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HB 2198

Modifies provisions relating to lump sum payment options for certain public employee retirement benefit plans

2026 Regular Session

Eligible Year 2000 MOSERS members who work at least two years beyond normal retirement can elect a one-time lump-sum payment (90% of the would-be annuity) in lieu of a lifetime ann

Referred: Emerging Issues(H)
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Bill Summary · HB 2198

Purpose and overall intent

HB 2198 proposes changes to Missouri’s Year 2000 MOSERS retirement plan by creating and governing a lump-sum payment option for eligible members. Specifically, it repeals and reenacts Section 104.1091 to allow an eligible member who continues employment for at least two years beyond normal retirement eligibility to elect a lump-sum payment in lieu of a lifetime annuity. The bill sets out detailed eligibility criteria, election procedures, and how the lump-sum amount and related benefits are calculated and distributed.

Key provisions and changes

  • Repeal and reenactment of Section 104.1091 to implement the lump-sum option.
  • Eligibility for lump-sum election:
    • An employee who remains employed for at least two years beyond normal retirement eligibility may elect the lump-sum option.
    • The bill specifies retroactive starting dates and rules for determining the accompanying annuity amounts and the lump-sum payment, including timeframes for when the lump-sum is paid.
  • Calculation and timing of payments:
    • The lump-sum payment is set at 90% of the annuity amounts that would have been payable from the retroactive starting date to the annuity starting date had the member actually retired on the retroactive date and begun a life annuity.
    • The member receives the lump-sum in full at the same time as the initial annuity payment would have been made.
    • For determining annual benefit increases for the lump-sum/annuity, the retroactive starting date is treated as the retirement date.
  • Administrative alignment:
    • The bill integrates this lump-sum option with the existing 104.1024 and 104.1090 framework, including procedures for retroactive starting dates, annuity calculations, and timing.
  • Additional retirement framework context:
    • The measure operates within the broader Year 2000 plan, including existing provisions for normal and early retirement, temporary annuities, and survivor benefits, and preserves applicable sections related to benefit administration, cost-of-living adjustments, and minimum service requirements.
    • The bill retains the option structure for other MOSERS retirement choices, ensuring consistency with how benefits are administered under the Year 2000 plan.

Who would be affected

  • MOSERS members covered under the Year 2000 plan who:
    • continue working at least two years beyond their normal retirement eligibility, and
    • are interested in electing a lump-sum payment in lieu of a lifetime annuity.
  • Employers (Missouri state and participating employers) that fund MOSERS, as the provisions include employer-paid “picked up” contributions and the mechanics of funding and administering lump-sum elections.

Procedural and timeline aspects

  • Effective timing: The bill references actions and elections tied to retirement events, including retroactive starting dates and the synchronization of lump-sum payments with initial annuity payments.
  • Election process: Members must elect the lump-sum option within the framework established for retroactive starting dates and corresponding annuity calculations, with the lump-sum paid when the initial annuity would have started.
  • Amendments to the statute: The bill repeals and replaces Section 104.1091, creating a new section with the same numbering but updated provisions specific to lump-sum elections.

Summary takeaway

HB 2198 adds a new retirement choice for eligible Year 2000 MOSERS members: after two additional years of service beyond normal retirement age, they can opt for a one-time lump-sum payment in place of a lifetime annuity, with a defined calculation (90% of the would-be annuity) and synchronized timing. The bill provides detailed rules for eligibility, timing, funding implications, and how benefits are calculated for this option, while maintaining compatibility with the broader MOSERS governance and benefit structures.

Compiled from official sources — confirm details with the bill’s official record.

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