Bill > HB406

This bill modifies provisions related to the public school retirement system for teachers in Missouri, introducing several key changes. The bill updates definitions within the retirement system, including new terms like "funded ratio" and "total actuarially required contribution", and adjusts contribution rates for both employees and employers. For members hired before January 1, 2018, employee contribution rates will gradually increase from 5% to 9%, while for members hired on or after that date, the contribution rate starts at 9%. The bill also establishes a more dynamic employer contribution rate system that will fluctuate based on the retirement system's funded ratio and total actuarially required contribution rate, with rates ranging between 14% and adjusting annually based on complex actuarial calculations. The goal appears to be creating a more flexible and financially sustainable retirement system by linking contribution rates to the system's financial health, with provisions to prevent sudden large increases or decreases in contribution rates. The bill applies to teachers, school administrators, and other public school employees in Missouri's school districts and charter schools.

https://house.mo.gov/Bill.aspx?bill=HB406&year=2025&code=R