MO HB305

Establishes the "2011 State Employee Retirement Incentive Program" providing eligible state employees a "years of service incentive benefit" of $1,000 per year of creditable service, up to a maximum of $20,000 for 20 years of service.

Eligible employees must have at least 10 years of creditable service, terminate employment after December 31, 2010, reach normal retirement eligibility, and begin receiving annuity payments between January 1, 2011 and December 1, 2011.

Incentive benefit payments are made in five equal annual installments beginning January 2012 and continuing each January thereafter through the Office of Administration.

Departments may hire replacement employees but can only use up to 50% of personal service funds from vacated positions, except for entirely federally funded positions.

Employees retiring under this program are prohibited from future employment with any state department, and the Office of Administration must report on program participation, costs, and staffing impacts by December 31, 2011 and annually for four years thereafter.