Bills Introduced to Re-establish PSRS 2.55% Benefit Factor
Two bills have been introduced in the Missouri Legislature containing language to re-establish the 2.55% benefit formula factor for Public School Retirement System of Missouri (PSRS) members. By law, this provision expired on July 1, 2014.
House Bill (HB) 478, introduced by Representative Paul Fitzwater, and Senate Bill (SB) 219, introduced by Senator Wayne Wallingford, repeal the July 1, 2014 expiration date so that members with 31 years or more of service will have their retirement allowance calculated using a multiplier of 2.55%. SB 219 would become effective July 1, 2015, so members who retire on July 1, 2015 with 31 or more years of service would qualify for the 2.55% formula factor. Currently, HB 478 does not contain an emergency clause so it will go into effect on August 28, 2015.
Please keep in mind that these bills have just been introduced and will still need to be passed and approved by the General Assembly and be signed by the Governor.
As of this time, the PSRS/PEERS Board of Trustees has not taken a position on either of these bills.