All Roll Calls
Yes: 484 • No: 13
MissouriHB1472025 Regular SessionHouseWALLET
Relating to retirement
Sponsored By: Barry Hovis (Republican)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
18 provisions identified: 6 benefits, 3 costs, 9 mixed.
Local workers gain broader pension access
Covered local government workers can join the retirement system even when working through retirement leaves them short of minimum service years. Membership alone does not guarantee a retirement payment. Specified disability pensions also lose the restriction imposed by section 70.685. Those disability payments remain subject to section 70.680(5), and the law states no new payment amount.
Sheriff retirement contributions receive tax protection
For members on or after January 1, 2024, counties must pick up sheriff retirement contributions equal to 5% of pay. These payroll amounts count as employer contributions for federal income tax purposes. The deduction does not lower the pay used to calculate benefits. The law also removes required proportional benefit cuts when the Sheriffs’ Retirement Fund lacks money. It does not specify a replacement shortfall rule or guarantee full payment.
Covered public workers face service limits
Employees covered by the mandatory-separation provision must leave at age 65 or 35 years of credited service, whichever comes later. Separation occurs on the last day of that month. A separate rule bars covered police reserve members from serving after the month they turn 65. These rules apply only to the employees and reserve forces covered by the respective provisions.
Retiree payment caps lose yearly adjustments
The law ends the October 1 yearly adjustment of the maximum retirement allowance under section 70.685. Covered yearly allowance adjustments also switch from the wage-earner price index to a Labor Department index adopted by the board. Existing adjustment limits remain. The effect on a retiree’s check depends on the adopted index and whether the maximum applies.
Court users lose three-dollar retirement surcharge
The law ends the $3 sheriff retirement surcharge on covered civil and criminal cases, including specified traffic and infraction cases. People whose cases previously carried the surcharge no longer pay it. The former charge already excluded waived or government-paid costs and dismissed criminal proceedings or defendants. Its county-ordinance coverage also excluded City of St. Louis ordinances.
Former workers get longer contribution claims
Former members or their legal representatives have 10 years, rather than three, to claim unclaimed retirement contributions before transfer. This applies when no retirement allowance is payable or expected on the account. After 10 years, the money transfers to the income-expense fund. A later proper claim must still be paid, without interest after the original payment due date.
Charter schools gain pension board seats
The covered public school retirement board grows from 11 to 13 trustees. The Missouri Public Charter School Association appoints two trustees with relevant qualifications or experience. At least one must be a teacher. Regular terms last four years; the first terms end two and four years after election, respectively.
Firefighter pension boards can share management
The firefighters’ retirement board can also manage another pension plan for firefighters employed by a city not within a county. The other plan can cover retirement, disability, and death benefits for firefighters and covered dependents. The board can invest the plans’ money together but must track each plan’s money, gains, and losses separately. The other plan must pay its own benefits and expenses.
Pension investment discussions can stay private
Retirement boards can discuss and decide investment matters privately when disclosure threatens a decision or investment goal. Related records stay private only to the extent, and for as long as, that risk continues. Investment fiduciaries can also close records containing submitted information about investments or financial transactions with businesses. These rules limit public access to covered investment information.
Sheriff service surcharges fund local operations
Covered court-paper service carries an added $20 charge in first-, second-, and fourth-class counties and charter counties. The added charge is $15 in third-class counties, but no service charge applies when government pays the service costs. Surcharges support deputy salaries and sheriff retirement; all goes to deputy salaries when the sheriff does not participate. Counties can retain up to $75,000 yearly in covered service-charge revenue for sheriff use, up from $50,000. Revenue above that ceiling goes to county general revenue.
Police pensions count some pay differently
Covered police pension calculations include salary based on rank or position. They also include qualifying academic-work and shift-differential pay authorized by a state or municipal body or official. Specified extra compensation does not count. Judgments or settlements intended to repay claimed rank-based salary differences also do not count.
Pension divestment officials gain liability protection
Covered governments, retirement boards, and workers receive civil-liability protection for acts or omissions tied to removing restricted investments. Boards and systems are exempt from conflicting legal duties when complying with the divestment law. The retirement system must cover specified defense losses and expenses for covered people facing claims over authorized actions. Covered expenses include reasonable attorney fees.
County jail payments support sheriff pensions
Beginning January 1, 2026, the Department of Corrections redirects $1.75 per prisoner per day from covered county jail reimbursements. The money goes to the Sheriffs’ Retirement Fund only for counties with participating sheriffs. The amount drops to $1 when the fund is at least 90% funded and exceeds actuarial needs. Transfers depend on actuarial reporting and reduce the jail reimbursement money counties keep.
Pension funds get restricted-investment exceptions
Private market funds and indirect holdings in actively managed funds are exempt from restricted-investment requirements. When a similar actively managed fund without restricted entities is created, boards must switch applicable holdings on a prudent schedule. Boards must assess stopping or delaying sales and resuming investment when the law’s accounting-standard conditions apply. Another exception covers passive commingled funds when estimated sale costs exceed 10% of the restricted entities’ value in the fund.
Pension investing must prioritize financial interests
Covered pension fiduciaries cannot let environmental, social, or governance goals override their duties to participants. Noneconomic investment mandates must fit those duties or applicable law; mandates to sell indirect fund holdings or private assets are barred. Votes on directly held common stock must serve only participants’ economic interests, not noneconomic goals. Outside managers or proxy services must give the required written commitment to system guidelines or participants’ economic interests.
Public pensions must sell restricted investments
After August 28, 2025, covered public pensions cannot knowingly buy restricted entities or investment products. Existing holdings must be sold as soon as financially prudent, by August 28, 2026. Boards can extend to August 28, 2028, for transaction costs above $500,000, secondary-market losses on global public equity, or legal conflicts. Before a commingled-fund sale at a loss, staff must notify trustees. A majority objection within two business days pauses the sale until a board meeting.
Retirement boards gain broader investment choices
The law removes a 10% ceiling on covered retirement investments in improved real estate, real estate funds, and trusts. It also removes the board’s requirement that a delegated investment counselor be registered with the Securities and Exchange Commission. The local government retirement board can create a pooled investment account with specified related plans. Each plan’s money must remain separately accounted for and separately reported. These powers do not guarantee returns or change benefit formulas.
School pension employer rates rise again
For the covered education retirement system, employers pay contributions based on members’ total compensation. The rate fell from 16% in 2018 by 0.5 percentage point yearly, reaching 12.5% in 2025. Beginning in 2026, the rate is 14% each year. This raises employer payments from the 2025 level while adding money to the retirement system.
Sponsors & Cosponsors
Sponsor
Barry Hovis
Republican • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 5/8/2025
Truly Agreed To and Finally Passed
Yes: 134 • No: 4
House vote • 5/8/2025
Reported Do Pass
Yes: 7 • No: 1
House vote • 5/8/2025
House Adopts - SS#2
Yes: 133 • No: 4
Senate vote • 5/6/2025
Third Read and Passed
Yes: 32 • No: 1
House vote • 4/2/2025
Third Read and Passed
Yes: 147 • No: 1 • Other: 3
House vote • 4/1/2025
Reported Do Pass
Yes: 5 • No: 2
House vote • 2/27/2025
Reported Do Pass
Yes: 10 • No: 0
House vote • 2/10/2025
Reported Do Pass
Yes: 16 • No: 0
Actions Timeline
Delivered to Secretary of State (G)
7/14/2025HouseApproved by Governor (G)
7/14/2025HouseDelivered to Governor
5/30/2025HouseSigned by President Pro Tem
5/30/2025SenateSigned by House Speaker
5/29/2025HouseHouse Message
5/8/2025HouseTruly Agreed To and Finally Passed - AYES: 134 NOES: 4 PRESENT: 0
5/8/2025HouseHouse Adopts - SS#2 AYES: 133 NOES: 4 PRESENT: 0
5/8/2025HouseTaken Up
5/8/2025HouseReported Do Pass - AYES: 7 NOES: 1 PRESENT: 0
5/8/2025HouseVoted Do Pass
5/8/2025HouseExecutive Session Completed
5/8/2025HouseReferred: Fiscal Review
5/7/2025HouseReported to the House with... - SS#2 SCS
5/7/2025HouseThird Read and Passed - AYES: 32 NOES: 1 PRESENT: 0
5/6/2025SenateSS#2 Adopted
5/6/2025SenateSS#2 Offered
5/6/2025SenateSS Withdrawn
5/6/2025SenateTaken Up
5/6/2025SenatePlaced on Informal Calendar - SA 1, SA 2, SA 3, SA 4, adopted, SA 6 and SS SCS, as amended, pending
5/5/2025SenateSS Offered
5/5/2025SenateTaken Up for Third Reading
5/5/2025SenateReported Do Pass
5/5/2025SenateVoted Do Pass
5/1/2025SenateExecutive Session Held
5/1/2025Senate
Bill Text
Truly Agreed
5/8/2025
Perfected
3/26/2025
Committee Substitute
2/10/2025
Senate Substitute
2/10/2025
Introduced
1/8/2025
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