Bill > SB1559

This bill transfers the administration of the state employees' deferred compensation fund from the deferred compensation commission to the board of trustees of the Missouri state employees' retirement system, granting them similar powers to manage the fund. It modifies the rules for employee participation, requiring that elections to defer compensation be made before the start of the payroll period for which the compensation is paid, and contributions begin with the payroll period following the election. For employees hired or rehired after July 1, 2012, automatic enrollment in the plan at a one percent contribution is mandated unless they opt out within thirty days, though state college and university employees are exempt from automatic enrollment. Starting July 1, 2027, the plan will include automatic annual increases in employee deferral amounts by half a percent until reaching ten percent of eligible compensation or a federal limit, with specific provisions for those already enrolled and new hires. The bill also clarifies that employees can change their contribution rates, and those who opt out can later choose to participate, while all fund assets are held in trust for participants' benefit and can be pooled for investment management. It further states that administrative costs can be paid from fund assets, and the board and system employees are granted immunity from lawsuits related to past commission actions and investment decisions made by participants, provided they act prudently. Finally, it reinforces that surviving spouses are automatically designated beneficiaries unless a notarized written consent is provided for a non-spouse beneficiary, with specific definitions for "surviving spouse" and exceptions for former spouses under certain legal orders, and allows the board to amend plan documents consistent with federal law.

Government Affairs

https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=872604