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2012 Legislative Summary

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2012 Legislation Affecting MOSERS

On May 18, 2012, the legislature took final action on HCS for SCS for SB 625 that modified state law affecting the County Employees’ Retirement System (CERF), the MoDOT and Patrol Employees’ Retirement System (MPERS), and the Missouri State Employees’ Retirement System (MOSERS). 

As it relates to MOSERS, this legislation contained provisions that relate to the transfer of service and assets between MPERS and MOSERS and as well as provisions that change the interest rate used in calculating employee refunds (a detailed description follows below). 

HCS for SCS for SB 625

This legislation contained provisions that relate to the transfer of service and assets between MPERS and MOSERS and also changed the interest rate used in calculating employee refunds.

Prior to August 28, 2011, service transfers between MPERS and MOSERS involved only transfers of service credit – that is, the receiving system took on the liabilities for any transferred service without receiving the accompanying assets.  After August 28, 2011, transfers of service credit also included the transfer of assets. The proposed provision is necessary cleanup that would address service credit transferred before and after August 28, 2011.  Specifically, this provision will exclude the asset transfer requirement for any service transfer that occurred prior to August 28, 2011, when the asset transfer requirement in section 104.603 became effective.  If any assets were transferred after August 28, 2011, for service that was transferred prior to the date, the system that received the asset transfer would be required to return the assets transferred to the sending system.  These changes are necessary because prior to August 28, 2011, no assets were required to be transferred.  The intention of the provision enacted on August 28, 2011, was that it would apply only to prospective transfers after that date. 

The legislation also includes provisions that change the interest rate used in calculating employee refunds from 4% to the investment rate that is published by the U.S. Department of Treasury, or any successor agency, for 52-week treasury bills for the relevant auction that is nearest to the preceding July first, or a successor treasury bill investment rate approved by the board if the 52-week treasury bill is no longer issued.  In addition, the proposal clarifies that such interest credits would cease upon retirement or death.   Lastly, the provision clarifies that refunds due a beneficiary upon the member's death would include interest credited thereon. 

This legislation is estimated to have no effect on MOSERS' current benefit obligation or current employer contribution for members presently covered under the system.

 

MOSERS
Missouri State Employees' Retirement System
Address: 907 Wildwood Dr., Jefferson City, MO 65102
https://www.mosers.org/images/mosers-logo-bg-375-280.jpg Phone: 800.827.1063 URL: Email: mosers@mosers.org Founded On: September 1, 1957