HB 861 - Public School Retirement System of Kansas City

• Establishes new minimum normal retirement age requirements: age 60 or 75 credits (age + service) for members retiring before January 1, 2014, and age 62 or 80 credits for members becoming members on or after January 1, 2014

• Changes the retirement benefit formula for members based on when they last worked: 1.75% of average final compensation for pre-June 30, 1999 retirees; 2% for those active between June 30, 1999 and January 1, 2014; and 1.75% for new members joining after January 1, 2014

• Implements a new actuarial contribution rate system beginning in 2014 to replace fixed rates, with combined employer and member contributions ranging between 7.5% and 9% and limited to annual changes of 0.5%

• Requires the board of trustees to certify new contribution rates to employers at least six months in advance

• Modifies membership definitions to clarify that persons cease to be members upon a break in service before vesting or upon withdrawal of accumulated contributions