the limitations
of Section 415 of Title 26 of the United States Code, except as provided
under this subsection. Notwithstanding any other law, the board of
trustees may establish a benefit plan under Section 415(m) of Title 26 of
the United States Code. Such plan shall be credited solely for the
purpose described in Section 415(m)(3)(A) of Title 26 of the United
States Code. The board of trustees may promulgate regulations necessary
to implement the provisions of this subsection and to create and
administer such benefit plan.

14. Any member who has retired prior to July 1, 1999, and the designated
beneficiary of a deceased retired member upon request shall be made,
constituted, appointed and employed by the board as a special consultant
on the matters of education, retirement and aging. As compensation for
such duties the person shall receive a payment equivalent to seven and
four-tenths percent of the previous month's benefit, which shall be added
to the member's or beneficiary's monthly annuity and which shall not be
subject to the provisions of subsections 2 and 3 of this section for the
purposes of the limit on the total amount of increases which may be
received.

15. Any member who has retired prior to July 1, 2000, and the designated
beneficiary of a deceased retired member upon request shall be made,
constituted, appointed and employed by the board as a special consultant
on the matters of education, retirement and aging. As compensation for
such duties the person shall receive a payment equivalent to three and
four-tenths percent of the previous month's benefit, which shall be added
to the member's or beneficiary's monthly annuity and which shall not be
subject to the provisions of subsections 2 and 3 of this section for the
purposes of the limit on the total amount of increases which may be
received.

16. Any member who has retired prior to July 1, 2001, and the designated
beneficiary of a deceased retired member upon request shall be made,
constituted, appointed and employed by the board as a special consultant
on the matters of education, retirement and aging. As compensation for
such duties the person shall receive a payment equivalent to seven and
one-tenth percent of the previous month's benefit, which shall be added
to the member's or beneficiary's monthly annuity and which shall not be
subject to the provisions of subsections 2 and 3 of this section for the
purposes of the limit on the total amount of increases which may be
received. (L. 1965 p. 298 § 8, A.L. 1969 p. 284, A.L. 1973 H.B. 411, A.L.
1977 H.B. 135, A.L. 1981 S.B. 242, A.L. 1984 S.B. 407, A.L. 1986 S.B.
616, A.L. 1988 H.B. 1100, et al., A.L. 1990 H.B. 1347, et al., A.L. 1991
S.B. 242, et al., A.L. 1993 S.B. 126, A.L. 1994 H.B. 1544 merged with
S.B. 575, A.L. 1995 S.B. 378, A.L. 1996 S.B. 860, A.L. 1997 S.B. 309,
A.L. 1998 S.B. 501, S.B. 733, A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B.
1808, A.L. 2001 H.B. 660, A.L. 2003 H.B. 346 & 174, A.L. 2005 H.B. 443)

1. Any member eligible for a retirement allowance pursuant to
section 169.670 and who has not previously received a retirement
allowance, including an allowance under disability retirement, pursuant
to section 169.670, and whose sum of age and creditable service equals
eighty-six years or more or whose creditable service is thirty-three
years or more or whose age is sixty-three years or more and has eight
years or more creditable service may elect a distribution under the
partial lump sum option plan provided in this section if the member
notifies the retirement system on the application for retirement of the
member's effective date of retirement; provided that the partial lump sum
option plan may not be elected if the member elects a retirement
allowance under option 7 of subdivision (1) of subsection 4 of section
169.670.

2. A member entitled to make an election pursuant to this section may
elect to receive a lump sum distribution in addition to the member's
monthly retirement allowance payment pursuant to section 169.670 as
reduced pursuant to this section. Such member may elect the amount of the
member's lump sum distribution from one, but not more than one, of the
following options:

(1) A lump sum amount equal to twelve times the retirement allowance,
less any temporary retirement allowance payable pursuant to subdivision
(5) of subsection 1 of section 169.670, the member would receive if no
election were made under this section and the member had chosen option 1
under section 169.670;

(2) A lump sum amount equal to twenty-four times the retirement
allowance, less any temporary retirement allowance payable pursuant to
subdivision (5) of subsection 1 of section 169.670, the member would
receive if no election were made pursuant to this section and the member
had chosen option 1 under section 169.670; or

(3) A lump sum amount equal to thirty-six times the retirement allowance,
less any temporary retirement allowance payable pursuant to subdivision
(5) of subsection 1 of section 169.670, the member would receive if no
election were made pursuant to this section and the member had chosen
option 1 under section 169.670.

3. When a member makes an election to receive a lump sum distribution
pursuant to this section, the retirement allowance that 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 retirement allowance shall be the member's
retirement allowance thereafter for all purposes in relation to
retirement allowance amounts pursuant to section 169.670. If eligible,
the member may also receive a temporary benefit, pursuant to subdivision
(5) of subsection 1 of section 169.670, for the period of time described
therein. A retirement allowance increased due to the death of a person
nominated by the member to receive benefits pursuant to the provisions of
option 2, 3, or 4 of subsection 4 of section 169.670 shall be increased
pursuant to such provisions to the amount the retired member would be
receiving had the retired member elected option 1 as actuarially reduced
due to the lump sum distribution made pursuant to this section. Any
payment of accumulated contributions pursuant to the provisions of
sections 169.600 to 169.715 shall be reduced by the amount of any lump
sum distribution made pursuant to this section in addition to any other
reductions required by sections 169.600 to 169.715.

4. If the member dies before receiving a lump-sum distribution under this
section the lump-sum distribution shall be paid in accordance with rules
adopted by the board of trustees.

5. Benefits paid pursuant to this section in addition to all other
provisions of the public education employee retirement system of Missouri
shall not exceed the limitations of Section 415 of Title 26 of the United
States Code except as provided in subsection 13 of section 169.670. (L.
2003 H.B. 346 & 174, A.L. 2005 H.B. 443)

1. If a member dies before service retirement and is not
survived by a beneficiary under a valid beneficiary designation filed
with the retirement system or all designated beneficiaries have
disclaimed the right to receive benefits from the retirement system, the
following individuals shall be deemed to be the member's designated
beneficiaries, in the following order of precedence, for the purpose of
making an election and receiving benefits under paragraph (a) or (b) of
subdivision (2) of subsection 4 of section 169.670:

(1) Surviving spouse at the time of the member's death;

(2) Surviving children, share and share alike;

(3) Surviving parents, share and share alike;

(4) Estate.

2. The member's most recent valid designation of a beneficiary received
by the retirement system prior to the member's death revokes all previous
designations in their entirety. The member's marriage, divorce,
withdrawal of accumulated contributions, or the birth of the member's
child, or the member's adoption of a child, shall result in an automatic
revocation of the member's previous designation in its entirety upon the
retirement system receiving actual notice of such event before or after
the member's death and prior to any payments being made under the
provisions of this chapter. This section applies to all beneficiary
designations filed with the retirement system before or after August 28,
2005, under which payments have not been made under this chapter. This
section shall not apply to the member's designation of a beneficiary to
receive a monthly benefit upon the death of the member under subdivision
(1) of subsection 4 of section 169.670. (L. 2005 H.B. 443)

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. 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 have the power to
correct such error, and as far as practicable, may 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. 1965 p.
298 § 9)

Neither the funds belonging to the retirement system nor any
benefit accrued or accruing to any person under the provisions of
sections 169.600 to 169.710 shall be subject to execution, garnishment,
attachment or any other process whatsoever, nor shall they be assignable,
except as in sections 169.600 to 169.710 specifically provided. (L. 1965
p. 298 § 10)

Gifts, devises, bequests and legacies may be accepted by the
board of trustees, to be held and invested and, except where specific
direction for the use of a gift is made by a donor, used at its
discretion for the benefit of the retirement system. (L. 1965 p. 298 § 11)

To meet the requirements of the retirement system for the period
between October 13, 1965, and the time when sufficient contributions to
the system are transmitted by employers, the board of trustees shall have
authority to accept on behalf of the system such grants or appropriations
as may be made to them or it by the general assembly of Missouri and to
repay and return the same to the state treasury when funds of the system
sufficient therefor are available, but any funds appropriated by the
general assembly shall be repaid within two years after October 13, 1965.
(L. 1965 p. 298 § 12)

1. Notwithstanding any provision of law to the contrary, any
person duly certificated under the law governing the certification of
teachers in Missouri who, after August 28, 1997, is first employed in a
position which would otherwise qualify the person for membership in the
public education employee retirement system pursuant to the provisions of
sections 169.600 to 169.710 shall be a member of the public school
retirement system pursuant to the provisions of sections 169.010 to
169.141, and shall receive creditable service on a pro rata basis in that
system for subsequent certificated services which would otherwise have
been creditable in the public education employee retirement system. Any
such person shall have the option of being a member of the public
education employee retirement system. The option election must be filed
with the board of trustees of the public school retirement system within
ninety days of first such employment following August 28, 1997.

2. Notwithstanding any provision of law to the contrary, any person duly
certificated under the law governing the certification of teachers in
Missouri who, on or after August 28, 2003, is employed by a public
school, as defined in section 169.010, for at least seventeen but less
than twenty hours per week on a regular basis shall be a member of the
public school retirement system pursuant to the provisions of sections
169.010 to 169.141, and shall receive creditable service on a pro rata
basis in that system. Any such person shall have the option of being a
member of the public education employee retirement system. The option
election must be filed with the board of trustees of the public school
retirement system within ninety days of first such employment or within
ninety days of August 28, 2003, whichever later occurs.

3. Any person who is a member of the public school retirement system or
the public education employee retirement system pursuant to subsection 2
of this section may purchase credit in such system for service after
August 28, 1991, that would have qualified such person for membership in
either retirement system pursuant to subsection 2 of this section had
such subsection been in effect prior to August 28, 2003; provided that
such purchase of credit in the public school retirement system shall be
subject to the provisions of section 169.056 and such purchase of credit
in the public education employee retirement system shall be subject to
the provisions of section 169.655. (L. 1991 S.B. 242, et al. § 1, A.L.
1993 S.B. 126, A.L. 1997 S.B. 309, A.L. 2003 H.B. 152 & 180 merged with
H.B. 346 & 174 merged with S.B. 248, et al., A.L. 2005 H.B. 443)

1. Any person receiving a retirement allowance under sections
169.600 to 169.712, and who elected a reduced retirement allowance under
subsection 4 of section 169.670 with his spouse as the nominated
beneficiary, may nominate a successor beneficiary under either of the
following circumstances:

(1) If the nominated beneficiary precedes the retired person in death,
the retired person may, upon remarriage, nominate the new spouse under
the same option elected in the application for retirement;

(2) If the marriage of the retired person and the nominated beneficiary
is dissolved, and if the dissolution decree provides for sole retention
by the retired person of all rights in the retirement allowance, the
retired person may, upon remarriage, nominate the new spouse under the
same option elected in the application for retirement.

2. Any nomination of a successor beneficiary under subdivision (1) or (2)
of subsection 1 of this section must be made in accordance with
procedures established by the board of trustees, and must be filed within
ninety days of May 6, 1993, or within ninety days of the remarriage,
whichever later occurs. Upon receipt of a successor nomination filed in
accordance with those procedures, the board shall adjust the retirement
allowance to reflect actuarial considerations of that nomination as well
as previous beneficiary and successor beneficiary nominations. (L. 1993
H.B. 496 § 2)

Effective 5-6-93

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