2012 Legislative Session
Missouri's 2012 Legislative Session officially began on January 4. Each year, we closely monitor and track proposed legislation that, if passed, may impact active or retired PSRS/PEERS members.
Of particular concern this session is Senate Bill (SB) 842. This proposed legislation was introduced by Senator John Lamping (R-24), and was heard in the Senate Veterans' Affairs, Emerging Issues, Pensions, and Urban Issues Committee (Senator Jason Crowell, Chairman) on March 8. SB 842 would enact into law several provisions from the Funding Stabilization Policy passed by the PSRS/PEERS Board of Trustees in August 2011. The Board of Trustees went on record respectfully opposing the current drafting of SB 842.
Passage of SB 842 as written would be detrimental to the Board's ability to carry out their fiduciary duty to adequately fund PSRS/PEERS. It would undermine the Board's flexibility to adopt policies to help the Systems remain adequately funded, and take away their ability to follow the recommendation of an independent actuary to establish and set contribution rates and retiree Cost-of-Living Adjustments (COLAs). SB 842 would severely restrict the Board's ability to effectively ensure that the Systems remain financially stable, strong and secure for our current and future generations of Missouri's teachers and education employees.
"Setting the contribution rate and the COLA are fundamental, key decisions made by the Board," said Dr. Aaron Zalis, PSRS/PEERS Board Chair. "While recent actions by the Board stabilized both the contribution rate and COLA by policy, they still allow the Board the flexibility to make adjustments based upon our actuaries' recommendations in future years. To circumvent that process would impede our ability as a Board to act in the best interest of our 240,000 active and retired members."
You can follow this and other retirement-related bills on our website. Just click on "Legislation." Members can sign up to receive email updates on legislation and get information from our online legislative tracker.