Legislation Making 25-and-Out Provision Permanent; Extending PSRS 2.55% Benefit Factor Passes and Awaits Governor's Approval
Both Provisions Would Become Effective August 28, 2013May 20, 2013
The 97th Regular Session of the Missouri Legislature officially ended Friday, May 17, at 6 p.m. On the final day, legislation was approved making the 25-and-Out early retirement provision a permanent retirement option for members of the Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS). The same bill also extends the availability of the PSRS 2.55% benefit factor for 31 or more years of service through July 1, 2014.
CCS HCS SCS Senate Bill 17 passed both the Missouri House and Senate, and was sent to the governor, who can sign legislation into law any time through July 14, 2013. The governor has the option to veto the bill. If he takes no action on the bill, it still becomes law. It has an effective date of August 28, 2013.
How This Affects Members
Under current law, the 25-and-Out retirement provision for PSRS and PEERS members and the 2.55% benefit factor for PSRS members are available through July 1, 2013, and then expire.
If this legislation becomes law, the provisions will become effective on August 28, 2013 and available to members retiring on or after September 1, 2013. The 25-and-Out provision becomes permanent with no expiration date, and the PSRS 2.55% benefit factor remains in effect through July 1, 2014.
- Neither of these provisions will be available to members retiring effective August 1, 2013.
- Qualified PSRS and PEERS members with effective retirement dates on or after September 1, 2013 can retire using the 25-and-Out early retirement provision.
- PSRS members with 31 or more years of service at retirement who retire effective September 1, 2013 through July 1, 2014 will have their benefits calculated using the 2.55% benefit factor.
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