105.660. Definitions, retirement benefit changes.

MISSOURI STATUTES AND CODES

105.660. Definitions, retirement benefit changes.

Definitions, retirement benefit changes.

105.660. The following words and phrases as used in sections 105.660to 105.685, unless a different meaning is plainly required by the context,shall mean:

(1) "Actuarial valuation", a mathematical process which determinesplan financial condition and plan benefit cost;

(2) "Actuary", an actuary (i) who is a member of the American Academyof Actuaries or who is an enrolled actuary under the Employee RetirementIncome Security Act of 1974 and (ii) who is experienced in retirement planfinancing;

(3) "Board", the governing board or decision-making body of a planthat is authorized by law to administer the plan;

(4) "Defined benefit plan", a plan providing a definite benefitformula for calculating retirement benefit amounts;

(5) "Defined contribution plan", a plan in which the contributionsare made to an individual retirement account for each employee;

(6) "Funded ratio", the ratio of the actuarial value of assets overits actuarial accrued liability;

(7) "Lump sum benefit plan", payment within one taxable year of theentire balance to the participant from a plan;

(8) "Plan", any retirement system established by the state ofMissouri or any political subdivision or instrumentality of the state forthe purpose of providing plan benefits for elected or appointed publicofficials or employees of the state of Missouri or any politicalsubdivision or instrumentality of the state;

(9) "Plan benefit", the benefit amount payable from a plan togetherwith any supplemental payments from public funds;

(10) "Substantial proposed change", a proposed change in future planbenefits which would increase or decrease the total contribution percent byat least one-quarter of one percent of active employee payroll, or wouldincrease or decrease a plan benefit by five percent or more, or wouldmaterially affect the actuarial soundness of the plan. In testing for suchone-quarter of one percent of payroll contribution increase, the proposedchange in plan benefits shall be added to all actual changes in planbenefits since the last date that an actuarial valuation was prepared.