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Read. Follow. Verify.Missouri Senate Bill Modifies State Employee Retirement and Deferred Compensation Plans
Original title: Modifies provisions relating to retirement, including Tier 2011 and deferred compensation
Last action · March 9, 2026: SCS Voted Do Pass w/SCS SBs 1557 & 1054 Local Government, Elections and Pensions Committee (6554S.03C)Sponsor: Mike Henderson
Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
Law
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What This Bill Would Do
Missouri SB 1557 modifies state retirement and deferred compensation provisions by authorizing automatic refunds for small non-vested retirement accounts, updating interest crediting rates, and establishing mandatory automatic annual increases in employee contributions for state deferred compensation plans starting in July 2027.
Why it matters
State employees and former workers will experience changes in how small retirement account refunds are processed, how interest is credited, and how their deferred compensation savings automatically increase over time unless they opt out.
Background
- The Missouri State Employees' Retirement System (MOSERS) administers retirement benefits, life insurance, and long-term disability benefits for state employees and various statewide elected officials. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Directly affected
State employees
State employees are subject to automatic enrollment provisions, updated interest crediting rules, and future automatic annual increases in deferred compensation contributions.
Directly affected
Non-vested former members
Non-vested former members with balances of $1,000 or less will receive automatic refunds of their contributions and interest.
Directly affected
State college and university employees
State college and university employees are explicitly excluded from automatic enrollment in the deferred compensation plan.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
What happens to non-vested retirement account balances of $1,000 or less?
The retirement system shall automatically refund the former member's contributions and credited interest directly to the member, survivor, or beneficiary.
Are state college and university employees subject to automatic enrollment in the deferred compensation plan?
No, employees employed by a state college or university are not automatically enrolled, though they may elect to participate.
How do the automatic contribution increases work in the deferred compensation plan starting in 2027?
Beginning July 1, 2027, participating employees' deferral amounts will automatically increase by one-half of one percent annually following their one-year anniversary until reaching ten percent of eligible compensation or the federal limit.
What else do you want to know?
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
4 actions- Mar 9, 2026SenateCommitteeSCS Voted Do Pass w/SCS SBs 1557 & 1054 Local Government, Elections and Pensions Committee (6554S.03C)
- Mar 2, 2026SenateHearing Conducted S Local Government, Elections and Pensions Committee
- Feb 5, 2026SenateFloorSecond Read and Referred S Local Government, Elections and Pensions Committee
- Jan 14, 2026SenateIntroducedS First Read
Version history & redline
2 versions on fileComparing 6554S.01I - Introduced → Senate Committee Substitute - Committee Version
removed addedOfficial text
removed: EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
added: 6554S.03C
1
SENATE removed: BILL NO. added: COMMITTEE SUBSTITUTE
FOR
SENATE BILLS NOS. 1557
removed: 103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR HENDERSON.
6554S.01I KRISTINA MARTIN, Secretary
added: & 1054
AN ACT
To repeal removed: section 104.1091, added: sections 104.1091 and 105.915, RSMo, and to enact in lieu thereof removed: one added: two new removed: section added: sections relating to removed: refunds
of retirement contributions.
added: retirement.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. removed: Section 104.1091, added: Sections 104.1091 and 105.915, RSMo, removed: is added: are
repealed and removed: one added: two new removed: section added: sections enacted in lieu thereof, to be known as removed: section 104.1091, added: sections 104.1091 and 105.915, to read as follows: 104.1091. 1. Notwithstanding any provision of the year 2000 plan to the contrary, each person who first becomes an employee
[…]
the general assembly, the member's attainment of at least age sixty-two and the completion of at least three full biennial assemblies; or the member's added: 2
attainment of at least age fifty-five with the sum of the member's age and credited service equaling at least ninety; (3) For statewide elected
[…]
be eligible for early retirement. 6. The provisions of subsection 6 of section 104.1021 and section 104.344 as applied pursuant to subsection 7 of added: 3
section 104.1021 and section 104.1090 shall not apply to members covered by this section. 7. The minimum credited service requirements of five years contained
[…]
(3) Member contributions so picked up shall be credited to a separate account within the member's individual account so that the amounts contributed pursuant added: 4
to this section may be distinguished from the amounts contributed on an after-tax basis; (4) The contributions, although designated as employee contributions, shall be
[…]
who is not vested, the system shall refund the former member's contributions and interest credited thereon if the total amount thereof is one thousand added: 5
dollars or less, or such other amount as may be permitted under applicable federal removed: law, provided that: added: law.
a. The added: system and the treasurer are authorized to
share information consistent with section 447.560 for the
purpose of the system's added: refunding the former member's
contributions and credited interest directly to the former
member or the former member's survivor or beneficiary.
b. The availability of the shared information for
public inspection shall be consistent with section 447.560.
c. The system's procedures in effect from time to time to locate such removed: member added: former member, survivor, or beneficiary shall be considered reasonable and necessary diligence consistent with good business removed: practice, such that if after the application of such procedures such refund is returned to the system, the refund shall be presumed to be abandoned property under sections 447.500 to 447.585 notwithstanding any provisions of those sections which require a specific abandonment or dormancy period; added: practice and removed: b. Subsection 2 of section 104.620 shall not apply to such refunds. added: in compliance with federal
law.
(c) Contribution refunds shall be paid by the system within an administratively reasonable period, but no sooner than ninety days from the date of
[…]
works continuously for at least one year, the credited service previously forfeited shall be restored if the member returns to the system the amount added: 6
previously refunded plus interest at a rate established by the board; (7) The beneficiary of any member who made contributions shall receive a refund
[…]
and one half percent adjusted as follows: if the retiree's age on the annuity starting date is younger than sixty-seven years, an increase of removed: three-tenths added: three-
tenths of one percent for each year the retiree's age is added: 7
younger than age sixty-seven years; and if the beneficiary's age is younger than the retiree's age on the annuity starting date, a decrease of
[…]
such beneficiary who was the retiree's spouse on the annuity starting date or as otherwise provided by subsection 5 of this section. Option 3. added: 8
A retiree's life annuity shall be reduced to removed: ninety-three added: ninety-
three percent of the annuity otherwise payable. If the retiree dies before having received one hundred twenty monthly payments, the reduced annuity shall be continued
[…]
a statewide elected official or a member of the general assembly shall be eligible for retirement under this subsection subject to the following conditions: added: 9
(1) A member's normal retirement eligibility shall be based on the attainment of at least age sixty-seven and the completion of at least five
[…]
upon the attainment of at least age sixty-two and the completion of at least five years of credited service. A vested former member who added: 10
terminated employment prior to the attainment of early retirement eligibility shall not be eligible for early retirement; (5) The normal and early retirement eligibility
[…]
credited service requirements of five years contained in sections 104.1018, 104.1030, 104.1036, and 104.1051 shall be five years for members covered by this subsection.added: 105.915. 1. The board of trustees of the Missouri
state employees' retirement system shall administer the
deferred compensation fund for the employees of the state of
Missouri that was previously administered by the deferred
compensation commission, as established in section 105.910,
11
prior to August 28, 2007. The board shall be vested with
the same powers that it has under chapter 104 to enable it
and its officers, employees, and agents to administer the
fund under sections 105.900 to 105.927.
2. Except as provided in this subsection,
participation in such plan shall be by a specific written
agreement between state employees and the state, which shall
provide for the deferral of such amounts of compensation as
requested by the employee subject to any limitations imposed
under federal law. Participating employees must authorize
that such deferrals be made from their wages for the purpose
of participation in such program. An election to defer
compensation shall be made before the beginning of the
[month in] payroll period for which the compensation is
paid. Contributions shall be made for payroll periods
[occurring on or after the first day of the month] beginning
after the election is made.
3. Each employee eligible to participate in the plan
hired or rehired on or after July 1, 2012, shall be enrolled
in the plan automatically and his or her employer shall, in
accordance with the plan document, withhold and contribute
to the plan an amount equal to one percent of eligible
compensation received on and after the date of hire, unless
the employee elects not to participate in the plan within
the first thirty days of employment, and in that event, any
amounts contributed and earnings thereon will be refunded by
the plan to the employee pursuant to the procedure contained
in the plan documents. Employees who are employed by a
state college or university shall not be automatically
enrolled but may elect to participate in the plan and make
contributions in accordance with the terms of the plan.
4. Effective July 1, 2027:
12
(1) The plan document shall provide for automatic
increases in the deferral amount contributed by a
participating employee commencing with the first payroll
period following the employee's one-year anniversary date of
employment or reemployment, whichever is later. The
deferral amount shall increase annually by one-half of one
percent until the amount reaches ten percent of the
employee's eligible compensation or the limitation imposed
under federal law, whichever is less.
(2) Each employee eligible to participate in the plan
who was last hired or rehired on or after July 1, 2012, and
before July 1, 2027, who was automatically enrolled in the
plan pursuant to subsection 3 of this section, and whose
contribution is equal to one percent of eligible
compensation on the effective date, shall be enrolled in
such automatic increases.
(3) Each employee eligible to participate in the plan
who was last hired or rehired on or after July 1, 2027,
shall be enrolled in such automatic increases.
5. Employees who are enrolled automatically or whose
deferral amounts are automatically increased may elect to
change the contribution rate in accordance with the terms of
the plan. Employees who elect not to participate in the
plan may at a later date elect to participate in the plan
and make contributions in accordance with the terms of the
plan. All assets and income of such fund shall be held in
trust by the board for the exclusive benefit of participants
and their beneficiaries. Assets of such trust, and the
trust established pursuant to section 105.927, may be pooled
solely for investment management purposes with assets of the
trust established under section 104.320.
[3.] 6. Notwithstanding any other provision of
sections 105.900 to 105.927, funds held for the state by the
13
board in accordance with written deferred compensation
agreements between the state and participating employees may
be invested in such investments as are deemed appropriate by
the board. All administrative costs of the program
described in this section, including staffing and overhead
expenses, may be paid out of assets of the fund, which may
reduce the amount due participants in the fund. Such
investments shall not be construed to be a prohibited use of
the general assets of the state.
[4.] 7. Investments offered under the deferred
compensation fund for the employees of the state of Missouri
shall be made available at the discretion of the board.
[5.] 8. The board and employees of the Missouri state
employees' retirement system shall be immune from suit and
shall not be subject to any claim or liability associated
with any administrative actions or decisions made by the
commission with regard to the deferred compensation program
prior to the transfer made to the board under section
105.910.
[6.] 9. The board and employees of the system shall
not be liable for the investment decisions made or not made
by participating employees as long as the board acts with
the same skill, prudence, and diligence in the selection and
monitoring of providers of investment products, education,
advice, or any default investment option, under the
circumstances then prevailing that a prudent person acting
in a similar capacity and familiar with those matters would
use in the conduct of a similar enterprise with similar aims.
[7.] 10. The system shall be immune from suit and
shall not be subject to any claim or liability associated
with the administration of the deferred compensation fund by
the board and employees of the system.
14
[8.] 11. Beginning on or after September 1, 2011, if a
participant under the deferred compensation plan or the plan
established under section 105.927 is married on the date of
his or her death, the participant's surviving spouse shall
be automatically designated as the primary beneficiary under
both plans, unless the surviving spouse consented in
writing, witnessed by a notary public, to allow the
participant to designate a nonspouse beneficiary. As used
in this subsection, "surviving spouse" means the spouse as
defined pursuant to section 104.012 to whom the participant
is lawfully married on the date of death of the participant,
provided that a former spouse shall be treated as the
surviving spouse of the participant to the extent provided
under a judgment, decree, or order that relates to child
support, alimony payments, or marital property rights made
under Missouri domestic relations law that creates or
recognizes the existence of such former spouse's right to
receive all or a portion expressed as a stated dollar amount
or specific percentage stated in integers of the benefits
payable from such plan upon the death of the participant.
This subsection shall not apply to beneficiary designations
made prior to September 1, 2011.
[9.] 12. The board may adopt and amend plan documents
to change the terms and conditions of the deferred
compensation plan and the plan established under section
105.927 that are consistent with federal law.
Redline computed from the official version text (record lane).View this version →
Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
policy shift98% confidence
Introduction of Automatic Contribution Escalation
The bill introduces mandatory automatic annual contribution increases for state deferred compensation plans starting in July 2027.
Connected Entities
OrganizationUnited States Department of the Treasury“Publishes investment rates for fifty-two week treasury bills used for interest c”Map →
OrganizationMissouri Department of Transportation and Highway Patrol Retirement System“Retirement system covering transportation and highway patrol members.”Map →
OrganizationState Treasurer“Authorized to share information for refunding former member contributions.”Map →
OrganizationMissouri State Employees' Retirement System“Administers retirement and deferred compensation funds for state employees.”Map →
Sources
Open source document
www.senate.mo.gov
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy20Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz15Current news / social attention level
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