Bill > SB1597

This bill modifies rules for local government retirees who return to work for the same local government that is paying their retirement allowance, specifically for cities with fewer than 25,000 inhabitants, and this change will take effect no earlier than July 1, 2027, after compliance with another section of law. Under the new provisions, these retirees can continue to receive their retirement allowance while working, provided they do not contribute to the retirement system for their reemployment earnings and do not earn additional service credit. The hiring city will be responsible for the employer's contribution to the system, and the retiree's salary must be commensurate with their experience and education level, either based on the city's salary schedule or an approved salary set by the retirement system's board, with the possibility of reducing the salary by the amount of the member's contribution rate. The bill also clarifies that retirees working for a different political subdivision than the one they retired from will continue to receive their retirement allowance without penalty, and generally, any retiree returning to work for a participating political subdivision will be considered a reemployed member who must contribute to the system and serve at least one continuous year before receiving any additional retirement allowance based on their reemployment service and compensation.

Government Affairs

https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=2581463