Welcome to KCPERS
Member Information News Publications Event Calendar About KCPERS Contact Us

  Police Retirement System - History of Changes

1946

  • Police Retirement System of Kansas City created by Missouri General Assembly.

 1947

  • Creditable service under certain conditions for military service prior to 1940.

 1951

  • Eliminated probationary waiting period to join Police Retirement System.
  • Established service connected death benefit of $5000.
  • Actuarial valuations required every 5 years after 1956.

 1955

  • Final Average Salary (FAS) calculated over highest 10 years of service.
  • Established duty disability retirement equal to 50% of FAS.
  • Mandatory 30 year retirement at 50% of FAS.
  • Established surviving spouse benefit equal to 25% of FAS.
  • Members with less than 30 years of service eligible for retirement benefit at age 60 under certain conditions.
  • Established Medical Board along with procedures for processing disability retirement.
  • Established funeral benefit of $200.
  • Increased service connected death benefit to $7,500.
  • Established surviving child benefits at $15 per month up to age 16.

 1957

  • FAS calculated over highest 5 years of service.
  • Established optional retirement at 25 years of service.
  • Increased multiplier to 2.0%.
  • Increased mandatory 30 year retirement benefit to 60% of FAS.
  • Established retirement at age 55 with 15 years of service.
  • Established non-duty disability retirement with 10 years of service.
  • Duty disability retirement increased to 60% of FAS.
  • Surviving child’s benefits increased to $25 per month up to age 18.
  • Members who returned to active service with 5 years prior service granted the option to restore prior service.

1967

 1968

  • Board of Police Commissioners and City shall agree on employer contribution rate. In no event shall city contributions be less than 12%.

 1972

  • FAS calculated over highest 3 years of service.
  • Increased surviving spouse benefits to 40% of FAS.
  • Established Cost of Living Adjustment (COLA) of up to 3% for members retiring after August 13, 1972. Consumer Price Index used to determine percentage adjustments.
  • Increased service connected death benefit to $20,000.
  • Stock market investments could be up to 50% of total assets.

 1974

  • Added Financial Counselors Inc. as fixed income and domestic stock manager.

 1977

  • COLA lawsuit settled and first COLA paid to members who retired after August 1972.

 1985

  • Authorized annual COLA for members retired prior to August 1972 and surviving spouses.
  • Member and employer contribution rates determined by actuarial valuation. In no event shall member contributions be less than 6%.
  • Eliminated workers compensation offset on service connected death benefit.

 1987

  • FAS calculated over highest 2 years of service.
  • Retired member COLA’s pass on to surviving spouse.
  • Increased surviving child benefit to $50 per month.
  • Increased funeral benefit to $1000.

 1990

  • Eliminated restrictions on amount of total assets that can be invested in the stock market and other investment vehicles.

 1991

  • Increased Retirement Board membership from 7 to 9 by increasing the number of elected members from 3 to 5. Designated seats were established for a retired member of the Police Retirement System, an active member of the Police Retirement System below the rank of Sergeant and a member of the Civilian Employees’ Retirement System.
  • Established supplemental benefit at $50 per month for retired members and surviving spouses.

 1994

  • Added GE Asset Management as international equity manager.

 1995

  • Members allowed to purchase up to two years of prior military service.

 1997

  • Eliminated two year marriage provision for eligible surviving spouse.
  • Return member contributions in lump sum rather than 12 monthly payments.

 1999

  • $600 minimum in combined retirement and supplemental benefit for those members retired with minimum 25 years of service or duty disability and their eligible surviving spouse.
  • Members eligible for retirement at age 60 with 10 years of service.
  • Increased benefit for surviving spouse of retired member to 80% of member benefit at the time of death.
  • Surviving spouse eligible to vote in Retirement Board election.
  • Added Waddell & Reed as small cap growth manager.

 2000

  • Increased multiplier for the first time since 1957 from 2.0% to 2.5%.
  • COLA increases up to 3% without regard for Consumer Price Index.
  • Surviving spouses permitted to remarry without loss of benefits.
  • $600 minimum retirement without reduction for supplemental benefit.
  • Added RCM and JP Morgan as large cap growth managers.
  • Added Neuberger Berman as large cap value manager.
  • Added Northern Trust as Custodial bank replacing Bank of New York.

2001

  • Increased duty disability retirement to 75% of FAS.
  • Non-duty disability retirement calculated using 2.5% multiplier.
  • Members with 15 or more years of service separating after August 2001 eligible for retirement benefit calculated using 2.5% multiplier.
  • Limited surviving spouse benefit for those entitled to multiple surviving spouse benefits to the largest qualified benefit.
  • Added Systematic as small cap value manager.

 2002

  • Added Gabriel Roeder Smith & Co. (GRS) as actuarial consultants replacing Mercer.

 2003

  • IRS Qualification and pre-tax member contributions.
  • Partial Lump-sum Option Payments (PLOP).
  • Tax free rollover provisions for refunds of member contribution.
  • Retirement Board authorized to establish Early Retirement Incentive Plan.
  • Added LSV and Vontobel as large cap value managers replacing Neuberger Berman and JP Morgan.
  • Started retirement education seminars and access to financial planning assistance.

 2005

  • Complete revision of the statutes governing both plans to organize them in a similar manner and make them easier to understand. The new statutes for the Police Plan are sections 86.900 to 86.1280 RSMo.
  • Added Prudential as a real estate manager.
  • Added Abbott Capital as a private equity manager.

 2006

  • Provided creditable service under certain conditions for military leave of absence without requiring member contributions.
  • Added JP Morgan as private equity manager.
  • Added LSV as an international fund manager.

 2007

  • Retirement Board authorized to grant Equalizing Supplemental Benefit to certain members and surviving spouses starting at $10 per month provided plan remains actuarially sound.
  • Added Milliman as actuarial consultants replacing GRS.
  • Added GE and LSV as emerging markets managers.
  • Added Northern Trust as large cap growth index manager replacing Vontobel.

 2008

  • Required members to be in active status to be eligible for a duty or non-duty disability retirement.
  • Added Gresham as commodity fund manager.

2009

  • $600 minimum pension for members retired on a non-duty disability and eligible surviving spouses of members who died while in service.
  • Added Vaughan Nelson as small cap value manager replacing Systematic.
  • Added Shenkman as high yield bond fund manager.

2011

  • Changed starting date of pension benefit payments to the month following retirement.
  • The last benefit payment due, following the death of a retired member without an eligible surviving spouse, will be paid to the member’s designated beneficiary. The benefit will be prorated for the month and no supplemental benefit will be paid to the designated beneficiary.
  • The last benefit payment due following the death of a retired member with an eligible surviving spouse, will be paid to the surviving spouse. The member’s benefit and the surviving spouse benefit will each be prorated. The surviving spouse will also receive the supplemental benefit.
  • The last benefit payment due following the death of a surviving spouse, will be paid to the designated beneficiary. The benefit will be prorated for the month and no supplemental benefit would be paid to the designated beneficiary.
  • Replace the provision that allows members to purchase prior service by repaying withdrawn contributions plus or minus interest with a provision that allows the purchase of prior service by paying the member’s portion of the actuarial cost to restore the prior service.
  • Delete the provision that allows members on an unpaid leave of less than 30 days to receive creditable service without making any member contributions. Replace the provision that allows members returning from unpaid leave of more than 30 days to restore such service within one year by paying the member contributions missed for the leave time with a provision that allows members to purchase any unpaid leave time at the actuarial cost at any time prior to retirement.
  • Delete reference to monthly supplemental benefits to be consistent with new language where supplemental benefits will only be paid when pension benefits are paid for a full month.
  • Added SSARIS as fund of hedge funds manager.

2012

  • Added Northern Trust as large cap growth index fund manager replacing RCM.

 2013

  • Added Tier II benefit provisions for law enforcement who become members on or after August 28, 2013. Tier II members are first eligible to retire with 27 years of service. Final average salary is calculated over highest 36 months of service. Deferred vested members are first eligible to retire at age 60. Surviving spouse benefits are 50% of the member’s benefit, although Tier II members may elect at 75% or 100% joint and survivor option. The initial cost of living adjustment, following retirement, may be delayed up to 5 years depending on total creditable service at retirement.
  • Changed funding provision to require the employer contributions to be made at the actuarial required contribution rate as determined by the Retirement System’s actuary.
  • Increased maximum creditable service to 32 years.
  • Increased duty disability retirement to 80% of FAS.
  • Add USERRA language that limits cumulative creditable service in retirement system for unpaid military leave to not exceed five years.
  • Added Northern Trust as emerging markets index fund manager replacing GE.
  • Added RV Kuhns as investment consultant replacing DeMarche Associates.
  • Removed SSARIS as fund of hedge funds manager

 2014

  • Added Northern Trust as global index fund manager, LSV as global value and emerging markets small cap manager, Artisan Partners as global growth manager, Wellington as US and international small cap manager, Brandywine as global bond manager, Morgan Stanley as core real estate manager, Grosvenor as hedge fund of one manager, GMO as global tactical asset allocation manager, and Fidelity as real return manager replacing Northern Trust as US index fund manager, LSV as US and international value manager, Waddell & Reed as small cap growth manager, Vaughan Nelson as small cap value manager, and Gresham as commodity manager.

 

Police Retirement System Cost of Living Adjustments as a Percentage of Base Pension

Year

Percent

Year

Percent

Year

Percent

Year

Percent

1972

0%

1973

0%

1974

0%

1975

0%

1976

0%

1977

3%

1978

3%

1979

3%

1980

3%

1981

3%

1982

3%

1983

3%

1984

3%

1985

3%

1986

3%

1987

0%

1988

3%

1989

3%

1990

3%

1991

3%

1992

3%

1993

2.4%

1994

3%

1995

2.4%

1996

3%

1997

3%

1998

2.6%

1999

0.9%

2000

3%

2001

3%

2002

3%

2003

3%

2004

3%

2005

3%

2006

3%

2007

3%

2008

3%

2009

3%

2010

0%

2011

3%

2012

3%

2013

3%

2014

2.5%

2015

2.5%

2016

2%

2017

2.5%









 

Police Retirement System Monthly Supplemental Benefit

Year

Increase

Total

Year

Increase

Total

1991

$50

$50

1992

$20

$70

1993

$10

$80

1994

$10

$90

1995

$50

$140

1996

$40

$180

1997

$50

$230

1998

$40

$270

1999

$110

$380

2000

$40

$420

 

Police Retirement System Contribution Rates as a Percentage of Base Pay

Year

Member Contributions

Year

Employer Contributions

1946

4% or $10/month

1946

6.00%

1951

4% or $12/month

1955

10.00%

1955

5.00%

1968

12.00%

1968

6.00%

1972

13.00%

1972

7.00%

1980

14.00%

1980

8.00%

1981

15.00%

1981

9.00%

1982

16.00%

1987

9.55%

1987

17.00%

2000

10.55%

1988

18.00%

2013

11.55%

1989

19.00%



1990

19.00%



1991

20.60%



2001

19.70%



2013

25.03%



2014

27.35%



2015

27.33%



2016

27.71%



2017

29.08%




 
Printer Friendly Format Printer Friendly Format    Send to a Friend Send to a Friend

  © 2011, Kansas City Police Employees' Retirement Systems. All rights reserved.