2023 Legislative Session Ends: Multiple Provisions Sent to the Governor’s Desk that Impact PSRS/PEERS

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May 16, 2023

During the 2023 Missouri legislative session that began Wednesday January 4, 2023, the General Assembly introduced more than 2,300 bills. PSRS/PEERS closely monitored over 250 of those bills and completed more than 45 fiscal impact requests. The session ended on Friday May 12, with no legislation that could negatively impact PSRS/PEERS passing. Two bills containing provisions that positively impact PSRS/PEERS and its membership, Senate Bill 75 (HCS SS SB 75) and Senate Bill 20 (CCS SB 20), were passed by the General Assembly and sent to the governor’s desk.

These provisions include:

Reinstatement of a 2.55% benefit factor for PSRS members who retire with 32 or more years of service. Currently, the benefit factor is 2.5%. This provision would result in higher benefit amounts for new retirees who qualify.
Expansion of the Critical Shortage Employment time period limit from two years (24 months) to four years (48 months).
Expansion of the potential number of Critical Shortage Employment positions a school district can hire for certificated teaching positions.
An increase in the salary limit for PSRS retirees working in non-certificated positions. The salary limit for PSRS retirees working in non-certificated positions would change to 133% of the annual Social Security earnings limit for individuals who are under full retirement age from August 28, 2023 through June 30, 2028. The limit would then change again to 100% of the annual Social Security earnings limit for individuals who are under full retirement age thereafter.
A same-sex “pop-up” that would allow certain retirees who nominated a same-sex domestic partner as beneficiary for lifetime monthly benefits under a Joint-and-Survivor benefit plan or as a beneficiary under a Term-Certain benefit plan to have their monthly retirement benefit “pop-up” to the amount they would have received if they had not elected to receive reduced monthly benefits.

As of the publication date of this newsletter, the governor has not yet acted upon the bills mentioned above. The governor has until July 14 to act upon legislation. The provisions described above will become effective August 28, 2023 unless the governor vetoes them.