SB 938 - School Retirement Systems

• Repeal and reenact five sections (169.270, 169.280, 169.301, 169.324, 169.328) of Missouri law governing school retirement systems to modernize definitions and benefit provisions

• Establish retirement systems in school districts with population not exceeding 700,000, where at least 70% of population resides in a city of 400,000+ population, under management of a board of trustees

• Define vesting requirements: active members with 5+ years of actual creditable service entitled to vested retirement benefits payable at minimum normal retirement age (age 60 or 75 combined service/age credits)

• Set retirement benefit formulas: members retiring before June 30, 1999 receive 1.75% of average final compensation per year of service (max 60%); members retiring on/after June 30, 1999 receive 2% per year of service (max 60%)

• Allow eligible rollover distributions to be transferred directly to other retirement plans and permit refunds of accumulated contributions to terminated members, subject to four-year timeframe and Internal Revenue Code compliance requirements