Effective - 28 Aug 2015, 3 histories
86.1270. Retirement plan deemed qualified plan under federal law — board to administer plan as a qualified plan — vesting of benefits — distributions. — 1. A retirement plan under sections 86.900 to 86.1280 is a qualified plan under the provisions of applicable federal law. The benefits and conditions of a retirement plan under sections 86.900 to 86.1280 shall always be adjusted to ensure that the tax-exempt status is maintained.
2. The retirement board shall administer the retirement system in a manner as to retain at all times qualified status under Section 401(a) of the Internal Revenue Code.
3. The retirement board shall hold in trust the assets of the retirement system for the exclusive benefit of the members and their beneficiaries and for defraying reasonable administrative expenses of the system. No part of such assets shall, at any time prior to the satisfaction of all liabilities with respect to members and their beneficiaries, be used for or diverted to any purpose other than such exclusive benefit or to any purpose inconsistent with sections 86.900 to 86.1280.
4. A member's benefit shall be one hundred percent vested and nonforfeitable upon the member's attainment of normal retirement age, which shall be the earlier of:
(1) Completion of twenty-five years of service for Tier I members and twenty-seven years of service for Tier II members;
(2) Age sixty for any Tier I member who has completed at least ten years of creditable service or age sixty for any Tier II member who has completed at least fifteen years of creditable service;
(3) Age seventy without regard to years of service; or
(4) To the extent funded, upon the termination of the system established under sections 86.900 to 86.1280 or any partial termination which affects the members or any complete discontinuance of contributions by the city to the system.
Amounts representing forfeited nonvested benefits of terminated members shall not be used to increase benefits payable from the system but may be used to reduce contributions for future plan years.
5. Distribution of benefits shall begin not later than April first of the year following the later of the calendar year during which the member becomes seventy and one-half years of age or the calendar year in which the member retires, and shall otherwise conform to Section 401(a)(9) of the Internal Revenue Code.
6. A member or beneficiary of a member shall not accrue a service retirement annuity, disability retirement annuity, death benefit, whether death occurs in the line of duty or otherwise, or any other benefit under sections 86.900 to 86.1280 in excess of the benefit limits applicable to the fund under Section 415 of the Internal Revenue Code. The retirement board shall reduce the amount of any benefit that exceeds those limits by the amount of the excess. If the total benefits under the retirement system and the benefits and contributions to which any member is entitled under any other qualified plan or plans maintained by the board of police commissioners that employs the member would otherwise exceed the applicable limits under Section 415 of the Internal Revenue Code, the benefits the member would otherwise receive from the retirement system shall be reduced to the extent necessary to enable the benefits to comply with Section 415 of the Internal Revenue Code.
7. The total salary taken into account for any purpose for any member of the retirement system shall not exceed two hundred thousand dollars per year, subject to periodic adjustments in accordance with guidelines provided by the United States Secretary of the Treasury, and shall not exceed such other limits as may be applicable at any given time under Section 401(a)(17) of the Internal Revenue Code.
8. If the amount of any benefit is to be determined on the basis of actuarial assumptions that are not otherwise specifically set forth for that purpose in sections 86.900 to 86.1280, the actuarial assumptions to be used are those earnings and mortality assumptions being used on the date of the determination by the retirement system's actuary and approved by the retirement board. The actuarial assumptions being used at any particular time shall be attached as an addendum to a copy of the retirement system's statute that is maintained by the retirement board and shall be treated for all purposes as a part of sections 86.900 to 86.1280. The actuarial assumptions may be changed by the retirement system's actuary annually if approved by the retirement board, but a change in actuarial assumptions shall not result in any decrease in benefits accrued as of the effective date of the change.
9. Any member or beneficiary who is entitled to receive any distribution that is an eligible rollover distribution, as defined by Section 402(c)(4) of the Internal Revenue Code, is entitled to have that distribution transferred directly to another eligible retirement plan of the member's or beneficiary's choice upon providing direction to the secretary of this retirement system regarding the transfer in accordance with procedures established by the retirement board. Effective for distributions made on or after January 1, 2010, a nonspouse beneficiary may elect to directly roll over an eligible rollover distribution to an individual retirement account under Section 408(a) of the Internal Revenue Code of 1986, as amended; to an individual retirement annuity under Section 408(b) of the Internal Revenue Code of 1986, as amended; or if the participant satisfies the requirements for making a Roth contribution under Section 408(A)(c)(3)(B) of the Internal Revenue Code of 1986, as amended, to a Roth individual retirement account.
10. For all distributions made after December 31, 2001:
(1) For the purposes of subsection 9 of this section, an eligible retirement plan shall also mean an annuity contract described in Section 403(b) of the Internal Revenue Code and an eligible plan under Section 457(b) of the Internal Revenue Code which is maintained by the state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from the retirement system. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Internal Revenue Code; and
(2) For purposes of subsection 9 of this section, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includable in gross income. However, such portion may be paid only to an individual retirement account or annuity described in Section 408(a) or 408(b) of the Internal Revenue Code, or to a qualified defined contribution plan described in Section 401(a) or 403(a) of the Internal Revenue Code that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution that is includable in gross income and the portion of such distribution that is not so includable.
--------
(L. 2005 H.B. 323, A.L. 2013 H.B. 116 merged with H.B. 418, A.L. 2015 H.B. 515)
Structure Missouri Revised Statutes
Title VII - Cities, Towns and Villages
Chapter 86 - Police Relief and Pension Systems
Section 86.017 - Membership regulations.
Section 86.020 - Service creditable.
Section 86.023 - Administration.
Section 86.027 - Vacancy, how filled — trustees to serve without compensation.
Section 86.033 - Voting — quorum.
Section 86.037 - Board to have exclusive original jurisdiction — judicial review.
Section 86.040 - Chairman, secretary, actuaries.
Section 86.043 - Data and records of the board.
Section 86.047 - Legal adviser and medical board — duties.
Section 86.050 - Actuary — duties.
Section 86.053 - Regular actuarial investigation.
Section 86.057 - Annual valuation of assets and liabilities.
Section 86.060 - Service retirement benefit.
Section 86.067 - Ordinary disability retirement benefit.
Section 86.070 - Allowance on ordinary disability retirement.
Section 86.073 - Accidental disability retirement.
Section 86.077 - Allowance on accidental disability retirement.
Section 86.080 - Reexamination of beneficiaries retired on account of disability.
Section 86.083 - Pension to be reduced, when.
Section 86.087 - Retirement allowance to cease, when.
Section 86.090 - Ordinary death benefit.
Section 86.093 - Accidental death benefit.
Section 86.097 - Return of accumulated contributions.
Section 86.100 - Optional allowances.
Section 86.103 - Pensions offset by compensation benefits.
Section 86.107 - Trustees to manage funds.
Section 86.110 - Interest on funds.
Section 86.113 - Treasurer of city to be custodian of funds — vouchers.
Section 86.117 - Ten percent of fund may be in available cash — how kept.
Section 86.120 - Trustees and employees not to be interested personally in investments.
Section 86.123 - Method of financing.
Section 86.127 - Annuity savings fund.
Section 86.130 - Rates of contribution.
Section 86.133 - Proportionate amount to be deducted from each payroll.
Section 86.137 - Factors in determining deductions.
Section 86.140 - Members deemed to consent to deductions — payable into annuity savings fund.
Section 86.143 - Additional contributions.
Section 86.147 - Annuity reserve fund.
Section 86.150 - Pension accumulation fund.
Section 86.153 - Contributions to and payments from such fund.
Section 86.157 - Actuary to determine normal contribution rate.
Section 86.160 - Accrued liability contribution rate.
Section 86.163 - Amount payable to pension accumulation fund.
Section 86.167 - Accrued liability contribution discontinued, when.
Section 86.170 - Pensions and benefits payable from pension accumulation fund — exceptions.
Section 86.173 - Sum transferred to reserve fund, when.
Section 86.177 - Pension reserve fund.
Section 86.180 - Expense fund.
Section 86.183 - Contributions by city.
Section 86.190 - Exemption from tax and execution.
Section 86.193 - Correction of errors in benefits, adjustments.
Section 86.203 - Establishment of system — name — effective date.
Section 86.210 - Service creditable.
Section 86.213 - Board of trustees to administer — members of board, selection — terms.
Section 86.217 - Vacancy on board, how filled — trustees to receive expenses.
Section 86.220 - Oath of trustees.
Section 86.223 - Quorum, number of trustees constituting — majority vote required, when.
Section 86.227 - Jurisdiction of board — decisions subject to judicial review.
Section 86.230 - Officers, selection — actuaries and employees, appointment, compensation.
Section 86.233 - Records of board — annual report.
Section 86.237 - Legal adviser — medical board — duties.
Section 86.240 - Actuary, duties.
Section 86.247 - Annual valuation of assets and liabilities.
Section 86.248 - Assets of fund retained for benefit of members.
Section 86.270 - Investigation and examination of applicants for disability benefits.
Section 86.277 - Disability allowance ceases on return to service — status as member.
Section 86.280 - Death benefit — dependents' allowances.
Section 86.287 - Accidental death benefit — dependents' allowances.
Section 86.288 - Contributions paid to surviving spouses, when.
Section 86.290 - Accumulated contributions refunded, when.
Section 86.292 - Accumulated contributions to remain system assets, when.
Section 86.293 - Disposition of difference between benefits paid and accumulated contributions.
Section 86.294 - Contributions to be accepted after January 1, 2002, limitations.
Section 86.295 - Death while performing qualified military service, benefit distribution, to whom.
Section 86.296 - Trustee to trustee transfers to be accepted after January 1, 2002.
Section 86.297 - Workers' compensation or other benefits offset against allowances.
Section 86.300 - Trustees to manage funds.
Section 86.303 - Interest on members' accounts.
Section 86.307 - Treasurer, custodian of assets — payments from, made how.
Section 86.310 - Ten percent may be kept in cash — maximum per depository.
Section 86.313 - Trustees and employees not to have direct interest in investments.
Section 86.320 - Contributions, rate of — deduction from compensation.
Section 86.330 - Normal rate of contribution, how determined.
Section 86.333 - Accrued liability contribution rate defined — calculated, when.
Section 86.337 - Amount payable to general reserve fund — city's contribution.
Section 86.340 - Accrued liability contribution discontinued, when.
Section 86.343 - Annual expenses — city, board each provide one-half — board, duties.
Section 86.350 - City obligated to pay cost of benefits and one-half of expenses.
Section 86.354 - Benefit vested and nonforfeitable, when — forfeitures, use of.
Section 86.357 - Fraud in obtaining benefits, a misdemeanor — adjustment of errors.
Section 86.359 - Retroactive payments to be lump sum with interest, rate.
Section 86.364 - Certain sections to terminate, when.
Section 86.500 - Police may form relief associations.
Section 86.503 - Fund, how created.
Section 86.511 - Pensions to be paid monthly.
Section 86.513 - First class cities may provide pension fund for police department.
Section 86.517 - Board of trustees of policemen's pension fund.
Section 86.520 - Board to have exclusive control and management of funds.
Section 86.523 - Refund of contributions, when — exceptions.
Section 86.527 - Board's decision on applications for relief or pension to be final.
Section 86.530 - Rewards, fees, gifts, shall be paid into pension fund.
Section 86.533 - Trustees may invest funds in certain bonds.
Section 86.537 - Trustees shall pay disabled members from pension fund, when.
Section 86.543 - Pension shall be paid after twenty years of service in certain cases.
Section 86.547 - Widow eligible for payments, when.
Section 86.549 - Special consultants, eligibility, compensation for.
Section 86.550 - Persons ineligible for membership.
Section 86.553 - Payments prorated if money insufficient for full payment.
Section 86.557 - Funeral expenses, when, amount.
Section 86.560 - Payments from pension fund by warrants only.
Section 86.563 - Payments from fund not to be diverted.
Section 86.567 - Pensioners may be recalled to duty in an emergency.
Section 86.570 - Pension may be terminated, when.
Section 86.573 - Books and accounts subject to inspection.
Section 86.577 - Annual report of pension fund.
Section 86.584 - Contributing members of retirement system to be represented on board of trustees.
Section 86.590 - Board of trustees authorized to invest funds, how.
Section 86.810 - Hancock provision to void sections.
Section 86.920 - Retirement board established, responsibility for operation of retirement system.
Section 86.930 - Membership of the board — election procedures — vacancies — oath.
Section 86.940 - Voting rights of board members.
Section 86.950 - Board to establish policies — officers and employees.
Section 86.951 - Board deemed a state agency — rulemaking authority.
Section 86.970 - Compensation of board members.
Section 86.980 - Board members in active police service, leave to attend educational seminars.
Section 86.990 - Board to certify amount to be paid by city, when.
Section 86.1010 - Members' retirement contributions, amount, how determined.
Section 86.1020 - Board to act as trustee of certain funds — powers of the board.
Section 86.1050 - Criminal liability not limited by retirement system laws — correction of errors.
Section 86.1060 - Board may sue and be sued — service of process, procedure.
Section 86.1070 - Findings of the board — review.
Section 86.1100 - Creditable service, board to fix and determine by rule.
Section 86.1110 - Military leave of absence, effect of — service credit for military service, when.
Section 86.1130 - Membership, terminated when.
Section 86.1150 - Retirement age — base pension amount.
Section 86.1151 - Tier II members, retire when — benefits, how computed.
Section 86.1160 - Termination of membership prior to death or retirement, effect of.
Section 86.1210 - Partial lump sum option plan distribution authorized.
Section 86.1220 - Cost-of-living adjustments in addition to base pension.
Section 86.1250 - Pensions of children of deceased members.
Section 86.1260 - Pensions of spouse and children of member who died in performance of duty.
Section 86.1280 - Early retirement incentives, effect of.
Section 86.1310 - Definitions.
Section 86.1350 - Voting by board, votes necessary to pass a motion.
Section 86.1390 - Contributions to retirement system by cities, amount.
Section 86.1410 - Board to be trustee of funds — powers and duties.
Section 86.1450 - Board may sue and be sued — service of process, procedure.
Section 86.1460 - Findings of board final and conclusive — judicial review.
Section 86.1470 - Board may purchase liability insurance — indemnification, when.
Section 86.1480 - Who shall be members.
Section 86.1490 - Creditable service, determination of — inclusions and exclusions.
Section 86.1510 - Members entitled to prior creditable service, when.
Section 86.1520 - Duration of membership.
Section 86.1530 - Normal retirement dates.
Section 86.1570 - Offset to workers' compensation payments — member's percentage defined.
Section 86.1590 - Cost-of-living adjustments — base pension defined.
Section 86.1620 - Funeral benefits, amount.
Section 86.1640 - Incentives for early retirement, board to administer and pay.