Governor Signs Legislation Restoring 2.55% Benefit Factor, Increasing Working After Retirement Limits

Provisions Become Law Effective August 28, 2023

On July 6, 2023, Governor Mike Parson signed legislation that restores the 2.55% benefit factor for PSRS members and increases working after retirement limits for PSRS retirees working in non-certificated positions, among other changes.

Senate Bill 75 (HCS/SS/SB 75) and Senate Bill 20 (CCS/SB 20) contain several provisions, listed below, which take effect August 28, 2023. 

• Restore the 2.55% benefit factor for PSRS members who have 32 or more years of service at retirement 
• Increase the salary limit for PSRS retirees working in non-certificated positions to 133% of the annual Social Security earnings limit from August 28, 2023 to June 30, 2028, and then to 100% of the annual Social Security earnings limit thereafter
• Modify the Critical Shortage Employment provision to expand the allowed lifetime limit on time worked from two years (24 months) to four years (48 months) and increase the potential number of Critical Shortage positions available for PSRS retirees who are teaching
• Allow certain retirees who nominated a same-sex domestic partner as beneficiary for lifetime monthly benefits under a Joint-and-Survivor 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

"This legislation will have a positive impact for our members, retirees and partner-employers," said PSRS/PEERS Executive Director Dearld Snider. "We are pleased that these changes will become law in August."