MO SB476

Board of trustees must establish a defined contribution plan by July 1, 2014, intended to qualify as a profit-sharing plan under Internal Revenue Code section 401(a), with individual accounts and immediate vesting for participating employees.

Annual contribution rates set at 7.5% of compensation from both employees and employers, with compensation defined similarly to existing retirement system definitions.

Board must select third-party administrators, hold plan assets in trust, select trust investments, and allow participants to direct their individual account investments among available options if the board deems appropriate.

Board and system employees are immune from liability for investment decisions made by participating employees, provided the board acts with skill and prudence in selecting and monitoring investment product providers.

Employees first hired on or after July 1, 2014, must participate in the defined contribution plan and will not accrue creditable service in the traditional retirement system.