Bill > SB456

This bill modifies the employer contribution rate for the Public School Retirement System of the City of St. Louis by adjusting the percentage of total compensation that employers must contribute each year. Specifically, for calendar year 2018, employers will contribute 16% of total member compensation, and this rate will decrease by 0.5% annually until calendar year 2025, when the rate will be 12.5%. In calendar year 2026 and subsequent years, the employer contribution rate will be 14%. The bill also maintains existing provisions about member contributions, including a graduated contribution schedule where members hired before January 1, 2018, will see their contribution rate gradually increase from 5% to 9%, while members hired on or after January 1, 2018, will immediately contribute 9% of their compensation. The bill allows employers to pick up employee contributions for tax purposes and provides rules for how contributions are handled, such as crediting individual member accounts and maintaining an expense and contingency reserve. These changes aim to adjust the financial structure of the retirement system to ensure its long-term sustainability.

Government Affairs

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=26971