2025 Legislative Session Ends: Bills Pass to Extend Working-After-Retirement Waiver, Protect Investment Policies

During the 2025 Missouri legislative session that began Wednesday, January 8, 2025, the General Assembly introduced more than 2,200 pieces of legislation. PSRS/PEERS closely monitored nearly 100 of those pieces of legislation and completed 125 fiscal impact requests.

The session concluded on Thursday, May 15, 2025, a day earlier than the constitutional deadline. It was the first time since 1952 that the Missouri House of Representatives did not work on the final adjournment date. The Missouri Senate concluded its business a day earlier, on Wednesday, May 14, 2025.

Lawmakers sent 66 bills to the governor’s desk, with three pieces of legislation containing PSRS/PEERS priority provisions. No legislation passed that negatively impacts PSRS/PEERS or its members.

Provisions that Passed

The following bills await Governor Kehoe’s action. The governor has until July 14, 2025, to sign or veto legislation that passed this session. If he takes no action on a bill by July 14, the bill becomes law as if he had signed it. 

Substitute Teaching Waiver Extension (HB 296 and SB 68) 

Lawmakers passed two bills that extend the current waiver of post-retirement work limits. The waiver applies to PSRS/PEERS retirees working as substitute teachers. It includes those working for covered employers or through third-party providers.

For working-after-retirement purposes, substitute teaching is defined as, “instructing or guiding the studies of students in a teaching position which requires a DESE-issued certificate, in place of a regularly employed teacher who is temporarily unavailable.” Work by PSRS/PEERS retirees in positions not covered by this waiver still counts toward applicable work limits. Retirees should track non-covered work to avoid the loss of benefits.

If signed by Governor Kehoe, the waiver will remain in effect through June 30, 2030.

This waiver is a win for our members and our school districts," said PSRS/PEERS Executive Director Dearld Snider. "It allows retired teachers to step in where they’re needed most without jeopardizing their benefits, and it helps schools fill urgent substitute teaching gaps. I’m grateful lawmakers recognized the value of this extension and acted to support education and our retirees."

Investment Policy (HB 147) 

The Legislature also passed HB 147. This bill puts investment proxy voting policies into law and clarifies the legal and financial obligations of pension systems and their trustees.

“We’re pleased to say this bill aligns with our current investment policy,” said PSRS/PEERS Chief Investment Officer Craig Husting. “It reinforces our approach to responsible investing and puts into law our guiding principle and No. 1 priority — fulfilling the promises made to our members by protecting their pension benefit.” 

We will post updates about the governor’s action on these bills on our website, www.psrs-peers.org.

Provisions that Did Not Pass

PSRS/PEERS also tracked several pieces of legislation that did not pass, including:  

COLA Cap Lift (HB 329)

This bill would have raised the current statutory COLA cap in years where PSRS/PEERS has a 9.3% or greater investment return. 

2.6% PSRS Benefit Factor (SB 474)

This bill would have established a 2.6% benefit factor for new PSRS retirees with 33 years or more of service. In 2023, a law was passed to reinstate the 2.55% benefit factor for PSRS members who retired with 32 or more years of service.