Missouri Statute | Act | Code |Public Officers And Employees, Bonds And Records| US Code - US Statute | Chapter 104 Retirement Of State Officers And Employees

1. The following words and phrases as used in sections 104.010
to 104.800, unless a different meaning is plainly required by the
context, shall mean:

(1) "Accumulated contributions", the sum of all deductions for retirement
benefit purposes from a member's compensation which shall be credited to
the member's individual account and interest allowed thereon;

(2) "Active armed warfare", any declared war, or the Korean or Vietnamese
Conflict;

(3) "Actuarial equivalent", a benefit which, when computed upon the basis
of actuarial tables and interest, is equal in value to a certain amount
or other benefit;

(4) "Actuarial tables", the actuarial tables approved and in use by a
board at any given time;

(5) "Actuary", the actuary who is a member of the American Academy of
Actuaries or who is an enrolled actuary under the Employee Retirement
Income Security Act of 1974 and who is employed by a board at any given
time;

(6) "Annuity", annual payments, made in equal monthly installments, to a
retired member from funds provided for in, or authorized by, this chapter;

(7) "Average compensation", the average compensation of a member for the
thirty-six consecutive months of service prior to retirement when the
member's compensation was greatest; or if the member is on workers'
compensation leave of absence or a medical leave of absence due to an
employee illness, the amount of compensation the member would have
received may be used, as reported and verified by the employing
department; or if the member had less than thirty-six months of service,
the average annual compensation paid to the member during the period up
to thirty-six months for which the member received creditable service
when the member's compensation was the greatest; or if the member is on
military leave, the amount of compensation the member would have received
may be used as reported and verified by the employing department or, if
such amount is not determinable, the amount of the employee's average
rate of compensation during the twelve-month period immediately preceding
such period of leave, or if shorter, the period of employment immediately
preceding such period of leave;

(8) "Beneficiary", any person entitled to or nominated by a member or
retiree who may be legally entitled to receive benefits pursuant to this
chapter;

(9) "Biennial assembly", the completion of no less than two years of
creditable service or creditable prior service by a member of the general
assembly;

(10) "Board of trustees", "board", or "trustees", a board of trustees as
established for the applicable system pursuant to this chapter;

(11) "Chapter", sections 104.010 to 104.800;

(12) "Compensation":

(a) All salary and wages payable out of any state, federal, trust, or
other funds to an employee for personal services performed for a
department; but including only amounts for which contributions have been
made in accordance with section 104.436, or section 104.070, whichever is
applicable, and excluding any nonrecurring single sum payments or amounts
paid after the member's termination of employment unless such amounts
paid after such termination are a final installment of salary or wages at
the same rate as in effect immediately prior to termination of employment
in accordance with a state payroll system adopted on or after January 1,
2000, or any other one-time payments made as a result of such payroll
system;

(b) All salary and wages which would have been payable out of any state,
federal, trust or other funds to an employee on workers' compensation
leave of absence during the period the employee is receiving a weekly
workers' compensation benefit, as reported and verified by the employing
department;

(c) Effective December 31, 1995, compensation in excess of the
limitations set forth in Internal Revenue Code Section 401(a)(17) shall
be disregarded. 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 the first plan year beginning after December 31, 1995;

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

(14) "Creditable prior service", the service of an employee which was
either rendered prior to the establishment of a system, or prior to the
date the employee last became a member of a system, and which is
recognized in determining the member's eligibility and for the amount of
the member's benefits under a system;

(15) "Creditable service", the sum of membership service and creditable
prior service, to the extent such service is standing to a member's
credit as provided in this chapter; except that in no case shall more
than one day of creditable service or creditable prior service be
credited any member for any one calendar day of eligible service credit
as provided by law;

(16) "Deferred normal annuity", the annuity payable to any former
employee who terminated employment as an employee or otherwise withdrew
from service with a vested right to a normal annuity, payable at a future
date;

(17) "Department", any department or agency of the executive, legislative
or judicial branch of the state of Missouri receiving state
appropriations, including allocated funds from the federal government but
not including any body corporate or politic unless its employees are
eligible for retirement coverage from a system pursuant to this chapter
as otherwise provided by law;

(18) "Disability benefits", benefits paid to any employee while totally
disabled as provided in this chapter;

(19) "Early retirement age", a member's attainment of fifty-five years of
age and the completion of ten or more years of creditable service, except
for uniformed members of the water patrol;

(20) "Employee":

(a) Any elective or appointive officer or person employed by the state
who is employed, promoted or transferred by a department into a new or
existing position and earns a salary or wage in a position normally
requiring the performance by the person of duties during not less than
one thousand hours per year, including each member of the general
assembly but not including any patient or inmate of any state,
charitable, penal or correctional institution. Beginning September 1,
2001, the term "year" as used in this subdivision shall mean the
twelve-month period beginning on the first day of employment. However,
persons who are members of the public school retirement system and who
are employed by a state agency other than an institution of higher
learning shall be deemed employees for purposes of participating in all
insurance programs administered by a board established pursuant to
section 104.450. This definition shall not exclude any employee as
defined in this subdivision who is covered only under the federal Old Age
and Survivors' Insurance Act, as amended. As used in this chapter, the
term "employee" shall include:

a. Persons who are currently receiving annuities or other retirement
benefits from some other retirement or benefit fund, so long as they are
not simultaneously accumulating creditable service in another retirement
or benefit system which will be used to determine eligibility for or the
amount of a future retirement benefit;

b. Persons who have elected to become or who have been made members of a
system pursuant to section 104.342;

(b) Any person who has performed services in the employ of the general
assembly or either house thereof, or any employee of any member of the
general assembly while acting in the person's official capacity as a
member, and whose position does not normally require the person to
perform duties during at least one thousand hours per year, with a month
of service being any monthly pay period in which the employee was paid
for full-time employment for that monthly period;

(c) "Employee" does not include special consultants employed pursuant to
section 104.610;

(d) As used in this chapter, the hours governing the definition of
employee shall be applied only from August 13, 1988, forward;

(e) The system shall consider a person who is employed in multiple
positions simultaneously within a single agency to be working in a single
position for purposes of determining whether the person is an employee as
defined in this subdivision;

(21) "Employer", a department of the state;

(22) "Executive director", the executive director employed by a board
established pursuant to the provisions of this chapter;

(23) "Fiscal year", the period beginning July first in any year and
ending June thirtieth the following year;

(24) "Full biennial assembly", the period of time beginning on the first
day the general assembly convenes for a first regular session until the
last day of the following year;

(25) "Fund", the benefit fund of a system established pursuant to this
chapter;

(26) "Interest", interest at such rate as shall be determined and
prescribed from time to time by a board;

(27) "Member", as used in sections 104.010 to 104.272 or 104.601 to
104.800 shall mean a member of the highways and transportation employees'
and highway patrol retirement system without regard to whether or not the
member has been retired. "Member", as used in this section and sections
104.312 to 104.800, shall mean a member of the Missouri state employees'
retirement system without regard to whether or not the member has been
retired;

(28) "Membership service", the service after becoming a member that is
recognized in determining a member's eligibility for and the amount of a
member's benefits under a system;

(29) "Military service", all active service performed in the United
States Army, Air Force, Navy, Marine Corps, Coast Guard, and members of
the United States Public Health Service or any women's auxiliary thereof;
and service in the Army national guard and Air national guard when
engaged in active duty for training, inactive duty training or full-time
national guard duty, and service by any other category of persons
designated by the President in time of war or emergency;

(30) "Normal annuity", the annuity provided to a member upon retirement
at or after the member's normal retirement age;

(31) "Normal retirement age", an employee's attainment of sixty-five
years of age and the completion of four years of creditable service or
the attainment of age sixty-five years of age and the completion of five
years of creditable service by a member who has terminated employment and
is entitled to a deferred normal annuity or the member's attainment of
age sixty and the completion of fifteen years of creditable service,
except that normal retirement age for uniformed members of the highway
patrol shall be fifty-five years of age and the completion of four years
of creditable service and uniformed employees of the water patrol shall
be fifty-five years of age and the completion of four years of creditable
service or the attainment of age fifty-five and the completion of five
years of creditable service by a member of the water patrol who has
terminated employment and is entitled to a deferred normal annuity and
members of the general assembly shall be fifty-five years of age and the
completion of three full biennial assemblies. Notwithstanding any other
provision of law to the contrary, a member of the highways and
transportation employees' and highway patrol retirement system or a
member of the Missouri state employees' retirement system shall be
entitled to retire with a normal annuity and shall be entitled to elect
any of the survivor benefit options and shall also be entitled to any
other provisions of this chapter that relate to retirement with a normal
annuity if the sum of the member's age and creditable service equals
eighty years or more and if the member is at least forty-eight years of
age;

(32) "Payroll deduction", deductions made from an employee's compensation;

(33) "Prior service credit", the service of an employee rendered prior to
the date the employee became a member which service is recognized in
determining the member's eligibility for benefits from a system but not
in determining the amount of the member's benefit;

(34) "Reduced annuity", an actuarial equivalent of a normal annuity;

(35) "Retiree", a member who is not an employee and who is receiving an
annuity from a system pursuant to this chapter;

(36) "System" or "retirement system", the highways and transportation
employees' and highway patrol retirement system, as created by sections
104.010 to 104.270, or sections 104.601 to 104.800, or the Missouri state
employees' retirement system as created by sections 104.320 to 104.800;

(37) "Uniformed members of the highway patrol", the superintendent,
lieutenant colonel, majors, captains, director of radio, lieutenants,
sergeants, corporals, and patrolmen of the Missouri state highway patrol
who normally appear in uniform;

(38) "Uniformed members of the water patrol", employees of the Missouri
state water patrol of the department of public safety who are classified
as water patrol officers who have taken the oath of office prescribed by
the provisions of chapter 306, RSMo, and who have those peace officer
powers given by the provisions of chapter 306, RSMo;

(39) "Vesting service", the sum of a member's prior service credit and
creditable service which is recognized in determining the member's
eligibility for benefits under the system.

2. Benefits paid pursuant to the provisions of this chapter shall not
exceed the limitations of Internal Revenue Code Section 415, the
provisions of which are hereby incorporated by reference. (L. 1955 p. 718
§ 1, A.L. 1965 p. 223, A.L. 1969 p. 174, A.L. 1972 S.B. 650, A.L. 1981
H.B. 835, et al., A.L. 1982 H.B. 1720, et al., A.L. 1983 H.B. 713
Revision, A.L. 1987 H.B. 713, A.L. 1988 H.B. 1643 & 1399, A.L. 1989 S.B.
135, A.L. 1992 S.B. 499, et al., A.L. 1994 H.B. 1149, A.L. 1997 H.B. 356,
A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 371, A.L.
2003 S.B. 248, et al.)

(2000) Circuit court employees, who are paid entirely by the county and
are hired and fired by court administrator, are not "state employees"
qualified to participate in state retirement system; source of salary
test, rather than right to control test, applies. Boone County v. County
Employees' Retirement Fund, 26 S.W.3d 257 (Mo.App.W.D.).

For the purposes of public retirement systems administered
pursuant to this chapter, any reference to the term "spouse" only
recognizes marriage between a man and a woman. (L. 2001 S.B. 371 § 2)

There is hereby created the "Missouri Department of
Transportation and Highway Patrol Employees' Retirement System", which
shall be a body corporate and an instrumentality of the state. In such
system shall be vested the powers and duties specified in sections
104.010 to 104.270 and such other powers as may be necessary or proper to
enable it, its officers, employees, and agents to carry out fully and
effectively all the purposes of sections 104.010 to 104.270. (L. 1955 p.
718 § 2, A.L. 1983 H.B. 713 Revision, A.L. 2004 H.B. 1440)

1. As an incident to his contract of employment or continued
employment, each employee of the highways and transportation commission
of Missouri, each uniformed member of the highway patrol, and each
civilian or nonuniformed employee of the Missouri state highway patrol
shall become a member of the system as established in section 104.020 on
November 1, 1955, and every person thereafter becoming an employee in
either of the three classifications shall become a member at the time of
employment. Each employee's membership shall continue as long as he shall
continue to be an employee; be on leave for military service or training
as hereinafter provided; or receive or be eligible to receive an annuity
or benefit hereunder.

2. The military service or training must be that to which he shall have
become obligated, either irrespective of his consent under the mandatory
provisions of law or as a volunteer while the United States is engaged in
actual active armed warfare, if within ninety days after becoming
eligible for release from said service obligation he shall have reentered
the employment of the transportation department or the state highway
patrol. No payment of contributions shall be required of such member upon
his return from military service, but he shall be given credit for the
actual time of military service rendered at the salary received at the
time of entry into military service. (L. 1955 p. 718 § 4, A.L. 1972 S.B.
650, A.L. 1976 H.B. 1211, A.L. 1982 H.B. 1720, et al., A.L. 1985 H.B.
790, A.L. 1988 H.B. 1643 & 1399)

1. Any member whose employment terminated prior to August 13,
1976, and who had served twenty years or more as an employee shall be
entitled to a deferred normal annuity based on his creditable service,
average compensation, and the act in effect at the time his employment
was terminated.

2. Any member whose employment terminates on or after August 13, 1976,
and prior to June 1, 1981, and who had served fifteen or more years'
creditable service as an employee or had served ten or more years of
creditable service as an employee and was at least thirty-five years of
age at the date of termination of employment shall be entitled to a
deferred normal annuity based on his creditable service, average
compensation, and the act in effect at the time his employment was
terminated.

3. Any member whose employment terminates on or after June 1, 1981, and
who has ten or more years of creditable service at the date of
termination of employment shall be entitled to a deferred normal annuity
based on the member's creditable service, average compensation and the
act in effect at the time the member's employment is terminated.

4. Any member entitled to a deferred normal annuity as provided in
subsection 1, 2, 3 or 5 of this section who reenters the service of a
department and again becomes a member of the system and thereafter serves
for one continuous year shall have his prior period of service restored,
so that benefits determined by reason of his retirement or subsequent
withdrawal from service will include the sum of all periods of creditable
service, and his annuity shall be based on his creditable service,
average compensation, and the act in effect at the time of his retirement
or subsequent withdrawal from service.

5. Notwithstanding any other law to the contrary, any member of the
transportation department and highway patrol retirement system whose
employment terminated on or after September 28, 1992, who has five or
more years of vesting service as an employee at the date of termination
of employment shall be entitled to a deferred normal annuity based on the
member's creditable service, average compensation, and the act in effect
at the time the member's employment was terminated. (L. 1988 H.B. 1643 &
1399, A.L. 1992 S.B. 499, et al., A.L. 1993 S.B. 126)

1. Any member shall be entitled to creditable prior service
within the meaning of sections 104.010 to 104.270 for all service in the
United States Army, Navy, or other armed services of the United States,
or any women's auxiliary thereof in time of active armed warfare, if such
member was a state employee immediately prior to his or her entry into
the armed services and became an employee of the state within ninety days
after termination of such service by an honorable discharge or release to
inactive status; the requirement of section 104.010 of duties during not
less than one thousand hours for status as an "employee" shall not apply
to persons who apply for creditable prior service pursuant to the
provisions of this section.

2. Any member of the system who served as an employee prior to the
original effective date of sections 104.010 to 104.270, but was not an
employee on that date, shall be entitled to creditable prior service that
such member would have been entitled to had such member become a member
of the retirement system on the date of its inception if such member has,
or hereafter attains, one year of continuous membership service.

3. Any employee who completes one continuous year of creditable service
in the system shall receive credit for service with a state department,
if such service has not otherwise been credited.

4. Any member who had served in the armed forces of the United States
prior to becoming a member, or who is otherwise ineligible pursuant to
subsection 1 of this section or other provisions of this chapter, and who
became a member after his or her discharge under honorable conditions may
elect, prior to retirement, to purchase all of his or her creditable
prior service equivalent to such service in the armed forces, but not to
exceed four years, if the member is not receiving and is not eligible to
receive retirement credits or benefits from any other public or private
retirement plan for the service to be purchased, and an affidavit so
stating shall be filed by the member with the retirement system. However,
if the member is eligible to receive retirement credits in a United
States military service retirement system, the member shall be permitted
to purchase creditable prior service equivalent to his or her service in
the armed services, but not to exceed four years, any other provision of
law to the contrary notwithstanding. The purchase shall be effected by
the member's paying to the retirement system an amount equal to what
would have been contributed by the state in his or her behalf had the
member been a member for the period for which the member is electing to
purchase credit and had his or her compensation during such period of
membership been the same as the annual salary rate at which the member
was initially employed as a member, with the calculations based on the
contribution rate in effect on the date of his or her employment with
simple interest calculated from date of employment from which the member
could first receive creditable service to the date of election pursuant
to this subsection. The payment shall be made over a period of not longer
than two years, measured from the date of election, and with simple
interest on the unpaid balance. Payments made for such creditable prior
service pursuant to this subsection shall be treated by the retirement
system as would contributions made by the state and shall not be subject
to any prohibition on member contributions or refund provisions in effect
at the time of enactment of this subsection.

5. Any uniformed member of the highway patrol who served as a certified
police officer prior to becoming a member may elect, prior to retirement,
to purchase all of his or her creditable prior service equivalent to such
service in the police force, but not to exceed four years, if he or she
is not receiving and is not eligible to receive credits or benefits from
any other public or private retirement plan for the service to be
purchased, and an affidavit so stating shall be filed by the member with
the retirement system. The purchase shall be effected by the member's
paying to the retirement system an amount equal to what would have been
contributed by the state in his or her behalf had he or she been a member
of the system for the period for which the member is electing to purchase
credit and had his compensation during such period been the same as the
annual salary rate at which the member was initially employed as a
member, with the calculations based on the contribution rate in effect on
the date of his or her employment with simple interest calculated from
the date of employment from which the member could first receive
creditable service to the date of election pursuant to the provisions of
this section. The payment shall be made over a period of not longer than
two years, measured from the date of election, and with simple interest
on the unpaid balance. Payments made for such creditable prior service
pursuant to the provisions of this section shall be treated by the
retirement system as would contributions made by the state and shall not
be subject to any prohibition on member contributions or refund
provisions in effect at the time of enactment of this section.

6. Any uniformed member of the highway patrol who served as a nonfederal
full-time public employee in this state prior to becoming a member may
elect, prior to retirement, to purchase all of his or her creditable
prior service equivalent to such service, but not to exceed four years,
if he or she is not receiving and is not eligible to receive credits or
benefits from any other public plan for the service to be purchased, and
an affidavit so stating shall be filed by the member with the retirement
system. The purchase shall be effected by the member's paying to the
retirement system an amount equal to what would have been contributed by
the state in his or her behalf had he or she been a member of the system
for the period for which the member is electing to purchase credit and
had his compensation during such period been the same as the annual
salary rate at which the member was initially employed as a member, with
the calculations based on the contribution rate in effect on the date of
his or her employment with simple interest calculated from the date of
employment from which the member could first receive creditable service
to the date of election pursuant to the provisions of this section. The
payment shall be made over a period of not longer than two years,
measured from the date of election, and with simple interest on the
unpaid balance. Payments made for such creditable prior service pursuant
to the provisions of this section shall be treated by the retirement
system as would contributions made by the state and shall not be subject
to any prohibition on member contributions or refund provisions in effect
at the time of enactment of this section. (L. 1955 p. 718 § 5, A.L. 1982
H.B. 1720, et al., A.L. 1983 H.B. 713 Revision, A.L. 1984 H.B. 1370, A.L.
1987 H.B. 713, A.L. 1988 H.B. 1643 & 1399, A.L. 1989 H.B. 674, A.L. 1992
S.B. 499, et al., A.L. 1994 H.B. 1149, A.L. 1999 S.B. 308 & 314, A.L.
2003 S.B. 248, et al.)

1. Years of service and twelfths of a year are to be used in
calculating any annuity. Absences taken by an employee without
compensation for sickness or injury of the employee of up to but not more
than twelve months or for leave taken by such employee without
compensation pursuant to the provisions of the Family and Medical Leave
Act of 1993 shall be counted as membership service.

2. Any member who withdraws from service before he is entitled to
deferred benefits under section 104.035 forfeits, waives, and
relinquishes all accrued rights in the fund, including all accrued
creditable service.

3. If a former employee has forfeited creditable service for any period
he shall have the period of creditable service restored only upon the
completion of one continuous year of service after he again becomes an
employee. (L. 1955 p. 718 § 6, A.L. 1976 H.B. 1211, A.L. 1982 H.B. 1720,
et al., A.L. 1984 H.B. 1370, A.L. 1988 H.B. 1643 & 1399, A.L. 1992 S.B.
499, et al., A.L. 2002 H.B. 1455, A.L. 2004 H.B. 1440)

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

1. No payroll deduction shall be made from the compensation of
any employee for the Missouri state highway employees' and highway patrol
retirement system fund after August 13, 1976.

2. When a member who was an employee on August 13, 1976, thereafter
retires or when a former member who has been restored creditable service
in accordance with the provisions of subsections 4 and 6 of section
104.050 retires or who is entitled to a deferred annuity under subsection
4 of section 104.030, the board shall pay him an amount equal to his
accumulated contributions and credited interest not previously refunded
to the date of his retirement. This amount is in addition to any
retirement benefits to which he is entitled.

3. When an employee dies after August 13, 1976, the board shall pay to
such beneficiary as the employee may have designated in writing or to his
estate if no beneficiary be designated an amount equal to his accumulated
contributions plus credited interest not previously refunded to the date
of death.

4. Within ninety days after February 14, 1980, or within ninety days
after reinstatement of membership under subsection 6 of section 104.050,
whichever occurs later, when a member or vested member who was an
employee on or after August 13, 1976, shall so request in writing, the
board shall immediately pay to that employee all accumulated
contributions made on account of service rendered through August 13,
1976, and not previously refunded, plus credited interest to the date the
payment is made by the board, and such refund of contributions and
interest shall not in any way change any benefits or rights which the
employee may be entitled to from the system. (L. 1955 p. 718 § 15, A.L.
1965 p. 223, A.L. 1969 p. 174, A.L. 1972 S.B. 650, A.L. 1976 H.B. 1211,
A.L. 1980 H.B. 983)

Effective 2-14-80

At least ninety days before each regular session of the general
assembly, the board shall certify to each department an actuarially
determined estimate of the respective shares of each employer in the
amount which will be necessary during the next appropriation period to
pay all liabilities which shall exist or accrue under sections 104.010 to
104.270 during such period. The estimate shall be computed upon a level
percentage of payroll compensation to cover the normal cost. To the
estimate actuarially computed there shall be added the additional payment
of ninety dollars per month due those retired members of the highway
patrol who have not attained the age of sixty-five years. Each department
shall include in its budget and in its request for appropriations for
personal service, the sum so certified to it by the board, and shall
present the same to the general assembly for allowance. The sums so
certified and appropriated, when available, shall be paid to the system
and deposited in the transportation department employees' and highway
patrol retirement and benefit fund. Such contributions and contributions
previously made by members are the funds of the system and shall not be
commingled with any funds in the state treasury. (L. 1955 p. 718 § 16,
A.L. 1972 S.B. 650, A.L. 1976 H.B. 1211, A.L. 1983 H.B. 713 Revision)

Each member may retire the first of the month following the
month during which such member shall reach normal retirement age with a
normal annuity. Notwithstanding any other provisions to the contrary, a
person receiving an annuity may waive monthly annuity payments or a cost-
of-living adjustment (COLA) for periods of time, provided no waiver may
be contrary to applicable federal law. A waiver shall be final as to any
payment or COLA waived. (L. 1955 p. 718 § 17, A.L. 1982 H.B. 1720, et
al., A.L. 1988 H.B. 1643 & 1399, A.L. 2004 H.B. 1440)

Notwithstanding any other provision of law to the contrary, any
uniformed member of the highway patrol may retire at age fifty-five with
four years of creditable service with a normal annuity and shall retire
at age sixty. (L. 2004 H.B. 1440)

1. The normal annuity of a member shall equal one and six-tenths
percent of the average compensation of the member multiplied by the
number of years of creditable service of such member. In addition, the
normal annuity of a uniformed member of the patrol shall be increased by
thirty-three and one-third percent.

2. In addition, a uniformed member of the highway patrol who is retiring
with a normal annuity after attaining normal retirement age shall receive
an additional sum of ninety dollars per month as a contribution by the
system until such member attains the age of sixty-five years, when such
contribution shall cease. To qualify for the contribution provided in
this subsection by the system, the retired uniformed member of the
highway patrol is made, constituted, appointed and employed by the board
as a special consultant on the problems of retirement, aging and other
state matters. Such additional contribution shall be reduced each month
by such amount earned by the retired uniformed member of the highway
patrol in gainful employment. In order to qualify for the additional
contribution provided in this subsection, the retired uniformed member of
the highway patrol shall have been:

(1) Hired by the Missouri state highway patrol prior to January 1, 1995;
and

(2) Employed by the Missouri state highway patrol or receiving long-term
disability or work-related disability benefits on the day before the
effective date of the member's retirement.

3. In lieu of the annuity payable to the member pursuant to section
104.100, a member whose age at retirement is forty-eight or more may
elect in the member's application for retirement to receive either:

Option 1. An actuarial reduction approved by the board of the member's
annuity in reduced monthly payments for life during retirement with the
provision that upon the member's death the reduced annuity at date of
death shall be continued throughout the life of, and be paid to, the
member's spouse; or

Option 2. The member's normal annuity in regular monthly payments for
life during retirement with the provision that upon the member's death a
survivor's benefit equal to one-half the member's normal annuity at date
of death shall be paid to the member's spouse in regular monthly payments
for life; or

Option 3. An actuarial reduction approved by the board of member's normal
annuity in reduced monthly payments for the member's life with the
provision that if the member dies prior to the member's having received
one hundred twenty monthly payments of the member's reduced annuity, the
member's reduced allowance to which the member would have been entitled
had the member lived shall be paid for the remainder of the one hundred
twenty-month period to such person as the member shall have nominated by
written designation duly executed and filed with the board. If there is
no beneficiary surviving the retiree, the reserve for such allowance for
the remainder of such one hundred twenty-month period shall be paid to
the retiree's estate; or

Option 4. An actuarial reduction approved by the board of the member's
normal annuity in reduced monthly payments for the member's life with the
provision that if the member dies prior to the member having received
sixty monthly payments of the member's reduced annuity, the member's
reduced allowance to which the member would have been entitled had the
member lived shall be paid for the remainder of the sixty-month period to
such person as the member shall have nominated by written designation
duly executed and filed with the board. If there is no beneficiary
surviving the retiree, the reserve for such allowance for the remainder
of such sixty-month period shall be paid to the retiree's estate.

4. The election may be made only in the application for retirement, and
such application shall be filed at least thirty days but not more than
ninety days prior to the date on which the retirement of the member is to
be effective, provided that if either the member or the spouse nominated
to receive the survivorship payment dies before the effective date of
retirement, the election shall not be effective. If after the reduced
annuity commences, the spouse predeceases the retired member, the reduced
annuity continues to the retired member during the member's lifetime.

5. Effective July 1, 2000, a member may make an election under option 1
or 2 after the date retirement benefits are initiated if the member makes
the election within one year from the date of marriage or July 1, 2000,
whichever is later, under any of the following circumstances:

(1) The member elected to receive a normal annuity and was not eligible
to elect option 1 or 2 on the date retirement benefits were initiated; or

(2) The member's annuity reverted to a normal annuity pursuant to
subsection 8 of section 104.103 and the member remarried; or

(3) The member elected option 1 or 2 but the member's spouse at the time
of retirement has died and the member has remarried.

6. Any person who terminates employment or retires prior to July 1, 2000,
shall be made, constituted, appointed and employed by the board as a
special consultant on the problems of retirement, aging and other state
matters, and for such services shall be eligible to elect to receive the
benefits described in subsection 5 of this section.

7. For retirement applications filed on or after August 28, 2004, the
beneficiary for either option 1 or option 2 of subsection 3 of this
section shall be the member's spouse at the time of retirement. If the
member's marriage ends after retirement as a result of a dissolution of
marriage, such dissolution shall not affect the option election and the
former spouse shall continue to be eligible to receive survivor benefits
upon death of the member.

8. Any application for retirement shall only become effective on the
first day of the month. (L. 1955 p. 718 § 18, A.L. 1961 p. 542, A.L. 1969
p. 174, A.L. 1972 S.B. 650, A.L. 1976 H.B. 1211, A.L. 1984 H.B. 1370,
A.L. 1986 H.B. 1496, A.L. 1988 H.B. 1643 & 1399, A.L. 1994 H.B. 1149,
A.L. 1996 H.B. 1541, A.L. 2000 H.B. 1808, A.L. 2004 H.B. 1440)

1. Any member after attaining fifty-five years of age and having
had at least ten years of creditable service may retire. In such case,
the member, except uniformed members of the highway patrol, shall receive
an actuarial reduction approved by the board of the normal annuity he
would have received commencing at his normal retirement age.

2. Any member after attaining sixty years of age and having had at least
fifteen years of creditable service may retire with a normal annuity.

3. Any employee after attaining sixty-five years of age and having at
least four years of creditable service may retire with a normal annuity.

4. Any member after attaining normal retirement age or early retirement
age and who is entitled to a deferred annuity under section 104.035 may
retire. In such case, the member shall receive an annuity in an amount
which is the actuarial reduction approved by the board of the normal
annuity the member would have received commencing at the earliest date on
which the member is entitled to an unreduced benefit based on the
member's creditable service at the date of the member's termination of
employment.

5. Notwithstanding any other provisions to the contrary, any member after
attaining fifty-five years of age and having had at least thirty years of
creditable service may retire with a normal annuity. (L. 1955 p. 718 §
19, A.L. 1961 p. 542, A.L. 1969 p. 174, A.L. 1972 S.B. 650, A.L. 1976
H.B. 1211, A.L. 1981 H.B. 835, et al., A.L. 1982 H.B. 1720, et al., A.L.
1986 H.B. 1496, A.L. 1988 H.B. 1643 & 1399, A.L. 1993 S.B. 126)

1. Each member who was employed prior to August 28, 1997, and
retires on or after May 12, 1981, shall receive each year a percentage
increase in the amount of benefits received by the member during the
preceding year of eighty percent of the increase in the consumer price
index determined in the manner hereinafter provided. Any such annual
benefit increase, however, shall not exceed five percent, nor be less
than four percent, and the total increase in the amount of benefits
received pursuant to the provisions of this section shall not exceed
sixty-five percent of the initial monthly benefit which the member
received upon retirement or the benefit received immediately prior to
October 1, 1986, whichever is later.

2. Each member who is employed for the first time on or after August 28,
1997, and retires shall be entitled annually to a percentage increase in
the retirement benefit payable equal to eighty percent of the increase in
the consumer price index. Such benefit increase, however, shall not
exceed five percent of the retirement benefit payable prior to the
increase.

3. Each member who is employed before August 28, 1997, and terminates
employment or retires after that date shall be entitled to the annual
benefit increase described in subsection 1 of this section. For such
members, the annual benefit increase described in subsection 2 of this
section shall not be effective until the year in which the member reaches
the limit on total annual benefit increases provided by subsection 1 of
this section. After that year, the member shall receive the annual
benefit increase described in subsection 2 of this section.

4. Survivors of members described in subsection 2 of this section shall
be entitled to the annual benefit increase described in that subsection.

5. For the purposes of this section, any increase in the consumer price
index shall be determined in January of each year, based upon the
percentage increase of (a) the consumer price index for the preceding
calendar year over (b) the consumer price index for the calendar year
immediately prior thereto. Any increase so determined shall be applied in
calculating any benefit increases that become payable under this section
during the calendar year in which the determination is made and in no
case shall the percentage be less than zero.

6. An annual increase, if any is due under either this section or section
104.612 for special consultants with the Missouri department of
transportation and highway patrol employees' retirement system, shall be
payable monthly beginning on a date specified by the board.

7. For members who retire on or after July 1, 2000, in the event such
member has chosen a joint and survivor option under the provisions of
section 104.090 and the member's eligible spouse or former spouse
precedes the member in death, the member's benefit shall revert,
effective the first of the month following the death of the spouse or
former spouse regardless of when the board receives the member's written
application for the benefit provided in this subsection, to an amount
equal to the member's normal annuity, as adjusted for early retirement if
applicable; such benefit shall include any increases the member would
have received since the date of retirement had the member elected a
normal annuity.

8. Effective on or after July 1, 2000, any retired member who had elected
a joint and survivor payment option and whose eligible spouse or former
spouse precedes or preceded the member in death shall upon application to
the board be made, constituted, appointed and employed by the board as a
special consultant on the problems of retirement, aging and other state
matters. As a special consultant under the provisions of this subsection,
the member's reduced benefit will revert to a normal annuity as adjusted
for early retirement if applicable, effective the first of the month
following the death of the spouse or former spouse regardless of when the
board receives the member's written application; such benefit shall
include any increases the retired member would have received since the
date of retirement had the member elected a normal annuity. (L. 1981 H.B.
835, et al., A.L. 1987 H.B. 713, A.L. 1993 S.B. 126, A.L. 1994 H.B. 1149,
A.L. 1997 H.B. 356, A.L. 2000 H.B. 1808, A.L. 2004 H.B. 1440)

1. Any employee, regardless of the length of time of creditable
service, who is affirmatively found by the board to be wholly incapable
of performing the duties of the employee's or any other position in the
employee's department for which the employee is suited, shall be entitled
to receive disability benefits. The disability benefit provided by this
subsection shall equal one and six-tenths percent of the employee's
average compensation multiplied by the number of years of creditable
service of the member. Effective September 1, 2003, no employee is
eligible for or shall request or apply for the disability benefit
provided pursuant to this subsection.

2. Any uniformed member of the highway patrol, highway patrol employee or
department of transportation employee, regardless of the length of time
of creditable service, who is found by the board to be disabled as a
result of injuries incurred in the performance of the employee's duties,
shall be entitled to receive an initial disability benefit in an amount
equal to seventy percent of the compensation that the employee was
receiving on the date preceding the date of disability; provided,
however, that the amount of the disability benefit, plus any primary
Social Security disability benefits received by such member shall not
exceed ninety percent of the monthly compensation such member was
receiving on the date preceding the date of disability.

3. Any disability benefits payable pursuant to this section shall be
decreased by any amount paid to such member for periodic disability
benefits by reason of the workers' compensation laws of this state. After
termination of payment under workers' compensation, however, disability
benefits shall be paid in the amount required by subsections 1, 2, 7, and
9 of this section.

4. The board of trustees may require a medical examination of a disabled
member at any time by a designated physician, and benefits shall be
discontinued if the board finds that such member is able to perform the
duties of the member's former position or if such member refuses to
submit to a medical examination. Any employee who applies for disability
benefits provided pursuant to this section shall provide medical
certification acceptable to the board which shall include the date the
disability commenced and the expected duration of the disability.

5. Any employee who applies for disability benefits pursuant to
subsections 2 and 7 of this section shall provide proof of application
for Social Security disability benefits. If Social Security disability
benefits are denied, the employee shall also provide proof that the
employee has requested reconsideration, and upon denial of the
reconsideration, that an appeal process is prosecuted.

6. The disability benefits provided in this section shall not be paid to
any member who retains or regains earning capacity as determined by the
board. If a member who has been receiving disability benefits again
becomes an employee, the member's disability benefits shall be
discontinued.

7. The board shall also provide or contract for long-term disability
benefits for those members whose disability exists or is diagnosed as
being of such nature as to exist for more than one year. The benefits
provided or contracted for pursuant to this subsection shall be in lieu
of any other benefit provided in this section. The eligibility
requirements, benefit period and amount of the disability benefits
provided pursuant to this subsection shall be established by the board.

8. Definitions of disability and other rules and procedures necessary for
administration of the disability benefits provided pursuant to this
section shall be established by the board.

9. Any member receiving disability benefits pursuant to subsections 1 and
2 of this section shall receive the same cost-of-living increases as
granted to retired members pursuant to section 104.103.

10. The state highways and transportation commission shall contribute the
same amount as provided for all state employees for any person receiving
disability benefits pursuant to subsection 2 of this section for medical
insurance provided pursuant to section 104.270.

11. Any member who qualified for disability benefits pursuant to
subsection 2 or subsection 7 of this section shall continue to accrue
normal annuity benefits based on the member's rate of pay immediately
prior to the date the member became disabled in accordance with sections
104.090 and 104.615 as in effect on the earlier of the date the member
reaches normal retirement age or the date normal annuity payments
commence.

12. A member who continues to be disabled as provided in subsection 2 or
subsection 7 of this section shall continue to accrue creditable service
until the member reaches normal retirement age. The maximum benefits
period for benefits pursuant to subsections 2 and 7 of this section shall
be established by the board. A member who is eligible to retire and does
retire while receiving disability benefits pursuant to subsections 2 and
7 of this section shall receive the greater of the normal annuity or the
minimum annuity determined pursuant to sections 104.090 and 104.615, as
if the member had continued in the active employ of the employer until
the member's normal retirement age and the member's compensation for such
period had been the member's rate of pay immediately preceding the date
the member became disabled.

13. Any member who was receiving disability benefits from the board prior
to August 28, 1997, or any member who has submitted an application for
disability benefits before August 28, 1997, and would have been eligible
to receive benefits pursuant to the eligibility requirements which were
applicable at the time of application shall be eligible to receive or
shall continue to receive benefits in accordance with such prior
eligibility requirements until the member again becomes an employee.

14. Any member receiving disability benefits pursuant to subsection 1,
subsection 2 or subsection 7 of this section shall be eligible to receive
death benefits pursuant to the provisions of subsection 1 of section
104.140. The death benefits provided pursuant to this subsection shall be
in lieu of the death benefits available to the member pursuant to
subsection 2 of section 104.140.

15. The board is authorized to contract for benefits in lieu of the
benefits provided pursuant to this section.

16. To the extent that the board enters or has entered into any contract
with any insurer or service organization to provide the disability
benefits provided for pursuant to this section:

(1) The obligation to provide such disability benefits shall be primarily
that of the insurer or service organization and secondarily that of the
board;

(2) Any employee who has been denied disability benefits by the insurer
or service organization and has exhausted all appeal procedures provided
by the insurer or service organization may appeal such decision by filing
a petition against the insurer or service organization in a court of law
in the employee's county of residence; and

(3) The board and the system shall not be liable for the disability
benefits provided by an insurer or service organization pursuant to this
section and shall not be subject to any cause of action with regard to
disability benefits or the denial of disability benefits by the insurer
or service organization unless the employee has obtained judgment against
the insurer or service organization for disability benefits and the
insurer or service organization is unable to satisfy that judgment.

17. An employee may elect to waive the receipt of any disability benefit
provided for pursuant to this section at any time.

18. Any member receiving disability benefits pursuant to subsections 1
and 2 of this section shall be eligible for a death benefit of five
thousand dollars in addition to any benefits under subsection 14 of this
section. (L. 1955 p. 718 § 20, A.L. 1961 p. 542, A.L. 1969 p. 174, A.L.
1972 S.B. 650, A.L. 1976 H.B. 1211, A.L. 1979 H.B. 36, A.L. 1984 H.B.
1370, A.L. 1986 H.B. 1496, A.L. 1988 H.B. 1643 & 1399, A.L. 1995 H.B.
416, et al., A.L. 1997 H.B. 817 merged with S.B. 389, A.L. 2002 H.B.
1455, A.L. 2003 S.B. 248, et al., A.L. 2004 H.B. 1440)

Upon the death of any member prior to his retirement, the board
shall as soon as practicable pay to such beneficiary as the member may
have designated in writing, or to his estate if no beneficiary be
designated, a death benefit equal to the amount of the member's
accumulated contributions. (L. 1955 p. 718 § 21)

Upon the death of a retired member, the board shall pay to such
member's designated beneficiaries or to his estate a death benefit equal
to the excess, if any, of the accumulated contributions of the member at
retirement over the total amount of retirement benefits received by such
member prior to his death. (L. 1955 p. 718 § 22)

1. (1) If a member who has five or more years of creditable
service dies before retirement, the member's surviving spouse, to whom
the member was married on the date of the member's death, if any, shall
receive the reduced survivorship benefits provided in option 1 of
subsection 3 of section 104.090 calculated as if the member were of
normal retirement age and had retired as of the date of the member's
death and had elected option 1;

(2) If there is no eligible surviving spouse, or when a spouse's annuity
has ceased to be payable, the member's eligible surviving children under
twenty-one years of age shall receive monthly, in equal shares, an amount
equal to eighty percent of the member's accrued annuity calculated as if
the member were of normal retirement age and retired as of the date of
death. Benefits otherwise payable to a child under eighteen years of age
shall be payable to the surviving parent as natural guardian of such
child if such parent has custody or assumes custody of such minor child,
or to the legal guardian of such child, until such child attains age
eighteen, and thereafter, the benefit may be paid to the child until age
twenty-one; provided, the age twenty-one maximum shall be extended for
any child who has been found totally incapacitated by a court of
competent jurisdiction;

(3) No benefit is payable pursuant to this section if no eligible
surviving spouse or children under twenty-one years of age survive the
member. Benefits cease pursuant to this section when there is no eligible
surviving beneficiary through either death of the eligible surviving
spouse or through either death or the attainment of twenty-one years of
age by the eligible surviving children. If the member's surviving
children are receiving equal shares of the benefit described in
subdivision (2) of this subsection, and one or more of such children
become ineligible by reason of death or the attainment of twenty-one
years of age, the benefit shall be reallocated so that the remaining
eligible children receive equal shares of the total benefit as described
in subdivision (2) of this subsection.

2. Effective January 1, 1985, if an employee who has three or more, but
less than five years of creditable service dies before retirement, the
surviving spouse of the deceased employee, if married to the deceased
employee on the date of the employee's death, or the deceased employee's
surviving eligible children under the age of twenty-one, shall receive a
total monthly payment equal to twenty-five percent of the deceased
employee's accrued monthly benefit calculated as if the employee were of
normal retirement age as of the date of death. If the surviving spouse
dies leaving any eligible children under the age of twenty-one years, the
payment shall continue until the children reach twenty-one years of age.
If there is no surviving spouse eligible for benefits under this
subsection, but there are any children of the deceased employee eligible
for payments, the payments shall continue until the children reach
twenty-one years of age. Any benefits payable to eligible children under
twenty-one years of age shall be made on a pro rata basis among the
surviving children under twenty-one years of age.

3. For the purpose of computing the amount of a benefit payable pursuant
to this section, if the board finds that the death was a natural and
proximate result of a personal injury or disease arising out of and in
the course of the member's actual performance of duty as an employee,
then the minimum benefit to such member's surviving spouse or, if no
surviving spouse benefits are payable, the minimum benefit that shall be
divided among and paid to such member's surviving eligible children under
the age of twenty-one shall be fifty percent of the member's final
average compensation. The service requirements of subsections 1 and 2 of
this section shall not apply to any benefit payable pursuant to this
subsection. (L. 1955 p. 718 § 23, A.L. 1969 p. 174, A.L. 1972 S.B. 650,
A.L. 1976 H.B. 1211, A.L. 1982 H.B. 1720, et al., A.L. 1984 H.B. 1370,
A.L. 1985 H.B. 790, A.L. 1988 H.B. 1643 & 1399, A.L. 2000 H.B. 1808, A.L.
2002 H.B. 1455)

Effective 7-11-02

1. The board shall set up and maintain a transportation
department employees' and highway patrol retirement and benefit fund
account in which shall be placed all payroll deductions, deferred
compensation, payments and income from all sources. All property, money,
funds, investments, and rights which shall belong to, or be available for
expenditure or use by, the system shall be dedicated to and held in trust
for the members and for the purposes set out in sections 104.010 to
104.270 and sections 104.600 to 104.800 and no other. The board, in the
name and on behalf of the system, may purchase, acquire, hold, invest,
lend, lease, sell, assign, transfer, and dispose of all property, rights,
and securities, and enter into written contracts, when necessary or
proper to carry out the purposes of sections 104.010 to 104.270 and
sections 104.600 to 104.800.

2. All moneys received by or belonging to the system shall be paid to the
executive director and by him deposited to the credit of the system in
one or more banks or trust companies. No such money shall be deposited in
or be retained by any bank or trust company which does not have on
deposit with and for the board at the time the kind and value of
collateral required by section 30.270, RSMo, for depositaries of the
state treasurer. The executive director shall be responsible for all
funds, securities, and property belonging to the system, and shall give
such corporate surety bond for the faithful handling of the same as the
board shall require.

3. The board may invest the funds of the system as permitted by sections
105.686 to 105.690, RSMo. (L. 1955 p. 718 § 14, A.L. 1961 p. 463, A.L.
1983 H.B. 713 Revision, A.L. 1988 H.B. 1643 & 1399)

CROSS REFERENCES: Borrowing money in disaster area, RSMo 246.277
Investment of funds, regulations and limitations, public employees
retirement systems, RSMo 105.687 to 105.690

The board of trustees shall consist of three members of the
state highways and transportation commission elected by the members of
the commission. The superintendent of the highway patrol and the director
of the department of transportation shall serve as members by virtue of
their respective offices, and their successors shall succeed them as
members of the board of trustees. In addition, one member of the senate
appointed by the president pro tem of the senate and one member of the
house of representatives, appointed by the speaker of the house shall
serve as members of the board of trustees. In addition to the appointed
legislators, two active employee members of the system shall be elected
by a plurality vote of the active employee members of the system, herein
designated for four-year terms to commence July 1, 1982, and every four
years thereafter. One elected member shall be elected from the active
employees of the department of transportation and one elected member
shall be elected from the active employees of the civilian or uniformed
highway patrol. In addition to the two active employee members, one
retired member of the system shall be elected to serve on the board by a
plurality vote of the retired members of the system. The retired member
shall be elected by the retired employees of the transportation
department and the retired members of the civilian or uniformed highway
patrol. The first retired member elected to the board shall serve for a
term which shall commence on January 1, 1993, and expire on June 30,
1994. Subsequently elected retired members shall serve for four-year
terms commencing on July 1, 1994, and every four years thereafter, which
shall coincide with the terms of the active employee members of the
board. The board shall determine the procedures for nomination and
election of the elective board members. Nominations may be entered by any
member of the system, provided members of the system have a reasonable
opportunity to vote. (L. 1955 p. 718 § 8, A.L. 1981 H.B. 835, et al.,
A.L. 1988 H.B. 1643 & 1399, A.L. 1992 S.B. 499, et al., A.L. 1999 S.B.
268)

1. The board shall elect by secret ballot one member as chair
and one member as vice chair at the first board meeting of each year. The
chair may not serve more than two consecutive terms beginning after
August 13, 1988. The chair shall preside over meetings of the board and
perform such other duties as may be required by action of the board. The
vice chair shall perform the duties of the chair in the absence of the
latter or upon the chair's inability or refusal to act.

2. The board shall appoint a full-time executive director, who shall not
be compensated for any other duties under the state highways and
transportation commission. The executive director shall have charge of
the offices and records and shall hire such employees that the executive
director deems necessary subject to the direction of the board. The
executive director and all other employees of the system shall be members
of the system and the board shall make contributions to provide the
insurance benefits available pursuant to section 104.270 on the same
basis as provided for other state employees pursuant to the provisions of
section 104.515, and also shall make contributions to provide the
retirement benefits on the same basis as provided for other employees
pursuant to the provisions of sections 104.090 to 104.260. The executive
director is authorized to execute all documents including contracts
necessary to carry out any and all actions of the board.

3. Any summons or other writ issued by the courts of the state shall be
served upon the executive director or, in the executive director's
absence, on the assistant director. (L. 1955 p. 718 § 9, A.L. 1988 H.B.
1643 & 1399, A.L. 2001 S.B. 371, A.L. 2004 H.B. 1440)

The state highways and transportation commission is authorized,
when requested by the highways and transportation employees' and highway
patrol retirement system, to provide liability insurance covering the
operation of all vehicles owned or leased or used by the system. The
commission is also authorized, when requested by the system, to provide
workers' compensation coverage for the executive director and employees
of the system. In the event the commission provides such insurance
coverage, the system shall reimburse the commission for all costs of such
coverage. (L. 2001 S.B. 371)

1. The board of trustees shall meet within the state of Missouri
upon the written call of the chairman or by agreement of any four members
of the board. Notice of the meeting shall be delivered to all other
trustees in person, or by depositing notice in a United States post
office, in a properly stamped and addressed envelope, not less than six
days prior to the date fixed for the meeting, unless authorized by the
board. The board may meet at any time by unanimous mutual consent. There
shall be at least one meeting in each quarter.

2. Six trustees shall constitute a quorum for the transaction of
business, and any official action of the board shall be based on the
majority vote of the trustees present.

3. The trustees shall serve without compensation, but shall receive their
necessary expenses incurred in the performance of their duties for the
system.

4. The executive director and other employees of the system shall receive
such salaries or other compensation as may be fixed by the board and
their necessary travel expense within and without the state as may be
authorized by the board.

5. Duties performed for the system as board members by the director or
any elected employee of the state highways and transportation commission
or by the superintendent of the state highway patrol or any elected
employee or member of the patrol shall be considered duties in connection
with the regular employment of such individual, and the employee shall
suffer no loss in regular compensation by reason of the performance of
such duties. (L. 1955 p. 718 § 10, A.L. 1987 H.B. 457, A.L. 1988 H.B.
1643 & 1399, A.L. 1992 S.B. 499, et al., A.L. 1999 S.B. 268, A.L. 2004
H.B. 1440)

1. The board shall keep a complete record of all its
proceedings, which shall be open at all reasonable hours to the
inspection of any member. A statement covering the operations of the
system for the year, including income and disbursements, and the
financial condition of the system at the end of the year, showing the
actuarial valuation and appraisal of its assets and liabilities, as of
July first, shall each year be delivered to the governor of Missouri and
be made readily available to the members.

2. A system of member employment records necessary for the calculation of
retirement benefits shall be kept separate and apart from the customary
employee employment records.

3. The principal office of the system shall be located in Jefferson City.
The system shall have a seal bearing the inscription "Transportation
Department Employees' and Highway Patrol Retirement System", which shall
be in the custody of its executive director. The courts of this state
shall take judicial notice of the seal; and all copies of records, books,
and written instruments which are kept in the office of the system and
are certified by the executive director under said seal shall be proved
or admitted in any court or proceeding as provided by section 109.130,
RSMo.

4. The board shall arrange for annual audits of the records and accounts
of the system by a certified public accountant or by a firm of certified
public accountants. The state auditor shall examine such audits at least
once every three years and report to the board and the governor. (L. 1955
p. 718 § 11, A.L. 1987 H.B. 713, A.L. 1988 H.B. 1643 & 1399)

Should any error in any records result in any member's or
beneficiary's receiving more or less than he would have been entitled to
receive had the records been correct, the board shall correct such error,
and, as far as practicable, make future payments in such a manner that
the actuarial equivalent of the benefit to which such member or
beneficiary was entitled shall be paid, and to this end may recover any
overpayments. (L. 1955 p. 718 § 25)

1. The general administration of, and responsibility for, the
proper operation of the system are hereby vested in a board of trustees.

2. Subject to the limitations of law, the board shall formulate and adopt
rules and regulations for the government of its own proceedings and for
the administration of the system, and its decisions as to all question of
fact shall be final and conclusive on all persons except for the right of
review as provided by law and except for fraud or such gross mistake of
fact as to have an effect equivalent to fraud.

3. The accounts and records of the state highways and transportation
commission, the state highway patrol, the state auditor, and the state
treasurer shall be open to inspection to the board of trustees and its
employees, for the purpose of obtaining information necessary in the
performance of the duties of such board under sections 104.010 to 104.270
and sections 104.600 to 104.800.

4. The board shall have the power to subpoena witnesses or obtain the
production of records when necessary for the performance of its duties.

5. Subject to the provisions of the constitution and sections 104.010 to
104.270 and sections 104.600 to 104.800, the board of trustees shall have
exclusive jurisdiction and control over the funds and property of the
system and may employ and fix the compensation of necessary employees.

6. No trustee or employee of the system shall receive any gain or profit
from any funds or transaction of the system, except benefits from
interest in investments common to all members if entitled thereto.

7. Any trustee or employee accepting any gratuity or compensation for the
purpose of influencing his action with respect to the investment and the
funds of the system shall thereby forfeit his office and in addition
thereto be subject to the penalties prescribed for bribery. (L. 1955 p.
718 § 7, A.L. 1983 H.B. 713 Revision, A.L. 1988 H.B. 1643 & 1399)

The board of trustees may select and employ an actuary who shall
serve at its pleasure as its technical adviser on matters regarding the
operation of the system, or may call upon the director of the department
of insurance for actuarial service, which shall be furnished by him. The
actuary shall:

(1) During the first year of operation of the system, or as soon as
practicable, and at least once every five years thereafter, make a
general investigation of the mortality, retirement, disability, death,
employment turnover, interest, and earnable compensation experience of
the system;

(2) Recommend mortality and other tables to be used for all required
actuarial calculations;

(3) Make an annual valuation of the liabilities, assets, and reserves of
the system, and a determination of the amounts of contributions required
by the system to discharge the liabilities and administration costs under
sections 104.010 to 104.270, and certify the results thereof to the
board; and

(4) Perform such other duties as may be assigned to him by the board. (L.
1955 p. 718 § 12, A.L. 1983 H.B. 713 Revision)

The chief counsel of the state highways and transportation
commission may furnish whatever legal services shall be necessary and may
call upon the attorney general, who shall furnish such services as may be
requested. (L. 1955 p. 718 § 13)

The transportation department employees' and highway patrol
retirement system may sue and be sued in its official name, but its
officers and employees shall not be personally liable for acts of the
system. The service of all legal process and of all notices which may be
required to be in writing, whether in legal proceedings or otherwise,
shall be had on the executive director or assistant director at his
office. All suits or proceedings directly or indirectly against the
system shall be brought in Cole County. (L. 1955 p. 718 § 3, A.L. 1988
H.B. 1643 & 1399)

1. All payroll deductions and deferred compensation provided for
under sections 104.010 to 104.270 are hereby made obligations of the
state of Missouri. No alteration, amendment, or repeal of sections
104.010 to 104.270 shall affect the then existing rights of members and
beneficiaries, but shall be effective only as to rights which would
otherwise accrue under sections 104.010 to 104.270 as a result of
services rendered by an employee after such alteration, amendment, or
repeal.

2. Any annuity, benefits, funds, property, or rights created by, or
accruing to, any person under the provisions of sections 104.010 to
104.270 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 process or claim whatsoever, and shall be
unassignable except that any payment from the retirement system shall be
subject to the collection of child support or spousal maintenance. (L.
1955 p. 718 § 24, A.L. 1983 H.B. 713 Revision, A.L. 2002 H.B. 1455)

Effective 7-11-02

CROSS REFERENCE:

Taxability of retirement benefits, RSMo 143.124

1. Any spouse of a deceased member of the patrol who retired
prior to October 1, 1984, shall, upon application, be made, constituted,
appointed, and employed by the board as a special consultant on the
problems of retirement, aging, and other matters relating to spouses of
deceased members of the patrol, and upon the request of the board, shall
give opinions and be available to give opinions, in writing or orally, in
response to such requests of the board. As compensation for the services
required by this section, spouses of deceased members of the patrol shall
be compensated monthly in an amount based on the monthly amount which the
member would have been receiving had the selection of options been made
on the date of the spouse's application to be made a consultant under the
provisions of this section and the member had elected the option of his
choice pursuant to the provisions of subsection 3 of section 104.090, or
an amount which, when added to any survivorship benefits received
initially upon the death of the member of the patrol, shall be equal to
two hundred dollars per month or fifty percent or the percentage so
selected by the member at retirement of the monthly benefit amount which
the member was receiving immediately prior to his death, whichever amount
is greater, plus an annual monthly increase in an amount computed by
multiplying the spouse's current monthly benefit amount by eighty percent
of the increase in the consumer price index calculated in the manner
specified in section 104.415. The annual increase provided by this
subsection shall not exceed five percent nor be less than four percent,
and the total increase in compensation granted as annual increases in
accordance with this subsection shall not exceed sixty-five percent of
the total compensation granted each spouse by this section on August 13,
1986.

2. The employment provided for by this section shall in no way affect any
person's eligibility for retirement or survivor benefits under this
chapter, or in any way have the effect of reducing any retirement or
survivor benefits, anything to the contrary notwithstanding. (L. 1986
H.B. 1496, A.L. 1987 H.B. 713 merged with H.B. 384 Revision, A.L. 2002
H.B. 1455)

Effective 7-11-02

1. Any spouse of a deceased member who retired prior to August
28, 1989, shall, upon application, be made, constituted, and appointed
and employed by the board as a special consultant on the problems of
retirement, aging, and other matters relating to spouses of deceased
members of the system, and upon the request of the board shall give
opinions, in writing or orally, in response to such requests of the
board. As compensation for the services required by this section, spouses
of deceased members of the system shall be compensated monthly in an
amount subject to either the option that the member chose at the time of
retirement or an amount equal to one-half of the member's benefit,
whichever is greater. The above benefits shall be based upon the benefit
the member was receiving at the time of death.

2. The employment provided for by this section shall in no way affect any
person's eligibility for retirement or survivor benefits under the
provisions of this chapter, or in any way have the effect of reducing any
retirement or survivor benefits, anything to the contrary notwithstanding.

3. Other provisions of law notwithstanding, any surviving spouse not
receiving a continuing payment who would have been eligible for
compensation under the provisions of subsection 1 or 2 of this section on
or after September 1, 1989, shall be entitled to receive compensation in
a sum equal to the amount the spouse would have received had subsections
1 and 2 been in effect on September 1, 1989. In order for a surviving
spouse to be eligible for the benefits under this subsection, the
retirement application of the deceased member must be filed prior to
August 28, 2004. (L. 1989 H.B. 674, A.L. 1992 S.B. 499, et al., A.L. 2004
H.B. 1440)

1. Any member who retired prior to October 1, 1984, and who
elected at that time to take the option of a reduced benefit during his
life and a survivor's benefit for his spouse after his death shall, upon
application, be made consultant on the problems of retirement, aging, and
maintaining a spouse on reduced benefit, and upon the request of the
board, shall give opinions and be available to give opinions, in writing
or orally, in response to such requests by the board. As compensation for
the services required by this section, such person shall be compensated
in an amount which, when added to the benefits received by him, is equal
to the amount he would have received had he retired on the date of his
application to be made a consultant under the provisions of this section
and had elected the option of his choice pursuant to the provisions of
subsection 3 of section 104.090.

2. The employment provided for by this section shall in no way affect any
person's eligibility for retirement or survivor benefits under this
chapter, or in any way have the effect of reducing any retirement or
survivor benefits, anything to the contrary notwithstanding.

3. The compensation provided for in this section shall be treated as any
other state retirement benefits, payable by the transportation department
employees' and highway patrol retirement system and are exempt from any
tax of any political subdivision of the state, and shall not be subject
to execution, garnishment, attachment, writ of sequestration, or any
other process or claim whatsoever, and shall be unassignable, anything to
the contrary notwithstanding. (L. 1987 H.B. 713, A.L. 1992 S.B. 499, et
al.)

*No continuity with § 104.260 as repealed by L. 1977 S.B. 60.

The state highways and transportation commission may provide for
benefits to cover medical expenses and death for members of the closed
and year 2000 plans of the highways and transportation employees' and
highway patrol retirement system. Any plan may provide medical benefits
for dependents of members and for retirees of the closed and year 2000
plans and for persons entitled to deferred annuities in the closed and
year 2000 plans and their dependents. Death benefits shall be comparable
to those provided for in section 104.517. Contributions by the state
highways and transportation commission to provide the benefits shall be
on the same basis as provided for other state employees under the
provisions of section 104.515. Except as otherwise provided by law, the
cost of benefits for dependents of members and for retirees and their
dependents shall be paid by the members or retirees. The commission may
contract with other persons or entities including but not limited to
third-party administrators, health network providers, and health
maintenance organizations for all, or any part of, the benefits provided
for in this section. The commission may require reimbursement of any
medical claims paid by the commission's medical plan for which there was
third-party liability. (L. 1977 H.B. 703, A.L. 1983 H.B. 713 Revision,
A.L. 1985 H.B. 790, A.L. 1988 H.B. 1643 & 1399, A.L. 2002 H.B. 1455)

Effective 7-11-02

Notwithstanding any other provision of law to the contrary, a
member of the Missouri transportation department and highway patrol
retirement system or a member of the Missouri state employees' retirement
system shall be entitled to retire with a normal annuity and shall be
entitled to elect any of the survivor benefit options and shall also be
entitled to any other provisions of this chapter that relate to
retirement with a normal annuity if the sum of the member's age and
creditable service equals eighty years or more and if the member is at
least forty-eight years of age. (L. 1992 H.B. 1440 § 1, A.L. 1994 H.B.
1149, A.L. 2003 S.B. 248, et al.)

Other provisions of law to the contrary notwithstanding, any
person who is an employee of state government and a member of the
transportation department employees' and highway patrol retirement system
is entitled to credit for all of his service during employment with the
department of transportation or the state highway patrol if he is an
employee of that same agency upon retirement regardless of whether he was
classified as full-time, part-time or temporary, and the requirement of
section 104.010 of duties during not less than one thousand hours for
status as an employee shall not apply to persons applying for retirement
credit under the provisions of this section. (L. 1992 S.B. 499, et al. §
1)

1. The provisions of subsection 2 of section 104.250, subsection
2 of section 104.540, subsection 2 of section 287.820, RSMo, and section
476.688, RSMo, to the contrary notwithstanding, any pension, annuity,
benefit, right, or retirement allowance provided pursuant to this
chapter, chapter 287, RSMo, or chapter 476, RSMo, is marital property and
after August 28, 1994, a court of competent jurisdiction may divide the
pension, annuity, benefits, rights, and retirement allowance provided
pursuant to this chapter, chapter 287, RSMo, or chapter 476, RSMo,
between the parties to any action for dissolution of marriage. A division
of benefits order issued pursuant to this section:

(1) Shall not require the applicable retirement system to provide any
form or type of annuity or retirement plan not selected by the member and
not normally made available by that system;

(2) Shall not require the applicable retirement system to commence
payments until the member submits a valid application for an annuity and
the annuity becomes payable in accordance with the application;

(3) Shall identify the monthly amount to be paid to the alternate payee,
which shall be expressed as a percentage and which shall not exceed fifty
percent of the amount of the member's annuity accrued during all or part
of the time while the member and alternate payee were married; and which
shall be based on the member's vested annuity on the date of the
dissolution of marriage or an earlier date as specified in the order,
which amount shall be adjusted proportionately if the member's annuity is
reduced due to early retirement and the percentage established shall be
applied to the pro rata portion of any lump sum distribution pursuant to
subsection 6 of section 104.335, accrued during the time while the member
and alternate payee were married;

(4) Shall not require the payment of an annuity amount to the member and
alternate payee which in total exceeds the amount which the member would
have received without regard to the order;

(5) Shall provide that any benefit formula increases, additional years of
service, increased average compensation or other type of increases
accrued after the date of the dissolution of marriage shall accrue solely
to the benefit of the member; except that on or after September 1, 2001,
any annual benefit increase shall not be considered to be an increase
accrued after the date of termination of marriage and shall be part of
the monthly amount subject to division pursuant to any order issued after
September 1, 2001;

(6) Shall terminate upon the death of either the member or the alternate
payee, whichever occurs first;

(7) Shall not create an interest which is assignable or subject to any
legal process;

(8) Shall include the name, address and Social Security number of both
the member and the alternate payee, and the identity of the retirement
system to which it applies;

(9) Shall be consistent with any other division of benefits orders which
are applicable to the same member.

2. A system established by this chapter shall provide the court having
jurisdiction of a dissolution of marriage proceeding or the parties to
the proceeding with information necessary to issue a division of benefits
order concerning a member of the system, upon written request from either
the court, the member or the member's spouse, which cites this section
and identifies the case number and parties.

3. A system established by this chapter shall have the discretionary
authority to reject a division of benefits order for the following
reasons:

(1) The order does not clearly state the rights of the member and the
alternate payee;

(2) The order is inconsistent with any law governing the retirement
system.

4. The amount paid to an alternate payee under an order issued pursuant
to this section shall be based on what the member would have received had
the member elected coverage under the closed plan pursuant to section
104.1015 regardless of the actual election made by the member pursuant to
that section; except that any annual benefit increases subject to
division shall be based on the actual annual benefit increases received
after the retirement plan election. (L. 1992 S.B. 499, et al. § 5, A.L.
1994 H.B. 1149, A.L. 1995 H.B. 416, et al., A.L. 1997 H.B. 356, A.L. 2001
S.B. 371)

For the purpose of providing retirement income and other
benefits to employees of the state, there is hereby created and
established a retirement system which shall be a body corporate and an
instrumentality of the state, which shall be under the management of a
board of trustees herein described, and shall be known as the "Missouri
State Employees' Retirement System". In the system shall be vested the
powers and duties specified in sections 104.010 and 104.320 to 104.800
and such other powers as may be necessary or proper to enable it, its
officers, employees, and agents to carry out fully and effectively all
the purposes of sections 104.010 and 104.320 to 104.800. (L. 1957 p. 706
§ 2, A.L. 1981 H.B. 835, et al., A.L. 1984 H.B. 1370, A.L. 1988 H.B. 1643
& 1399, A.L. 1995 H.B. 416, et al.)

1. As an incident to his or her contract of employment or
continued employment, each employee of the state shall become a member of
the system on the first day of the first month following the original
effective date of sections 104.310 to 104.540, September 1, 1957, and
every person thereafter becoming an employee shall become a member at the
time of employment. Each employee's membership shall continue as long as
the member continues to be an employee or be on leave for military
service or training as hereinafter provided; or receive or be eligible to
receive an annuity or benefit.

2. Any member who completes military service or training on or after
December 3, 1974, shall receive creditable service and salary credit
mandated by federal law under the Vietnam Era Veteran's Readjustment Act
of 1974 and the Uniformed Services Employment and Reemployment Rights Act
of 1994 or any successor thereto, or as otherwise provided under federal
or state law. (L. 1957 p. 706 § 4, A.L. 1958 2d Ex. Sess. p. 180, A.L.
1972 S.B. 548, A.L. 1980 H.B. 983, A.L. 1981 H.B. 835, et al., A.L. 2001
S.B. 371)

1. Any person who has been appointed or employed as a legal
advisor pursuant to section 286.070, RSMo, prior to August 28, 2001, who
is receiving or thereafter is qualified to receive retirement benefits
pursuant to section 104.374 shall upon application be made, constituted,
appointed and employed by the board of trustees of the Missouri state
employees' retirement system as a special consultant on the problems of
retirement, aging and other state matters for the remainder of the
person's life. Upon request of the board or the administrative hearing
commission, the consultant shall give opinions or be available to give
opinions in writing or orally in response to such requests. As
compensation for such services and in lieu of receiving benefits pursuant
to section 104.374, each such special consultant shall be eligible for
all benefits payable pursuant to sections 287.812 to 287.856, RSMo,
effective upon the later of August 28, 1999, or the date retirement
benefits become payable. In no event shall retroactive benefits be paid.

2. The term "legal advisor" as defined in subdivision (6) of section
287.812, RSMo, shall be deemed to include any attorney or legal counsel
appointed or employed pursuant to section 286.070, RSMo. (L. 2001 S.B.
371 § 1)

1. Any member whose employment terminated prior to September 1,
1972, and (a) who had served at least three full biennial assemblies as a
member of the general assembly, or (b) who was other than a member of the
general assembly and who had fifteen or more years of vesting service
shall be entitled to a deferred normal annuity based on the member's
creditable service, average compensation and the law in effect at the
time the member's employment was terminated.

2. (1) Any member whose employment terminated on or after September 1,
1972, and prior to July 1, 1981, and (a) who had served at least three
full biennial assemblies as a member of the general assembly, or (b) who
was other than a member of the general assembly and who had fifteen or
more years of vesting service or who had ten or more years of vesting
service and was at least thirty-five years of age at the date of
termination of employment shall be entitled to a deferred normal annuity
based on the member's creditable service, average compensation and the
law in effect at the time the member's employment was terminated.

(2) Any member whose employment terminated on or after July 1, 1981, and
(a) who had served at least three full biennial assemblies as a member of
the general assembly, or (b) who was other than a member of the general
assembly and who had ten or more years of vesting service at the date of
termination of employment shall be entitled to a deferred normal annuity
based on the member's creditable service, average compensation and the
law in effect at the time the member's employment was terminated.

(3) Any member whose employment terminated on or after September 1, 1972,
and who had four or more years of vesting service as governor, lieutenant
governor, secretary of state, auditor, treasurer, or attorney general of
this state shall be entitled to a deferred normal annuity based on the
member's creditable service, average compensation and the law in effect
at the time the member's employment was terminated.

(4) Any member whose employment terminated on or after September 28,
1985, and who (a) had served less than three full biennial assemblies as
a member of the general assembly, and (b) has less than ten years of
vesting service as an employee other than a member of the general
assembly shall be entitled to two years of vesting service for each full
biennial assembly in which the member served plus an additional amount of
vesting service for each partial biennial assembly served, which amount
shall be equal to the pro rata portion of the biennial assembly so
served. The total amount of vesting service provided for in this
subdivision shall be used to calculate the deferred normal annuity or
deferred partial annuity to which such member is entitled based on the
member's creditable service, which includes all service designated as
vesting service under this subdivision, the member's average
compensation, and the law in effect at the time the member's employment
was terminated.

3. Any member whose employment terminated on or after October 1, 1984,
but before September 28, 1992, and who was other than a member of the
general assembly and who has five or more years of vesting service as an
employee at the date of termination of employment shall be entitled to a
deferred partial annuity based on the member's creditable service,
average compensation, and the law in effect at the time the member's
employment was terminated, in the following amounts:

(1) An employee with at least five years of vesting service, but less
than six years, is entitled to fifty percent of the amount payable as a
deferred normal annuity;

(2) An employee with six years of vesting service, but less than seven
years, is entitled to sixty percent of the amount payable as a deferred
normal annuity;

(3) An employee with seven years of vesting service, but less than eight
years, is entitled to seventy percent of the amount payable as a deferred
normal annuity;

(4) An employee with eight years of vesting service, but less than nine
years, is entitled to eighty percent of the amount payable as a deferred
normal annuity;

(5) An employee with nine years of vesting service, but less than ten
years, is entitled to ninety percent of the amount payable as a deferred
normal annuity.

4. Any member whose employment terminated on or after September 28, 1992,
and who was other than a member of the general assembly and who has five
or more years of vesting service as an employee at the date of
termination of employment shall be entitled to a deferred normal annuity
based on the member's creditable service, average compensation, and the
law in effect at the time the member's employment was terminated.

5. Any member who is entitled to a deferred normal annuity as provided in
subsection 1, 2, 3, or 4 of this section and who reenters the service of
a department and again becomes a member of the system shall have the
member's prior period of vesting service combined with the member's
current membership service, so that any benefits that may become payable
under this system by reason of the member's retirement or subsequent
withdrawal will recognize such prior period of vesting service.

6. (1) A vested member, an administrative law judge or legal advisor as
defined in section 287.812, RSMo, or a judge as defined in section
476.515, RSMo, who has terminated all employment with the state of
Missouri for a period of six months or longer, may make a one-time
election for the system to pay the present value of a deferred annuity or
a benefit as defined in section 287.812, RSMo, or section 476.515, RSMo,
if the amount of such terminated member's or person's creditable service
is less than ten years, and if such terminated member or person is not
within five years of eligibility for receiving an annuity or benefit. Any
such member, administrative law judge, legal advisor or judge who
terminates employment on or after August 28, 1997, shall be eligible for
the one-time election provided for in this subsection only if the present
value of the deferred annuity does not exceed ten thousand dollars. The
present value shall be actuarially determined by the system. Except as
provided in subdivision (2) of this subsection, any payment so made shall
be a complete discharge of the existing liability of the system with
respect to such terminated member or person.

(2) Upon subsequent employment in a position covered under a system
administered by the Missouri state employees' retirement system, the
employee, administrative law judge or judge may elect, within one year of
such employment, to purchase creditable service equal to the amount of
creditable service surrendered due to a payment as specified in this
subsection. The cost of such purchase shall be actuarially determined by
the system, and shall be paid over a period of not longer than two years
from the date of election, with interest on the unpaid balance.

(3) Persons described in subdivision (1) of this subsection who terminate
employment on or after September 1, 2002, shall no longer be eligible to
make the election described in subdivision (1) of this subsection.

7. Any individual, covered by a retirement plan identified in this
chapter, chapter 287 or chapter 476, RSMo, who terminated employment
prior to August 28, 1993, shall, upon application to the board of
trustees of the Missouri state employees' retirement system, be made,
constituted and appointed and employed by the board as a special
consultant on the problems of retirement, aging and other state matters
for the remainder of the person's life. Upon request of the board or the
court from which the person retired, the consultant shall give opinions
or be available to give opinions in writing or orally in response to such
requests. As compensation for such services, the consultant shall be
eligible to purchase or transfer, prior to retirement, creditable service
as set forth in section 105.691, RSMo. (L. 1981 H.B. 835, et al., A.L.
1984 H.B. 1370, A.L. 1985 H.B. 790, A.L. 1988 H.B. 1643 & 1399, A.L. 1992
S.B. 499, et al., A.L. 1994 H.B. 1149, A.L. 1995 H.B. 416, et al., A.L.
1997 H.B. 356, A.L. 2000 H.B. 1808, A.L. 2002 H.B. 1455)

Effective 7-11-02

1. Any employee who became a member of the system, on the first
day of the first month following the original effective date of sections
104.310 to 104.540, September 1, 1957, shall be given creditable prior
service with the state. All such creditable prior service must be
established to the satisfaction of the board.

2. Any member of the system employed on or after August 13, 1988, and who
served as an employee prior to September 1, 1957, but was not an employee
on that date, shall be entitled to the creditable prior service that such
employee would have been entitled to had such employee become a member of
the retirement system on the date of its inception. (L. 1984 H.B. 1370,
A.L. 1988 H.B. 1643 & 1399, A.L. 2001 S.B. 371)

1. Any member, on the first day of the first month following the
original effective date of sections 104.310* to 104.540, September 1,
1957, shall be entitled to creditable prior service for the purpose of
sections 104.310* to 104.620 for all active military service performed in
the United States Army, Air Force, Navy, Marine Corps, Coast Guard and
members of the United States Public Health Service when in the active
military service, or any women's auxiliary thereof in time of active
armed warfare, if such member was a state employee immediately prior to
the member's entry into the armed services and became an employee of the
state within ninety days after termination of such service under
honorable conditions or release to inactive status in a reserve component
of the armed forces. This includes:

(1) Members of the reserve component of the armed forces (National Guard
of the United States, United States Army Reserve, Air National Guard of
the United States, United States Air Force Reserve, United States Naval
Reserve, United States Marine Corps Reserve, United States Coast Guard);

(2) Reserve components existing prior and subsequent to the original
effective date of sections 104.310* to 104.540; and

(3) The reserve of the United States Public Health Service, while in the
active military service of the United States.

2. Any former full-time employee of a state board, whether unassigned or
assigned to the governor, who becomes a member within one year of
termination of employment with the board, shall be entitled to creditable
prior service not to exceed eight years for service rendered, provided
the member had not become vested in a city or county retirement system
and has or attains one or more years of continuous service.

3. Notwithstanding any other provision of law to the contrary, any
employee of a political subdivision who becomes a state employee, or
gains eligibility to become a member, by an act, or acts, of the general
assembly after August 13, 1986, making such employment state employment
shall be entitled only to prior service credit for such employment with a
political subdivision. Such prior service credit, which cannot exceed
eight years, shall be used in the determination of eligibility for
benefits pursuant to the provisions of sections 104.310* to 104.612 but
not in determining the amount of benefits, if the person makes
application to the board for such prior service credit within ninety days
of becoming a member of the Missouri state employees' retirement system,
and establishes such service to the satisfaction of the board; except
that such prior service credit shall not be used for the purposes of
computing the minimum benefit provided by section 104.615.

4. Any member who had performed active service in the United States Army,
Air Force, Navy, Marine Corps, Army or Air National Guard, Coast Guard,
or any reserve component thereof prior to last becoming a member, or who
is otherwise ineligible under subsection 1 of this section or other
provisions of this chapter, and who became a member after the person's
discharge under honorable conditions may elect, prior to retirement, to
purchase all of the member's creditable prior service equivalent to such
service in the armed forces, but not to exceed four years, provided the
person is not receiving and is not eligible to receive retirement credits
or benefits from any other public or private retirement plan for the
service to be purchased. However, if the member is eligible to receive
retirement credits in a United States military service retirement system,
the member shall be permitted to purchase creditable prior service
equivalent to such service in the armed forces, but not to exceed four
years, any other provision of law to the contrary notwithstanding. The
purchase shall be effected by the member's submission of appropriate
documentation verifying the member's dates of active service and by
paying to the retirement system an amount equal to what would have been
contributed by the state in the member's behalf had the member been a
member for the period for which the member is electing to purchase credit
and had the member's compensation during such period of membership been
the same as the annual salary rate at which the member was initially
employed by a department, with the calculations based on the contribution
rate in effect on the date of employment with simple interest calculated
from the date of employment from which the member could first receive
creditable service to the date of election under this subsection. The
payment shall be made over a period of not longer than two years,
measured from the date of election, and with simple interest on the
unpaid balance. Payments made for such creditable prior service under
this subsection shall be treated by the retirement system as would
contributions made by the state and shall not be subject to any
prohibition on member contributions or refund provisions in effect at the
time of enactment of this subsection**.

5. Any member who terminated employment prior to August 13, 1986, who had
served in the armed forces of the United States prior to becoming a
member, or who is otherwise ineligible pursuant to subsection 1 of this
section or other provisions of this chapter, and who became a member
after the person's discharge under honorable conditions shall, upon
application to the board of trustees of the Missouri state employees'
retirement system, be made, constituted and appointed and employed by the
board as a special consultant on the problems of retirement, aging and
other state matters for the remainder of the person's life. Upon request
of the board of the system or the court from which the person retired,
the consultant shall give opinions or be available to give opinions in
writing or orally in response to such requests. As compensation for such
services, the consultant shall be eligible to purchase, prior to
retirement, creditable prior service as provided in this subsection.

6. Any member who is an employee on or after June 30, 1988, shall be
entitled to creditable prior service for all full-time service rendered
at Lincoln University prior to June 30, 1988, if such service is
established to the satisfaction of the board, provided such member elects
in writing to forfeit all rights accrued under the Lincoln University
retirement plan for such service, and provided such service is not now
credited the member under the Missouri state employees' retirement system.

7. Any person who is an employee on or after August 28, 1989, and who has
been denied credit for any service because the person was a member of
some other retirement system or benefit fund to which the state was a
contributor shall receive creditable prior service for all the service
rendered which would have otherwise been earned during such period of
service by the person except for the denial of credit; however, in no
event shall any person receive service credit for the same period of
service under more than one retirement system.

8. Upon application to the board, any member or former member not yet
retired previously employed by the Missouri institute of psychiatry prior
to July 1, 1974, and who by virtue of such employment was a member of a
retirement system or plan other than the Missouri state employees'
retirement system but did not become vested in that system or plan shall
receive creditable prior service for such service, provided that such
service is not used for the calculation of benefits under any other
retirement system or plan, excluding Social Security, and that such
service is established to the satisfaction of the board.

9. Any retired member previously employed by the Missouri institute of
psychiatry prior to July 1, 1974, and who by virtue of such employment
was a member of a retirement system or plan other than the Missouri state
employees' retirement system but did not become vested in that system or
plan may make application to be made, constituted, appointed, and
employed by the board as a special consultant on the problems of
retirement, aging and other state matters. As compensation the special
consultant shall receive beginning the month next following such
appointment an amount equal to the retirement benefit the member would
have been receiving had such service been included in the original
retirement benefit calculation, provided that such service is not used
for the calculation of benefits under any other retirement system or
plan, excluding Social Security, and that such service is established to
the satisfaction of the board.

10. Notwithstanding any other provisions of law to the contrary, if a
former employee terminated employment before January 1, 1988, and such
former employee had also served as a board member pursuant to the
provisions of section 329.190, RSMo, such former employee shall upon
application to the board of trustees of the Missouri state employees'
retirement system be made a special consultant on the problems of
retirement and shall upon request of the board of trustees give opinions
in writing or orally in response to such request. As compensation for
such services, the former employee shall receive creditable service for
all time the former employee was employed by the state and the time the
former employee served on the board pursuant to the provisions of section
329.190, RSMo, provided that such service is not used for vesting in any
other public employee retirement system. (L. 1957 p. 706 § 5, A.L. 1959
H.B. 283, A.L. 1972 S.B. 548, A.L. 1978 H.B. 1634, A.L. 1981 H.B. 835, et
al., A.L. 1984 H.B. 1370, A.L. 1985 H.B. 790, H.B. 575, A.L. 1986 H.B.
1496, A.L. 1987 H.B. 713, A.L. 1988 H.B. 1643 & 1399, A.L. 1988 H.B.
1100, et al., A.L. 1989 H.B. 610 merged with H.B. 674, A.L. 1992 S.B.
499, et al., A.L. 1993 S.B. 126, A.L. 1994 H.B. 1149, A.L. 1997 H.B. 356,
A.L. 2003 S.B. 248, et al.)

*Section 104.310 was repealed by H.B. 1643, 1988.

**"This subsection" was enacted as subsection 12 of H.B. 1496, 1986, and
went into effect on 8-13-86.

1. Any person hired by the state on or after August 13, 1986, in
any of the positions described in this subsection shall be a member of
the system from the date on which such employment begins. This subsection
shall apply to any person duly certified under the law governing the
certification of teachers who is employed full time:

(1) As a teacher by the division of youth services;

(2) As a teacher by a division of the state department of social services
and 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;

(3) As a teacher by the section of inmate education of the department of
corrections;

(4) In either a teaching or supervisory teaching capacity by the
department of mental health, in which his or her duties include
participation in the educational program of the department of mental
health.

2. Any person employed in any of the positions described in subsection 1
of this section immediately prior to and on August 13, 1986, may elect,
in writing, to:

(1) Become a member of the Missouri state employees' retirement system
effective January 1, 1987. Any person who, by virtue of an election made
under this subdivision, becomes a member of the Missouri state employees'
retirement system shall be entitled to creditable prior service credit
for service rendered in any of the positions described in subsection 1 of
this section. Members who so elect shall be eligible, upon written
request filed with the public school retirement system, to receive a
refund of their accumulated contributions including interest of six
percent and upon payment of such refund, the public school retirement
systems shall pay to the state employees' retirement system before June
30, 1987, an amount equal to the amount paid the public school retirement
system on behalf of each member so electing by the member's employer; or

(2) Remain a member of the public school retirement system of Missouri
created under sections 169.010 to 169.140, RSMo. Any person entitled to
make the election provided by this subsection who does not make such
election, in writing, by January 1, 1987, shall be deemed to have elected
to be governed by subdivision (1) of this subsection.

3. Any person who is employed on a full-time basis by Truman State
University, Northwest Missouri State University, Central Missouri State
University, Southeast Missouri State University, Southwest Missouri State
University, Harris-Stowe State College or Missouri Southern State College
and Missouri Western State College shall be a member of the system;
except that any person who is duly certified under the laws governing the
certification of teachers and who is a full-time employee of such
institution or institutions on June 14, 1989, and is contributing because
of such employment to a retirement system established under sections
169.010 to 169.140, RSMo, or sections 169.410 to 169.540, RSMo, may make
an election to continue in that retirement system if such election is
made on or before December 31, 1989. This election shall not apply to any
such person who commenced receiving retirement benefits prior to January
1, 1990, from any state retirement system because of such service.

4. Effective January 1, 1990, only after an affirmative referendum in
accordance with section 105.353, RSMo, any person who is employed on a
full-time basis by the department of elementary and secondary education
shall be a member of the system; except that any person duly certified
under the law governing the certification of teachers who is a full-time
employee at any time during the period extending from June 14, 1989,
through December 31, 1989, and is contributing because of such employment
to the retirement system established under sections 169.010 to 169.140,
RSMo, may elect to continue in that retirement system if such election is
made on or before December 31, 1989. This election shall not apply to any
such person who commenced receiving retirement benefits prior to January
1, 1990, from any state retirement system because of such service.

5. On June 14, 1989, all newly employed persons in the positions
described in subsection 3 of this section shall become members of the
Missouri state employees' retirement system. Effective January 1, 1990,
and only after an affirmative referendum provided for in subsection 4 of
this section, all newly employed persons in the positions described in
subsection 4 of this section shall become members of the Missouri state
employees' retirement system.

6. Any employee actively employed on June 14, 1989, who, because of
employment in a position described in subsection 1, 3 or 4 of this
section, has creditable service in this system for such employment which
at the time the service was rendered was not covered by the federal
Social Security Act, shall remain in this system and be entitled to the
benefits provided under subdivision (1) of subsection 7 of this section;
except that any such employee who has creditable service in this system
because of employment in a position described in subsection 4 of this
section which is not covered by the federal Social Security Act on
January 1, 1990, shall not be entitled to the benefits provided under
subdivision (1) of subsection 7 of this section for such creditable
service.

7. Any person entitled to make the election provided by subsection 3 or 4
of this section, who does not make such election, in writing, on or
before December 31, 1989, shall be deemed to have elected to be governed
by subdivision (1) of this subsection:

(1) Those persons described in subsections 3 and 4 of this section who
elect or have elected by written request filed with the board to be
members of this system, shall be entitled to creditable prior service for
service rendered in any of the positions described in subsections 1, 3
and 4 of this section. Any person who so elects shall be eligible, upon
written request filed with the board on or before March 31, 1990, with
the retirement system established under sections 169.010 to 169.140,
RSMo, or sections 169.410 to 169.540, RSMo, to receive a refund of the
member's accumulated contributions for the creditable service in any of
the positions described in subsections 1, 3 and 4 of this section, plus
interest at an annual rate of six percent computed on the refundable
balance, if any, in the member's account in that retirement system as of
June 30, 1989. Such refunds shall be made prior to June 1, 1990. If any
creditable prior service transferred under subsection 1, 3 or 4 of this
section, or subsection 3 of section 104.372, includes periods of service
not covered by the federal Social Security Act, as provided in sections
105.300 to 105.445, RSMo, then, in calculating the benefit amount payable
to such member, the normal annuity shall be an amount equal to two and
one-tenth percent of the average compensation of the member multiplied by
the number of years of such creditable service for the positions
described in subsections 1, 3 and 4 of this section not covered by the
federal Social Security Act in addition to an amount payable under
section 104.374 for all service covered by the federal Social Security
Act. The normal annuity as described in this subdivision shall be
adjusted for early retirement, if applicable;

(2) Any person described in subsections 3 and 4 of this section, who
elects to remain in one of the retirement systems established under
sections 169.010 to 169.140, RSMo, or sections 169.410 to 169.540, RSMo,
shall, notwithstanding any provision of chapter 169, RSMo, to the
contrary, be a noncontributing member of such system and shall receive a
refund of the member's accumulated contributions for the creditable
service in any of the positions described in subsection 1, 3 or 4 of this
section, plus interest at an annual rate of six percent computed on the
refundable balance, if any, in the member's account in that retirement
system as of June 30, 1989. Such refunds shall be made prior to June 1,
1990. At the time of retirement under the provisions of sections 169.010
to 169.140, RSMo, or sections 169.410 to 169.540, RSMo, such person shall
receive a retirement benefit computed under the then existing law of that
retirement system; except that, for any person employed in a position
described in subsection 4 of this section, the benefit shall be the
amount computed as though the position were not covered by the federal
Social Security Act, reduced by the amount of any federal Social Security
benefit the person may receive which is attributable to service rendered
in the positions described in subsection 4 of this section after December
31, 1989.

8. Upon payment of the refunds provided in subdivision (1) of subsection
7 of this section, each refunding retirement system shall pay to the
state employees' retirement system, by December 31, 1990, an amount
actuarially determined to equal the liability transferred from such
retirement systems. At least ninety days before each regular session of
the general assembly the board of trustees of the affected public school
retirement system shall certify to the division of budget an actuarially
determined estimate of the amount which will be necessary during the next
appropriation period to pay all liabilities, including costs of
administration, which shall exist or accrue under subsections 1 through 7
of this section during such period. The estimate shall be computed as a
level percentage of payroll compensation to cover the normal cost and to
amortize the accrued liability over a period not to exceed forty years.
The commissioner of administration shall request appropriation of the
amount calculated under the provisions of this subsection. The
commissioner of administration monthly shall requisition and certify the
payment to the executive secretary of the appropriate school retirement
system.

9. Notwithstanding any provisions of chapter 169, RSMo, to the contrary,
any member who becomes a member under the provisions of subsection 2, 5,
or 7 of this section and who has creditable service with a public school
retirement system under that chapter because of employment with any
employer other than those defined in subsection 1, 3, or 4 of this
section shall immediately vest in that public school retirement system
and upon attainment of the minimum retirement age of that system shall be
entitled to a monthly benefit based on such creditable service and the
law in effect at that time, provided the person does not elect to
withdraw the member's accumulated contributions for such creditable
service from that public school retirement system.

10. Effective July 1, 1988, the Lincoln University board of curators
shall terminate the Lincoln University retirement, disability and death
benefit plan and shall purchase through competitive bids annuities
adequate to cover the liability for all benefits presently being paid
from such plan to former employees or their surviving beneficiaries upon
the death of the employee as provided by such plan at the time of the
commencement of benefits to such former employees or beneficiaries.
Lincoln University shall pay to the Missouri state employees' retirement
system on or before July 1, 1988, an amount equal to all funds and
securities thereon contained in the Lincoln University retirement,
disability and death benefit plan less the amount needed to purchase
annuities for retiree and survivor benefits.

11. Effective July 1, 1988, the Lincoln University board of curators
shall certify to the board of trustees of the Missouri state employees'
retirement system all persons eligible to receive but not yet receiving
benefits under the Lincoln University retirement, disability and death
benefit plan, for service prior to June 30, 1988, together with the
amounts payable and supporting documentation as to the methods, plan
provisions and data used to calculate such benefits, to the satisfaction
of the board of trustees of the Missouri state employees' retirement
system, and the Missouri state employees' retirement system shall assume
responsibility for payment of such benefits in the future.

12. Any person employed on a full-time basis by Lincoln University on or
after July 1, 1988, shall become a member of the Missouri state
employees' retirement system, and may elect in writing to receive
creditable prior service for all full-time service to Lincoln University
if such service is not now credited the member under the Missouri state
employees' retirement system, and provided the member elects in writing
to forfeit all rights accrued under the Lincoln University retirement,
disability and death benefit plan for such service.

13. (1) Any person who is employed by Harris-Stowe State College as a
teacher or administrator on August 28, 1995, who was employed full time
by Harris-Stowe College prior to September 1, 1978, who became a member
of the Missouri state employees' retirement system on or after September
1, 1978, and who has been continuously employed by the college, may
purchase creditable prior service for any service rendered to
Harris-Stowe College prior to September 1, 1978, which is not otherwise
credited under the Missouri state employees' retirement system, not to
exceed twelve years;

(2) Any person eligible to purchase creditable prior service under the
provisions of subdivision (1) of this subsection may make written
application to the board of trustees of the Missouri state employees'
retirement system prior to retirement, but not later than April 1, 1996.
The purchase shall be effected by the member and the public school
retirement system of which the member was previously a member paying to
the Missouri state employees' retirement system the following amounts:

(a) The amount contributed by the employee to the St. Louis public school
retirement system during the years of prior service with Harris-Stowe
College for which the employee seeks to purchase creditable prior service
in the Missouri state employees' retirement system, including interest
which may have been credited to the member's individual account with the
system, or which would have been credited to the account had it remained
with the St. Louis public school retirement system; and

(b) An amount which shall not be less than zero and which shall equal the
actuarial accrued liability of the St. Louis public school retirement
system for the prior service, determined as of the transfer date as if
the member were still in active service covered by the St. Louis public
school retirement system, less the amount stipulated in paragraph (a) of
this subdivision;

(c) If the member had received a refund of contributions related to
service covered by the St. Louis public school retirement system, the
amount stipulated in paragraph (a) of this subdivision shall be paid to
the Missouri state employees' retirement system by the member, otherwise,
such amount shall be paid to the Missouri state employees' retirement
system by the St. Louis public school retirement system;

(3) Any amount payable to the Missouri state employees' retirement system
by the member may be paid in a lump sum or in monthly installments. If
paid in monthly installments, the period over which payments are being
made may not extend beyond the earlier of the member's retirement date or
April 1, 1997, and shall include interest at a rate established by the
board of trustees of the Missouri state employees' retirement system;

(4) Any amounts payable to the Missouri state employees' retirement
system by the St. Louis public schools retirement system shall be paid in
a lump sum and shall not be paid later than the earlier of the member's
retirement date or April 1, 1997, and shall include interest at a rate
established by the board of trustees of the Missouri state employees'
retirement system;

(5) Any person who elects to purchase creditable prior service under the
provisions of this section shall file with the St. Louis public school
retirement system an irrevocable waiver and release of any rights and
benefits in that system for the creditable prior service being purchased.
The member shall file with the Missouri state employees' retirement
system a copy of the waiver and an affidavit stating that he or she is no
longer eligible to receive benefits or credits in any other retirement
system for the creditable prior service being purchased;

(6) All retirement plans defined under section 105.660, RSMo, 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.

14. In no event shall any person receive service credit for the same
period of service under more than one retirement system. (L. 1986 H.B.
1496, A.L. 1987 H.B. 713 merged with H.B. 384 Revision, A.L. 1988 H.B.
1100, et al., A.L. 1989 H.B. 610, A.L. 1995 H.B. 416, et al. merged with
S.B. 340, A.L. 1997 H.B. 356)

The surviving spouse of any deceased member who purchased
creditable prior service for service in the armed forces of the United
States pursuant to subsection 4 of section 104.340 and who died prior to
retirement may, upon written request, receive a refund of the amount
contributed for such purchase of creditable prior service, provided the
surviving spouse is not entitled to a survivorship benefit as payable
under the provisions of section 104.420. (L. 1989 H.B. 674, A.L. 1992
S.B. 499, et al.)

Notwithstanding any other law to the contrary, any person who is
actively employed by the state of Missouri in a position covered by a
retirement plan administered by the Missouri state employees' retirement
system and who had nonfederal full-time public employment in the state of
Missouri or who had provided full-time services for compensation to the
state of Missouri under a contract, and who by virtue of such employment
was a member of a retirement system or other employer-sponsored
retirement plan other than the Missouri state employees' retirement
system but is not vested in such other retirement system or plan, or was
not a member of any retirement system or plan, may elect, prior to
retirement, to purchase all of the member's creditable prior service but
not to exceed four years for such service in any plan administered by the
Missouri state employees' retirement system in which the person is
receiving service credit for active employment or is eligible for a
deferred annuity. The purchase shall be effected by the person paying to
the Missouri state employees' retirement system an amount equal to what
would have been contributed by the state in his or her behalf had the
person been a member for the period for which he or she is electing to
purchase credit and had the person's compensation during such period been
the same as the annual salary rate at which the person was initially
employed in a position covered by a plan administered by the Missouri
state employees' retirement system, with the calculations based on the
contribution rate in effect on the date of his or her employment under
the provisions of the Missouri state employees' retirement system with
simple interest calculated from the date of employment from which the
person could first receive creditable service from the Missouri state
employees' retirement system to the date of election to purchase such
service. The payment shall be made over a period of not longer than two
years, with simple interest on the unpaid balance. In no event shall any
person receive credit or benefits under any other retirement plan as
defined pursuant to section 105.691, RSMo, for creditable service
purchased pursuant to the provisions of this section. The contribution
rate for any judge who elects to purchase service for a period prior to
July 1, 1998, shall be equal to a contribution rate which would be used
if the judicial system were funded on an actuarial basis prior to that
date. (L. 1994 S.B. 579 § 22, A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B.
1808, A.L. 2002 H.B. 1455)

Effective 7-11-02

1. Any circuit clerk holding office or employment as such on or
after August 28, 1989, for service rendered as an employee of any county
or other political subdivision for the purposes of performing duties for
the judicial system, is entitled to creditable prior service pursuant to
the provisions of this chapter in the Missouri state employees'
retirement system, provided such period of service has not been included
for purposes of qualification for any other retirement system.

2. Any member who was a circuit clerk on July 1, 1980, and whose
employment as a circuit clerk terminated prior to October 1, 1989, upon
application to the board shall be made, constituted, appointed, and
employed by the board as a special consultant on the problems of
retirement for the remainder of the person's life. Upon request of the
board, the consultant shall give opinions or be available to give
opinions in writing or orally in response to such requests. As
compensation, the consultant shall receive creditable service for service
rendered as a circuit clerk, deputy circuit clerk or division clerk, if:

(1) The member does not receive credit for the same period of service
under more than one retirement system;

(2) The person made application to the board for such creditable prior
service within ninety days of October 1, 1989; and

(3) The person establishes proof of such service to the satisfaction of
the board.

Such person shall be a member of the Missouri state employees' retirement
system and be entitled to a normal annuity or to a deferred normal
annuity, based on the person's creditable service and the law in effect
at the time service as a circuit clerk was terminated.

3. Notwithstanding any provision of law to the contrary, any person who
is an employee on August 28, 1990, who was a circuit clerk, deputy
circuit clerk or division clerk on June 30, 1981, employed by a county
which participated in the local government employees' retirement system
pursuant to sections 70.600 to 70.755, RSMo, or which paid to the
Missouri state employees' retirement system to actuarially fund the
creditable prior service of such clerk, and such person elected to
receive creditable prior service under this system by waiving rights to
the person's accumulated contributions made or accrued while such person
was a county employee or who made payment to the county as reimbursement
for the costs incurred by the county to actuarially fund the creditable
prior service for such person which were received by this system pursuant
to the provisions of this section in effect when such person became a
member, upon written application filed with the board, shall be eligible
to receive a refund of such accumulated contributions or payment amount.
Members receiving such a refund shall not forfeit any service presently
credited the member under this system but in no event shall a member
receive credit for the same period of service under more than one
retirement system.

4. Any actively employed member of the Missouri state employees'
retirement system on or after August 28, 2000, shall be entitled to
creditable prior service for service rendered as a circuit clerk, deputy
circuit clerk or division clerk, if:

(1) The service had not become vested in a county or city retirement plan;

(2) The person made application to the board for such creditable prior
service; and

(3) The person establishes proof of such service to the satisfaction of
the board including proof that the person worked in a position that
normally required at least one thousand hours of service per year for
service after October 1, 1984, or one thousand five hundred hours of
service per year for service prior to October 1, 1984. (L. 1981 H.B. 835,
et al., A.L. 1982 H.B. 1720, et al., A.L. 1983 H.B. 713 Revision, A.L.
1984 H.B. 1370, A.L. 1989 H.B. 674, A.L. 1990 H.B. 1347, et al., A.L.
2000 H.B. 1808, A.L. 2001 S.B. 371)

Notwithstanding any provision of law to the contrary, any member
of the Missouri state employees' retirement system eligible to receive an
annuity or who has received an annuity based on prior creditable service
and who, after January 1, 1990, was an elected circuit clerk of a first
class county shall be entitled to a normal annuity based on prior
creditable service plus creditable service as an elected circuit clerk of
such first class county. (L. 1992 S.B. 499, et al. § 3, A.L. 1994 H.B.
1149)

1. Upon withdrawal from service, any member who is not entitled
to a normal annuity, deferred normal annuity or disability benefits
pursuant to the provisions of this chapter shall forfeit all rights in
the fund, including the member's accrued creditable service as of the
date of the member's withdrawal.

2. A former employee who is employed on or after August 28, 2002, who has
forfeited service shall have the forfeited period of service restored
after receiving creditable service continuously for one year. (L. 1957 p.
706 § 6, A.L. 1972 S.B. 548, A.L. 1979 S.B. 1, A.L. 1980 H.B. 983, A.L.
1981 H.B. 835, et al., A.L. 1984 H.B. 1370, A.L. 1985 H.B. 790, A.L. 1988
H.B. 1643 & 1399, A.L. 1997 H.B. 356, A.L. 2000 H.B. 1808, A.L. 2002 H.B.
1455)

Effective 7-11-02

1. Any employee or former employee described in paragraph (b) of
subdivision (18) of section 104.010 is entitled to credit for all prior
service and membership service as if he had been a member of the system
on the date of its inception. Any such employee shall be considered a
member of the system from the date of his or her employment and shall
receive credit for each month of service for which he is employed with
service being computed as if part-time employment with the general
assembly were full-time employment for the period the member was so
employed.

2. Each employee described in paragraph (b) of subdivision (18) of
section 104.010 shall be entitled to the same insurance benefits provided
under sections 103.003 to 103.175, RSMo to employees described in
paragraph (a) of subdivision (18) of section 104.010 to cover the medical
expenses of such employees and their spouses and children. Such insurance
benefits shall be made available to employees described in paragraph (b)
of subdivision (18) of section 104.010 upon their initial employment as
such employees in the same manner provided for employees described in
paragraph (a) of subdivision (18) of section 104.010, and shall be
continued during any period of time, not to exceed one year, in which
such employees are not paid for full-time employment, so long as such
employees pay the same amount for such insurance benefits as is required
of employees described in paragraph (a) of subdivision (18) of section
104.010 who continue receiving such insurance benefits during a leave of
absence without pay from their employment with the state. Any employee
described in paragraph (b) of subdivision (18) of section 104.010 who is
reemployed by the general assembly or either house thereof, or by any
member of the general assembly while acting in his official capacity as a
member, by the thirteenth legislative day of the session of the general
assembly immediately following the session of the general assembly in
which such employee was last so employed, without having elected to
discontinue the insurance benefits described in this subsection, shall be
entitled to continue such insurance benefits without having to prove
insurability for himself or any of his covered dependents for whom he has
paid for such coverage continuously since last employed as an employee
described in paragraph (b) of subdivision (18) of section 104.010. Any
employee described in paragraph (b) of subdivision (18) of section
104.010 who is not reemployed by the general assembly or either house
thereof, or by any member of the general assembly while acting in his
official capacity as a member, by the thirteenth legislative day of the
session of the general assembly immediately following the session of the
general assembly in which such employee was last so employed, shall be
deemed terminated as an employee as of such thirteenth legislative day,
and the insurance benefits provided for such employee under this
subsection and sections 103.003 to 103.175, RSMo, shall be terminated as
provided for employees described in paragraph (a) of subdivision (18) of
section 104.010 whose employment is terminated. During each month of
service in which an employee described in paragraph (b) of subdivision
(18) of section 104.010 is employed, the state shall make any
contribution required by sections 103.003 to 103.175, RSMo, for such
employee.

3. Any employee described in paragraph (b) of subdivision (18) of section
104.010 who is actively employed on or after September 28, 1992, shall be
deemed vested for purposes of determining eligibility for benefits under
sections 104.320 to 104.620 after being so employed for at least sixty
months. (L. 1979 S.B. 1 § 2, A.L. 1981 H.B. 835, et al., A.L. 1984 H.B.
1370, A.L. 1985 H.B. 790, A.L. 1988 H.B. 1643 & 1399, A.L. 1992 H.B. 1574
merged with S.B. 499, et al.)

In each fiscal year in which retirement benefits are to be paid
to retired employees described in paragraph (b) of subdivision (18) of
section 104.010 because of the provisions of section 104.352, funding for
such benefits shall be provided as set forth in section 104.436. All
benefits paid because of the provisions of section 104.352 shall be paid
by the retirement system along with all other retirement benefits due
such retired employees under the retirement system. (L. 1979 S.B. 1 § 3,
A.L. 1981 H.B. 835, et al., A.L. 1984 H.B. 1370, A.L. 1986 H.B. 1496,
A.L. 1988 H.B. 1643 & 1399)

1. Any member of the general assembly who has served at least
three full biennial assemblies as a member of the general assembly and
who meets the conditions for retirement at or after the member's normal
retirement age shall be entitled to a normal annuity in a monthly amount
equal to one hundred fifty dollars multiplied by the number of biennial
assemblies in which such member has served. For the purpose of
calculating benefits due under this subsection:

(1) Service in any portion of a biennial assembly after service in at
least three biennial assemblies shall be credited as service in a full
biennial assembly; and

(2) Any person who is elected as a member of the general assembly at a
special election and who serves the remainder of that term to which he
was elected at such special election shall receive credit for a full
biennial assembly for such service.

2. If a member of either retirement system established by this chapter,
who has served at least three full biennial assemblies as a member of the
general assembly, is elected to a state office, appointed to a state
office, or employed by the state before, after, or before and after his
service as a member of the general assembly, the member may, at the end
of such employment, receive upon retirement, at or after the member's
normal retirement age, the amount which shall be due the member for
creditable service as a member of the general assembly. If he has not
fully vested as a result of his employment as other than a member of the
general assembly, he shall be credited with additional service as a
legislator just as though all of the service combined had in fact been
rendered as a member of the general assembly and receive a normal
annuity. If the member retires before normal retirement age, the member
shall receive the actuarial reduction approved by the board. Nothing in
this section shall allow any member to simultaneously accumulate service
in more than one state retirement system as a member of the general
assembly and an employee or state officer; provided that, any member who
otherwise would accrue simultaneous creditable service as a member of the
general assembly and as an employee or state officer may elect prior to
retirement to receive such simultaneous creditable service in the state
retirement plan that covered the member's service as an employee or state
officer in lieu of receiving such creditable service as a member of the
general assembly pursuant to subdivision (1) of subsection 1 of this
section. Any member who makes such election shall receive creditable
service for the member's remaining legislative service equal to the pro
rata portion of the biennial assembly actually served by such member. The
provisions of this subsection providing an election with regard to
simultaneous creditable service shall apply to any member of the general
assembly who is employed on or after August 28, 2003, or any former
member of the general assembly who is employed as an employee or state
officer on or after August 28, 2003. The term "state officer" as used in
this subsection includes a statewide elected official as described in
section 104.371, an administrative law judge or legal advisor as defined
in section 287.812, RSMo, or a judge as defined in section 476.515, RSMo.

3. A member who has fully vested as a state officer or employee and has
service as a member of the general assembly of less than three full
biennial assemblies, upon retirement, at or after the member's normal
retirement age, shall be credited with additional service as a state
officer or employee for the time he served as a member of the general
assembly. If the member retires before normal retirement age, he shall
receive the actuarial reduction approved by the board.

4. Any member of the general assembly who has served at least three full
biennial assemblies and whose service as such terminates on or after
October 1, 1984, and who served as an employee, as that term is defined
in section 104.010, prior to the respective dates on which the retirement
systems to which such sections apply originally became effective, but was
not such an employee on such dates, shall be entitled to the creditable
prior service that such employee would have been entitled to in either or
both systems had such employee become a member on the date of inception
of either or both systems. The maximum number of years of creditable
prior service to which a member may become entitled pursuant to this
section is less than ten years. The benefits attributable to such service
shall be calculated as if all service was rendered as a member of the
general assembly.

5. Any former member of the general assembly who is receiving benefits
under the provisions of this section shall, upon written request to the
board, be made, constituted, appointed and employed by the board as a
special consultant on the problems of retirement and other related
matters and shall upon request of the board give opinions in writing or
orally in response to such requests. As compensation for such services,
the retired member shall have his retirement benefits recalculated the
first of the month next following his application under this subsection
to reflect that any portion of a year of creditable service shall be
counted as one full biennial session.

6. Any retired member who is receiving benefits from the system and is
elected to the general assembly but does not serve at least three
biennial sessions shall receive creditable service for the time he served
in the general assembly and upon leaving the general assembly shall have
an additional benefit calculated using such service.

7. Benefits paid for service credited to legislative service shall be
funded as provided in section 104.436.

8. Any former member of the general assembly not retired on August 28,
1994, who is fifty-five years of age or more and who has creditable
service in the general assembly of at least three full biennial
assemblies and has not used such services as creditable services in any
other retirement system shall be made and employed by the board as a
special consultant on the problems related to retirement and shall, when
requested by the board, give opinions either written or orally on such
problems. As compensation for such duties the former member of the
general assembly shall be entitled to retire with a normal annuity
effective the first of the month following receipt by the board of a
written application.

9. Notwithstanding any other law to the contrary, any active member of
the Missouri state employees' retirement system who is vested, on August
28, 1994, under the provisions of subsection 1 of this section, and who
has served as an elected county official and who, by virtue of such
service was a member of a retirement system other than the Missouri state
employees' retirement system but was not vested in such other retirement
system, or was not a member of any retirement system, shall receive
creditable prior service in the Missouri state employees' retirement
system for such previous service as an elected county official. (L. 1981
H.B. 835, et al., A.L. 1984 H.B. 1370, A.L. 1985 H.B. 790, A.L. 1986 H.B.
1496, A.L. 1988 H.B. 1643 & 1399, A.L. 1988 H.B. 1100, et al., A.L. 1989
H.B. 674, A.L. 1992 S.B. 499, et al., A.L. 1993 S.B. 126, A.L. 1994 H.B.
1149, A.L. 2003 S.B. 248, et al.)

(1994) Where former state legislator sued state retirement system for
denial of benefits for period from date he reached the age for
eligibility for legislative retirement until time he retired from circuit
judge position. Former legislator was ineligible under statute until his
retirement from circuit judge position. Former members of general
assembly are ineligible for retirement benefit during any period which
they are serving as elected or appointed stated officers. Geary v.
Missouri State Employees' Retirement System, 878 S.W.2d 918 (Mo. App.
W.D.).

1. The normal annuity of a state official holding an elective
state office, other than a member of the general assembly, shall be an
amount equal to one and six-tenths percent of the average compensation of
such elective or appointed officer multiplied by the number of years of
creditable service of such elective or appointed officer; except that, if
a member has held one or more statewide state elective offices for a
total of at least twelve years, the member's normal annuity after
September 28, 1983, shall be equal to fifty percent of the compensation
provided by law at the time of retirement for the state officer of the
highest office held, other provisions of law notwithstanding. The
benefits shall be funded as provided in section 104.436.

2. Any member who has served in at least three full biennial assemblies
as a member of the general assembly may elect to be credited with
additional service as a state officer or employee for each year in which
he or she served as a member of the general assembly with each full
biennial assembly served counting as two years of service and each
partial biennial assembly served counting as the pro rata portion of two
years which is equal to the portion of the general assembly served.

3. Any member who terminated employment prior to August 28, 1994, who has
served in at least three full biennial assemblies as a member of the
general assembly, may upon application to the board of trustees of the
Missouri state employees' retirement system, be made, constituted and
appointed and employed by the board as a special consultant on the
problems of retirement, aging and other state matters for the remainder
of the member's life. Upon request of the board, the consultant shall
give opinions or be available to give opinions in writing or orally in
response to such requests. As compensation for such services, the
consultant may elect to be credited with additional service as a
statewide elected official or employee for each year in which he or she
served as a member of the general assembly, with each full biennial
assembly served counting as two years and each partial biennial assembly
served counting as the pro rata portion of two years which is equal to
the portion of the general assembly served.

4. Any elected statewide officer may retire after attaining fifty-five
years of age and having had at least ten years of vesting service. In
such case, such elected officer shall receive an annuity in an amount
which is the actuarial reduction approved by the board of the normal
annuity the member would have received commencing at the earliest date on
which the member is entitled to an unreduced benefit based on the
member's creditable service at the date such member left office.

5. Any member who may retire as an elected statewide officer who has
attained sixty years of age and has at least fifteen years of creditable
service may retire with a normal annuity benefit.

6. Any member who may retire as an elected statewide elected officer
shall be entitled to retire with a normal annuity if the sum of the
member's age and creditable service equals eighty years or more and if
the member is at least fifty years of age. (L. 1981 H.B. 835, et al.,
A.L. 1983 S.B. 252, A.L. 1984 H.B. 1370, A.L. 1986 H.B. 1496, A.L. 1988
H.B. 1643 & 1399, A.L. 1994 H.B. 1149, A.L. 1997 H.B. 356)

1. (1) In the event a person who served as a member of the
general assembly or in an elective state office on or after September 1,
1976, and who retired after September 1, 1976, dies, a survivor's income
in an amount equal to fifty percent of the monthly annuity the retired
member was receiving at the time of the member's death shall be paid in
monthly installments to such deceased retired member's surviving spouse;
provided such surviving spouse was married to the deceased retired member
of the general assembly or elected official on the date of the member's
death; or if there is no surviving spouse eligible to receive such
survivor's income, then such survivor's income shall be payable to any
children under the age of twenty-one of the deceased member of the
general assembly or elective official in equal shares in a total amount
equal to such survivor's income that would otherwise have been paid to
the surviving spouse until the children reach twenty-one years of age.
The benefits shall be funded as provided in section 104.436; or

(2) Upon the death of a person who served as a member of the general
assembly or in an elective state office on or after September 1, 1976,
and who retired pursuant to the provisions of this chapter on or after
September 1, 1976, and who terminated employment before August 28, 1988,
such deceased retired member's surviving spouse, who was married to the
deceased retired member on the date of the member's death, may apply to
the board of trustees and shall be made, constituted, appointed and
employed by the board as a special consultant on the problems of
retirement, aging and other state matters for the remainder of the
surviving spouse's life, and upon request of the board shall give
opinions, and be available to give opinions in writing, or orally, in
response to such requests. As compensation for such services, beginning
the first of the month following application, such surviving spouse shall
receive monthly an amount equal to fifty percent of the monthly annuity
the retired member was receiving at the time of the member's death.

2. If a member of the general assembly who has served in at least three
full biennial assemblies dies before retirement, pursuant to the
provisions of sections 104.312 to 104.801, a survivor's benefit shall be
paid in an amount equal to fifty percent of the member's accrued annuity
calculated as if the member were of normal retirement age as of the
member's death. The survivor's benefit shall be paid in monthly
installments to such deceased member's surviving spouse; provided such
surviving spouse was married to the deceased member of the general
assembly on the date of the member's death; or if there is no surviving
spouse eligible to receive such survivor's benefit, such survivor's
benefit shall be payable to any children under the age of twenty-one of
the deceased member of the general assembly in equal shares in a total
amount equal to such survivor's benefit that would otherwise have been
paid to the surviving spouse until the children reach twenty-one years of
age.

3. In the event a person who has held one or more statewide state
elective offices for a total of at least twelve years, and whose
retirement benefits have been calculated and are being paid pursuant to
the provisions of section 104.371, dies, a survivor's benefit in an
amount equal to fifty percent of the benefits being paid the member
pursuant to section 104.371 shall be paid to the member's surviving
spouse. The survivor's benefits shall be paid in the manner provided in
section 104.371.

4. Every member of the state employees' retirement system who had
previous state employment by a state agency by virtue of which the person
was a member of the public school retirement system of Missouri and has
previously withdrawn the person's employee contribution to the public
school retirement system shall upon request if qualified pursuant to the
provisions of this subsection receive creditable prior service in the
state employees' retirement system for such service notwithstanding any
other provisions of law. The public school retirement system shall pay to
the state employees' retirement system an amount equal to the
contribution paid to the public school retirement system on behalf of the
employee by the employee's employer, and the commissioner of
administration shall pay an equal amount to the state employees'
retirement system from funds appropriated from the general revenue fund
for such purpose. In no event shall any person receive credit for the
same period of service under more than one retirement system.

5. Upon the death of a person who served as a member of the general
assembly or in an elective state office before September 1, 1976, and who
retired and chose a normal annuity pursuant to the provisions of this
chapter, such deceased retired member's surviving spouse, who was married
to the member on the date of the member's death, may apply to the board
of trustees and shall be made, constituted, appointed and employed by the
board as a special consultant on the problems of retirement, aging, and
other state matters for the remainder of the surviving spouse's life, and
upon request of the board shall give opinions, and be available to give
opinions in writing, or orally, in response to such requests. As
compensation for such services, beginning the first of the month
following application, such surviving spouse shall receive monthly an
amount equal to fifty percent of the monthly annuity the retired member
was receiving at the time of the member's death.

6. Survivor benefits shall be paid pursuant to section 104.420 in lieu of
any other provisions of this section to the contrary if the member of the
general assembly or statewide elected official:

(1) Dies on or after August 28, 2001;

(2) Had a vested right to an annuity; and

(3) Was not receiving an annuity.

7. Survivor benefits shall be paid pursuant to section 104.395 in lieu of
any other provisions of this section to the contrary if the member of the
general assembly or statewide elected official elects a survivor benefit
option pursuant to section 104.395, and dies on or after August 28, 2001.
(L. 1984 H.B. 1370, A.L. 1986 H.B. 1496, A.L. 1987 H.B. 713, A.L. 1988
H.B. 1643 & 1399, A.L. 1994 H.B. 1149, A.L. 1997 H.B. 356, A.L. 2000 H.B.
1808, A.L. 2001 S.B. 371)

1. The normal annuity of a member, other than a member of the
general assembly or a member who served in an elective state office,
shall be an amount equal to one and six-tenths percent of the average
compensation of the member multiplied by the number of years of
creditable service of the member. Years of membership service and
twelfths of a year are to be used in calculating any annuity. Absences
taken by an employee without compensation for sickness and injury of the
employee of less than twelve months or for leave taken by an employee
without compensation pursuant to the provisions of the Family and Medical
Leave Act of 1993 shall be counted as years of creditable service.

2. In addition to the amount determined pursuant to subsection 1 of this
section, the normal annuity of a uniformed member of the water patrol
shall be increased by thirty-three and one-third percent of the benefit.

3. Employees who are fully vested at the age of sixty-five years and who
continue to be employed by an agency covered under the system or members
of the general assembly who serve in the general assembly after the age
of sixty-five years shall have added to their normal annuity when they
retire or die an amount equal to the total of all annual cost-of-living
increases that the retired members of the system received during the
years between when the employee or member of the general assembly reached
sixty-five years of age and the year that the employee or member of the
general assembly terminated employment or died. In no event shall the
total increase in compensation granted under this subsection and
subsection 2 of section 104.612 exceed sixty-five percent of the person's
normal annuity calculated at the time of retirement or death. (L. 1981
H.B. 835, et al., A.L. 1984 H.B. 1370, A.L. 1986 H.B. 1496, A.L. 1988
H.B. 1643 & 1399, A.L. 1989 H.B. 674, A.L. 1992 S.B. 499, et al., A.L.
1993 S.B. 126, A.L. 1994 H.B. 1149, A.L. 1997 H.B. 356, A.L. 2001 S.B.
371, A.L. 2002 H.B. 1455)

Effective 7-11-02

Upon the death of a member who has not requested creditable
prior service pursuant to subsection 4 of section 104.372, the survivor
of such member who is or would be eligible to receive benefits pursuant
to section 104.420 may apply to the board of trustees and shall be made,
constituted, appointed and employed by the board as a special consultant
on the problems of retirement, aging and other state matters for the
remainder of the surviving spouse's life, and upon request of the board
shall give opinions, and be available to give opinions in writing, or
orally, in response to such requests. As compensation for such services,
such survivor may elect to have the member receive such creditable prior
service. Upon making such election, all of the provisions of subsection 4
of section 104.372 shall apply. Any survivor benefits payable shall be
calculated as if such creditable prior service had been received by such
member on the date of the death of the member. (L. 1999 S.B. 308 & 314)

If a retired member is elected to any state office or is
appointed to any state office or is employed by a department in a
position normally requiring the performance by the person of duties
during not less than one thousand hours per year, the member shall not
receive an annuity for any month or part of a month for which the member
serves as an officer or employee, but the member shall be considered to
be a new employee with no previous creditable service and must accrue
creditable service in order to receive any additional annuity. Any
retired member who again becomes an employee and who accrues additional
creditable service and later retires shall receive an additional amount
of monthly annuity calculated to include only the creditable service and
the average compensation earned by the member since such employment or
creditable service earned as a member of the general assembly. Years of
membership service and twelfths of a year are to be used in calculating
any additional annuity except for creditable service earned as a member
of the general assembly, and such additional annuity shall be based on
the type of service accrued. In either event, the original annuity and
the additional annuity, if any, shall be paid commencing with the end of
the first month after the month during which the member's term of office
has been completed, or the member's employment terminated. If a retired
member is employed by a department in a position that does not normally
require the person to perform duties during at least one thousand hours
per year, the member shall not be considered an employee as defined
pursuant to section 104.010. A retired member who becomes reemployed as
an employee on or after August 28, 2001, in a position covered by the
highways and transportation employees' and highway patrol retirement
system shall not be eligible to receive retirement benefits or additional
creditable service from the state employees' retirement system. (L. 1957
p. 706 § 17, A.L. 1958 2d Ex. Sess. p. 180, A.L. 1967 p. 190, A.L. 1972
S.B. 548, A.L. 1976 H.B. 1213, H.B. 1733, A.L. 1980 H.B. 983, A.L. 1981
H.B. 835, et al., A.L. 1982 H.B. 1720, et al., A.L. 1984 H.B. 1370, A.L.
1985 H.B. 790, A.L. 1988 H.B. 1643 & 1399, A.L. 1992 S.B. 499, et al.,
A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 371, A.L.
2002 H.B. 1455)

Effective 7-11-02

1. In lieu of the normal annuity otherwise payable to a member
pursuant to section 104.335, 104.370, 104.371, 104.374 or 104.400, and
prior to the last business day of the month before the annuity starting
date pursuant to section 104.401, a member shall elect whether or not to
have such member's normal annuity reduced as provided by the options set
forth in this section; provided that if such election has not been made
within such time, annuity payments due beginning on and after such
annuity starting date shall be made the month following the receipt by
the system of such election, and further provided, that if such person
dies after such annuity starting date but before making such election, no
benefits shall be paid except as required pursuant to section 104.420:

Option 1. An actuarial reduction approved by the board of the member's
annuity in reduced monthly payments for life during retirement with the
provision that upon the member's death the reduced annuity at the date of
the member's death shall be continued throughout the life of, and be paid
to, the member's spouse to whom the member was married at the date of
retirement and who was nominated by the member to receive such payments
in the member's application for retirement or as otherwise provided
pursuant to subsection 5 of this section. Such annuity shall be reduced
in the same manner as an annuity under option 2 as in effect immediately
prior to August 28, 1997. The surviving spouse shall designate a
beneficiary to receive any final monthly payment due after the death of
the surviving spouse; or

Option 2. The member's normal annuity in regular monthly payments for
life during the member's retirement with the provision that upon the
member's death a survivor's benefit equal to one-half the member's
annuity at the date of the member's death shall be paid to the member's
spouse to whom the member was married at the date of retirement and who
was nominated by the member to receive such payments in the member's
application for retirement or as otherwise provided pursuant to
subsection 5 of this section, in regular monthly payments for life. The
surviving spouse shall designate a beneficiary to receive any final
monthly payment due after the death of the surviving spouse; or

Option 3. An actuarial reduction approved by the board of the member's
normal annuity in reduced monthly payments for the member's life with the
provision that if the member dies prior to the member having received one
hundred twenty monthly payments of the member's reduced annuity, the
member's reduced annuity to which the member would have been entitled had
the member lived shall be paid for the remainder of the one hundred
twenty months' period to such person as the member shall have nominated
by written designation duly executed and filed with the board. If there
is no such beneficiary surviving the retirant, the reserve for such
annuity for the remainder of such one hundred twenty months' period shall
be paid to the retirant's estate. If such beneficiary dies after the
member's date of death but before having received the remainder of the
one hundred twenty monthly payments of the retiree's reduced annuity, the
reserve for such annuity for the remainder of such one hundred
twenty-month period shall be paid to the beneficiary's estate; or

Option 4. An actuarial reduction approved by the board of the member's
normal annuity in reduced monthly payments for the member's life with the
provision that if the member dies prior to the member having received
sixty monthly payments of the member's reduced annuity, the member's
reduced annuity to which the member would have been entitled had the
member lived shall be paid for the remainder of the sixty months' period
to such person as the member shall have nominated by written designation
duly executed and filed with the board. If there be no such beneficiary
surviving the retirant, the reserve for such annuity for the remainder of
such sixty months' period shall be paid to the retirant's estate. If such
beneficiary dies after the member's date of death but before having
received the remainder of the sixty monthly payments of the retiree's
reduced annuity, the reserve for such annuity for the remainder of the
sixty-month period shall be paid to the beneficiary's estate.

2. Effective July 1, 2000, if a member is married as of the annuity
starting date to a person who has been the member's spouse, the member's
annuity shall be paid pursuant to the provisions of either option 1 or
option 2 as set forth in subsection 1 of this section, at the member's
choice, with the spouse as the member's designated beneficiary unless the
spouse consents in writing to the member electing another available form
of payment.

3. For members who retire on or after August 28, 1995, in the event such
member elected a joint and survivor option pursuant to the provisions of
this section and the member's eligible spouse or eligible former spouse
precedes the member in death, the member's annuity shall revert effective
the first of the month following the death of the spouse or eligible
former spouse regardless of when the board receives the member's written
application for the benefit provided in this subsection, to an amount
equal to the member's normal annuity, as adjusted for early retirement if
applicable; such benefit shall include any increases the member would
have received since the date of retirement had the member elected a
normal annuity.

4. Effective on or after August 28, 1995, any retired member who had
elected a joint and survivor option and whose spouse or eligible former
spouse precedes or preceded the member in death shall upon application to
the board be made, constituted, appointed and employed by the board as a
special consultant on the problems of retirement, aging and other state
matters. As a special consultant pursuant to the provisions of this
section, the member's reduced annuity shall revert to a normal annuity as
adjusted for early retirement, if applicable, effective the first of the
month following the death of the spouse or eligible former spouse or
August 28, 1995, whichever is later, regardless of when the board
receives the member's written application; such annuity shall include any
increases the retired member would have received since the date of
retirement had the member elected a normal annuity.

5. Effective July 1, 2000, a member may make an election under option 1
or 2 after the date retirement benefits are initiated if the member makes
such election within one year from the date of marriage or July 1, 2000,
whichever is later, under any of the following circumstances:

(1) The member elected to receive a normal annuity and was not eligible
to elect option 1 or 2 on the date retirement benefits were initiated; or

(2) The member's annuity reverted to a normal annuity pursuant to
subsection 3 or 4 of this section and the member remarried.

6. Any person who terminates employment or retires prior to July 1, 2000,
shall be made, constituted, appointed and employed by the board as a
special consultant on the problems of retirement, aging and other state
matters, and for such services shall be eligible to elect to receive the
benefits described in subsection 5 of this section.

7. Effective September 1, 2001, the retirement application of any member
who fails to make an election pursuant to subsection 1 of this section
within ninety days of the annuity starting date contained in such
retirement application shall be nullified. Any member whose retirement
application is nullified shall not receive retirement benefits until the
member files a new application for retirement pursuant to section 104.401
and makes the election pursuant to subsection 1 of this section. In no
event shall any retroactive retirement benefits be paid. (L. 1967 p. 191,
A.L. 1972 S.B. 548, A.L. 1981 H.B. 835, et al., A.L. 1984 H.B. 1370, A.L.
1986 H.B. 1496, A.L. 1988 H.B. 1643 & 1399, A.L. 1994 H.B. 1149, A.L.
1995 H.B. 416, et al., A.L. 1997 H.B. 356, A.L. 1999 S.B. 308 & 314, A.L.
2000 H.B. 1808, A.L. 2001 S.B. 371)

1. Any member who terminates employment may retire with a normal
annuity upon obtaining normal retirement age.

2. Any member after attaining fifty-five years of age who has at least
ten years of vesting service may retire. In such case, the member, except
uniformed members of the water patrol, shall receive an annuity in an
amount which is the actuarial reduction approved by the board of the
normal annuity the member would have received commencing at the earliest
date on which the member is entitled to an unreduced benefit based on the
member's creditable service at the date of the member's termination of
employment. (L. 1957 p. 706 § 19, A.L. 1961 p. 543, A.L. 1965 p. 225,
A.L. 1972 S.B. 548, A.L. 1979 H.B. 87, A.L. 1981 H.B. 835, et al., A.L.
1984 H.B. 1370, A.L. 1985 H.B. 790, A.L. 1986 H.B. 1496, A.L. 1988 H.B.
1643 & 1399, A.L. 1994 H.B. 1149, A.L. 1995 H.B. 416, et al., A.L. 2002
H.B. 1455)

Effective 7-11-02

1. Any member may retire with the annuity provided for in
section 104.335, 104.370, 104.371, 104.374 or 104.400 upon the member's
written application to the board designating the annuity starting date
which shall be the first day of the month with respect to which an amount
is paid as annuity; except that at the time of the annuity starting date,
the member must have attained the normal retirement age or meet the
eligibility requirements of subsection 2 of section 104.400 and must have
sufficient years of creditable service. The annuity starting date shall
not be earlier than the first day of the second month following the month
of the execution and filing of such application nor later than the first
day of the fourth month following the month of the execution and filing
of such application. The annuity shall commence in the month of the
annuity starting date specified by the member in such application. The
payment of the monthly service retirement annuity shall be made by the
last day of each month, providing all documentation required pursuant to
section 104.395 for the calculation and payment of the benefits is
received by the board. The member shall designate a beneficiary to
receive any final monthly payment due after the death of the member if no
survivor annuity is payable.

2. Nothing in sections 104.010 and 104.320 to 104.800 shall be construed
as prohibiting a member from waiving the member's right to receive the
member's monthly annuity for a period of time that the member chooses.
However, the waiver may not extend beyond the age permitted by Section
401(a)(9) of the Internal Revenue Code. The waiver shall be final as to
benefits waived. (L. 1981 H.B. 835, et al., A.L. 1982 H.B. 1720, et al.,
A.L. 1984 H.B. 1370, A.L. 1988 H.B. 1643 & 1399, A.L. 1989 H.B. 674, A.L.
1997 H.B. 356, A.L. 1999 S.B. 308 & 314, A.L. 2001 S.B. 371)

1. Any state employee or retiree who retires pursuant to section
104.404, and who is also eligible for medical coverage as described in
section 103.115, RSMo, shall be eligible to apply for the following
coverage:

(1) Such retiree may elect to continue coverage for himself or herself
and any eligible dependents at the same cost as if such retiree was an
active employee;

(2) Such retiree may continue to pay the applicable rate as if the
retiree were an active employee for a maximum period of five years or
upon becoming eligible for Medicare, whichever occurs first; and

(3) After five years or upon becoming eligible for Medicare, the cost for
medical coverage for such retiree and any dependents shall revert to the
applicable rate in place at that time.

2. Any employee or retiree of a participating member agency who retires
pursuant to section 104.404 shall only be eligible to have the provisions
of subsection 1 of this section applied to his or her coverage if the
governing body of the participating member agency elects to provide such
benefits.

3. The governing boards of Truman State University, Lincoln University,
the educational institutions described in section 174.020, RSMo, the
highway commission that governs the health care plans of the Missouri
department of transportation and the Missouri state highway patrol, and
the conservation commission of the department of conservation may elect
to provide its employees or retirees who retire pursuant to section
104.404 the same benefits as described in subsection 1 of this section
under the respective medical plans of those institutions and departments.
If the highway commission elects to provide retirees the benefits of this
section, any special consultant pursuant to section 104.515 who is a
member of the Missouri department of transportation and Missouri state
highway patrol medical and life insurance plan and who retired on or
after February 1, 2003, but prior to July 1, 2003, shall be eligible to
receive the benefits of this section. (L. 2003 S.B. 248, et al. § 1)

Effective 7-1-03

1. An employee who has not been a retiree of the system in which
such employee is currently receiving creditable or credited service, who
is eligible to receive a normal annuity pursuant to section 104.080,
104.090, 104.100, 104.271, or 104.400, or a life and any temporary
annuity pursuant to section 104.1024, and whose annuity commences no
later than September 1, 2003, shall be eligible to receive the medical
benefits described in section 104.403.

2. An employee who would be eligible to receive a normal annuity pursuant
to section 104.080, 104.090, 104.100, 104.271, or 104.400, or a life and
any temporary annuity pursuant to section 104.1024, no later than January
1, 2004, shall be eligible to retire based on the employee's creditable
or credited service and the average compensation or final average pay on
the employee's date of termination of employment if the employee applies
to retire and whose annuity commences no later than September 1, 2003.
Such employee who so retires shall be eligible to receive the medical
benefits described in subsection 1 of this section.

3. Any employee described in subsections 1 and 2 of this section who
otherwise would be eligible to elect to receive benefits under the
provisions of sections 104.625 and 104.1024, by no later than January 1,
2004, shall be eligible to elect to receive benefits pursuant to sections
104.625 and 104.1024; except that in no event shall a lump sum payment be
made for any time period after the employee's annuity starting date.

4. A retiree whose retirement annuity commenced on or after February 1,
2003, but no later than September 1, 2003, shall be eligible to receive
the medical benefits described in section 104.403.

5. The state may hire employees to replace those employees retiring
pursuant to this section and section 104.403, except that departments
shall not fill more than twenty-five percent of those positions vacated.
Exceptions to the twenty-five percent restriction may be made for
critical or seasonal positions or positions which are entirely federally
funded. Such determination shall be made by rule and regulation
promulgated by the office of administration. The provisions of this
subsection shall not apply to Truman University, Lincoln University or
the educational institutions described in section 174.020, RSMo.

6. 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,
2003, shall be invalid and void.

7. The Missouri state employees' retirement system and the highways and
transportation employees' and highway patrol retirement system shall make
a report in writing to the governor, commissioner of administration, and
the general assembly by April 1, 2004, and in addition shall provide
monthly tracking of the effect of state employee retirements pursuant to
this section and section 104.403. The report shall cover the time period
of February 1, 2003, to January 31, 2004. The report shall include the
number of such retirements, the amount of payroll affected as a result of
retirements, and the financial effect of such retirements as expressed in
a report by each system's actuary.

8. The office of administration shall make a report in writing to the
governor and the general assembly by April 1, 2004, and in addition shall
provide monthly tracking of the budgetary effect of state employee
retirements pursuant to this section and section 104.403. The report
shall include the amount of payroll reduced as a result of such
retirements, the number of positions that are core cut as a result of
such retirements, the number of employees employed to replace those who
retired pursuant to this section, and the financial effect on the budget,
including any costs associated with payment of medical premiums by the
state.

9. The Missouri consolidated health care plan shall make a report in
writing to the governor and the general assembly by April 1, 2004, and in
addition shall provide monthly tracking of the effect of state employee
retirements pursuant to this section and section 104.403. The report may
include, and not be limited to, the amount of payroll reduced as a result
of such retirements, the number of positions that are core cut as a
result of such retirements, the number of employees employed to replace
those who retired pursuant to this section, and the financial effect on
the budget, including any costs associated with payment of medical
premiums by the state. (L. 2003 S.B. 248, et al. § 2)

Effective 7-1-03

1. Any uniformed member of the water patrol who shall be
affirmatively found by the board to be wholly and permanently incapable
of holding any position of gainful employment as a result of injuries or
illness incurred in the performance of the member's duties shall be
entitled to receive disability benefits in an amount equal to one-half of
the compensation that the employee was receiving at the time of the
occurrence of the injury entitling the employee to such disability
benefits. Any disability benefit payable pursuant to this subsection
shall be decreased by any amount paid to such uniformed member of the
water patrol by reason of the workers' compensation laws of this state.
After termination of payment under workers' compensation, however, any
such reduction and disability benefits shall be restored.

2. The board of trustees may require a medical examination of any
uniformed member of the water patrol who is receiving disability benefits
pursuant to this section at any time by a designated physician, and
disability benefits shall be discontinued if the board finds that such
member is able to perform the duties of the member's former position, or
if such member refuses to submit to such an examination.

3. The disability benefits described in this section shall not be paid to
any uniformed member of the water patrol who has retained or regained
more than fifty percent of the member's earning capacity. If any
uniformed member of the water patrol who has been receiving disability
benefits again becomes an employee, the member's disability benefits
shall be discontinued, the member's prior period of creditable service
shall be restored, and any subsequent determination of benefits due the
member or the member's survivors shall be based on the sum of the
member's creditable service accrued to the date the member's disability
benefits commenced and the period of creditable service after the
member's return to employment.

4. Any uniformed member of the water patrol receiving benefits pursuant
to the provisions of this section for five or more years immediately
prior to attainment of age fifty-five shall be considered a normal
retirant at age fifty-five, and may elect, within thirty days preceding
the attainment of age fifty-five, option 1 of section 104.395, but only
for the member's spouse who was the member's spouse for two or more years
prior to the member's attainment of age fifty-five.

5. Any member who is receiving disability benefits as of December 31,
1985, or any member who is disabled on December 31, 1985, and would have
been entitled to receive disability benefits pursuant to this section as
the provisions of this section existed immediately prior to September 28,
1985, shall be eligible to receive or shall continue to receive benefits
in accordance with such prior provisions of this section until the member
again becomes an employee; however, all employees of the department of
conservation who are disabled shall receive benefits pursuant only to
this section or section 104.518, whichever is applicable, and shall not
be eligible for benefits under any other plan or program purchased or
provided after September 28, 1985.

6. Any member who qualifies for disability benefits pursuant to
subsection 1 of this section or pursuant to the provisions of section
104.518, or under a long-term disability program provided by the member's
employing department as a consequence of employment by the department,
shall continue to accrue creditable service based on the member's rate of
pay immediately prior to the date the member became disabled in
accordance with sections 104.370, 104.371, 104.374 and 104.615, until the
date the member's retirement benefit goes into pay status, the disability
benefits cease being paid to the member, or the member is no longer
disabled, whichever comes first. Persons covered by the provisions of
sections 476.515 to 476.565, RSMo, or sections 287.812 to 287.855, RSMo,
who qualify for disability benefits pursuant to the provisions of section
104.518, at the date the person becomes disabled, shall continue to
accrue creditable service based on the person's rate of pay immediately
prior to the date the person becomes disabled until the date the person's
retirement benefit goes into pay status, the disability benefits cease
being paid to the person or the person is no longer disabled, whichever
comes first. Members or persons continuing to accrue creditable service
pursuant to this subsection shall be entitled to continue their life
insurance coverage subject to the provisions of the life insurance plan
administered by the board pursuant to section 104.517. The rate of pay
for purposes of calculating retirement benefits for a member or person
described in this subsection who becomes disabled and retires on or after
August 28, 1999, shall be the member's or person's regular monthly
compensation received at the time of disablement, increased thereafter
for any increases in the consumer price index. Such increases in the
member's monthly pay shall be made annually beginning twelve months after
disablement and shall be equal to eighty percent of the increase in the
consumer price index during the calendar year prior to the adjustment,
but not more than five percent of the member's monthly pay immediately
before the increase. Such accruals shall continue until the earliest of:
receipt of an early retirement annuity, attainment of normal retirement
eligibility or termination of disability benefits.

7. A member or person who continues to be disabled as provided in
subsection 6 of this section until the member's normal retirement age
shall be eligible to retire on the first day of the month next following
the member's or person's final payment pursuant to section 104.518 or, if
applicable, subsection 1 of this section. A member or person who retires
pursuant to this subsection shall receive the greater of the normal
annuity or the minimum annuity, if applicable, determined pursuant to
sections 104.370, 104.371, 104.374 and 104.615, and section 287.820,
RSMo, and section 476.530, RSMo, as if the member or person had continued
in the active employ of the employer until the member's or person's
retirement benefit goes into pay status, the disability benefits cease
being paid to the member or person, or the member or person is no longer
disabled, whichever comes first and the member's or person's compensation
for such period had been the member's or person's rate of pay immediately
preceding the date the member or person became disabled.

8. If a member who has been disabled becomes an employee again and if the
member was disabled during the entire period of the member's absence,
then the member shall resume active participation as of the date of
reemployment. Such a member shall receive creditable service for the
entire period the member was disabled as provided in subsection 6 of this
section.

9. If a member ceases to be disabled and if the member does not return to
work as provided in subsection 8 of this section, the member's rights to
further benefits shall be determined in accordance with sections 104.335,
104.380, 104.400, 104.420 and 104.615 as though the member had withdrawn
from service as of the date the member ceased to be disabled, as
determined by the system. (L. 1957 p. 706 § 20, A.L. 1961 p. 543, A.L.
1973 S.B. 53, A.L. 1980 H.B. 983, A.L. 1981 H.B. 835, et al., A.L. 1984
H.B. 1370, A.L. 1985 H.B. 790, A.L. 1986 H.B. 1496, A.L. 1988 H.B. 1643 &
1399, A.L. 1994 S.B. 772, A.L. 1995 H.B. 416, et al., A.L. 1997 H.B. 356,
A.L. 1999 S.B. 308 & 314)

1. Each member who was employed prior to August 28, 1997, and
retires on or after May 12, 1981, shall receive each year a percentage
increase in the amount of benefits received by the member during the
preceding year of eighty percent of the increase in the consumer price
index calculated in the manner hereinafter provided. Such annual benefit
increase, however, shall not exceed five percent, nor be less than four
percent, and the total increase in the amount of benefits received
pursuant to the provisions of this subsection shall not exceed sixty-five
percent of the initial benefit which the member received upon retirement
or the benefit received immediately prior to October 1, 1986, whichever
is later.

2. Each member who is employed for the first time on or after August 28,
1997, and retires shall be entitled annually to a percentage increase in
the retirement benefit payable equal to eighty percent of the increase in
the consumer price index. Such benefit increase, however, shall not
exceed five percent of the retirement benefit payable prior to the
increase.

3. Each member who is employed before August 28, 1997, and terminates
employment and retires after that date shall be entitled to the annual
benefit increase described in subsection 2 of this section. For such
members, the annual benefit increase described in subsection 2 of this
section shall not be effective until the year in which the member reaches
the limit on total annual benefit increases provided by subsection 1 of
this section. During that year on the anniversary date of the member's
retirement, the member or person shall receive the benefit increase
described in subsection 1 or 2 of this section, whichever is greater.
After that year, the member shall receive the annual benefit increase
described in subsection 2 of this section.

4. Survivors of members described in subsection 2 of this section shall
be entitled to the annual benefit increase described in that subsection.
The annual benefit increases of such survivors and any other survivors of
retired members of the Missouri state employees' retirement system, if
any are due, shall commence during the month of the anniversary date of
the member's retirement date if the member died on or after July 1, 2000.

5. For the purposes of this section, any increase in the consumer price
index shall be determined in January of each year, based upon the
percentage increase of (a) the consumer price index for the preceding
calendar year over (b) the consumer price index for the calendar year
immediately prior thereto. Any increase so determined shall be applied in
calculating any benefit increases that become payable pursuant to this
section during the calendar year in which the determination is made and
in no case shall the percentage be less than zero.

6. The annual benefit increases of members described in this section who
retire on or after July 1, 2000, if any are due, shall commence beginning
twelve months after the commencement of the member's retirement benefit.
Nothing in this section shall be construed to prohibit a member from
waiving his or her right to receive the annual increase provided pursuant
to this section. However, the waiver may not extend beyond the age
permitted by Section 401(a)(9) of the Internal Revenue Code. The waiver
shall be final as to the annual increase waived. (L. 1981 H.B. 835, et
al., A.L. 1984 H.B. 1370, A.L. 1986 H.B. 1496, A.L. 1993 S.B. 126, A.L.
1997 H.B. 356, A.L. 1999 S.B. 308 & 314)

1. Unless otherwise provided by law, if a member or disabled
member who has a vested right to a normal annuity dies prior to
retirement, regardless of the age of the member at the time of death, the
member's or disabled member's surviving spouse, to whom the member or
disabled member was married on the date of the member's death, if any,
shall receive the reduced survivorship benefits provided in option 1 of
section 104.395 calculated as if the member were of normal retirement age
and had retired as of the date of the member's death and had elected
option 1.

2. If there is no eligible surviving spouse, or when a spouse annuity has
ceased to be payable, the member's or disabled member's eligible
surviving children under twenty-one years of age shall receive monthly,
in equal shares, an amount equal to eighty percent of the member's or
disabled member's accrued annuity calculated as if the member or disabled
member were of a normal retirement age and retired as of the date of
death. Benefits otherwise payable to a child under eighteen years of age
shall be payable to the surviving parent as natural guardian of such
child if such parent has custody or assumes custody of such minor child,
or to the legal guardian of such child, until such child attains age
eighteen; thereafter, the benefit may be paid to the child until age
twenty-one; provided the age twenty-one maximum shall be extended for any
child who has been found totally incapacitated by a court of competent
jurisdiction.

3. No benefit is payable pursuant to this section if no eligible
surviving spouse or children under twenty-one years of age survive the
member or disabled member. Benefits cease pursuant to this section when
there is no eligible surviving beneficiary through either death of the
eligible surviving spouse or through either death or the attainment of
twenty-one years of age by the eligible surviving children. If the
member's or disabled member's surviving children are receiving equal
shares of the benefit described in subsection 2 of this section, and one
or more of such children become ineligible by reason of death or the
attainment of twenty-one years of age, the benefit shall be reallocated
so that the remaining eligible children receive equal shares of the total
benefit as described in subsection 2 of this section.

4. For the purpose of computing the amount of an annuity payable pursuant
to this section, if the board finds that the death was the natural and
proximate result of a personal injury or disease arising out of and in
the course of the member's actual performance of duty as an employee,
then the minimum annuity to such member's surviving spouse or, if no
surviving spouse benefits are payable, the minimum annuity that shall be
divided among and paid to such member's surviving children shall be fifty
percent of the member's final average compensation; except that for
members of the general assembly and statewide elected officials with
twelve or more years of service, the monthly rate of compensation in
effect on the date of death shall be used in lieu of final average
compensation. The vesting service requirement of subsection 1 of this
section shall not apply to any annuity payable pursuant to this
subsection. (L. 1984 H.B. 1370, A.L. 1988 H.B. 1643 & 1399, A.L. 1989
H.B. 674, A.L. 1992 S.B. 499, et al., A.L. 1994 H.B. 1149, A.L. 1997 H.B.
356, A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 371)

Upon the death of any member, or former member who has not been
refunded his or her accumulated contributions to the fund or received an
annuity or benefit, the board shall as soon as practical pay to the
beneficiary as the member or former member may have designated in
writing, or to his or her estate if no beneficiary be designated, a death
benefit equal to the amount of the member's or former member's
accumulated contributions. (L. 1981 H.B. 835, et al.)

Effective 5-12-81

1. The board intends to follow a financing pattern which
computes and requires contribution amounts which, expressed as percents
of active member payroll, will remain approximately level from year to
year and from one generation of citizens to the next generation. Such
contribution determinations require regular actuarial valuations, which
shall be made by the board's actuary, using assumptions and methods
adopted by the board after consulting with its actuary. The entry age
normal cost valuation method shall be used in determining normal cost,
and contributions for unfunded accrued liabilities shall be determined
using level percent-of-payroll amortization.

2. At least ninety days before each regular session of the general
assembly, the board shall certify to the division of budget the
contribution rate necessary to cover the liabilities of the plan
administered by the system, including costs of administration, expected
to accrue during the next appropriation period. The commissioner of
administration shall request appropriation of the amount calculated
pursuant to the provisions of this subsection. Following each pay period,
the commissioner of administration shall requisition and certify the
payment to the executive director of the Missouri state employees'
retirement system. The executive director shall promptly deposit the
amounts certified to the credit of the Missouri state employees'
retirement fund.

3. The employers of members of the system who are not paid out of funds
that have been deposited in the state treasury shall remit promptly to
the executive director an amount equal to the amount which the state
would have paid if those members had been paid entirely from state funds.
The executive director shall promptly deposit the amounts certified to
the credit of the Missouri state employees' retirement system fund.

4. These amounts are funds of the system, and shall not be commingled
with any funds in the state treasury. (L. 1981 H.B. 835, et al., A.L.
1984 H.B. 1370, A.L. 1986 H.B. 1496, A.L. 1988 H.B. 1643 & 1399, A.L.
1988 H.B. 1100, et al., A.L. 1992 S.B. 499, et al., A.L. 2002 H.B. 1455)

Effective 7-11-02

The commissioner of administration at the end of each pay period
shall certify to the state treasurer the amount required to be paid on
account of officers and employees of each department, division, agency or
unit of government whose services are covered by the Missouri state
employees' retirement system. Thereupon the state treasurer shall
immediately transfer such amounts from the proper funds to the credit of
the fund for the Missouri state employees' retirement system. (L. 1981
H.B. 835, et al., A.L. 2002 H.B. 1455)

Effective 7-11-02

1. The board shall set up and maintain a Missouri state
employees' retirement and benefit fund account in which shall be placed
all payroll deductions, deferred compensation, payments, and income from
all sources. All property, money, funds, investments, and rights which
shall belong to, or be available for expenditure or use by, the system
shall be dedicated to and held in trust for the members and for the
purposes herein set out and no other. The board shall have power, in the
name and on behalf of the system, to purchase, acquire, hold, invest,
lend, lease, sell, assign, transfer, and dispose of all property, rights,
and securities, and enter into written contracts, all as may be necessary
or proper to carry out the purposes of sections 104.010 and 104.320 to
104.800.

2. All moneys received by or belonging to the system shall be paid to the
executive director and deposited by the executive director to the credit
of the system in one or more banks or trust companies. No such money
shall be deposited in or be retained by any bank or trust company which
does not have on deposit with and for the board at the time the kind and
value of collateral required by sections 30.240 and 30.270, RSMo, for
depositaries of the state treasurer. The executive director shall be
responsible for all funds, securities, and property belonging to the
system, and shall give such corporate surety bond for the faithful
handling of the same as the board shall require.

3. The board may invest the funds of the system as permitted by sections
105.686 to 105.690, RSMo. (L. 1957 p. 706 § 14, A.L. 1981 H.B. 835, et
al., A.L. 1984 H.B. 1370, A.L. 1988 H.B. 1643 & 1399)

CROSS REFERENCES: Investment of funds, regulations and limitations,
public employee retirement systems, RSMo 105.687 to 105.690 Multinational
banks, securities and obligations of, investment in, when, RSMo 409.950

The board of trustees shall consist of the state treasurer, the
commissioner of administration, two members of the senate appointed by
the president pro tem of the senate, two members of the house of
representatives appointed by the speaker of the house, two members
appointed by the governor, and three members who are members of the
system, one of whom shall be a retiree elected by a plurality vote of
retired members and two of whom shall be employees, elected by a
plurality vote of the members of the system not retired for four-year
terms. The board so constituted shall determine the procedures for
nomination and election of the elective board members. The first two
trustees designated above shall serve as trustees during their respective
terms of office; the legislative members shall serve as trustees until
such time as they resign, are no longer members of the general assembly,
or are replaced by new appointments; and the members appointed by the
governor shall serve as trustees until such time as they resign or are
replaced by new appointments. Any vacancies occurring in the office of
trustees shall be filled in the same manner as the office was filled
previously except that vacancies occurring in the offices of the elected
board members may be filled by the board of trustees until the next
regularly scheduled election. (L. 1957 p. 706 § 8, A.L. 1972 S.B. 548,
A.L. 1984 H.B. 1370, A.L. 1986 H.B. 1496, A.L. 1988 H.B. 1643 & 1399,
A.L. 1992 S.B. 499, et al., A.L. 2001 S.B. 371)

1. The board shall elect by secret ballot one member as chairman
and one member as vice chairman during the first board meeting of each
year. The chairman shall preside over meetings of the board and perform
such other duties as may be required by action of the board. The vice
chairman shall perform the duties of the chairman in the absence of the
latter or upon the chairman's inability or refusal to act. Each person
who was elected to membership on the board of trustees or who is a
candidate for membership on the board of trustees shall file with the
Missouri ethics commission a campaign finance disclosure form showing:

(1) The amounts and sources of all contributions received for the purpose
of supporting such person's candidacy or for the purpose of opposing any
other candidate; and

(2) The amounts and recipients of all expenditures made for the purpose
of supporting such person's candidacy or for the purpose of opposing any
other candidate.

The disclosure reports shall be filed not later than the fifteenth day
prior to the date of the election for the period closing on the twentieth
day prior to the election, and not later than the thirtieth day after the
date of the election for the period from the nineteenth day prior to the
date of the election to the twenty-fifth day after the date of the
election. Such reports shall be public records and shall be made
available by the Missouri ethics commission during normal business hours.
Any person who purposefully fails or refuses to file the reports required
by this subsection is guilty of a class A misdemeanor.

2. The board shall appoint an executive director who shall be the
executive officer of the system and who shall have charge of the offices,
records, and employees of the system, subject to the direction of the
board. Other employees of the system shall be chosen only upon the
recommendation of the executive director.

3. All employees of the system shall be both state employees and members
of the system. Except by the unanimous vote of the board, no person who
has served as a trustee of the board may become an employee of the system
until four years have expired between the date of his or her resignation,
termination, or other removal as trustee and the date of his or her
appointment as an employee of the system.

4. Employees of the system shall receive such salaries as shall be fixed
by the board and their necessary travel expense within and without the
state as shall be authorized by the board.

5. Any summons or other writ issued by the courts of the state shall be
served upon the executive director or, in his or her absence, on the
executive director's designee. (L. 1957 p. 706 § 9, A.L. 1981 H.B. 835,
et al., A.L. 1984 H.B. 1370, A.L. 1985 H.B. 790, A.L. 1988 H.B. 1643 &
1399, A.L. 1989 H.B. 674, A.L. 1996 H.B. 1541, A.L. 2003 S.B. 248, et al.)

1. The board of trustees shall meet within the state of
Missouri, at the time set at a previously scheduled meeting or by the
request of any four members of the board. Notice of the meeting shall be
delivered to all other trustees in person or by depositing notice in a
United States post office in a properly stamped and addressed envelope
not less than six days prior to the date fixed for the meeting. The board
may meet at any time by unanimous mutual consent. There shall be at least
one meeting in each quarter.

2. Six trustees shall constitute a quorum for the transaction of
business, and any official action of the board shall be based on the
majority vote of the trustees present. Unless otherwise expressly
provided in this section, a meeting need not be called or held to make
any decision on a matter before the board. Each member shall be sent by
the executive director a copy of the matter to be decided with full
information from the files of the system. The concurring decisions of six
trustees may decide the issue by signing a document declaring their
decision and sending the written instrument to the executive director
within seven days after the document and information was received by the
trustee. If any trustee is not in agreement with the six trustees, the
matter is to be passed on at a regular board meeting or a special meeting
called for that purpose.

3. The trustees shall serve the system without compensation but shall
receive their necessary expenses incurred in the performance of their
duties for the system.

4. Duties performed for the system by any member of the board shall be
considered duties in connection with the regular employment of the
individual, and he or she shall suffer no loss in regular compensation by
reason of the performance of such duties.

5. In the event any trustee other than the state treasurer or the
commissioner of administration fails to attend three consecutive meetings
of the board, unless excused for cause at the third meeting and each
consecutive meeting thereafter by the trustees attending such meetings,
the trustee shall be considered to have resigned from the board and the
board shall declare such person's office of trustee vacated, and the
vacancy shall be filled in the same manner as originally filled except
that vacancies occurring of the elected board members may be filled by
the board of trustees until the next regularly scheduled election. (L.
1957 p. 706 § 10, A.L. 1972 S.B. 548, A.L. 1973 S.B. 53, A.L. 1981 H.B.
835, et al., A.L. 1984 H.B. 1370, A.L. 1985 H.B. 790, A.L. 1986 H.B.
1496, A.L. 1987 H.B. 713, A.L. 1988 H.B. 1643 & 1399, A.L. 1989 H.B. 674,
A.L. 1992 S.B. 499, et al., A.L. 1997 H.B. 356)

1. The board shall keep a complete record of all its
proceedings, which shall be open at all reasonable hours to the
inspection of any member.

2. A statement covering the operations of the system for the year,
including income and disbursements, and of the financial condition of the
system at the end of the year, showing the actuarial valuation and
appraisal of its assets and liabilities, as of July first, shall each
year be delivered to the governor of Missouri and be made readily
available to the members.

3. The principal office of the system shall be in Jefferson City. The
system shall have a seal bearing the inscription "Missouri State
Employees' Retirement System", which shall be in the custody of its
director. The courts of this state shall take judicial notice of the
seal; and all copies of records, books, and written instruments which are
kept in the office of the system and are certified by the director under
the seal shall be proved or admitted in any court or proceeding as
provided by section 109.130, RSMo.

4. The board shall arrange for annual audits of the records and accounts
of the system by a certified public accountant or by a firm of certified
public accountants. The state auditor shall examine such audits at least
once every three years and report to the board and the governor. (L. 1957
p. 706 § 11, A.L. 1973 S.B. 53, A.L. 1987 H.B. 713)

Effective 6-19-87

1. Should any error result in any member or beneficiary
receiving more or less than he or she would have been entitled to receive
had the error not occurred, the board shall correct such error, and, as
far as practicable, make future payments in such a manner that the
actuarial equivalent of the benefit to which such member or beneficiary
was entitled shall be paid, and to this end may recover any overpayments.

2. A person who knowingly makes a false statement, or falsifies or
permits to be falsified a record of the system, in an attempt to defraud
the system is subject to fine or imprisonment pursuant to the Missouri
revised statutes.

3. The board of trustees of the Missouri state employees' retirement
system shall cease paying benefits to any survivor or beneficiary who is
charged with the intentional killing of a member without legal excuse or
justification. A survivor or beneficiary who is convicted of such charge
shall no longer be entitled to receive benefits. If the survivor or
beneficiary is not convicted of such charge, the board shall resume
payment of benefits and shall pay the survivor or beneficiary any
benefits that were suspended pending resolution of such charge. (L. 1957
p. 706 § 24, A.L. 1981 H.B. 835, et al., A.L. 1984 H.B. 1370, A.L. 1997
H.B. 356)

1. The general administration of, and responsibility for, the
proper operation of the system are hereby vested in a board of trustees.

2. Subject to the limitations of law, the board shall formulate and adopt
rules and regulations for the government of its own proceedings and for
the administration of the system, and its decisions as to all questions
of fact shall be final and conclusive on all persons except for the right
of review as provided by law and except for fraud or such gross mistake
of fact as to have an effect equivalent to fraud.

3. The accounts and records of any department shall be open to inspection
by the board of trustees and its employees for the purpose of obtaining
information necessary in the performance of the duties of said board
under sections 104.010 and 104.320 to 104.800.

4. The board shall have the power to subpoena witnesses or obtain the
production of records when necessary for the performance of its duties.

5. Subject to the provisions of the constitution and sections 104.010 and
104.320 to 104.800, the board of trustees shall have exclusive
jurisdiction and control over the funds and property of the system and
may employ and fix the compensation of necessary employees.

6. No trustee or employee of the system shall receive any gain or profit
from any funds or transaction of the system, except benefits from
interest in investments common to all members, if entitled thereto.

7. Any trustee or employee accepting any gratuity or compensation for the
purpose of influencing his action with respect to the investment of the
funds of the system shall thereby forfeit his office and in addition
thereto be subject to the penalties prescribed for bribery. (L. 1957 p.
706 § 7, A.L. 1981 H.B. 835, et al., A.L. 1984 H.B. 1370, A.L. 1988 H.B.
1643 & 1399)

The board of trustees may select and employ an actuary who shall
serve at its pleasure as its technical adviser on matters regarding the
operation of the system, or may call upon the director of the department
of insurance for actuarial service. The actuary shall:

(1) During the first year of operation of the system, or as soon as
practicable, and at least once every five years thereafter, make a
general investigation of the mortality, retirement, disability, death,
employment turnover, interest, and earnable compensation experience of
the system;

(2) Recommend mortality and other tables to be used for all required
actuarial calculations;

(3) Make an annual valuation of the liabilities, assets, and reserves of
the system, and a determination of the amounts of contributions required
by the system to discharge the liabilities and administration costs under
sections 104.010 and 104.320 to 104.800, and certify the results thereof
to the board; and

(4) Perform such other duties as are assigned by the board. (L. 1957 p.
706 § 12, A.L. 1981 H.B. 835, et al., A.L. 1984 H.B. 1370, A.L. 1988 H.B.
1643 & 1399)

1. Separate accounts for medical, life insurance and disability
benefits provided pursuant to sections 104.517 and 104.518 shall be
established as part of the fund. The funds, property and return on
investments of the separate account shall not be commingled with any
other funds, property and investment return of the system. All benefits
and premiums are paid solely from the separate account for medical, life
insurance and disability benefits provided pursuant to this section.

2. The state shall contribute an amount as appropriated by law and
approved by the governor per month for medical benefits, life insurance
and long-term disability benefits as provided pursuant to this section
and sections 104.517 and 104.518. Such amounts shall include the cost of
providing life insurance benefits for each active employee who is a
member of the Missouri state employees' retirement system, a member of
the public school retirement system and who is employed by a state agency
other than an institution of higher learning, a member of the retirement
system established by sections 287.812 to 287.855, RSMo, the judicial
retirement system, each legislator and official holding an elective state
office, members not on payroll status who are receiving workers'
compensation benefits, and if the state highways and transportation
commission so elects, those employees who are members of the state
transportation department employees' and highway patrol retirement
system; if the state highways and transportation commission so elects to
join the plan, the state shall contribute an amount as appropriated by
law for medical benefits for those employees who are members of the
transportation department employees' and highway patrol retirement
system; an additional amount equal to the amount required, based on
competitive bidding or determined actuarially, to fund the retired
members' death benefit or life insurance benefit, or both, provided in
subsection 4 of this section and the disability benefits provided in
section 104.518. This amount shall be reported as a separate item in the
monthly certification of required contributions which the commissioner of
administration submits to the state treasurer and shall be deposited to
the separate account for medical, life insurance and disability benefits.
All contributions made on behalf of members of the state transportation
department employees' and highway patrol retirement system shall be made
from highway funds. If the highways and transportation commission so
elects, the spouses and unemancipated children under twenty-three years
of age of employees who are members of the state transportation
department employees' and highway patrol retirement system shall be able
to participate in the program of insurance benefits to cover medical
expenses pursuant to the provisions of subsection 3 of this section.

3. The board shall determine the premium amounts required for
participating employees. The premium amounts shall be the amount, which,
together with the state's contribution, is required to fund the benefits
provided, taking into account necessary actuarial reserves. Separate
premiums shall be established for employees' benefits and a separate
premium or schedule of premiums shall be established for benefits for
spouses and unemancipated children under twenty-three years of age of
participating employees. The employee's premiums for spouse and children
benefits shall be established to cover that portion of the cost of such
benefits which is not paid for by contributions by the state. All such
premium amounts shall be paid to the board of trustees at the time that
each employee's wages or salary would normally be paid. The premium
amounts so remitted will be placed in the separate account for medical,
life insurance and disability benefits. In lieu of the availability of
premium deductions, the board may establish alternative methods for the
collection of premium amounts.

4. Each special consultant eligible for life benefits employed by a board
of trustees of a retirement system as provided in section 104.610 who is
a member of the Missouri state life insurance plan or Missouri state
transportation department and Missouri state highway patrol life
insurance plan shall, in addition to duties prescribed in section 104.610
or any other law, and upon request of the board of trustees, give the
board, orally or in writing, a short detailed statement on life insurance
and death benefit problems affecting retirees. As compensation for the
extra duty imposed by this subsection, any special consultant as defined
above, other than a special consultant entitled to a deferred normal
annuity pursuant to section 104.035 or 104.335, who retires on or after
September 28, 1985, shall receive as a part of compensation for these
extra duties, a death benefit of five thousand dollars, and any special
consultant who terminates employment on or after August 28, 1999, after
reaching normal or early retirement age and becomes a retiree within
sixty days of such termination shall receive five thousand dollars of
life insurance coverage. In addition, each special consultant who is a
member of the transportation department employees' and highway patrol
retirement system medical insurance plan shall also provide the board,
upon request of the board, orally or in writing, a short detailed
statement on physical, medical and health problems affecting retirees. As
compensation for this extra duty, each special consultant as defined
above shall receive, in addition to all other compensation provided by
law, nine dollars, or an amount equivalent to that provided to other
special consultants pursuant to the provisions of section 103.115, RSMo.
In addition, any special consultant as defined in section 287.820, RSMo,
or section 476.601, RSMo, who terminates employment and immediately
retires on or after August 28, 1995, shall receive as a part of
compensation for these duties, a death benefit of five thousand dollars
and any special consultant who terminates employment on or after August
28, 1999, after reaching the age of eligibility to receive retirement
benefits and becomes a retiree within sixty days of such termination
shall receive five thousand dollars of life insurance coverage.

5. Any former employee who is receiving disability income benefits from
the Missouri state employees' retirement system or the transportation
department employees' and highway patrol retirement system shall, upon
application with the board of trustees of the Missouri consolidated
health care plan or the transportation department employees and highway
patrol medical plan, be made, constituted, appointed and employed by the
respective board as a special consultant on the problems of the health of
disability income recipients and, upon request of the board of trustees
of each medical plan, give the board, orally or in writing, a short
detailed statement of physical, medical and health problems affecting
disability income recipients. As compensation for the extra duty imposed
by this subsection, each such special consultant as defined in this
subsection may receive, in addition to all other compensation provided by
law, an amount contributed toward medical benefits coverage provided by
the Missouri consolidated health care plan or the transportation
employees and highway patrol medical plan pursuant to appropriations. (L.
1972 S.B. 548, A.L. 1976 S.B. 513, A.L. 1977 H.B. 703, A.L. 1978 S.B.
497, A.L. 1979 H.B. 129, A.L. 1981 H.B. 835, et al., H.B. 903, A.L. 1982
H.B. 1720, et al., A.L. 1983 S.B. 353 merged with H.B. 713 Revision, A.L.
1984 H.B. 1370 merged with H.B. 1106, A.L. 1985 H.B. 670, H.B. 790, A.L.
1986 H.B. 1496, A.L. 1987 H.B. 713, A.L. 1988 H.B. 1643 & 1399, A.L. 1988
H.B. 1100, et al., A.L. 1989 H.B. 610, A.L. 1992 H.B. 1574, A.L. 1994
H.B. 1149, A.L. 1995 H.B. 416, et al., A.L. 1997 H.B. 356, A.L. 2001 S.B.
371, A.L. 2002 H.B. 1455)

Effective 7-11-02

Notwithstanding any other provision of law to the contrary, the
department of conservation shall continue to contribute toward monthly
costs for insurance benefits to cover medical expenses for each uniformed
agent in the protection division receiving disability benefits for a job
related illness or injury pursuant to the provisions of section 104.518
the same amount which would have been contributed by the state on such
person's behalf if on active service as a uniformed agent. The
reimbursement shall continue as long as the uniformed agent is receiving
disability benefits. (L. 1975 S.B. 68, A.L. 1976 S.B. 513, A.L. 1977 H.B.
703, A.L. 1984 H.B. 1106, A.L. 1988 H.B. 1643 & 1399, A.L. 1989 H.B. 610
merged with H.B. 674, A.L. 1992 H.B. 1574)

1. The board shall provide or contract, or both, for life
insurance benefits for employees pursuant to sections 104.320 to 104.540,
persons covered by sections 287.812 to 287.855, RSMo, and for employees
who are members of the judicial retirement system as provided in section
476.590, RSMo, and at the election of the state highways and
transportation commission shall include employees who are members of the
state transportation department employees' and highway patrol retirement
system. Employees are entitled to fifteen thousand dollars of life
insurance until December 31, 2000. Effective January 1, 2001, the system
shall provide or contract or both for basic life insurance for employees
covered under any retirement plan administered by the system pursuant to
this chapter, persons covered by sections 287.812 to 287.856, RSMo, for
employees who are members of the judicial retirement system as provided
in section 476.590, RSMo, and, at the election of the state highways and
transportation commission, employees who are members of the highways and
transportation employees' and highway patrol retirement system, in an
amount equal to one times annual pay, subject to a minimum amount of
fifteen thousand dollars. The board shall establish by rule or contract
the method for determining the annual rate of pay and any other terms of
such insurance as it deems necessary to implement the requirements
pursuant to this section. Annual rate of pay shall not include overtime
or any other irregular payments as determined by the board. Such life
insurance shall provide for triple indemnity in the event the cause of
death is a proximate result of a personal injury or disease arising out
of and in the course of actual performance of duty as an employee.

2. A conversion of such life insurance benefits shall be available.
However, a member eligible to receive a lump sum death benefit as
provided in subsection 4 of section 104.515 shall be entitled to convert
any amount of terminated life insurance benefit in excess of the benefit
provided in said section.

3. (1) In addition to the life insurance authorized by the provisions of
subsection 1 of this section, any person for whom life insurance is
provided or contracted for pursuant to such subsection may purchase, at
the person's own expense and only if monthly voluntary payroll deductions
are authorized, additional life insurance at a cost to be stipulated in a
contract with a private insurance company or as may be required by the
system if the board of trustees determines that the system should provide
such insurance itself. The maximum amount of additional life insurance
which may be so purchased on or after January 1, 1998, but prior to
January 1, 2004, is that amount which equals six times the amount of the
person's annual rate of pay, except that if such maximum amount is not
evenly divisible by one thousand dollars, then the maximum amount of
additional insurance which may be purchased is the next higher amount
evenly divisible by one thousand dollars. The maximum amount of
additional life insurance which may be so purchased on or after January
1, 2004, is an amount to be stipulated in a contract with a private
insurance company or as may be required by the system if the board of
trustees determines that the system should provide the insurance itself.
The selection of a private insurance company to provide this life
insurance shall be on the basis of competitive bidding.

(2) Any person defined in subdivision (1) of this subsection retiring on
or after September 1, 1988, may retain an amount not to exceed ten
thousand dollars of life insurance following the date of his or her
retirement if such person makes written application for such life
insurance at the same time such person's application is made to the board
for retirement benefits. Any person, defined in subdivision (1) of this
subsection, retiring on or after May 1, 1996, may retain an amount not to
exceed sixty thousand dollars of life insurance following the date of the
person's retirement if such person makes written application for such
life insurance at the same time such person applies to the board for
retirement benefits. Such life insurance shall only be provided if such
person pays the entire cost of the insurance, as determined by the board,
by allowing voluntary deductions from the member's monthly retirement
benefits.

(3) Effective January 1, 1998, in addition to the life insurance
authorized in subsection 1 of this section, any person for whom life
insurance is provided or contracted for pursuant to such subsection may
purchase, at the person's own expense and only if monthly voluntary
payroll deductions are authorized, life insurance covering the person's
children or the person's spouse or both the person's children and the
person's spouse at coverage amounts to be determined by the board at a
cost to be stipulated in a contract with a private insurance company or
as may be required by the system if the board of trustees determines that
the system should provide such insurance itself.

4. The highways and transportation employees' and highway patrol
retirement system shall provide or contract or both for the death benefit
for special consultants in subsection 4 of section 104.515. The highways
and transportation employees' and highway patrol retirement system may
request the state highways and transportation commission to administer
the death benefit. If the state highways and transportation commission
accepts the obligation to administer the death benefit, the highways and
transportation employees' and highway patrol retirement system shall
reimburse the state highways and transportation commission for any costs
or expenses of administering the death benefit.

5. To the extent that the board enters or has entered into any contract
with any insurer or service organization to provide life insurance
provided for pursuant to this section:

(1) The obligation to provide such life insurance shall be primarily that
of the insurer or service organization and secondarily that of the board;

(2) Any member who has been denied life insurance benefits by the insurer
or service organization and has exhausted all appeal procedures provided
by the insurer or service organization may appeal such decision by filing
a petition against the insurer or service organization in a court of law
in the member's county of residence; and

(3) The board and the system shall not be liable for life insurance
benefits provided by an insurer or service organization pursuant to this
section and shall not be subject to any cause of action with regard to
life insurance benefits or the denial of life insurance benefits by the
insurer or service organization unless the member has obtained judgment
against the insurer or service organization for life insurance benefits
and the insurer or service organization is unable to satisfy that
judgment. (L. 1988 H.B. 1643 & 1399, A.L. 1995 H.B. 416, et al., A.L.
1997 H.B. 356, A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808, A.L. 2003
S.B. 248, et al.)

1. The board shall provide or contract, or both, for disability
income benefits for employees pursuant to sections 104.320 to 104.540,
and persons covered by the provisions of sections 287.812 to 287.855,
RSMo, and an employee covered pursuant to the provisions of subdivision
(4) of subsection 1 of section 476.515, RSMo, as follows:

(1) Members of the water patrol who qualify for receiving benefits
pursuant to subsection 1 of section 104.410 are not eligible for benefits
pursuant to this section. Members of the water patrol who do not qualify
for receiving benefits pursuant to subsection 1 of section 104.410 are
eligible for benefits pursuant to this section;

(2) Effective January 1, 1986, employees other than members of the water
patrol who qualify for receiving benefits pursuant to subsection 1 of
section 104.410 shall be eligible for coverage on the first of the month
following the date of employment;

(3) Definitions of disability and other rules and procedures necessary
for the operation and administration of the disability benefit shall be
established by the board provided that such definitions, rules and
procedures may be established in any contract between the board and any
insurer or service organization to provide the disability benefits
provided for pursuant to this section or in any policy issued to the
board by such insurer or service organization;

(4) An employee may elect to waive the receipt of the disability benefit
provided for pursuant to this section at any time.

2. To the extent that the board enters or has entered into any contract
with any insurer or service organization to provide the disability
benefits provided for pursuant to this section:

(1) The obligation to provide such disability benefits shall be primarily
that of the insurer or service organization and secondarily that of the
board;

(2) Any member who has been denied disability benefits by the insurer or
service organization and has exhausted all appeal procedures provided by
the insurer or service organization may appeal such decision by filing a
petition against the insurer or service organization in a court of law in
the member's county of residence;

(3) The board and the system shall not be liable for the disability
benefits provided for by an insurer or service organization pursuant to
this section and shall not be subject to any cause of action with regard
to disability benefits or the denial of disability benefits by the
insurer or service organization unless the member has obtained judgment
against the insurer or service organization for disability benefits and
the insurer or service organization is unable to satisfy that judgment.
(L. 1988 H.B. 1643 & 1399, A.L. 1994 S.B. 772, A.L. 2001 S.B. 371)

1. The board shall establish and implement programs as provided
in sections 104.517 and 104.518. The board shall establish rules of
eligibility for participation in the programs, and shall avoid
duplication of benefits provided to employees, their spouses and children
under any other program of benefits provided through, or as a result of,
employment with a department, any other employer, or any plan established
by the federal government. The benefits set forth in sections 104.517 and
104.518 shall be provided all employees complying with the rules of
eligibility for participation established by the board for whom
contributions are being made pursuant to subsection 2 of section 104.515.
No member shall receive benefits until such program shall become
operative and until any premium amounts required by the board have been
paid. To the extent any benefits provided under this program are insured,
the selection of any insurance company or service organization shall be
on the basis of competitive bidding.

2. Notwithstanding any provision of law to the contrary, persons employed
by an agency, division, or department, who would be employees pursuant to
sections 104.320 to 104.620, except by reason of coverage under the
retirement system established pursuant to sections 169.010 to 169.130,
RSMo, shall be eligible to participate in the program of life insurance
provided pursuant to subsection 1 of section 104.517, and to continue
such participation after retirement, under rules of eligibility for
participation established by the board of trustees, and on the basis that
such covered persons pay the premium rate as determined by the board.

3. Except for long-term disability benefits provided by section 104.518,
the provisions of sections 104.516 and 104.517 shall not apply to members
who are employed by any agency, division, or department which has in
effect a program of life insurance which is wholly or partially paid by
the employing agency, division or department. (L. 1988 H.B. 1643 & 1399,
A.L. 1992 H.B. 1574, A.L. 1997 H.B. 356)

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 of the state shall furnish, upon request, whatever legal
services are necessary. (L. 1957 p. 706 § 13, A.L. 1988 H.B. 1643 & 1399,
A.L. 1988 H.B. 1100, et al., A.L. 1995 H.B. 416, et al.)

*Word "advisory" appears in original rolls.

The Missouri state employees' retirement system may sue and be
sued in its official name, but its officers and employees shall not be
personally liable for acts of the system. The board may indemnify,
protect, defend and hold harmless the trustees, officers and employees of
the system against all claims and suits for negligent or wrongful acts
alleged to have been committed in the scope of their service or
employment or under the direction of the trustees provided that the
trustees, officers and employees of the system shall not be indemnified
for willful misconduct or gross negligence. The board is authorized to
insure against loss or liability of the trustees, officers and employees
of the system that may result from claims and suits for negligent or
wrongful acts alleged to have been committed in the scope of their
service or employment or under the direction of the trustees. This
insurance shall be carried through a company that is licensed to write
such coverage in this state. The service of all legal process and of all
notices which may be required to be in writing, whether in legal
proceedings or otherwise, shall be made on the executive director or in
his or her absence, on the executive director's designee at his or her
office. All suits or proceedings directly or indirectly against the
system shall be brought in Cole County, except that suits or proceedings
involving payment of disability benefits may be brought, at the election
of the beneficiary, in the county of residence of the beneficiary. (L.
1957 p. 706 § 3, A.L. 1981 H.B. 835, et al., A.L. 1988 H.B. 1643 & 1399,
A.L. 1993 S.B. 88, A.L. 1995 H.B. 416, et al., A.L. 1997 H.B. 356, A.L.
2001 S.B. 371)

1. All premium payments and deferred compensation provided for
under sections 104.320 to 104.540 are hereby made obligations of the
state of Missouri. No alteration, amendment, or repeal of sections
104.320 to 104.540 shall affect the then existing rights of members and
beneficiaries, but shall be effective only as to rights which would
otherwise accrue hereunder as a result of services rendered by an
employee after such alteration, amendment, or repeal.

2. Any annuity, benefits, funds, property, or rights created by, or
accruing or paid to, any person under the provisions of sections 104.320
to 104.540 shall not be subject to execution, garnishment, attachment,
writ of sequestration, or any other process or claim whatsoever, and
shall be unassignable, except with regard to the collection of child
support or maintenance, and except that a beneficiary may assign life
insurance proceeds. Any retired member of the system may request the
executive director of the system, in writing, to withhold and pay on his
behalf to the proper person, from each of his monthly retirement benefit
payments, if the payment is large enough, the contribution due from the
retired member to any group providing prepaid hospital care and any group
providing prepaid medical and surgical care and any group providing life
insurance when such group is composed entirely of members of the system.

3. The executive director of the system shall, when requested in writing
by a retired member, withhold and pay over the funds authorized in
subsection 2 of this section until such time as the request to do so is
revoked by the death or written revocation of the retired member. (L.
1957 p. 706 § 23, A.L. 1959 S.B. 274, A.L. 1965 p. 226, A.L. 1981 H.B.
835, et al., A.L. 1988 H.B. 1643 & 1399, A.L. 1992 S.B. 499, et al., A.L.
1998 S.B. 910, A.L. 2002 H.B. 1455)

Effective 7-11-02

In the selection of any consulting firm or pension consulting
firm for the purpose of assisting the board or making fixed income
investments, equity investments, venture capital investments, limited
partnership investments, real estate investments, or any other type of
investment, preference shall and must be given to a Missouri based
company, if the service is available. (L. 1987 H.B. 713)

Effective 6-19-87

*No continuity with § 104.550 repealed by L. 1977 S.B. 60 § 1.

1. Any employee of the state department of health and senior
services employed as such on or after August 28, 1992, is entitled to
creditable prior service under the provisions of chapter 104 for service
rendered as an employee of a city or county health department organized
under the provisions of chapter 192, RSMo, or chapter 205, RSMo, or a
city health department operating under a city charter or a combined
city/county health department prior to becoming a member of the Missouri
state employees' retirement system if credit has not previously been
granted for such service and if and to the extent that the employee pays
to the Missouri state employees' retirement system an amount determined
by the board of trustees of the Missouri state employees' retirement
system to actuarially fund the creditable prior service of the employee
receiving credit therefor.

2. An employee seeking creditable prior service under the provisions of
this section shall make application to the board of trustees of the
Missouri state employees' retirement system for the creditable prior
service within ninety days after August 28, 1992, or within ninety days
after first becoming an employee. The creditable prior service shall be
established to the satisfaction of the board of trustees of the Missouri
state employees' retirement system. (L. 1992 S.B. 499, et al. § 2)

Any member retiring pursuant to the provisions of this chapter
or any member retiring pursuant to provisions of chapter 169, RSMo, who
is a member of the public school retirement system and who is employed by
a state agency other than an institution of higher learning, after
working continuously until reaching retirement age, shall be credited
with all his or her unused sick leave as reported through the financial
and human resources system maintained by the office of administration, or
if a state agency's employees are not paid salaries or wages through such
system, as reported directly by the state agency. When calculating years
of service, each member shall be entitled to one-twelfth of a year of
creditable service for each one hundred sixty-eight hours of unused
accumulated sick leave earned by the member. The employing agency shall
not certify unused sick leave unless such unused sick leave could have
been used by the member for sickness or injury. The rate of accrual of
sick leave for purposes of computing years of service pursuant to this
section shall be no greater than ten hours per month. Nothing under this
section shall allow a member to vest in the retirement system by using
such credited sick leave to reach the time of vesting. (L. 1982 H.B.
1720, et al., A.L. 1984 H.B. 1370, A.L. 1990 H.B. 1452, A.L. 2001 S.B.
371, A.L. 2002 H.B. 1455)

Effective 7-11-02

1. Any member as defined in section 104.010 may elect prior to
retirement to receive creditable service with the system of which he or
she is a current member equal to all creditable service or any forfeited
service performed for a department covered by the other system. In no
event shall a member under either system established pursuant to this
chapter receive credit in more than one system for the same period of
service.

2. If a member dies before retirement and prior to exercising transfer
rights pursuant to the provisions of this section, the survivor may elect
to receive survivor benefits that shall be computed as if the member had
in fact exercised the member's transfer rights to produce the most
advantageous benefit possible. In this instance, the benefit shall be
paid by the system that provides the most advantageous benefit. If there
is no advantage in one system or the other after the transfer of
creditable service, the benefit shall be paid by the system that the
member last accrued service under prior to the date of the death of the
member. (L. 1981 H.B. 835, et al., A.L. 1982 H.B. 1720, et al., A.L. 1984
H.B. 1370, A.L. 1988 H.B. 1643 & 1399, A.L. 1997 H.B. 356, A.L. 2001 S.B.
371)

A person may receive benefits as a surviving spouse of only one
deceased member under the provisions of this chapter. The benefit
election shall be made by the surviving spouse. (L. 1984 H.B. 1370)

Effective 10-1-84

1. Notwithstanding any provision to the contrary in this
chapter, the term "eligible rollover distribution" shall have the meaning
specified in Section 402(c)(4) of the Internal Revenue Code of 1986, as
amended, and which is herein incorporated by reference.

2. Notwithstanding any provision to the contrary in this chapter, the
term "eligible retirement plan" shall have the meaning specified in
Section 402(c)(8)(B) of the Internal Revenue Code of 1986, as amended,
and which is herein incorporated by reference.

3. For distributions occurring after December 31, 1993, the systems shall
comply with Section 401(a)(31) of the Internal Revenue Code of 1986, as
amended, and which is herein incorporated by reference. (L. 2002 H.B.
1455 §§ 104.605 merged with 104.1055)

Effective 7-11-02

CROSS REFERENCE:

Provisions of this section also apply to Year 2000 plan, RSMo 104.1003 to
104.1093

Upon application to the board of trustees of the Missouri state
employees' retirement system, any person who has served at least three
full biennial assemblies as a member of the general assembly, and who has
been denied credit for any service rendered as a member of the general
assembly because he was a member of some other retirement or benefit fund
to which the state was a contributor shall be made, constituted,
appointed, and employed by the board as a special consultant on the
problems of retirement for the remainder of the person's life. Upon
request of the board, the consultant shall give opinions or be available
to give opinions in writing or orally in response to such requests. As
compensation the consultant shall receive creditable service for all
service rendered as a member of the general assembly and be a member of
the Missouri state employees' retirement system and shall be entitled to
a normal annuity or to a deferred normal annuity, based on the person's
service as a member of the general assembly and the law in effect at the
time service as a member of the general assembly was terminated. (L. 1989
H.B. 674)

1. Any person, who is receiving or hereafter may receive state
retirement benefits from the Missouri state employees' retirement system
other than a person with twelve or more years of service in statewide
state elective office receiving benefits pursuant to the provisions of
section 104.371, a legislators' retirement system, or the highways and
transportation employees' and highway patrol retirement system, upon
application to the board of trustees of the system from which he or she
is receiving retirement benefits, shall be made, constituted, appointed
and employed by the board as a special consultant on the problems of
retirement, aging, and other state matters, for the remainder of the
person's life, and upon request of the board, or other state agencies
where such person was employed prior to retirement, give opinions, and be
available to give opinions in writing, or orally, in response to such
requests, as may be required, and for such services shall be compensated
monthly, in an amount, which, when added to any monthly state retirement
benefits received on his or her retirement, shall be equal to the state
retirement benefits the person would be receiving currently if the person
had benefited from changes in the law effecting increases in the rate in
the formula for calculating benefits in his or her respective retirement
system, for his or her type of employment or for those persons having
accrued thirty-five or more years of creditable service, changes in the
law pertaining to the age and service requirements for a normal annuity
in his or her respective retirement system, made subsequent to the date
of his or her retirement; except that in calculating such benefits the
meaning of "average compensation" shall be that ascribed to it by the law
in effect on the date on which the benefits pursuant to this section are
calculated.

2. In lieu of any other benefits pursuant to the provisions of this
section, any member of the Missouri state employees' retirement system
who has or may hereafter retire pursuant to the provisions of section
104.371, pertaining to those members who have held statewide state
elective office for at least twelve years, may apply pursuant to this
section to be employed as a special consultant and for such services
shall be compensated monthly, in an amount, which, when added to any
monthly state retirement benefits received initially on his or her
retirement, shall be equal to the state retirement benefits the person
would be receiving if the person had benefited from changes in the law
affecting increases in compensation for statewide state elective offices,
pursuant to house substitute for senate bill no. 528, second regular
session of the eighty-second general assembly, any other provisions of
the law to the contrary notwithstanding.

3. This compensation shall be consolidated with any other retirement
benefits payable to the person, and shall be funded as provided in
section 104.436.

4. This compensation shall be treated as any other state retirement
benefits payable by the Missouri state employees' retirement system or
the highways and transportation employees' and highway patrol retirement
system are treated and shall not be subject to execution, garnishment,
attachment, writ of sequestration, or any other process or claim
whatsoever, and shall be unassignable, anything to the contrary
notwithstanding.

5. The employment provided for by this section shall in no way affect any
person's eligibility for retirement benefits pursuant to this chapter, or
in any way have the effect of reducing retirement benefits, anything to
the contrary notwithstanding.

6. In order to determine the total monthly state retirement compensation
due each retiree who is eligible for the additional amount provided for
in subsection 1 of this section, the following formula shall be used:

(1) The retiree's base monthly retirement compensation shall be
determined by dividing the sum of the retiree's annual normal annuity as
of the effective date of any increase in the rate in the formula for
calculating benefits in his or her respective retirement system plus any
annual increases granted such retiree as a result of his or her being a
consultant, by twelve;

(2) The amount determined pursuant to subdivision (1) of this subsection
shall be increased by an amount equal to the base monthly retirement
compensation calculated pursuant to subdivision (1) of this subsection
multiplied by the percentage increase in the rate in the formula;

(3) The sum obtained from completing the calculations contained in
subdivisions (1) and (2) of this subsection shall be the retiree's new
total monthly state retirement compensation. Any retiree who is eligible
for the benefit provided in subsection 1 of this section whose benefit
pursuant to subsection 1 of this section was not calculated in accordance
with the procedure provided in this subsection shall have his or her
total monthly retirement compensation for all months beginning on or
after September 28, 1985, recalculated in accordance with this subsection.

7. The provisions of this section are severable. If any provision of this
section is found by a court of competent jurisdiction to be
unconstitutional or otherwise invalid, the remaining provisions of this
section are valid unless the court finds that such valid provisions,
standing alone, are incomplete and incapable of being executed in
accordance with the legislative intent.

8. Any person who terminates employment or retires prior to July 1, 2000,
shall be made, constituted, appointed and employed by the board as a
special consultant on the problems of retirement, aging, and other state
matters, for the remainder of the person's life, and upon request of the
board, or other state agencies where such person was employed prior to
retirement, give opinions, and be available to give opinions in writing,
or orally, in response to such requests, as may be required, and for such
services shall be eligible to elect to receive a retirement annuity
pursuant to the year 2000 plan as provided in this chapter.

9. Effective August 28, 2000, any person otherwise eligible for survivor
benefits due to the death of a member prior to retirement, who was
married less than two years to the member at the time of the member's
death, shall, upon application to the board, be made, constituted,
appointed and employed by the board as a special consultant on the
problems of retirement, aging and other state matters. As a special
consultant pursuant to the provisions of this subsection, the person
shall begin to receive a survivor benefit in a monthly amount equal to
what the system would have paid the person had the person been eligible
for such survivor benefit upon the death of the member. Such benefit
shall commence the first of the month following receipt by the system of
an application from such person, but not earlier than September 1, 2000.
In no event shall any retroactive benefits be paid. (L. 1972 H.B. 1178 §
1, A.L. 1975 S.B. 5, A.L. 1979 H.B. 87, A.L. 1981 H.B. 835, et al., A.L.
1984 H.B. 1370, A.L. 1985 H.B. 790, A.L. 1986 H.B. 1496, A.L. 1992 S.B.
499, et al., A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808)

Effective 7-1-00

1. Each special consultant, not otherwise eligible for a
retirement benefit increase pursuant to section 104.415, employed or
eligible for employment on or after May 12, 1981, by a board of trustees
of a retirement system as provided in subsection 1 of section 104.610
shall, in addition to duties prescribed in section 104.610, and upon
request of the board of trustees, give the board, orally or in writing, a
short detailed statement on the problems of retirement under the current
monthly benefits.

2. As compensation for the extra duty imposed by subsection 1 of this
section, each special consultant shall receive, in addition to all other
compensation provided by law, a percentage increase in compensation each
year, computed upon the total amount which the consultant received in the
previous year from state retirement benefits, compensation pursuant to
the provisions of section 104.610, and compensation pursuant to the
provisions of this section, of eighty percent of the increase in the
consumer price index calculated in the manner specified in section
104.415. The increase in compensation for special consultants who have
been retired less than one year shall be one-twelfth of the applicable
cost-of-living increase for every month or partial month that the member
was retired and receiving an annuity. Any such annual increase in
compensation, however, shall not exceed five percent, nor be less than
four percent, and the total increase in compensation to each special
consultant pursuant to the provisions of this subsection shall not exceed
sixty-five percent of the total retirement benefits and compensation he
or she was receiving immediately prior to October 1, 1986.

3. As compensation for the services described in subsections 1 and 2 of
this section, each special consultant shall receive, in addition to all
other compensation provided by those subsections, an annual percentage
increase in the retirement benefit payable equal to eighty percent of the
increase in the consumer price index. Such benefit increase, however,
shall not exceed five percent of the retirement benefit payable prior to
the increase. The annual benefit increase described in this subsection
shall not be effective until the year in which the special consultant
reaches the limit on total annual increases provided by subsection 2 of
this section. During that year on the anniversary date of the special
consultant's retirement, the special consultant shall receive the benefit
increase described in subsection 2 of this section or this subsection,
whichever is greater. After that year, the special consultant shall
receive the annual benefit increase described in this subsection. Any
special consultant who reaches the limit on total annual benefit
increases provided by subsection 2 prior to October 1, 1996, shall
receive the benefit increase described in this subsection on September 1,
1997. Any special consultant who reaches the limit on total annual
benefit increases provided by subsection 2 on or after October 1, 1996,
but before September 1, 1997, shall receive the benefit increase
described in this subsection beginning on the anniversary date of the
special consultant's retirement following September 1, 1997. In no event
shall any retroactive annual benefit increases be paid pursuant to this
subsection to any special consultant who reached the limit provided in
subsection 2 of this section prior to August 28, 1997.

4. The compensation provided for in this section shall be payable in
equal monthly installments and shall be consolidated with any retirement
benefits and compensation due pursuant to section 104.610 which is
payable to the special consultant. The compensation provided for in this
section shall be paid from the retirement fund for all members who retire
after August 30, 1980. The retirement fund shall be funded on a sound
actuarial basis for such benefits as prescribed in sections 104.070 and
104.436. Appropriations necessary to achieve a sound actuarial basis for
the retirement fund shall be made from general revenue or any other fund
during the three general assembly sessions next occurring after February
14, 1980. Appropriations to maintain the retirement fund on a continuing
sound actuarial basis shall be made as necessary in accordance with the
provisions of sections 104.070, 104.436 and 104.438. For all members who
retire prior to September 1, 1980, the compensation provided for in this
section shall be funded as provided in sections 104.070 and 104.436.

5. The compensation provided for in this section shall be treated as any
other state retirement benefits, payable by the Missouri state employees'
retirement system or the transportation department and highway patrol
retirement system are treated and shall not be subject to execution,
garnishment, attachment, writ of sequestration, or any other process or
claim whatsoever, and shall be unassignable, anything to the contrary
notwithstanding.

6. The employment provided for by this section shall in no way affect any
person's eligibility for retirement benefits pursuant to this chapter, or
in any way have the effect of reducing retirement benefits, anything to
the contrary notwithstanding.

7. (1) Any person who is receiving, on or after August 28, 1994, a
survivor benefit provided by the provisions of this chapter by virtue of
being a survivor of a member, a survivor of a judge as defined in section
476.515, RSMo, or a survivor of an administrative law judge or legal
advisor as those terms are defined in section 287.812, RSMo, and who was
employed prior to August 28, 1997, shall, upon application, be made,
constituted, appointed and employed by the board as a special consultant
on the problems of retirement, aging, and other matters relating to
survivors of deceased members and upon the request of the appropriate
board shall give opinions, in writing or orally, in response to such
requests of the board. As compensation for the services required by this
subsection, each such special consultant shall receive, in addition to
all other compensation provided by law, a percentage increase in
compensation each year, computed upon the amount which the special
consultant received in the previous year in survivor benefits from the
system, of eighty percent of the increase in the consumer price index
calculated in the manner specified in section 104.415. Any such increase
in compensation, however, shall not exceed five percent, nor be less than
four percent;

(2) The total increases in benefits received pursuant to this subsection
shall be limited by the following:

(a) In cases of death after retirement where an optional form of payment
was elected by the retirant, the total increase shall not exceed
sixty-five percent of the survivor benefit which would have been payable
based on the option elected and the original benefit amount payable to
the retirant;

(b) In cases of death before retirement, the total increase shall not
exceed sixty-five percent of the original survivor benefit amount.

8. As compensation for the services described in subsection 7 of this
section, each special consultant shall receive, in addition to all other
compensation provided by subsection 7 of this section, an annual
percentage increase in the survivor benefit payable equal to eighty
percent of the increase in the consumer price index. Such benefit
increase, however, shall not exceed five percent of the survivor benefit
payable prior to the increase. The annual benefit increase described in
this subsection shall not be effective until the year in which the
special consultant reaches the limit on total annual increases provided
by subsection 7 of this section. During that year on the anniversary date
that the special consultant's benefit became payable, the special
consultant shall receive the benefit increase described in subsection 7
of this section or this subsection, whichever is greater. After that
year, the special consultant shall receive the annual benefit increase
described in this subsection. Any special consultant who reaches the
limit on total annual benefit increases provided by subsection 7 of this
section prior to October 1, 1996, shall receive the benefit increase
described in this subsection on September 1, 1997. Any special consultant
who reaches the limit on total annual benefit increases provided by
subsection 7 of this section on or after October 1, 1996, but before
September 1, 1997, shall receive the benefit increase described in this
subsection beginning on the anniversary date that the special
consultant's benefit became payable following September 1, 1997. In no
event shall any retroactive annual benefit increases be paid pursuant to
this subsection to any special consultant who reached the limit provided
in subsection 7 of this section prior to August 28, 1997.

9. The employment provided for by this subsection shall in no way affect
any person's eligibility for retirement or survivor benefits pursuant to
the provisions of this chapter, or in any way have the effect of reducing
any retirement or survivor benefits, anything to the contrary
notwithstanding. An annual increase, if any is due, shall be payable
monthly beginning on a date specified by the board. Nothing in this
subsection shall be construed to prohibit a special consultant from
waiving the right to receive the annual increase provided pursuant to
this subsection. However, the waiver may not extend beyond the age
permitted by the Tax Equity and Fiscal Responsibility Act (TEFRA). The
waiver shall be final as to the annual increase waived.

10. (1) Any member who terminated employment on or after October 1, 1984,
who is receiving an annuity on September 1, 1997, and who had elected one
of the options providing for a continuing lifetime annuity to a surviving
spouse, and who has been made, constituted and appointed by the board as
a special consultant on the problems of retirement, aging, and other
matters relating to retirement shall be eligible for additional
compensation. As additional compensation for such services, each special
consultant shall be eligible for the benefits described in this
subdivision. The annuity of a special consultant who is receiving
benefits under option 1 of section 104.395, shall be reduced in the same
manner as an annuity under option 2 of section 104.395, as in effect
immediately prior to August 28, 1997. The annuity of a special consultant
who is receiving benefits under the provisions of option 2 of section
104.395, as in effect on or after August 13, 1986, but prior to August
28, 1997, shall be determined in the same manner as an annuity under
option 2 of section 104.395, as in effect on September 1, 1997. The
annuity of a special consultant who is receiving benefits under an
annuity that provides for a continuing lifetime annuity to a surviving
spouse other than as previously described in this subdivision shall be
reduced in a manner approved by the board so as to be consistent with the
other continuing lifetime annuities described in this subdivision. Such
annuities shall be adjusted for early retirement if applicable. The
member's benefit shall include any formula or minimum benefit increases
or both, and cost-of-living increases the retired member would have
received since the date of retirement had the member's benefit been
calculated as described in this subdivision. The member shall also
receive a one-time payment in an amount equal to the difference in the
amount of retirement benefits that the member received and the amount the
member would have received since the date of retirement had the member's
benefit been calculated as described in this subdivision.

(2) Any member who terminated employment on or after October 1, 1984, but
before August 28, 1997, and who retires after August 28, 1997, may elect
at retirement to become a special consultant as provided for in
subdivision (1) of this subsection and elect any option provided pursuant
to section 104.395, as in effect on August 28, 1997.

(3) Any member who terminated employment on or after October 1, 1984, but
retired prior to August 28, 1997, who applied for increased benefits
pursuant to the provisions described in subsection 3 or subsection 4 of
section 104.395, and whose spouse died prior to September 1, 1997, and
who has been made, constituted and appointed by the board as a special
consultant on the problems of retirement, aging, and other matters
relating to retirement shall be eligible for additional compensation. As
additional compensation for such services, such member shall receive a
one-time payment in an amount equal to the difference in the amount of
retirement benefits that the member received and the amount the member
would have received since the date of retirement had the member's benefit
been calculated as described in subdivision (1) of this subsection.

(4) Any member who terminated employment on or after October 1, 1984, but
retired before September 1, 1997, and who had elected a normal annuity at
retirement, and who is receiving benefits on September 1, 1997, and who
has been made, constituted and appointed by the board as a special
consultant on the problems of retirement, aging, and other matters
relating to retirement shall be eligible for additional compensation. As
additional compensation for such services, beginning the first month
following the death of the member, the member's surviving spouse who was
married to the member of the transportation department and highway patrol
retirement system on the date of retirement or the person who was married
to the member of the Missouri state employees' retirement system on the
date of retirement shall receive monthly an amount equal to fifty percent
of the monthly annuity the retired member was receiving at the time of
the member's death.

(5) If a member dies on or after September 1, 1997, but prior to
receiving any one-time payment described in subdivision (1) of this
subsection, payment shall be issued to the surviving spouse who was
married to the member at the date of the member's death. If there is no
surviving spouse, payment will be issued to the member's estate.

(6) Any member who terminated employment on or after October 1, 1984,
retired, became a special consultant on the problems of retirement, aging
and other matters relating to retirement or applies to become such a
consultant, and whose annuity was not in pay status on September 1, 1997,
pursuant to the provisions of section 104.380, shall be eligible for
additional compensation. As additional compensation for such services,
each special consultant shall be eligible for the benefits described in
subdivision (1), (3) or (4) of this subsection depending on the annuity
selected by the member at the time of retirement. Any one-time payment
that may be due shall be paid upon application for such benefit. Any
adjustment to a future annuity shall be made upon application for
retirement or survivor benefits.

(7) Any person who received benefits pursuant to subsection 6 of section
104.335 prior to August 28, 1997, may apply to the board to become a
special consultant on the problems of retirement, aging, and other
matters relating to retirement. As compensation for such services, each
special consultant shall be eligible to receive upon making application
for such benefits a one-time payment which shall be equal to the
difference between the amount of benefits the person received and the
amount of benefits the person would have received had the original
benefit payment been calculated under the actuarial assumptions in effect
on August 28, 1997.

(8) Any person who was married to a member of the Missouri state
employees' retirement system at the time the member retired and such
member terminated employment on or after October 1, 1984, elected one of
the options providing for a continuing lifetime annuity at the time of
retirement, and died prior to September 1, 1997, may apply to the board
to become a special consultant on the problems of retirement, aging, and
other matters relating to retirement. As additional compensation for such
services, the survivor benefit of the special consultant shall be
recalculated in the manner described in subdivision (1) of this
subsection. The special consultant shall also receive a one-time payment
in an amount equal to the difference between the amount of retirement and
survivor benefits that the retired member and the special consultant
received and the amount of retirement and survivor benefits the retired
member and the special consultant would have received since the date of
retirement had the retired member's and the special consultant's benefits
been calculated as described in subdivision (1) of this subsection.

(9) Any person who was married to a member of the Missouri state
employees' retirement system at the time the member retired and such
member terminated employment on or after October 1, 1984, retired after
electing a normal annuity, and died prior to September 1, 1997, may apply
to the board to become a special consultant on the problems of
retirement, aging, and other matters relating to retirement. As
additional compensation for such services, the special consultant shall
receive a monthly benefit in an amount equal to fifty percent of the
monthly annuity the retired member was receiving at the time of the
member's death, including any annual benefit increases pursuant to
subsections 7 and 8 of this section that occurred between the date of the
member's death and the date of application. Such benefit shall commence
upon application and shall include a one-time payment, if necessary, so
that the special consultant shall receive the same amount that would have
been paid to the special consultant had such benefit commenced the month
following the death of the member.

(10) Any surviving spouse receiving benefits pursuant to the provisions
of section 104.420 as the result of the death of a member whose
employment terminated on or after October 1, 1984, may apply to the board
to become a special consultant on the problems of retirement, aging, and
other matters relating to retirement. As compensation for such services,
the benefit of each special consultant shall be reduced in the same
manner as an annuity under option 1 of section 104.395 as in effect on
August 28, 1997. The special consultant shall also receive a one-time
payment in an amount equal to the difference between the amount of
benefits that the survivor received and the amount of benefits the
survivor would have received had the survivor's benefit been originally
calculated as described under option 1 of section 104.395 as in effect on
August 28, 1997. (L. 1977 H.B. 253 § 1, A.L. 1980 H.B. 983, A.L. 1981
H.B. 835, et al., A.L. 1984 H.B. 1370, A.L. 1986 H.B. 1496, A.L. 1988
H.B. 1643 & 1399, A.L. 1989 H.B. 674, A.L. 1992 S.B. 499, et al., A.L.
1994 H.B. 1149, A.L. 1997 H.B. 356, A.L. 1999 S.B. 308 & 314)

1. Notwithstanding provisions of other sections of this chapter
to the contrary, but subject to the provisions of subsection 2 of this
section, the total minimum monthly benefit payable, before any actuarial
adjustments or any cost of living adjustments in accordance with sections
104.415 and 104.612, to a member of the state employees' retirement
system or a member of the transportation department employees' and
highway patrol retirement system who retires under the provisions of
section 104.080, 104.095, 104.100, 104.110, 104.140, 104.380, 104.400 or
104.410 shall not be less than fifteen dollars multiplied by the number
of full years of creditable service of the member. A minimum benefit
under this section does not apply to any deferred normal annuity or any
deferred partial annuity. A minimum benefit under this section is
applicable in the determination of any benefit payable under section
104.420 to a survivor of an employee who dies on or after January 1,
1995. Special consultants shall give an oral summary of opinions on
aging, if so requested, as an extra duty for which additional
compensation shall be paid as provided in this section. Any additional
compensation payable to any member under the provisions of this section
shall be consolidated with any other retirement benefits payable to such
person, and funding for such compensation shall be provided as set forth
in section 104.436.

2. In determining the amount due a member under the provisions of this
section, the following provisions shall apply:

(1) Any election made by the member under the provisions of this chapter
to receive the actuarial equivalent of the member's annuity in reduced
monthly payments shall not increase the amount of any compensation due
the member under the provisions of this section, and the determination
shall be based on the amount the member's monthly payments would have
been had such an election not been made;

(2) Any payments authorized by the member to be made from the monthly
payments for payment of insurance premiums or other such purpose shall
not increase the amount of compensation due the member under the
provisions of this section, and the determination shall be based on the
amount of the payments before such premium payments are made. (L. 1979
S.B. 242 § 1, A.L. 1981 H.B. 835, et al., A.L. 1984 H.B. 1370, A.L. 1985
H.B. 790, A.L. 1986 H.B. 1496, A.L. 1988 H.B. 1643 & 1399, A.L. 1994 H.B.
1149)

Effective 1-1-95

1. Any member who has not received a lump sum payment equal to
the sum total of the contributions that the member paid into the
retirement system, plus interest credited to his or her account, shall be
entitled to such a lump sum payment. Lump sum payments made pursuant to
this section shall not be reduced by any retirement benefits which a
member is entitled to receive, but shall be paid in full out of
appropriate funds pursuant to appropriations for this purpose.

2. In the event any accumulated contributions standing to a member of the
Missouri state employees' retirement system's credit remains unclaimed by
such member for a period of four years or more, such accumulated
contributions shall automatically revert to the credit of the fund for
the Missouri state employees' retirement system. If an application is
made, after such reversion, for such accumulated contributions, the board
shall pay such contributions from the fund for the Missouri state
employees' retirement system; except that, no interest shall be paid on
such funds after the date of the reversion to the fund for the Missouri
state employees' retirement system.

3. In the event any amount is due a deceased member, survivor, or
beneficiary who dies after September 1, 2002, such amount shall be paid
to the person or entity designated in writing as beneficiary to receive
such amount by such member, survivor, or beneficiary. The member,
survivor, or beneficiary may designate in writing a beneficiary to
receive any final payment due after the death of a member, survivor, or
beneficiary pursuant to this chapter. If no living person or entity so
designated as beneficiary exists at the time of death, such amount shall
be paid to the surviving spouse married to the deceased member, survivor,
or beneficiary at the time of death. If no surviving spouse exists, such
amount shall be paid to the surviving children or their descendants of
such member, survivor, or beneficiary in equal parts. If no surviving
children or any of their descendants exist, such amount shall be paid to
the surviving parents of such member, survivor, or beneficiary in equal
parts. If no surviving parents exist, such amount shall be paid to the
surviving brothers, sisters, or their descendants of such member,
survivor, or beneficiary in equal parts. If no surviving brothers,
sisters, or their descendants exist, payment may be made as otherwise
permitted by law. Notwithstanding this subsection, any amount due to a
deceased member as payment of all or part of a lump sum pursuant to
section 104.625 shall be paid to the member's surviving spouse married to
the member at the time of death, and otherwise payment may be made as
provided in this subsection. In the event any amount that is due to a
member of either system remains unclaimed by such member for a period of
four years or more, such amount shall automatically revert to the credit
of the fund of the member's system. If an application is made after such
reversion for such amount, the board shall pay such amount from the
board's fund to the member, except that no interest shall be paid on such
funds after the date of the reversion to the fund.

4. The beneficiary of any member who purchased creditable service in the
Missouri state employees' retirement system shall receive a refund upon
the member's death equal to the amount of any purchase less any
retirement benefits received by the member unless an annuity is payable
to a survivor or beneficiary as a result of the member's death. In that
event, the beneficiary of the survivor or beneficiary who received the
annuity shall receive a refund upon the survivor's or beneficiary's death
equal to the amount of the member's purchase of service less any annuity
amounts received by the member and the survivor or beneficiary. (L. 1981
H.B. 835, et al., A.L. 1985 H.B. 790, A.L. 1988, H.B. 1643 & 1399, A.L.
1997 H.B. 356, A.L. 1999 S.B. 308 & 314, A.L. 2002 H.B. 1455)

Effective 7-11-02

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. 1993 S.B. 126 § 1)

Effective July 1, 2002, any member retiring pursuant to the
provisions of sections 104.010 to 104.801, except an elected official or
a member of the general assembly, who has not been paid retirement
benefits and continues employment for at least two years beyond normal
retirement age, may elect to receive an annuity and lump sum payment or
payments, determined as follows:

(1) A retroactive starting date shall be established which shall be a
date selected by the member; provided, however, that the retroactive
starting date selected by the member shall not be a date which is earlier
than the date when a normal annuity would have first been payable. In
addition, the retroactive starting date shall not be more than five years
prior to the annuity starting date, which shall be the first day of the
month with respect to which an amount is paid as an annuity pursuant to
this section. The member's selection of a retroactive starting date shall
be done in twelve-month increments, except this restriction shall not
apply when the member selects the total available time between the
retroactive starting date and the annuity starting date;

(2) The prospective annuity payable as of the annuity starting date shall
be determined pursuant to the provisions otherwise applicable under the
law, with the exception that it shall be the amount which would have been
payable had the member actually retired on the retroactive starting date
under the retirement plan selected by the member. Other than for the lump
sum payment or payments specified in subdivision (3) of this section, no
other amount shall be due for the period between the retroactive starting
date and the annuity starting date;

(3) The lump sum payable shall be ninety percent of the annuity amounts
which would have been paid to the member from the retroactive starting
date to the annuity starting date had the member actually retired on the
retroactive starting date and received a normal annuity. The member shall
elect to receive the lump sum amount either in its entirety at the same
time as the initial annuity payment is made or in three equal annual
installments with the first payment made at the same time as the initial
annuity payment;

(4) Any annuity payable pursuant to this section that is subject to a
division of benefit order pursuant to section 104.312 shall be calculated
as follows:

(a) Any service of a member between the retroactive starting date and the
annuity starting date shall not be considered creditable service except
for purposes of calculating the division of benefit; and

(b) The lump sum payment described in subdivision (3) of this section
shall not be subject to any division of benefit order; and

(5) For purposes of determining annual benefit increases payable as part
of the lump sum and annuity provided pursuant to this section, the
retroactive starting date shall be considered the member's date of
retirement. (L. 2001 S.B. 371, A.L. 2002 H.B. 1455)

Effective 7-11-02

1. Except as otherwise provided by law, any person having earned
creditable service pursuant to the provisions of the state employees'
retirement system or pursuant to the provisions of the state
transportation department employees' and highway patrol retirement system
or having service as a statewide state elective officer or having service
as a member of the general assembly or having service pursuant to the
provisions of sections 287.812 to 287.855, RSMo, or having service as a
judge, as defined in section 476.515, RSMo, may elect prior to retirement
and not after retirement, to make a one-time transfer of credit for such
service or such creditable service to or from any other retirement system
or type of service specified in this section or sections 56.800 to
56.840, RSMo, for which the person has accumulated service or creditable
service. The amount of transferred credit shall be accumulated with the
amount of such creditable service or such service earned by the person in
the retirement system or type of service to which the service is
transferred for purposes of determining the benefits to which the person
is entitled under the retirement system or type of service to which the
service is transferred. The transfer of such creditable service or
service shall become effective on the first day of the second month
following the month in which the person files written notification of the
person's election with the retirement boards affected by such service
transfer. When the election to transfer creditable service or service
becomes effective, the person shall thereby forfeit any claim to any
benefit under the provisions of the retirement system or type of service,
as the case may be, from which the service or creditable service was
transferred regardless of the amount of service or creditable service
previously earned in such retirement system or type of service. Any
person who has transferred service pursuant to this subsection prior to
August 28, 2002, and who is an employee covered by a retirement plan
described in this subsection after that date, may elect to make an
additional transfer of service prior to retirement if additional service
would otherwise be available to be transferred except for the forfeiture
of that service after the previous transfer. In no event shall the amount
of service that a person shall be entitled to transfer pursuant to the
provisions of this section exceed eight years.

2. In the event of the death of a member before retirement and prior to
exercising transfer rights pursuant to the provisions of this section,
survivorship benefits shall be computed as if such person had in fact
exercised or not exercised the person's transfer rights to produce the
most advantageous benefit possible.

3. Any person that has earned creditable service pursuant to the
provisions governing the Missouri state employees' retirement system or
pursuant to the provisions of chapter 287, RSMo, or chapter 476, RSMo,
who terminated employment prior to August 13, 1986, shall, upon
application to the board of trustees of the Missouri state employees'
retirement system, be made, constituted and appointed and employed by the
board as a special consultant on the problems of retirement, aging and
other state matters for the remainder of the person's life. Upon request
of the board or the court from which the person retired, the consultant
shall give opinions or be available to give opinions in writing or orally
in response to such request. As compensation for such services, the
consultant shall be eligible, prior to retirement, to make a one-time
transfer of creditable service as provided in this section. (L. 1986 H.B.
1496 § 2, A.L. 1987 H.B. 713, A.L. 1995 H.B. 416, et al., A.L. 1997 H.B.
356, A.L. 1999 S.B. 308 & 314, A.L. 2002 H.B. 1455)

Effective 7-11-02

Notwithstanding any law to the contrary, any legislation enacted
by the general assembly which mandates the coverage of specific health
benefits, services, or providers in the policies or contracts of
insurers, health services corporations, health maintenance organizations,
or other third-party payors, on and after January 1, 1991, also shall
apply to the health benefit plans of the Missouri state employees'
retirement system, the Missouri state transportation department
retirement system, and any other health benefit plan provided by the
state on behalf of its employees. (L. 1990 H.B. 1739 § 16)

1. Employees who are earning creditable service in the closed
plan of the Missouri state employees' retirement system and who are, as a
result of the provisions of this section and sections 226.008, 389.005,
389.610, and 621.040, RSMo, transferred to the department of
transportation will not become members of the closed plan of the highways
and transportation employees' and highway patrol retirement system unless
they elect to transfer membership and creditable service to the closed
plan of the highways and transportation employees' and highway patrol
retirement system. The election must be in writing and must be made
within ninety days of July 11, 2002. Any election to transfer membership
and creditable service to the highways and transportation employees' and
highway patrol retirement system shall result in the forfeiture of any
rights or benefits in the Missouri state employees' retirement system.
Any failure to elect to transfer membership and creditable service
pursuant to this subsection will result in the employees remaining in the
closed plan of the Missouri state employees' retirement system. If an
election is made, the effective date for commencement of membership and
transfer of such creditable service shall be January 1, 2003.

2. Employees who are earning credited service in the year 2000 plan of
the Missouri state employees' retirement system and who are, as a result
of the provisions of this section and sections 226.008, 389.005, 389.610,
and 621.040, RSMo, transferred to the department of transportation will
remain in the year 2000 plan administered by the Missouri state
employees' retirement system unless they elect to transfer membership and
credited service to the year 2000 plan administered by the highways and
transportation employees' and highway patrol retirement system. The
election must be in writing and must be made within ninety days of July
11, 2002. Any election to transfer membership and credited service to the
year 2000 plan administered by the highways and transportation employees'
and highway patrol retirement system shall result in the forfeiture of
any rights or benefits in the Missouri state employees' retirement
system. Any failure to elect to transfer membership and credited service
pursuant to this subsection will result in the employees remaining in the
year 2000 plan administered by the Missouri state employees' retirement
system. If an election is made, the effective date for commencement of
membership and transfer of such creditable service shall be January 1,
2003.

3. For any employee who elects under subsection 1 or 2 of this section to
transfer to the highways and transportation employees' and highway patrol
retirement system, the Missouri state employees' retirement system shall
pay to the highways and transportation employees' and highway patrol
retirement system, by December 31, 2002, an amount actuarially determined
to equal the liability transferred from the Missouri state employees'
retirement system.

4. In no event shall any employee receive service credit for the same
period of service under more than one retirement system as a result of
the provisions of this section.

5. For any transferred employee who elects under subsection 1 or 2 of
this section to transfer to the highways and transportation employee's
and highway patrol retirement system, the only medical coverage available
for the employee shall be the medical coverage provided in section
104.270. The effective date for commencement of medical coverage shall be
January 1, 2003. However, this does not preclude medical coverage for the
transferred employee as a dependent under any other health care plan. (L.
2002 S.B. 1202)

Effective 7-11-02

1. Employees who are earning creditable service in the closed
plan of the Missouri state employees' retirement system and who are
transferred to the department of transportation as a result of the
provisions of executive order 03-05 will not become members of the closed
plan of the highways and transportation employees' and highway patrol
retirement system unless they elect to transfer membership and creditable
service to the closed plan of the highways and transportation employees'
and highway patrol retirement system. The election must be in writing and
must be made within ninety days of July 1, 2003. Any election to transfer
membership and creditable service to the highways and transportation
employees' and highway patrol retirement system shall result in the
forfeiture of any rights or benefits in the Missouri state employees'
retirement system. Any failure to elect to transfer membership and
creditable service pursuant to this subsection will result in the
employees remaining in the closed plan of the Missouri state employees'
retirement system. If an election is made, the effective date for
commencement of membership and transfer of such creditable service shall
be January 1, 2004.

2. Employees who are earning credited service in the year 2000 plan of
the Missouri state employees' retirement system and who are transferred
to the department of transportation as a result of the provisions of
executive order 03-05 will remain in the year 2000 plan administered by
the Missouri state employees' retirement system unless they elect to
transfer membership and credited service to the year 2000 plan
administered by the highways and transportation employees' and highway
patrol retirement system. The election must be in writing and must be
made within ninety days of July 1, 2003. Any election to transfer
membership and credited service to the year 2000 plan administered by the
highways and transportation employees' and highway patrol retirement
system shall result in the forfeiture of any rights or benefits in the
Missouri state employees' retirement system. Any failure to elect to
transfer membership and credited service pursuant to this subsection will
result in the employees remaining in the year 2000 plan administered by
the Missouri state employees' retirement system. If an election is made,
the effective date for commencement of membership and transfer of such
creditable service shall be January 1, 2004.

3. For any employee who elects pursuant to subsection 1 or 2 of this
section to transfer to the highways and transportation employees' and
highway patrol retirement system, the Missouri state employees'
retirement system shall pay to the highways and transportation employees'
and highway patrol retirement system, by December 31, 2003, an amount
actuarially determined to equal the liability at the time of the transfer
to the extent that liability is funded as of the most recent actuarial
valuation, not to exceed one hundred percent.

4. In no event shall any employee receive service credit for the same
period of service under more than one retirement system as a result of
the provisions of this section.

5. For any transferred employee who elects pursuant to subsection 1 or 2
of this section to transfer to the highways and transportation employees'
and highway patrol retirement system, the only medical coverage available
for the employee shall be the medical coverage provided in section
104.270. The effective date for commencement of medical coverage shall be
January 1, 2004. However, this does not preclude medical coverage for the
transferred employee as a dependent under any other health care plan. (L.
2003 S.B. 248, et al.)

Unless a different meaning is plainly required by the context,
the following words and phrases as used in sections 104.1003 to 104.1093
shall mean:

(1) "Act", the "Year 2000 Plan" created by sections 104.1003 to 104.1093;

(2) "Actuary", an actuary who is experienced in retirement plan financing
and who is either a member of the American Academy of Actuaries or an
enrolled actuary under the Employee Retirement Income Security Act of
1974;

(3) "Annuity", annual benefit amounts, paid in equal monthly
installments, from funds provided for in, or authorized by, sections
104.1003 to 104.1093;

(4) "Annuity starting date" means the first day of the first month with
respect to which an amount is paid as an annuity pursuant to sections
104.1003 to 104.1093;

(5) "Beneficiary", any person or entity entitled to receive an annuity or
other benefit pursuant to sections 104.1003 to 104.1093 based upon the
employment record of another person;

(6) "Board of trustees", "board", or "trustees", a governing body or
bodies established for the year 2000 plan pursuant to sections 104.1003
to 104.1093;

(7) "Closed plan", a benefit plan created pursuant to this chapter and
administered by a system prior to July 1, 2000. No person first employed
on or after July 1, 2000, shall become a member of the closed plan, but
the closed plan shall continue to function for the benefit of persons
covered by and remaining in the closed plan and their beneficiaries;

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

(9) "Credited service", the total credited service to a member's credit
as provided in sections 104.1003 to 104.1093;

(10) "Department", any department or agency of the executive,
legislative, or judicial branch of the state of Missouri receiving state
appropriations, including allocated funds from the federal government but
not including any body corporate or politic unless its employees are
eligible for retirement coverage from a system pursuant to this chapter
as otherwise provided by law;

(11) "Early retirement eligibility", a member's attainment of fifty-seven
years of age and the completion of at least five years of credited
service;

(12) "Effective date", July 1, 2000;

(13) "Employee" shall be any person who is employed by a department and
is paid a salary or wage by a department in a position normally requiring
the performance of duties of not less than one thousand hours per year,
provided:

(a) The term "employee" shall not include any patient or inmate of any
state, charitable, penal or correctional institution, or any person who
is employed by a department in a position that is covered by a
state-sponsored defined benefit retirement plan not created by this
chapter;

(b) The term "employee" shall be modified as provided by other provisions
of sections 104.1003 to 104.1093;

(c) The system shall consider a person who is employed in multiple
positions simultaneously within a single agency to be working in a single
position for purposes of determining whether the person is an employee as
defined in this subdivision;

(d) Beginning September 1, 2001, the term "year" as used in this
subdivision shall mean the twelve-month period beginning on the first day
of employment;

(14) "Employer", a department;

(15) "Executive director", the executive director employed by a board
established pursuant to the provisions of sections 104.1003 to 104.1093;

(16) "Final average pay", the average pay of a member for the thirty-six
full consecutive months of service before termination of employment when
the member's pay was greatest; or if the member was on workers'
compensation leave of absence or a medical leave of absence due to an
employee illness, the amount of pay the member would have received but
for such leave of absence as reported and verified by the employing
department; or if the member was employed for less than thirty-six
months, the average monthly pay of a member during the period for which
the member was employed;

(17) "Fund", a fund of the year 2000 plan established pursuant to
sections 104.1003 to 104.1093;

(18) "Investment return", or "interest", rates as shall be determined and
prescribed from time to time by a board;

(19) "Member", a person who is included in the membership of the system,
as set forth in section 104.1009;

(20) "Normal retirement eligibility", a member's attainment of at least
sixty-two years of age and the completion of at least five or more years
of credited service or, the attainment of at least forty-eight years of
age with a total of years of age and years of credited service which is
at least eighty or, in the case of a member of the highway patrol who
shall be subject to the mandatory retirement provisions of section
104.080, the mandatory retirement age and completion of five years of
credited service or, the attainment of at least forty-eight years of age
with a total of years of age and years of credited service which is at
least eighty;

(21) "Pay" shall include:

(a) All salary and wages payable to an employee for personal services
performed for a department; but excluding:

a. Any amounts paid after an employee's employment is terminated, unless
the payment is made as a final installment of salary or wages at the same
rate as in effect immediately prior to termination of employment in
accordance with a state payroll system adopted on or after January 1,
2000;

b. Any amounts paid upon termination of employment for unused annual
leave or unused sick leave;

c. Pay in excess of the limitations set forth in Section 401(a)(17) of
the Internal Revenue Code of 1986 as amended and other applicable federal
laws or regulations; and

d. Any nonrecurring single sum payments;

(b) All salary and wages which would have been payable to an employee on
workers' compensation leave of absence during the period the employee is
receiving a weekly workers' compensation benefit, as reported and
verified by the employing department;
(c) All salary and wages which would have been payable to an employee on
a medical leave due to employee illness, as reported and verified by the
employing department;

(d) For purposes of members of the general assembly, pay shall be the
annual salary provided to each senator and representative pursuant to
section 21.140, RSMo, plus any salary adjustment pursuant to section
21.140, RSMo;

(22) "Retiree", a person receiving an annuity from the year 2000 plan
based upon the person's employment record;

(23) "State", the state of Missouri;

(24) "System" or "retirement system", the Missouri state employees'
retirement system or the transportation department and highway patrol
retirement system, as the case may be;

(25) "Vested former member", a person entitled to receive a deferred
annuity pursuant to section 104.1036;

(26) "Year 2000 plan", the benefit plan created by sections 104.1003 to
104.1093. (L. 1999 S.B. 308 & 314, A.L. 2001 S.B. 371, A.L. 2003 S.B.
248, et al.)

For the purpose of providing retirement income and other
benefits to employees of the state, there is hereby created and
established a benefit plan, which shall be under the management of boards
of trustees herein described, and which shall be known as the "Year 2000
Plan". In the systems shall be vested the powers and duties specified in
sections 104.1003 to 104.1093 and such other powers as may be necessary
or proper to enable it, its officers, employees, and agents to carry out
fully and effectively all the purposes of sections 104.1003 to 104.1093.
The provisions of sections 104.150 to 104.190 and 104.210 to 104.240
shall continue to be applicable to the transportation department and
highway patrol retirement system under the year 2000 plan. The provisions
of sections 104.440 to 104.480 and 104.500 to 104.510 and 104.520 to
104.530 shall continue to be applicable to the Missouri state employees'
retirement system under the year 2000 plan. Both systems shall be subject
to sections 105.660 to 105.691, RSMo. (L. 1999 S.B. 308 & 314)

1. The membership of the year 2000 plan shall include the
following persons:

(1) Each person who first becomes an employee on or after July 1, 2000,
and continues to be an employee;

(2) Each person covered by the closed plan on July 1, 2000, who elects to
be covered by the year 2000 plan in accordance with the provisions of
section 104.1015.

2. In any case of question as to the membership status of any person, the
appropriate board shall decide the question. If a person is not included
in membership at time of employment and is later determined to be a
member, the board is authorized to collect any contribution shortfall by
requesting a special appropriation from the office of administration.
Upon receipt of such appropriation or if funds are otherwise lawfully
available, the office of administration shall immediately pay to the
system the amount needed to cover such shortfall. (L. 1999 S.B. 308 & 314)

1. Any new state employee who would have become a member of the
closed plan administered by the transportation department and highway
patrol retirement system except for the creation of the year 2000 plan
and persons covered by the closed plan administered by the highway and
transportation employees' and highway patrol retirement system who elect
year 2000 plan coverage as provided in section 104.1015 shall have their
year 2000 plan coverage managed by that board.

2. Any new state employee who would have become a member of the closed
plan administered by the Missouri state employees' retirement system
except for the creation of the year 2000 plan or persons covered by the
closed plan administered by the Missouri state employees' retirement
system who elect year 2000 plan coverage as provided in section 104.1015
shall have their year 2000 plan coverage managed by that board. (L. 1999
S.B. 308 & 314)

1. Persons covered by a closed plan on July 1, 2000, shall
elect whether or not to change to year 2000 plan coverage. Any such
person who elects to be covered by the year 2000 plan shall forfeit all
rights to receive benefits under this chapter except as provided under
the year 2000 plan and all creditable service of such person under the
closed plan shall be credited under the year 2000 plan. Any such person
who elects not to be covered by the year 2000 plan shall waive all rights
to receive benefits under the year 2000 plan. In no event shall any
retroactive annuity be paid to such persons pursuant to sections 104.1003
to 104.1093 except as described in subsection 2 of this section.

2. Each retiree of the closed plan on July 1, 2000, shall be furnished by
the appropriate system a written comparison of the retiree's closed plan
coverage and the retiree's potential year 2000 plan coverage. A retiree
shall elect whether or not to change to year 2000 plan coverage by making
a written election, on a form furnished by the appropriate board, and
providing that form to the system by no later than twelve months after
July 1, 2000, and any retiree who fails to make such election within such
time period shall be deemed to have elected to remain covered under the
closed plan; provided the election must be after the retiree has received
from the appropriate system such written comparison. The retirement
option elected under the year 2000 plan shall be the same as the
retirement option elected under the closed plan, except any retiree who
is receiving one of the options providing for a continuing lifetime
annuity to a surviving spouse under the closed plan may elect to receive
an annuity under option 1 or 2 of section 104.1027, or a life annuity
under subsection 2 of section 104.1024, provided the person who was
married to the member at the time of retirement, if any, consents in
writing to such election made pursuant to section 104.1024, or to any
election described in this section if the person was married to a member
of the Missouri state employees' retirement system. The effective date of
payment of an annuity under the year 2000 plan as provided in this
subsection shall begin on July 1, 2000. No adjustment shall be made to
retirement benefits paid to the retiree prior to July 1, 2000. In order
to calculate a new monthly annuity for retirees electing coverage under
the year 2000 plan pursuant to this subsection, the following
calculations shall be made:

(1) Except as otherwise provided in this subsection, the retiree's gross
monthly retirement annuity in effect immediately prior to July 1, 2000,
shall be multiplied by the percentage increase in the life annuity
formula between the closed plan and the year 2000 plan. This amount shall
be added to the retiree's gross monthly retirement annuity in effect
immediately prior to July 1, 2000, to arrive at the retiree's new monthly
retirement annuity in the year 2000 plan on July 1, 2000. The age of
eligibility and reduction factors applicable to the retiree's original
annuity under the closed plan shall remain the same in the annuity
payable under the year 2000 plan, except as provided in subdivision (2)
of this subsection.

(2) If option 1 or 2 pursuant to section 104.1027 is chosen by the
retiree under the year 2000 plan, the new monthly retirement annuity
calculated pursuant to subdivision (1) of this subsection shall be
recalculated using the reduction factors for the option chosen pursuant
to section 104.1027.

(3) If a temporary annuity is payable pursuant to subsection 4 of section
104.1024 the additional temporary annuity shall be calculated by
multiplying the retiree's credited service by the retiree's final average
pay by eight-tenths of one percent.

(4) Cost-of-living adjustments paid pursuant to section 104.1045 will
commence on the anniversary of the retiree's annuity starting date
coincident with or next following July 1, 2000.

(5) Any retiree or other person described in this section who elects
coverage under the year 2000 plan based on service rendered as a member
of the general assembly or as a statewide elected official shall receive
an annuity under the year 2000 plan calculated pursuant to the provisions
of section 104.1084 using the current monthly pay at the time of the
election with future COLAs calculated pursuant to subsection 7 of section
104.1084.

3. Each person who is an employee and covered by the closed plan and not
a retiree of the closed plan on July 1, 2000, shall elect whether or not
to change to year 2000 plan coverage prior to the last business day of
the month before the person's annuity starting date, and if such election
has not been made within such time, annuity payments due beginning on and
after the month of the annuity starting date shall be made the month
following the receipt by the appropriate system of such election and any
other information required by the year 2000 plan created by sections
104.1003 to 104.1093; provided, such election must be after the person
has received from the year 2000 plan a written comparison of the person's
closed plan coverage and the person's potential year 2000 plan coverage
and the election must be made in writing on a form furnished by the
appropriate board. If such person dies after the annuity starting date
but before making such election and providing such other information, no
benefits shall be paid except as required pursuant to section 104.420 or
subsection 2 of section 104.372 for members of the general assembly.

4. Each person who is not an employee and not a retiree and is eligible
for a deferred annuity from the closed plan on July 1, 2000, shall elect
whether or not to change to the year 2000 plan coverage prior to the last
business day of the month before the person's annuity starting date, and
if such election has not been made within such time, annuity payments due
beginning on and after the month of the annuity starting date shall be
made the month following the receipt by the appropriate system of such
election and any other information required by the year 2000 plan created
by sections 104.1003 to 104.1093; provided, the election must be after
the person has received from the year 2000 plan a written comparison of
the person's closed plan coverage and the person's potential year 2000
plan coverage and the election must be made in writing on a form
furnished by the appropriate board. If such person dies after the annuity
starting date but before making such election and providing such other
information, no benefits shall be paid except as required pursuant to
section 104.420 or subsection 2 of section 104.372 for members of the
general assembly.

5. Each person who is not an employee and not a retiree and is eligible
for a deferred annuity from the closed plan and returns to covered
employment on or after July 1, 2000, shall be covered under the closed
plan; provided, such person shall elect whether or not to change to the
year 2000 plan coverage prior to the last business day of the month
before the person's annuity starting date, and if such election has not
been made within such time, annuity payments due beginning on and after
the month of the annuity starting date shall be made the month following
the receipt by the appropriate system of such election and any other
information required by the year 2000 plan created by sections 104.1003
to 104.1093 and the election must be after the person has received from
the year 2000 plan a written comparison of the person's closed plan
coverage and the person's potential year 2000 plan coverage and the
election must be made in writing on a form furnished by the appropriate
board. If such person dies after the annuity starting date but before
making such election and providing such other information, no benefits
shall be paid except as required under section 104.420 or subsection 2 of
section 104.372 for members of the general assembly.

6. Each person who is not an employee and not a retiree and not eligible
for a deferred annuity from the closed plan but has forfeited creditable
service with the closed plan and becomes an employee on or after August
28, 2002, shall be changed to year 2000 plan coverage and upon receiving
credited service continuously for one year shall receive credited service
for all such forfeited creditable service under the closed plan.

7. Each person who was employed as a member of the general assembly
through December 31, 2000, covered under the closed plan, and has served
at least two full biennial assemblies as defined in subdivision (24) of
subsection 1 of section 104.010 but who is not eligible for a deferred
annuity under the closed plan shall be eligible to receive benefits under
the new plan pursuant to subdivision (5) of subsection 2 of this section
upon meeting the age requirements under the new plan.

8. The retirees and persons described in subsections 2 and 4 of this
section shall be eligible for benefits under those subsections pursuant
to subsection 8 of section 104.610. (L. 1999 S.B. 308 & 314, A.L. 2000
H.B. 1808, A.L. 2002 H.B. 1455)

Effective 7-11-02

1. When a member is no longer employed in a position covered by
the system, membership in the system shall thereupon cease. If a member
has five or more years of credited service upon such member's termination
of membership, such member shall be a vested former member entitled to a
deferred annuity pursuant to section 104.1036. If a member has fewer than
five years of credited service upon termination of membership, such
former member's credited service shall be forfeited, provided that if
such former member becomes reemployed in a position covered by the
system, such former member shall again become a member of the system and
the forfeited credited service shall be restored after receiving
creditable service continuously for one year.

2. Upon a member becoming a retiree, membership shall cease and, except
as otherwise provided in section 104.1039, the person shall not again
become a member of the system.

3. If a vested former member becomes reemployed in a position covered by
the system before such vested former member's annuity starting date,
membership shall be restored with the previous credited service and
increased by such reemployment. (L. 1999 S.B. 308 & 314, A.L. 2002 H.B.
1455)

Effective 7-11-02

1. The appropriate board shall determine how much credited
service shall be given each member consistent with this section.

2. If a member terminates employment and is eligible to receive an
annuity pursuant to the year 2000 plan, or becomes a vested former member
at the time of termination, the member's or former member's unused sick
leave as reported through the financial and human resources system
maintained by the office of administration, or if a department's
employees are not paid salaries or wages through such system, as reported
directly by the department, for which the member has not been paid will
be converted to credited service at the time of application for
retirement benefits. The member shall receive one-twelfth of a year of
credited service for each one hundred and sixty-eight hours of such
unused sick leave. The employing department shall not certify unused sick
leave unless such unused sick leave could have been used by the member
for sickness or injury. The rate of accrual of sick leave for purposes of
computing years of service pursuant to this section shall be no greater
than ten hours per month. Such credited service shall not be used in
determining the member's eligibility for retirement or final average pay.
Such credited service shall be added to the credited service in the last
position of employment held as a member of the system.

3. If a member is employed in a covered position and simultaneously
employed in one or more other covered or noncovered positions, credited
service shall be determined as if all such employment were in one
position, and covered pay shall be the total of pay for all such
positions.

4. In calculating any annuity, "credited service" means a period
expressed as whole years and any fraction of a year measured in twelfths
that begins on the date an employee commences employment in a covered
position and ends on the date such employee's membership terminates
pursuant to section 104.1018 plus any additional period for which the
employee is credited with service pursuant to this section.

5. A member shall be credited for all military service after membership
commences as required by state and federal law.

6. Any member who had active military service in the United States Army,
Air Force, Navy, Marine Corps, Army or Air National Guard, Coast Guard,
or any reserve component thereof prior to last becoming a member, or who
is otherwise ineligible to receive credited service pursuant to
subsection 1 or 5 of this section, and who became a member after the
person's discharge from military service under honorable conditions may
elect, prior to retirement, to purchase credited service for all such
military service, but not to exceed four years, provided the person is
not receiving and is not eligible to receive retirement credits or
benefits from any other public or private retirement plan, other than a
United States military service retirement system, for the military
service to be purchased along with the submission of appropriate
documentation verifying the member's dates of active service. The
purchase shall be effected by the member paying to the system an amount
equal to the state's contributions that would have been made to the
system on the member's behalf had the member been a member for the period
for which the member is electing to purchase credit and had the member's
pay during such period of membership been the same as the annual pay rate
as of the date the member was initially employed as a member, with the
calculations based on the contribution rate in effect on the date of such
member's employment with simple interest calculated from the date of
employment to the date of election pursuant to this subsection. The
payment shall be made over a period of not longer than two years,
measured from the date of election, and with simple interest on the
unpaid balance. If a member who purchased credited service pursuant to
this subsection dies prior to retirement, the surviving spouse may, upon
written request, receive a refund of the amount contributed for such
purchase of such credited service, provided the surviving spouse is not
entitled to survivorship benefits payable pursuant to the provisions of
section 104.1030.

7. Any member of the Missouri state employees' retirement system shall
receive credited service for the creditable prior service that such
employee would have been entitled to under the closed plan pursuant to
section 104.339, subsections 2, and 6 to 9 of section 104.340, subsection
12 of section 104.342, section 104.344, subsection 4 of section 104.345,
subsection 4 of section 104.372, section 178.640, RSMo, and section
211.393, RSMo, provided such service has not been credited under the
closed plan.

8. Any member who has service in both systems and dies or terminates
employment shall have the member's service in the other system
transferred to the last system that covered such member and any annuity
payable to such member shall be paid by that system. Any such member may
elect to transfer service between systems prior to termination of
employment, provided, any annuity payable to such member shall be paid by
the last system that covered such member prior to the receipt of such
annuity.

9. In no event shall any person or member receive credited service
pursuant to the year 2000 plan if that same service is credited for
retirement benefits under any defined benefit retirement system not
created pursuant to this chapter.

10. Any additional credited service as described in subsections 5 to 7 of
this section shall be added to the credited service in the first position
of employment held as a member of the system. Any additional creditable
service received pursuant to section 105.691, RSMo, shall be added to the
credited service in the position of employment held at the time the
member completes the purchase or transfer pursuant to such section.

11. A member may not purchase any credited service described in this
section unless the member has met the five-year minimum service
requirement as provided in subdivisions (11) and (20) of section
104.1003, the two full biennial assemblies minimum service requirement as
provided in section 104.1084, or the four-year minimum service
requirement as provided in section 104.1084.

12. Absences taken by an employee without compensation for sickness and
injury of the employee of less than twelve months or for leave taken by
such employee without compensation pursuant to the provisions of the
Family and Medical Leave Act of 1993 shall be counted as years of
credited service. (L. 1999 S.B. 308 & 314, A.L. 2001 S.B. 371, A.L. 2002
H.B. 1455, A.L. 2003 S.B. 248, et al.)

1. Any member who terminates employment may retire on or after
attaining normal retirement eligibility by making application in written
form and manner approved by the appropriate board. The written
application shall set forth the annuity starting date which shall not be
earlier than the first day of the second month following the month of the
execution and filing of the member's application for retirement nor later
than the first day of the fourth month following the month of the
execution and filing of the member's application for retirement.

2. A member's annuity shall be paid in the form of a life annuity, except
as provided in section 104.1027, and shall be an amount for life equal to
one and seven-tenths percent of the final average pay of the member
multiplied by the member's years of credited service.

3. The life annuity defined in subsection 2 of this section shall not be
less than a monthly amount equal to fifteen dollars multiplied by the
member's full years of credited service.

4. If as of the annuity starting date of a member who has attained normal
retirement eligibility the sum of the member's years of age and years of
credited service equals eighty or more years and if the member's age is
at least forty-eight years but less than sixty-two years, or, in the case
of a member of the highway patrol who shall be subject to the mandatory
retirement provision of section 104.080, the mandatory retirement age and
completion of five years of credited service, then in addition to the
life annuity described in subsection 2 of this section, the member shall
receive a temporary annuity equal to eight-tenths of one percent of the
member's final average pay multiplied by the member's years of credited
service. The temporary annuity and any cost-of-living adjustments
attributable to the temporary annuity pursuant to section 104.1045 shall
terminate at the end of the calendar month in which the earlier of the
following events occurs: the member's death or the member's attainment of
the earliest age of eligibility for reduced Social Security retirement
benefits.

5. The annuity described in subsection 2 of this section for any person
who has credited service not covered by the federal Social Security Act,
as provided in sections 105.300 to 105.445, RSMo, shall be calculated as
follows: the life annuity shall be an amount equal to two and five-tenths
percent of the final average pay of the member multiplied by the number
of years of service not covered by the federal Social Security Act in
addition to one and seven-tenths percent of the final average pay of the
member multiplied by the member's years of credited service covered by
the federal Social Security Act.

6. Effective July 1, 2002, any member, except an elected official or a
member of the general assembly, who has not been paid retirement benefits
and continues employment for at least two years beyond the date of normal
retirement eligibility, may elect to receive an annuity and lump sum
payment or payments, determined as follows:

(1) A retroactive starting date shall be established which shall be a
date selected by the member; provided, however, that the retroactive
starting date selected by the member shall not be a date which is earlier
than the date when a normal annuity would have first been payable. In
addition, the retroactive starting date shall not be more than five years
prior to the annuity starting date. The member's selection of a
retroactive starting date shall be done in twelve-month increments,
except this restriction shall not apply when the member selects the total
available time between the retroactive starting date and the annuity
starting date;

(2) The prospective annuity payable as of the annuity starting date shall
be determined pursuant to the provisions of this section, with the
exception that it shall be the amount which would have been payable at
the annuity starting date had the member actually retired on the
retroactive starting date under the retirement plan selected by the
member. Other than for the lump sum payment or payments specified in
subdivision (3) of this subsection, no other amount shall be due for the
period between the retroactive starting date and the annuity starting
date;

(3) The lump sum payable shall be ninety percent of the annuity amounts
which would have been paid to the member from the retroactive starting
date to the annuity starting date had the member actually retired on the
retroactive starting date and received a life annuity. The member shall
elect to receive the lump sum amount either in its entirety at the same
time as the initial annuity payment is made or in three equal annual
installments with the first payment made at the same time as the initial
annuity payment;

(4) Any annuity payable pursuant to this section that is subject to a
division of benefit order pursuant to section 104.1051 shall be
calculated as follows:

(a) Any service of a member between the retroactive starting date and the
annuity starting date shall not be considered credited service except for
purposes of calculating the division of benefit; and

(b) The lump sum payment described in subdivision (3) of this section
shall not be subject to any division of benefit order; and

(5) For purposes of determining annual benefit increases payable as part
of the lump sum and annuity provided pursuant to this section, the
retroactive starting date shall be considered the member's date of
retirement. (L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808, A.L. 2001 S.B.
371, A.L. 2002 H.B. 1455, A.L. 2003 S.B. 248, et al.)

1. Prior to the last business day of the month before the
annuity starting date, a member or a vested former member shall elect
whether or not to have such member's or such vested former member's life
annuity reduced, but not any temporary annuity which may be payable, and
designate a beneficiary, as provided by the options set forth in this
section; provided that if such election has not been made within such
time, annuity payments due beginning on and after the month of the
annuity starting date shall be made the month following the receipt by
the appropriate system of such election and any other information
required by the year 2000 plan created by sections 104.1003 to 104.1093,
and further provided, that if such person dies after the annuity starting
date but before making such election and providing such other
information, no benefits shall be paid except as required pursuant to
section 104.1030:

Option 1. A retiree's life annuity shall be reduced to a certain percent
of the annuity otherwise payable. Such percent shall be ninety percent
adjusted as follows: if the retiree's age on the annuity starting date is
younger than sixty-two years, an increase of three-tenths of one percent
for each year the retiree's age is younger than age sixty-two years, to a
maximum increase of three and six-tenths percent; and if the
beneficiary's age is younger than the retiree's age on the annuity
starting date, a decrease of three-tenths of one percent for each year of
age difference; and if the retiree's age is younger than the
beneficiary's age on the annuity starting date, an increase of
three-tenths of one percent for each year of age difference; provided,
after all adjustments the option 1 percent cannot exceed ninety-five
percent. Upon the retiree's death, fifty percent of the retiree's reduced
annuity shall be paid to such beneficiary who was the retiree's spouse on
the annuity starting date or as otherwise provided by subsection 5 of
this section.

Option 2. A retiree's life annuity shall be reduced to a certain percent
of the annuity otherwise payable. Such percent shall be eighty-three
percent adjusted as follows: if the retiree's age on the annuity starting
date is younger than sixty-two years, an increase of four-tenths of one
percent for each year the retiree's age is younger than sixty-two years,
to a maximum increase of four and eight-tenths percent; and if the
beneficiary's age is younger than the retiree's age on the annuity
starting date, a decrease of five-tenths of one percent for each year of
age difference; and if the retiree's age is younger than the
beneficiary's age on the annuity starting date, an increase of
five-tenths of one percent for each year of age difference; provided,
after all adjustments the option 2 percent cannot exceed ninety percent.
Upon the retiree's death one hundred percent of the retiree's reduced
annuity shall be paid to such beneficiary who was the retiree's spouse on
the annuity starting date or as otherwise provided by subsection 5 of
this section.

Option 3. A retiree's life annuity shall be reduced to ninety-five
percent of the annuity otherwise payable. If the retiree dies before
having received one hundred twenty monthly payments, the reduced annuity
shall be continued for the remainder of the one hundred twenty-month
period to the retiree's designated beneficiary provided that if there is
no beneficiary surviving the retiree, the present value of the remaining
annuity payments shall be paid to the retiree's estate. If the
beneficiary survives the retiree but dies before receiving the remainder
of such one hundred twenty monthly payments, the present value of the
remaining annuity payments shall be paid to the beneficiary's estate.

Option 4. A retiree's life annuity shall be reduced to ninety percent of
the annuity otherwise payable. If the retiree dies before having received
one hundred eighty monthly payments, the reduced annuity shall be
continued for the remainder of the one hundred eighty-month period to the
retiree's designated beneficiary provided that if there is no beneficiary
surviving the retiree, the present value of the remaining annuity
payments shall be paid to the retiree's estate. If the beneficiary
survives the retiree but dies before receiving the remainder of such one
hundred eighty monthly payments, the present value of the remaining
annuity payments shall be paid to the beneficiary's estate.

2. If a member is married as of the annuity starting date, the member's
annuity shall be paid under the provisions of either option 1 or option 2
as set forth in subsection 1 of this section, at the member's choice,
with the spouse as the member's designated beneficiary unless the spouse
consents in writing to the member electing another available form of
payment.

3. If a member has elected at the annuity starting date option 1 or 2
pursuant to this section and if the member's spouse or eligible former
spouse dies after the annuity starting date but before the member dies,
then the member may cancel the member's election and return to the life
annuity form of payment and annuity amount, effective the first of the
month following the date of such spouse's or eligible former spouse's
death.

4. If a member designates a spouse as a beneficiary pursuant to this
section and subsequently that marriage ends as a result of a dissolution
of marriage, such dissolution shall not affect the option election
pursuant to this section and the former spouse shall continue to be
eligible to receive survivor benefits upon the death of the member.

5. Effective July 1, 2000, a member may make an election under option 1
or 2 after the annuity starting date as described in this section if the
member makes such election within one year from the date of marriage or
July 1, 2000, whichever is later, pursuant to any of the following
circumstances:

(1) The member elected to receive a life annuity and was not eligible to
elect option 1 or 2 on the annuity starting date; or

(2) The member's annuity reverted to a normal or early retirement annuity
pursuant to subsection 3 of this section, and the member remarried.

6. Effective September 1, 2001, the retirement application of any member
who fails to make an election pursuant to subsection 1 of this section
within ninety days of the annuity starting date contained in such
retirement application shall be nullified. Any member whose retirement
application is nullified shall not receive retirement benefits until the
member files a new application for retirement pursuant to section
104.1024 and makes the election pursuant to subsection 1 of this section.
In no event shall any retroactive retirement benefits be paid. (L. 1999
S.B. 308 & 314, A.L. 2000 H.B. 1808, A.L. 2001 S.B. 371)

1. If a member with five or more years of credited service or a
vested former member dies before such member's or such vested former
member's annuity starting date, the applicable annuity provided in this
section shall be paid.

2. The member's surviving spouse who was married to the member at the
date of death shall receive an annuity computed as if such member had:

(1) Retired on the date of death with a normal retirement annuity based
upon credited service and final average pay to the date of death, and
without reduction if the member's age was younger than normal retirement
eligibility;

(2) Elected option 2 provided for in section 104.1027; and

(3) Designated such spouse as beneficiary under such option.

3. If a spouse annuity is not payable pursuant to the provisions of
subsection 2 of this section, or when a spouse annuity has ceased to be
payable, eighty percent of an annuity computed in the same manner as if
the member had retired on the date of death with a normal retirement
annuity based upon credited service and final average pay to the date of
death and without reduction if the member's age at death was younger than
normal retirement eligibility shall be divided equally among the
dependent children of the deceased member. A child shall be a dependent
child until death or attainment of age twenty-one, whichever occurs
first; provided the age twenty-one maximum shall be extended for any
child who has been found totally incapacitated by a court of competent
jurisdiction. Upon a child ceasing to be a dependent child, that child's
portion of the dependent annuity shall cease to be paid, and the amounts
payable to any remaining dependent children shall be proportionately
increased.

4. For the purpose of computing the amount of an annuity payable pursuant
to this section, if the board finds that the death was the natural and
proximate result of a personal injury or disease arising out of and in
the course of his or her actual performance of duty as an employee, then
the minimum annuity to such member's spouse or, if no spouse benefits are
payable, the minimum annuity that shall be divided among and paid to such
member's dependent children shall be fifty percent of final average pay.
The credited service requirement of subsection 1 of this section shall
not apply to any annuity payable pursuant to this subsection.

5. The provisions of this section shall apply to members of the general
assembly and statewide elected officials except that the credited service
and monthly pay requirements described in section 104.1084 shall apply
notwithstanding any other language to the contrary contained in this
section. (L. 1999 S.B. 308 & 314, A.L. 2001 S.B. 371)

1. Any member who has not attained normal retirement
eligibility but who has at least five years of credited service may
retire with an early retirement annuity on or after attainment of age
fifty-seven and by making application in written form and manner approved
by the board.

2. The early retirement annuity shall be a certain percent of an annuity
provided for in subsection 2 of section 104.1024. The percent shall be
one hundred percent reduced by one-half of one percent multiplied by the
number of months by which age at early retirement is younger than normal
retirement eligibility.

3. Subject to the provisions of subsection 2 of section 104.1027, the
early retirement annuity shall be paid for the life of the retiree unless
an optional form of payment is elected as provided for in section
104.1027. (L. 1999 S.B. 308 & 314)

1. A member with five or more years of credited service who
ceases to be a member, except by reason of death or retirement, shall be
a vested former member entitled to a deferred annuity provided for in
this section.

2. A vested former member shall be eligible to elect an annuity starting
date at any time after attaining age fifty-seven by submitting a written
application therefor not earlier than ninety days before attainment of
fifty-seven years of age. The vested former member shall have the right
to elect an option provided for in section 104.1027, subject to the
provisions of subsection 2 of section 104.1027. No deferred annuity shall
be paid if the vested former member becomes employed in a position
covered by the year 2000 plan and does not terminate employment prior to
the annuity starting date.

3. If the deferred annuity commences on or after age sixty-two, the
annuity amount shall be calculated in the same manner as the annuity
specified in subsection 2 of section 104.1024. If the deferred annuity
commences before the vested former member's normal retirement
eligibility, the annuity amount shall be calculated in the same manner as
the annuity specified in subsection 2 of section 104.1033.

4. If the vested former member dies before the annuity starting date, the
surviving spouse and dependent children shall be covered by the
provisions of section 104.1030. (L. 1999 S.B. 308 & 314)

If a retiree is employed as an employee by a department, the
retiree shall not receive an annuity payment for any calendar month in
which the retiree is so employed. While reemployed the retiree shall be
considered to be a new employee with no previous credited service upon
subsequent retirement. Such retiree shall receive an additional annuity
in addition to the original annuity, calculated based only on the
credited service and the pay earned by such retiree during reemployment
and paid in accordance with the annuity option originally elected;
provided such retiree who ceases to receive an annuity pursuant to this
section shall not receive such additional annuity if such retiree is
employed by a department in a position that is covered by a
state-sponsored defined benefit retirement plan not created pursuant to
this chapter. The original annuity and any additional annuity shall be
paid commencing as of the end of the first month after the month during
which the retiree's reemployment terminates. (L. 1999 S.B. 308 & 314,
A.L. 2001 S.B. 371, A.L. 2002 H.B. 1455)

Effective 7-11-02

1. Any member who is in the Missouri state employees'
retirement system pursuant to the year 2000 plan created by sections
104.1003 to 104.1093 and who becomes disabled and qualifies for long-term
disability benefits and retires after August 28, 1999, or who becomes
disabled and qualifies for long-term disability benefits under a program
provided by the member's employing department and retires after August
28, 1999, shall continue to accrue credited service and such member's
rate of pay for purposes of calculating an annuity pursuant to the year
2000 plan created by sections 104.1003 to 104.1093 shall be the member's
regular monthly pay received at the time of disablement, increased
thereafter for any increases in the consumer price index. Such increases
in the member's monthly pay shall be made annually beginning twelve
months after disablement and shall be equal to eighty percent of the
increase in the consumer price index during the calendar year prior to
the adjustment, but not more than five percent of the member's monthly
pay immediately before the increase. Such accruals shall continue until
the earliest of receipt of an early retirement annuity, attainment of
normal retirement eligibility, or termination of disability benefits.

2. A member described in subsection 1 of this section who continues to be
disabled until normal retirement eligibility may elect an annuity
starting date upon termination of disability payments and shall receive a
normal retirement annuity provided for in section 104.1024.

3. If the member's disability terminates, disability accruals described
in subsection 1 of this section shall terminate.

4. Upon termination of disability payments and not returning to a
position in which the member is an employee, the member's rights to plan
benefits shall be determined as if the member had terminated employment
at time of termination of disability payments.

5. Any member who was disabled under the closed plan prior to July 1,
2000, and who returns to a position in which the member is an employee
after July 1, 2000, shall be covered under the closed plan and shall be
eligible to elect coverage under the new plan as provided by subsection 5
of section 104.1015. (L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808)

Effective 7-1-00

1. Each person receiving an annuity shall be entitled to a
cost-of-living adjustment (COLA) when there are increases in the consumer
price index. The COLA shall be made annually beginning twelve months
after the annuity starting date and shall be equal to eighty percent of
the increase in the consumer price index, but not more than five percent
of the annuity amount payable immediately before the payment of the COLA
provided that COLAs payable to a beneficiary shall commence during the
month of the anniversary of the member's annuity starting date.

2. For the purposes of this section, an increase in the consumer price
index shall be determined in January of each year, based upon the
percentage increase of (a) the consumer price index for the preceding
calendar year determined by dividing the sum of the monthly consumer
price index values by twelve, over (b) the corresponding index for the
next earlier calendar year. Any COLA so determined cannot be less than
zero and shall be applied in calculating any COLA that becomes payable
under this section during the calendar year in which January falls. Any
surviving spouse, beneficiary, or former spouse receiving all or part of
an annuity shall be eligible for such COLAs as provided herein. (L. 1999
S.B. 308 & 314)

A person receiving an annuity may waive monthly annuity
payments or a cost-of-living adjustment (COLA) for periods of time,
provided no waiver may be contrary to applicable federal law. A waiver
shall be final as to any payment or COLA waived. (L. 1999 S.B. 308 & 314)

1. Any annuity provided pursuant to the year 2000 plan is
marital property and a court of competent jurisdiction may divide such
annuity between the parties to any action for dissolution of marriage if
at the time of the dissolution the member has at least five years of
credited service pursuant to sections 104.1003 to 104.1093. A division of
benefits order issued pursuant to this section:

(1) Shall not require the applicable retirement system to provide any
form or type of annuity or retirement plan not selected by the member;

(2) Shall not require the applicable retirement system to commence
payments until the member's annuity starting date;

(3) Shall identify the monthly amount to be paid to the former spouse,
which shall be expressed as a percentage and which shall not exceed fifty
percent of the amount of the member's annuity accrued during all or part
of the period of the marriage of the member and former spouse and which
shall be based on the member's vested annuity on the date of the
dissolution of marriage or an earlier date as specified in the order,
which amount shall be adjusted proportionately upon the annuity starting
date if the member's annuity is reduced due to the receipt of an early
retirement annuity;

(4) Shall not require the payment of an annuity amount to the member and
former spouse which in total exceeds the amount which the member would
have received without regard to the order;

(5) Shall provide that any annuity increases, additional years of
credited service, increased final average pay, increased pay pursuant to
subsections 2 and 5 of section 104.1084, or other type of increases
accrued after the date of the dissolution of marriage and any temporary
annuity received pursuant to subsection 4 of section 104.1024 shall
accrue solely to the benefit of the member; except that on or after
September 1, 2001, any cost-of-living adjustment (COLA) due after the
annuity starting date shall not be considered to be an increase accrued
after the date of termination of marriage and shall be part of the
monthly amount subject to division pursuant to any order issued after
September 1, 2001;

(6) Shall terminate upon the death of either the member or the former
spouse, whichever occurs first;

(7) Shall not create an interest which is assignable or subject to any
legal process;

(8) Shall include the name, address, date of birth, and Social Security
number of both the member and the former spouse, and the identity of the
retirement system to which it applies;

(9) Shall be consistent with any other division of benefits orders which
are applicable to the same member.

2. A system shall provide the court having jurisdiction of a dissolution
of a marriage proceeding or the parties to the proceeding with
information necessary to issue a division of benefits order concerning a
member of the system, upon written request from either the court, the
member, or the member's spouse, citing this section and identifying the
case number and parties.

3. A system shall have the discretionary authority to reject a division
of benefits order for the following reasons:

(1) The order does not clearly state the rights of the member and the
former spouse;

(2) The order is inconsistent with any law governing the retirement
system. (L. 1999 S.B. 308 & 314, A.L. 2001 S.B. 371, A.L. 2003 S.B. 248,
et al.)

1. The benefits provided to each member and each member's
spouse, beneficiary, or former spouse under the year 2000 plan are hereby
made obligations of the state of Missouri and are an incident of every
member's continued employment with the state. No alteration, amendment,
or repeal of the year 2000 plan shall affect the then existing rights of
members, or their spouses, beneficiaries or former spouses, but shall be
effective only as to rights which would otherwise accrue hereunder as a
result of services rendered by a member after such alteration, amendment,
or repeal.

2. Except as otherwise provided in section 104.1051, any annuity,
benefit, funds, property, or rights created by, or accruing or paid to,
any person covered under the year 2000 plan shall not be subject to
execution, garnishment, attachment, writ of sequestration, or any other
process or claim whatsoever, and shall be unassignable, except with
regard to the collection of child support and maintenance, and except
that a beneficiary may assign life insurance proceeds. Any retiree may
request the executive director, in writing, to withhold and pay on his
behalf to the proper person, from each of his monthly annuity payments,
if the payment is large enough, the contribution due from the retiree to
any group providing state-sponsored life or medical insurance.

3. The executive director shall, when requested in writing by a retiree,
withhold and pay over the funds authorized in subsection 2 of this
section until such time as the request to do so is revoked by the death
or written revocation of the retiree.

4. In the event any amount is due a deceased member, survivor, or
beneficiary who dies after September 1, 2002, such amount shall be paid
to the person or entity designated in writing as beneficiary to receive
such amount by such member, survivor, or beneficiary. The member,
survivor, or beneficiary may designate in writing a beneficiary to
receive any final payment due after the death of a member, survivor, or
beneficiary pursuant to this chapter. If no living person or entity so
designated as beneficiary exists at the time of death, such amount shall
be paid to the surviving spouse married to the deceased member, survivor,
or beneficiary at the time of death. If no surviving spouse exists, such
amount shall be paid to the surviving children or their descendants of
such member, survivor, or beneficiary in equal parts. If no surviving
children or any of their descendants exist, such amount shall be paid to
the surviving parents of such member, survivor, or beneficiary in equal
parts. If no surviving parents exist, such amount shall be paid to the
surviving brothers, sisters, or their descendants of such member,
survivor, or beneficiary in equal parts. If no surviving brothers,
sisters, or their descendants exist, payment may be made as otherwise
permitted by law. Notwithstanding this subsection, any amount due to a
deceased member as payment of all or part of a lump sum pursuant to
subsection 6 of section 104.1024 shall be paid to the member's surviving
spouse married to the member at the time of death, and otherwise payment
may be made as provided in this subsection. In the event any amount that
is due to a person from either system remains unclaimed by such member
for a period of four years or more, such amount shall automatically
revert to the credit of the fund of the member's system. If an
application is made for such amount after such reversion, the board shall
pay such amount to the person from the board's fund, except that no
interest shall be paid on such amounts after the date of the reversion to
the fund.

5. All annuities payable pursuant to the year 2000 plan shall be
determined based upon the law in effect on the last date of termination
of employment.

6. The beneficiary of any member who purchased creditable service in the
Missouri state employees' retirement system shall receive a refund upon
the member's death equal to the amount of any purchase less any
retirement benefits received by the member unless an annuity is payable
to a survivor or beneficiary as a result of the member's death. In such
event, the beneficiary of the survivor or beneficiary who received the
annuity shall receive a refund upon the survivor's or beneficiary's death
equal to the amount of the member's purchase of services less any annuity
amounts received by the member and the survivor or beneficiary. (L. 1999
S.B. 308 & 314, A.L. 2002 H.B. 1455)

Effective 7-11-02

The year 2000 plan is a qualified plan pursuant to the
provisions of applicable federal law. The benefits and conditions of the
year 2000 plan shall always be adjusted to ensure that the tax-exempt
status is maintained. (L. 1999 S.B. 308 & 314)

1. Should any error result in any person receiving more or less
than the person would have been entitled to receive had the error not
occurred, the board shall correct such error, and, as far as practicable,
make future payments in such a manner that the actuarial equivalent of
the annuity to which such person was entitled shall be paid, and to this
end may recover any overpayments. In all cases in which an error has been
made, no such error shall be corrected unless the system discovers or is
notified of such error within ten years after the date of error.

2. A person who knowingly makes a false statement, or falsifies or
permits to be falsified a record of the system, in an attempt to defraud
the system shall be subject to fine or imprisonment under the Missouri
revised statutes.

3. A board shall not pay an annuity to any survivor or beneficiary who is
charged with the intentional killing of a member, retiree or survivor
without legal excuse or justification. A survivor or beneficiary who is
convicted of such charge shall no longer be entitled to receive an
annuity. If the survivor or beneficiary is not convicted of such charge,
the board shall resume annuity payments and shall pay the survivor or
beneficiary any annuity payments that were suspended pending resolution
of such charge. (L. 1999 S.B. 308 & 314)

Each system is authorized to promulgate rules to properly
administer the system and govern its own proceedings and to hold hearings
as required by law. The term "agency" and the term "state agency" as
defined by section 536.010, RSMo, shall not include a system pursuant to
this chapter with regard to the promulgation of rules or hearings
required by law provided such system has established written procedures
to assure that constitutionally required due process safeguards exist and
apply to the promulgation of a rule or regulation that would otherwise
constitute a "rule" as defined in section 536.010, RSMo, and to a
proceeding that would otherwise constitute a "contested case" as defined
in section 536.010, RSMo. Each system may delegate a hearing officer to
hear all matters wherein a hearing is required by law. (L. 1999 S.B. 308
& 314)

1. The year 2000 plan intends to follow a financing pattern
which computes and requires contribution amounts which, expressed as
percents of active member payroll, will remain approximately level from
year to year and from one generation of citizens to the next generation.
Such contribution determinations require regular actuarial valuations,
which shall be made by the board's actuary, using assumptions and methods
adopted by the board after consulting with its actuary. The entry
age-normal cost valuation method shall be used in determining normal
cost, and contributions for unfunded accrued liabilities shall be
determined using level percent-of-payroll amortization. For purposes of
this subsection and section 104.436, the actuary shall determine a single
contribution rate applicable to both closed plan and year 2000 plan
participants and, in determining such rate, make estimates of the
probabilities of closed plan participants transferring to the year 2000
plan.

2. At least ninety days before each regular session of the general
assembly, the board of the Missouri state employees' retirement system
shall certify to the division of budget the contribution rate necessary
to cover the liabilities of the year 2000 plan administered by such
system, including costs of administration, expected to accrue during the
next appropriation period. The commissioner of administration shall
request appropriations based upon the contribution rate so certified.
From appropriations so made, the commissioner of administration shall
certify contribution amounts to the state treasurer who in turn shall
immediately pay the contributions to the year 2000 plan.

3. The employers of members covered by the Missouri state employees'
retirement system who are not paid out of funds that have been deposited
in the state treasury shall remit following each pay period to the year
2000 plan an amount equal to the amount which the state would have paid
if those members had been paid entirely from state funds. Such employers
shall maintain payroll records for a minimum of five years and shall
produce all such records as requested by the system. The system is
authorized to request from the state office of administration an
appropriation out of the annual budget of any such employer in the event
such records indicate that such employer has not contributed the amounts
required by this section. The office of administration shall request such
appropriation which shall be equal to the amount necessary to replace any
shortfall in contributions as determined by the system. From
appropriations so made, the commissioner of administration shall certify
contribution amounts to the state treasurer who in turn shall immediately
pay such contributions to the year 2000 plan.

4. At least ninety days before each regular session of the general
assembly, the board of the transportation department and highway patrol
retirement system shall certify to the department of transportation and
the department of public safety the contribution rate necessary to cover
the liabilities of the year 2000 plan administered by such system,
including costs of administration, expected to accrue during the next
biennial or other appropriation period. Each department shall include in
its budget and in its request for appropriations for personal service the
sum so certified to it by such board, and shall present the same to the
general assembly for allowance. The sums so certified and appropriated,
when available, shall be immediately paid to the system and deposited in
the highway and transportation employees' and highway patrol retirement
and benefit fund.

5. These amounts are funds of the year 2000 plan and shall not be
commingled with any funds in the state treasury. (L. 1999 S.B. 308 & 314,
A.L. 2002 H.B. 1455)

Effective 7-11-02

1. All assets of the year 2000 plan shall be dedicated to and
held in trust for the persons covered by the year 2000 plan and for the
purposes herein set out and no other. Each board shall have full power,
in the name and on behalf of the year 2000 plan, to manage the assets of
the year 2000 plan as described in sections 104.150 and 104.440.

2. The board shall invest the funds of the system as permitted by
sections 105.687 to 105.690, RSMo. Trustees of a board may delegate to
employees of the system, or to an agent, functions that a prudent trustee
acting in a like capacity and familiar with those matters could properly
delegate.

3. Each board may deliberate about, or make tentative or final decisions
on, investments or other financial matters in executive session if
disclosure of the deliberations or decisions would jeopardize the ability
to implement a decision or to achieve investment objectives. A record of
each 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. 1999 S.B. 308 & 314)

1. Each board shall provide or contract, or both, for life
insurance benefits for employees covered pursuant to the year 2000 plan
as follows:

(1) Employees shall be provided fifteen thousand dollars of life
insurance until December 31, 2000. Effective January 1, 2001, the system
shall provide or contract or both for basic life insurance for employees
covered under any retirement plan administered by the system pursuant to
this chapter, persons covered by sections 287.812 to 287.856, RSMo, for
employees who are members of the judicial retirement system as provided
in section 476.590, RSMo, and, at the election of the state highways and
transportation commission, employees who are members of the highways and
transportation employees' and highway patrol retirement system, in the
amount equal to one times annual pay, subject to a minimum amount of
fifteen thousand dollars. The board shall establish by rule or contract
the method for determining the annual rate of pay and any other terms of
such insurance as it deems necessary to implement the requirements
pursuant to this section. Annual rate of pay shall not include overtime
or any other irregular payments as determined by the board. Such life
insurance shall provide for triple indemnity in the event the cause of
death is a proximate result of a personal injury or disease arising out
of and in the course of actual performance of duty as an employee;

(2) Any member who terminates employment after reaching normal or early
retirement eligibility and becomes a retiree within sixty days of such
termination shall receive five thousand dollars of life insurance
coverage.

2. (1) In addition to the life insurance authorized by the provisions of
subsection 1 of this section, any person for whom life insurance is
provided or contracted for pursuant to such subsection may purchase, at
the person's own expense and only if monthly voluntary payroll deductions
are authorized, additional life insurance at a cost to be stipulated in a
contract with a private insurance company or as may be required by a
system if the board of trustees determines that the system should provide
such insurance itself. The maximum amount of additional life insurance
which may be so purchased prior to January 1, 2004, is that amount which
equals six times the amount of the person's annual rate of pay, subject
to any maximum established by a board, except that if such maximum amount
is not evenly divisible by one thousand dollars, then the maximum amount
of additional insurance which may be purchased is the next higher amount
evenly divisible by one thousand dollars. The maximum amount of
additional life insurance which may be so purchased on or after January
1, 2004, is an amount to be stipulated in a contract with a private
insurance company or as may be required by the system if the board of
trustees determines that the system should provide the insurance itself.

(2) Any person defined in subdivision (1) of this subsection may retain
an amount not to exceed sixty thousand dollars of life insurance
following the date of his or her retirement if such person becomes a
retiree the month following termination of employment and makes written
application for such life insurance at the same time such person's
application is made to the board for retirement benefits. Such life
insurance shall only be provided if such person pays the entire cost of
the insurance, as determined by the board, by allowing voluntary
deductions from the member's annuity.

(3) In addition to the life insurance authorized in subdivision (1) of
this subsection, any person for whom life insurance is provided or
contracted for pursuant to this subsection may purchase, at the person's
own expense and only if monthly voluntary payroll deductions are
authorized, life insurance covering the person's children or the person's
spouse or both at coverage amounts to be determined by the board at a
cost to be stipulated in a contract with a private insurer or as may be
required by the system if the board of trustees determines that the
system should provide such insurance itself.

(4) Effective July 1, 2000, any member who applies and is eligible to
receive an annuity based on the attainment of at least forty-eight years
of age with a total of years of age and years of credited service which
is at least eighty shall be eligible to retain any optional life
insurance described in subdivision (1) of this subsection. The amount of
such retained insurance shall not be greater than the amount in effect
during the month prior to termination of employment. Such insurance may
be retained until the member's attainment of the earliest age for
eligibility for reduced Social Security retirement benefits at which time
the amount of such insurance that may be retained shall be that amount
permitted pursuant to subdivision (2) of this subsection.

3. The state highways and transportation commission may provide for
insurance benefits to cover medical expenses for members of the highways
and transportation employees' and highway patrol retirement system. The
state highways and transportation commission may provide medical benefits
for dependents of members and for retired members. Contributions by the
state highways and transportation commission to provide the benefits
shall be on the same basis as provided for other state employees pursuant
to the provisions of section 104.515. Except as otherwise provided by
law, the cost of benefits for dependents of members and for retirees and
their dependents shall be paid by the members or retirees. The commission
may contract with other persons or entities including but not limited to
third-party administrators, health network providers and health
maintenance organizations for all, or any part of, the benefits provided
for in this section. The commission may require reimbursement of any
medical claims paid by the commission's medical plan for which there was
third-party liability.

4. The highways and transportation employees' and highway patrol
retirement system may request the state highways and transportation
commission to provide life insurance benefits as required in subsections
1 and 2 of this section. If the state highways and transportation
commission agrees to the request, the highways and transportation
employees' and highway patrol retirement system shall reimburse the state
highways and transportation commission for any and all costs for life
insurance provided pursuant to subdivision (2) of subsection 1 of this
section. The person who is covered pursuant to subsection 2 of this
section shall be solely responsible for the costs of any additional life
insurance. In lieu of the life insurance benefit in subdivision (2) of
subsection 1 of this section, the highways and transportation employees'
and highway patrol retirement system is authorized in its sole discretion
to provide a death benefit of five thousand dollars.

5. To the extent that the board enters or has entered into any contract
with any insurer or service organization to provide life insurance
provided for pursuant to this section:

(1) The obligation to provide such life insurance shall be primarily that
of the insurer or service organization and secondarily that of the board;

(2) Any member who has been denied life insurance benefits by the insurer
or service organization and has exhausted all appeal procedures provided
by the insurer or service organization may appeal such decision by filing
a petition against the insurer or service organization in a court of law
in the member's county of residence; and

(3) The board and the system shall not be liable for life insurance
benefits provided by an insurer or service organization pursuant to this
section and shall not be subject to any cause of action with regard to
life insurance benefits or the denial of life insurance benefits by the
insurer or service organization unless the member has obtained judgment
against the insurer or service organization for life insurance benefits
and the insurer or service organization is unable to satisfy that
judgment. (L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808, A.L. 2001 S.B.
371, A.L. 2002 H.B. 1455, A.L. 2003 S.B. 248, et al.)

1. Each board shall provide or contract, or both, for
disability income benefits for employees pursuant to sections 104.1003 to
104.1093, and other persons specified by applicable state law, as follows:

(1) Definitions of disability and other rules and procedures necessary
for the operation and administration of the disability benefit shall be
established by each board;

(2) An employee may elect to waive the receipt of the disability benefit
provided for under this section at any time.

2. To the extent that each board enters or has entered into any contract
with any insurer or service organization to provide the disability
benefits provided for pursuant to this section:

(1) The obligation to provide such disability benefits shall be primarily
that of the insurer or service organization and secondarily that of the
board;

(2) Any member who has been denied disability benefits by the insurer or
service organization and has exhausted all appeal procedures provided by
the insurer or service organization may appeal such decision by filing a
petition against the insurer or service organization in a court of law in
the member's county of residence;

(3) The board and the system shall not be liable for the disability
benefits provided for by an insurer or service organization pursuant to
this section and shall not be subject to any cause of action with regard
to disability benefits or the denial of disability benefits by the
insurer or service organization unless the member has obtained judgment
against the insurer or service organization for disability benefits and
the insurer or service organization is unable to satisfy that judgment.
(L. 1999 S.B. 308 & 314, A.L. 2002 H.B. 1455)

Effective 7-11-02

1. Separate accounts for medical, life insurance and disability
benefits provided pursuant to sections 104.1072 and 104.1075 shall be
established as part of the fund. The funds, property and return on
investments of the separate accounts shall not be commingled with any
other funds, property and investment return of a system. All benefits and
premiums are paid solely from the separate accounts for medical, life
insurance and disability benefits provided in this section.

2. The state shall contribute an amount as appropriated by law and
approved by the governor per month for medical benefits, life insurance,
and long-term disability benefits as provided pursuant to sections
104.1072 and 104.1075 and such amounts shall include the cost of
providing such benefits to members not on payroll status who are
receiving workers' compensation benefits.

3. Each board shall determine the premium amounts required for
participating persons. The premium amounts shall be the amount which,
together with the state's contribution, is required to fund the benefits
provided, taking into account necessary actuarial reserves. Separate
premiums shall be established for employees' benefits and a separate
premium or schedule of premiums shall be established for children under
twenty-three years of age and for spouses of participating employees. The
employee's premiums for spouse and children benefits shall be established
to cover that portion of the cost of such benefits which is not paid for
by contributions by the state. All such premium amounts shall be paid to
a board of trustees at the time that each employee's wages or salary
would normally be paid. The premium amounts so remitted will be placed in
the separate account for medical, life insurance and disability benefits.
In lieu of the availability of premium deductions, each board may
establish alternative methods for the collection of premium amounts. (L.
1999 S.B. 308 & 314, A.L. 2001 S.B. 371)

1. Each board shall establish and implement life insurance and
disability benefit programs as provided in the year 2000 plan. Each board
shall establish rules of eligibility for participation in the programs
and shall avoid duplication of benefits provided to employees, their
spouses and children under any other program of benefits provided
through, or as a result of, employment with a department, any other
employer, or any plan established by the federal government. No member
shall receive benefits until such program shall become operative and
until any premium amounts required by each board have been paid. To the
extent any benefits provided under this program are insured, the
selection of any insurance company or service organization shall be on
the basis of competitive bidding.

2. The life insurance provisions of section 104.1072 shall not apply to
members who are employed by any department which has in effect a program
of life insurance which is wholly or partially paid by the employing
department. (L. 1999 S.B. 308 & 314)

1. For members of the general assembly, the provisions of this
section shall supplement or replace the indicated other provisions of the
year 2000 plan. "Normal retirement eligibility" means attainment of age
fifty-five for a member who has served at least three full biennial
assemblies or the attainment of at least age fifty for a member who has
served at least three full biennial assemblies with a total of years of
age and years of credited service which is at least eighty. A member
shall receive two years of credited service for every full biennial
assembly served. A full biennial assembly shall be equal to the period of
time beginning on the first day the general assembly convenes for a first
regular session until the last day of the following year. If a member
serves less than a full biennial assembly, the member shall receive
credited service for the pro rata portion of the full biennial assembly
served.

2. For the purposes of section 104.1024, the normal retirement annuity of
a member of the general assembly shall be an amount for life equal to one
twenty-fourth of the monthly pay for a senator or representative on the
annuity starting date multiplied by the years of credited service as a
member of the general assembly. In no event shall any such member or
eligible beneficiary receive annuity amounts in excess of one hundred
percent of pay.

3. To be covered by the provisions of section 104.1030, or section
104.1036, a member of the general assembly must have served at least
three full biennial assemblies.

4. For members who are statewide elected officials, the provisions of
this section shall supplement or replace the indicated other provisions
of the year 2000 plan. "Normal retirement eligibility" means attainment
of age fifty-five for a member who has served at least four years as a
statewide elected official, or the attainment of age fifty with a total
of years of age and years of such credited service which is at least
eighty.

5. For the purposes of section 104.1024, the normal retirement annuity of
a member who is a statewide elected official shall be an amount for life
equal to one twenty-fourth of the monthly pay in the highest office held
by such member on the annuity starting date multiplied by the years of
credited service as a statewide elected official not to exceed twelve
years.

6. To be covered by the provisions of sections 104.1030 and 104.1036, a
member who is a statewide elected official must have at least four years
as a statewide elected official.

7. The provisions of section 104.1045 shall not apply to persons covered
by the general assembly and statewide elected official provisions of this
section. Persons covered by the general assembly provisions and receiving
a year 2000 plan annuity shall be entitled to a cost-of-living adjustment
(COLA) when there are increases in pay for members of the general
assembly. Persons covered by the statewide elected official provisions
and receiving a year 2000 plan annuity shall be entitled to COLAs when
there are increases in the pay for statewide elected officials in the
highest office held by such person. The COLA described in this subsection
shall be equal to and concurrent with the percentage increase in pay as
described in section 105.005, RSMo. No COLA shall be less than zero.

8. Any member who serves under this chapter as a member of the general
assembly or as a statewide elected official on or after August 28, 1999,
shall not be eligible to receive any retirement benefits from the system
under either the closed plan or the year 2000 plan based on service
rendered on or after August 28, 1999, as a member of the general assembly
or as a statewide elected official if such member is convicted of a
felony that is determined by a court of law to have been committed in
connection with the member's duties either as a member of the general
assembly or as a statewide elected official, unless such conviction is
later reversed by a court of law.

9. A member of the general assembly who has purchased or transferred
creditable service shall not be subject to the cap on benefits pursuant
to subsection 2 of this section for that portion of the benefit
attributable to the purchased or transferred service. (L. 1999 S.B. 308 &
314, A.L. 2002 H.B. 1455)

Effective 7-11-02

1. If a member has credited service with more than one selected
plan at time of separation of covered employment from all selected plans,
then the annuity payable from each selected plan shall be based upon the
annuity program, pay record and service record with that selected plan;
provided, however, that the total of credited service with all selected
plans shall be used for the sole purpose of determining whether or not
the member has met the credited service requirement contained in
subdivisions (11) and (20) of section 104.1003 and subsections 1 and 4 of
section 104.1084 for each selected plan.

2. The selected plans cited in this section are:

(1) Year 2000 plan - basic provisions;

(2) Year 2000 plan - general assembly provisions;

(3) Year 2000 plan - statewide elected official provisions. (L. 1999 S.B.
308 & 314)

1. Any member who as described in subdivision (1) of subsection
1 of section 104.1009 has been employed in a position covered by the
system for at least ten or more years and has received credited service
for such employment in the year 2000 plan shall receive additional
credited service for previous public employment within the state covered
by another retirement plan as defined in section 105.691, RSMo, if all of
the following conditions are met:

(1) Such member has a vested right to receive a retirement benefit from
the other retirement plan at the time of application pursuant to this
section;

(2) The other retirement plan transfers to the system an amount equal to
the employee's account balance under a defined contribution plan or the
amount equal to the employee's pension benefit obligation under a defined
benefit plan at the time of transfer to the extent that obligation is
funded as of the plan's most recent actuarial valuation, not to exceed
one hundred percent, as determined by the other retirement plan's actuary
using the same assumption used in performing the last regular actuarial
valuation of the transferring plan, except that in no event shall the
transferred amount be less than the employee's accumulated contributions
on deposit with the transferring plan;

(3) No such credited service remains credited in such other retirement
plan; and

(4) The member applies for the additional credited service prior to the
members's annuity starting date in manner and form established by the
appropriate board. Such additional credited service shall be added to the
credited service in the first position of employment held as a member of
the system.

2. Any member described in subsection 3 of section 104.1015 who elects to
be covered by the year 2000 plan shall be eligible to receive service
under the terms and conditions of subsection 1 of this section. (L. 1999
S.B. 308 & 314, A.L. 2000 H.B. 1808)

Effective 7-1-00

1. For purposes of this section, the term "benefit recipient"
shall include any employee, beneficiary or retiree pursuant to sections
104.010 to 104.1093, any administrative law judge, legal advisor or
beneficiary as defined pursuant to section 287.812, RSMo, or any judge or
beneficiary as defined pursuant to section 476.515, RSMo, or any special
commissioner pursuant to section 476.450, RSMo.

2. Notwithstanding any provision of law to the contrary, any benefit
recipient may designate an agent who shall have the same authority as an
agent pursuant to a durable power of attorney pursuant to sections
404.700 to 404.737, RSMo, with regard to the application for and receipt
of an annuity or any other benefits. The authority of such agent may be
revoked at any time by such benefit recipient. The authority of such
agent shall not terminate if such benefit recipient becomes disabled or
incapacitated. The designation shall be effective only upon the
disability or incapacity of the benefit recipient as determined by that
person's physician and communicated in writing to the system.

3. In the event a benefit recipient becomes disabled or incapacitated and
has not designated an agent pursuant to subsection 2 of this section, the
following persons may act as agent as described in subsection 2 of this
section upon submission of a written statement from a physician
determining that the benefit recipient is disabled or incapacitated:

(1) The spouse of the benefit recipient;

(2) If the spouse is unavailable, to a child of the benefit recipient;

(3) If no child is available, to a parent of the benefit recipient;

(4) If no parent is available, to a brother or sister of the benefit
recipient; or

(5) If no brother or sister is available, to a niece, nephew, or a
grandchild of the benefit recipient.

4. The system shall not be liable with regard to any payment made in good
faith pursuant to this section. (L. 1999 S.B. 308 & 314, A.L. 2001 S.B.
371, A.L. 2002 H.B. 1455, A.L. 2003 S.B. 248, et al.)

As used in sections 104.1200 to 104.1215, the following terms
mean:

(1) "Education employee", any person described in the following
classifications who is employed by one of the institutions, otherwise
would meet the definition of "employee" pursuant to section 104.010 or
104.1003, and is not employed at a technical or vocational school or
college: teaching personnel, instructors, assistant professors, associate
professors, professors and academic administrators holding faculty rank;

(2) "Institutions", Truman State University, Northwest Missouri State
University, Southeast Missouri State University, Southwest Missouri State
University, Central Missouri State University, Harris-Stowe State
College, Lincoln University, Missouri Western State College and Missouri
Southern State College;

(3) "Outside employee", any other provisions of sections 104.010 to
104.1093 to the contrary notwithstanding, an education employee first so
employed on or after July 1, 2002, who has not been previously employed
in a position covered by the Missouri state employee's retirement system.
An outside employee shall not be covered by the other benefit provisions
of this chapter, but rather shall be covered by the benefit provisions
provided for pursuant to sections 104.1200 to 104.1215. (L. 2001 S.B.
371, A.L. 2002 H.B. 1455)

Effective 7-11-02

The board of trustees of the Missouri state employees'
retirement system shall:

(1) Establish a defined contribution plan for outside employees which,
among other things, provides for immediate vesting;

(2) Select a third-party administrator to provide such services as the
board determines to be necessary for the proper administration of the
defined contribution plan;

(3) Select the investment products which shall be made available to the
participants in the defined contribution plan;

(4) Annually establish the contribution rate used for purposes of
subsection 3 of section 104.1066 for employees of institutions who are
other than outside employees, which shall be done by considering all such
employees to be part of the general employee population within the
Missouri state employees' retirement system;

(5) Establish the contribution rate for outside employees which shall be
equal to one percent of payroll less than the normal cost contribution
rate established pursuant to subdivision (4) of this section; and

(6) Establish such rules and regulations as may be necessary to carry out
the purposes of this section. (L. 2001 S.B. 371)

1. In no event shall any outside employee receive credited
service in the system for any time period in which such employee or
member participated in the defined contribution plan established pursuant
to sections 104.1200 to 104.1215.

2. Institutions and any third-party administrator shall provide such
information to the Missouri state employees' retirement system as may be
required to implement the provisions of sections 104.1200 to 104.1215.
(L. 2001 S.B. 371, A.L. 2002 H.B. 1455)

Effective 7-11-02

Any outside employee who has participated in the defined
contribution plan established pursuant to sections 104.1200 to 104.1215
for at least six years may elect to become a member of the Missouri state
employees' retirement system. Such employee shall:

(1) Make such election while actively employed in a position that would
otherwise be eligible for membership in the Missouri state employees'
retirement system except for the provisions of sections 104.1200 to
104.1215;

(2) Participate in the year 2000 plan;

(3) Be considered to have met the service requirements contained in
section 104.1018;

(4) Not receive any credited service for service rendered while a
participant in such defined contribution plan;

(5) Forfeit any right to future participation in the defined contribution
plan after such election; and

(6) Not be eligible to receive credited service pursuant to section
104.1090 based on service rendered while a participant in such defined
contribution plan. (L. 2001 S.B. 371, A.L. 2002 H.B. 1455)

Effective 7-11-02

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