Hegeman retirement bill signed into law
In the News
JEFFERSON CITY, Mo. — Missouri Gov. Eric Greitens has signed Senate Bill 62 into law. The measure, introduced by state Sen. Dan Hegeman (R-Cosby), whose 12th District includes Nodaway County, modifies provisions regarding various state pension systems.
Among the affected systems are the College and University Retirement Plan (CURP), County Employees Retirement Fund (CERF), Public School Retirement System (PSRS), Public Education Employees Retirement System (PEERS) and Kansas City Public School Retirement System (KCPSRS).
“I originally filed Senate Bill 62 to help ensure the long-term viability of the College and University Retirement Plan, which is the defined contribution plan for public higher education faculty and administrators not employed by the University of Missouri System,” Hegeman said.
“This measure has had the support of many of our state colleges and universities, and I’m very pleased the governor has signed it into law.”
Currently, employers participating in CURP contribute to each employee plan 1 percent less than the Missouri State Employees Retirement System (MOSERS) normal cost rate. However, because the MOSERS’ normal cost rate has been declining, less money is being contributed to employees’ CURP accounts.
Under SB 62, employers will be required to make a 6 percent contribution, while employees hired on or after July 1, 2018, will be required to contribute 2 percent.
Additionally, all employees will be able to contribute to an optional supplemental retirement account.
“Throughout the country, many cities and states are struggling to fund their various public pension plans,” Hegeman said. “From Chicago to Dallas and California to South Carolina, local and state governments alike are facing huge pension liabilities.
“They’re finding themselves in a deep hole and are now scrambling to climb out. We don’t want this to be Missouri’s fate, and that’s why it’s critical we constantly assess the long-term viability of our defined contribution and benefit plans and make changes when necessary.”
Among other provisions, SB 62 reduces the vesting requirement for MOSERS and MPERS, the retirement system for Missouri Department of Transportation and Missouri State Highway Patrol employees, from 10 years to five years.
Hegeman said this modification coupled with other cost-saving reforms will make the plans stronger and more solvent going forward.
The act also provides that public retirement plan members convicted of certain felony offenses are not eligible to receive benefits.
