Showing posts with label SB 1065. Show all posts
Showing posts with label SB 1065. Show all posts

As I understand it Senate Bill 1065 was submitted last year to allow MOSERS members that are at least 48 years old

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As I understand it Senate Bill 1065 was submitted last year to allow MOSERS members that are at least 48 years old and will be eligible for "80 and out" in two years, the opportunity to buy their last two years of service with the state and retire. I understand it did not get voted on last year. Will it be brought up again and will MOSERS support the bill?
The 2007 legislative session will begin in January. Legislators can file bills any time after December 1 and MOSERS’ staff will begin reviewing all legislation at that time. We have no way of predicting whether or not a similar proposal will be offered for consideration again in 2007. MOSERS’ staff would, as required by law and the constitution, provide cost information to the legislature for their use in evaluating the proposal if it is filed in the next legislative session. Very few legislative proposals requiring additional appropriations have passed in recent years. Print Friendly and PDF

In your response to a question about SB1065 (a service credit purchase provision) you stated there would be a substantial cost

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In your response to a question about SB1065 (a service credit purchase provision) you stated there would be a substantial cost to the state if this bill was passed. That got me to wondering what the cost to the state is for BackDROP?
The BackDROP was designed to be a cost-neutral payment option allowing retirees to receive a lump sum payment at retirement in exchange for a reduced ongoing monthly benefit. Retirees electing the BackDROP receive a lump sum payment equal to 90% of the life income annuity the retiree would have received had he or she retired on the BackDROP date. Factors offsetting the cost of the lump sum payment include the 10% that stays with the system and the fact that the system has been earning investment income on 100% of the benefit which was not being paid out while the employee was still working.
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I just discovered SB1065. What is the status of this bill? Is there any chance of it passing?

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I just discovered SB1065. What is the status of this bill? Is there any chance of it passing?
SB 1065 allows for subsidized service purchases just prior to retirement eligibility under the Rule of 80 (where age plus service equals 80). The cost of the purchase would be 10% of the member’s salary at the time of the purchase for each year purchased. This bill was introduced in the Senate on February 16th, and was referred to the Senate Pension, Veteran’s Affairs and General Laws Committee. The bill has not been scheduled for a hearing at this time.
MOSERS does not know if the bill is likely to pass or not. Because the service purchases authorized in the proposed legislation are heavily subsidized by the state, there would be a substantial cost associated with the bill. Print Friendly and PDF

I have 17 months left before I retire. If SB1065 is approved would they prorate the amount of years you would need to purchase.

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I have 17 months left before I retire. If SB1065 is approved would they prorate the amount of years you would need to purchase.
The language in SB 1065 does not specifically state whether purchases could be prorated in any way or not. If the bill is revised in the future, those changes will be available on the General Assembly’s joint bill tracking system, http://www.house.mo.gov/jointsearch/. Print Friendly and PDF