Labor & Employment (Retirement Benefits)

SB 1597 changes rules for retirees who return to work for their former local government employer. Generally, retirees who rejoin their original employer must forfeit part of their monthly retirement benefit for each month they work. However, it creates an exception for small cities (under 25,000 population): retirees there can keep full retirement benefits while working, provided the salary matches comparable positions and the city covers the retirement contributions instead of the retiree. The bill also clarifies that retirees working for a different employer can keep their full retirement allowance.

HB 2198 modifies retirement benefit rules for certain Missouri public employees hired on or after January 1, 2011. It increases the minimum required credited service for retirement eligibility from five to ten years and establishes new age/service combinations for normal retirement (e.g., age 67 with 10 years or age 55 with combined age/service of 90). The bill requires employees to contribute 4% of pay, but the state employer pays this amount instead of the employee, with contributions tracked separately in individual accounts. It also adds specific rules for refunds of contributions (requiring spouse consent for married members) and prohibits refunds for members eligible for normal retirement. These changes apply to the "Year 2000 Plan" retirement system.

HB 2095 changes how retirement benefits are calculated for public school and education employees in Missouri's Public School Retirement System and Public Education Employee Retirement System. It sets new percentage rates based on years of service, such as 2.5% per year for 5+ years of service but 2.05% per year for those with 25-26 years of service. The bill also offers an alternative payment option for members with 25+ years of service or those aged 55+ with 5+ years of service, allowing reduced monthly payments with a survivor benefit. These changes directly affect current and future retirees in these systems.