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, 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.

For More Information

You can find more information regarding 25-and-Out for PSRS Members, 25-and-Out for PEERS Members, and the PSRS 2.55% Benefit Factor on this website.

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