Senate Bill 714 Summary

• Repeals and reenacts provisions across multiple state retirement systems (prosecuting attorneys, state employees, transportation/highway patrol, local government employees, and public school teachers) to modernize auditing requirements, allowing the state auditor to audit systems once every three years instead of continuously examining audits.

• Establishes the Missouri State Retirement Investment Board effective January 1, 2011, to centrally manage investment assets for the state employees' and transportation/highway patrol employees' retirement systems, with a board consisting of three ex officio members and four governor-appointed members with banking/finance experience.

• Creates new retirement plan provisions for state employees hired on or after January 1, 2011, including a 4% employee contribution rate (employer-picked up), modified retirement eligibility requirements (age 67 with 10 years service or age 55 with combined age and service equaling 90), and four annuity payment options with reduced benefits if survivor options are selected.

• Modifies judge retirement provisions for judges first employed on or after January 1, 2011, establishing a 4% contribution requirement, new eligibility ages (67 years with 12 years service or 62 years with 20 years service), and four annuity options with survivor benefit choices.

• Adds provisions allowing members and beneficiaries to roll over eligible distributions to other retirement plans in compliance with Internal Revenue Code requirements and permits certain retirement systems to apply to the investment board for asset management services.