MO SB842

Freezes employee and employer contribution rates at 2011-2012 levels for both the Public School Retirement System and Public Education Employee Retirement System beginning in 2012-2013 school year until systems achieve 100% funded ratio.

Modifies actuarial valuation methods to amortize unfunded liabilities over 30-year periods beginning July 1, 2011, with decreasing amortization schedules, and suspends use of actuarial valuations for rate-setting while contribution rates remain at or above 2011-2012 levels.

Changes cost-of-living adjustment provisions to guarantee minimum 2% annual increases to retired members and beneficiaries until systems reach 100% funded ratio, replacing previous variable increase formulas.

Limits annual contribution rate increases to 0.5% for Public School Retirement System and 0.25% for Public Education Employee Retirement System over prior fiscal year.

Declares the act an emergency measure effective July 1, 2012, citing importance of maintaining long-term viability of both retirement systems.