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MO SB896
Bill
Status
2/4/2010
Primary Sponsor
Jason Crowell
Click for details
AI Summary
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Establishes a defined contribution plan (401(a) profit sharing plan) for state employees and judges hired on or after January 1, 2011, administered by boards of trustees for each retirement system.
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Requires employer contributions equal to the rate determined by the general assembly during appropriations, with a minimum of 1 percent of annual pay, with benefits based solely on account amounts and immediate vesting.
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Authorizes boards to select third-party administrators, choose investments, permit employee direction of individual accounts among investment options, and establish necessary rules and regulations.
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Provides immunity from suit for the system and its employees regarding investment decisions made by participating employees, provided the board exercises prudent selection and monitoring of investment providers and default options.
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Allows existing members of the closed plan or year 2000 plan to make a one-time irrevocable election to participate in the defined contribution plan, after which they cease accruing service credit in their previous plan and new compensation is excluded from that plan's calculations.
Legislative Description
Requires the boards of the Missouri State Employees' Retirement System and the Missouri Department of Transportation and Highway Patrol Employees' Retirement System to create a defined contribution retirement plan for certain employees and judges
Last Action
S Informal Calendar S Bills for Perfection--SB 896-Shields and Crowell, with SA 1 (pending)
5/14/2010