The Pension Reform Bill that recently passed during the special legislative session creates a new tier of benefits in the Year 2000 Plan for new employees hired for the first time on or after January 1, 2011.

 

The bill does NOT affect or change the retirement benefits of current state employees or retirees.

 

Summary of the New Tier Benefit Provisions

 

Benefit Provision	Description of Benefit Provision
Employee Contributions	§          4% of monthly pay o        Annual Interest Rate: 4% paid June 30 based on member's balance as of July 1 of the preceding year (annual interest not available to retirees or terminated-not vested members)
Refund of Contributions	§          Payable 90 days from the later of: 1) date employee leaves state employment, or 2) date of request o        If married, spouse must sign consent for refund o        Not eligible if Division of Benefits Order (DBO) on file at MPERS o        Not eligible if member eligible for retirement
Vesting Requirements	§          10 years of creditable service
Normal Retirement Eligibility	§          At least age 67 with 10 years of service §          "Rule of 90" - at least age 55 with age and service equaling 90 or more
Early Retirement Eligibility	§          At least age 62 with 10 years of service
Temporary Benefit (ends at age 62)	§          Must retire under "Rule of 90" to be eligible for temporary benefit
Uniformed Patrol: Normal Retirement Eligibility	§          At least age 55 with 10 years of service §          Mandatory retirement at age 60 o        Not eligible for early retirement
Uniformed Patrol: Temporary Benefit (ends at age 62)	§          At least age 55 with 10 years of service §          At least age 60
Terminated-Vested: Normal Retirement Eligibility	§          At least age 67 with 10 years of service o        Not eligible for early retirement
Purchase of Prior Service	§          Not available to new hires
BackDROP	§          Not available to new hires

 

Investment Board:

The provision that would have created the Missouri State Retirement Investment Board was not included in the bill.