Spring 2025 Legislative Update

This week is spring break for the Missouri Legislature. State legislators have filed more than 2,300 bills and resolutions since this session began on Wednesday, January 8, 2025. To become law, a bill must pass through the Missouri House and Senate before it goes to the governor for his signature. Governor Kehoe has until July 14, 2025, to act upon legislation.

PSRS/PEERS is tracking more than 60 bills, including bills that would change limits on working after retirement, address the Systems’ investment policy and add a new PSRS benefit factor. Following is an overview of how these bills could potentially impact the Systems and our members:

Investment Policy

Both the House and Senate have bills that would put into law investment proxy voting policies and further clarify the fiduciary duties of pension systems and their trustees. The language in these bills is consistent with the Systems’ current investment policies.

We are monitoring  all legislation that could change the investment policies of public pension plans in Missouri.

Working After Retirement

Eight bills would extend the expiration date on the current waiver on working-after-retirement limits. This waiver is specific to PSRS/PEERS retirees working as substitute teachers either part-time or as temporary substitutes for either covered employers or third-party providers. Under current law, the waiver expires on June 30, 2025. Each of these eight pieces of legislation would extend the expiration date five years to June 30, 2030.

Another bill in the House would increase the number of non-certificated Critical Shortage Employment positions permitted at a school district. This increase would allow districts to employ at least five retired non-certificated employees each year, if the school district meets statutory requirements for declaring a critical shortage.

Benefit Factors

Lastly, a Senate bill would increase the current normal (full) retirement benefit factor for PSRS members with 33 or more years of service at retirement from 2.55% to 2.6%.

At the time of this post, none of these bills has passed out of both chambers to become law. The status of these bills can change daily. PSRS/PEERS will share any developments that may impact the Retirement Systems or our members on this website, as well as in member newsletters and via email.

The legislative session ends on Friday, May 16, 2025.