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Bill Summary · HB 2782

Overview

House Bill 2782 (2026, Missouri) proposes changes to retirement benefit rules for certain teacher retirement systems, focusing on limitations on benefit enhancements, funding of unfunded liabilities, and a one-time supplemental payment for eligible retirees in the St. Louis Public School Retirement System.

Purpose and intent

  • To regulate how and when retirement plans can add or increase benefits, ensuring actuarial soundness and preserving funded status.
  • To authorize a one-time, non-pivotal supplemental payment for certain retirees, funded by state appropriation, subject to appropriations.
  • To delineate funding sources for retirement systems and limit direct state appropriations to those sources.

Key provisions and changes

  1. Section 105.684 (new language replacing and reorganizing the old provisions)

    • Prohibits adopting or implementing new or increased benefits (including supplements, lump-sum payments, or cost-of-living adjustments) that would raise the plan’s actuarial accrued liability unless:
      • The plan’s funded ratio (based on the most recent valuation) is at least 80% before the change and would not drop below 75% after the change.
      • The exception applies with the possibility of a one-time supplemental payment for certain systems (see 169.542), and the valuation assumptions can be modified if justified.
    • Requires any unfunded actuarial accrued liabilities from such changes to be amortized over no more than 20 years for determining required contributions.
    • Mandates an accelerated contribution schedule for plans with funded ratios below 60%.
    • Specifies that these provisions do not apply to plans established under chapters 70 or 476.
    • Allows plans to maintain qualified status under IRS rules (26 U.S.C. 401(a)).

  2. Section 169.540

    • Establishes that the state shall not directly fund pension benefits except through:
      • General apportionment of school moneys and related mechanisms.
      • Employer contributions for members employed by the Board of Regents (state-funded).
      • State funds appropriated for the one-time supplemental payment described in 169.542.

  3. Section 169.542 (One-time supplemental payment)

    • The Board of Trustees administers and distributes a one-time supplemental payment to a retired member or beneficiary as defined by 169.410.
    • Payment timing: payable no later than September 30, 2027, subject to appropriations; should be aligned with the regular pension benefit when possible.
    • Amount: the lesser of (a) the gross amount of the regular monthly pension immediately preceding the payment month, or (b) $2,000.
    • Deductions: standard tax withholding and other required deductions apply.
    • The supplemental payment is in addition to, not a substitute for, the regular pension.
    • Eligibility: the retiree must have been eligible to receive a standard retirement pension under 169.410 to 169.542 in the month preceding the payment.
    • Administration: the Board determines eligibility, amount, timing, and disbursement method.
    • Funding: the state must appropriate an amount equal to the cost of the one-time payment; if appropriations are not provided, the Board cannot issue the payment.

Affected parties

  • Retirees and beneficiaries of the St. Louis Public School Retirement System (as highlighted in supporting documents).
  • Missouri public retirement systems governed by sections 169.410 to 169.542.
  • State and school district stakeholders, including the General Assembly and boards of trustees administering relevant retirement systems.

Procedural and timeline aspects

  • Effective/relevant actions hinge on actuarial valuations and funded ratios, including potential 20-year amortization of any new unfunded liabilities.
  • The one-time supplemental payment, if funded, would be disbursed by September 30, 2027.
  • The bill specifies that state funding for the supplemental payment is contingent on an appropriation, and the retirement system must wait for appropriations to issue the payment.

Additional notes

  • The bill references a companion charge to maintain qualified trust status under federal tax law.
  • The bill is intended to be similar to prior proposals (HB 1329 in 2025 and HB 2469 in 2024) and applies primarily to the St. Louis Public School Retirement System as a concrete example in its supporting materials.

If you’d like, I can provide a comparative table showing current law vs. HB 2782 changes, or a plain-language “Q&A” to help non-experts quickly grasp the key implications.

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

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