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  Civilian Employees' Retirement System - History of Changes

1965

  • Civilian Employees' Retirement System of the Police Department of Kansas City, Missouri created by Missouri General Assembly.

1972

  • Members vested in plan after 5 years of service, eligible for deferred benefits.
  • Changed computation of retirement benefit on a graduated basis without reduction for Social Security benefits. Changed multiplier to 1.2% for first ten years of service plus 1.5% for next ten years of service plus 2.0% for remaining service.
  • Removed retirement benefit cap of 65% of Final Average Salary (FAS).
  • Established optional early retirement at age 60 with 10 years of service with no reduction in benefit.
  • Eliminated any age and service requirements for duty disability retirement.
  • Changed age and service requirements for non-duty disability retirement to 10 years and under age 60.
  • Increased duty disability retirement to 50% of FAS. Increased non-duty disability retirement to a minimum of 30% of FAS.
  • Established surviving spouse benefits. Retirement benefits stop when the surviving spouse remarries.

1974

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

1976

  • FAS calculated over 3 highest years of the last 10 years.
  • Members who return to active service granted the option to restore prior time after 2 years of reemployment.
  • Increased multiplier to 1.5% for first 20 years of service plus 2.0% for remaining service.
  • Established optional early retirement at age 55 with 10 years of service or at age 60 with 5 years of service with reduction in benefits.
  • Established optional 100% joint and survivor benefit at retirement.
  • Added optional retirement benefit for the surviving spouse of a member who dies prior to retirement with 20 or more years of service.

1985

  • Established optional early retirement at age 55 with 30 years of service with no reduction in benefit.
  • Established Cost of Living Adjustment (COLA) of up to 3% for retirees and eligible surviving spouses. Consumer Price Index used to determine percentage adjustments.

1990

  • 2.0% multiplier for all service for unmarried members and married members waiving the right to a surviving spouse benefit; 1.8% multiplier for all service for married members not waiving surviving spouse benefits.
  • Changed optional early retirement with no reduction in benefit to Rule of 80; member’s total age and years of service must equal or exceed 80.
  • Eliminated mandatory retirement at age 70.
  • Eliminated age restrictions for membership eligibility.
  • Civilian members eligible to vote in Retirement Board election.

1991

  • Civilian member added to Retirement Board.

1992

  • FAS calculated over highest 2 years of service.
  • Established supplemental benefit at $50 per month until age 65 for certain members retiring after August 1992.

1994

  • Added GE Asset Management as international fund manager.

1995

  • Members allowed to purchase up to two years of prior military service.
  • Ability to grant cost of living adjustments to $50 per month supplemental benefit.

1997

  • 2.0% multiplier for all service for all members regardless of spousal considerations.
  • Eliminated restriction of less than age 60 for non-duty disability retirement.
  • Eliminate age and/or service restriction for supplemental benefit.
  • Surviving spouses eligible for supplemental benefit.

1999

  • Deferred vested members eligible for all early retirement options.
  • Surviving spouses eligible to vote in Retirement Board election.
  • Added Waddell & Reed as small cap growth manager.

2000

  • COLA increases up to 3% without regard for Consumer Price Index.
  • 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

  • Eliminated six month waiting period to join Civilian Employees' Retirement System.
  • Retired member cost of living adjustments pass on to surviving spouse.
  • Surviving spouse permitted to remarry without loss of benefits.
  • Limited surviving spouse benefit, for those entitled to multiple surviving spouse benefits, to the largest qualified benefit.
  • Added provisions for workers compensation benefit offset.
  • Added Systematic as small cap value manager.

2002

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

2003

  • IRS Qualification and pre-tax member contributions.
  • Partial Lump-sum Option Payments (PLOP).
  • Tax free rollover provisions for refunds of member contributions.
  • $1000 funeral benefit for members retiring after August 2003.
  • 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.

2004

  • $1000 funeral benefit for members retired prior to August 2003.

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 Civilian Employees’ Retirement System are sections 86.1310 to 86.1640 RSMo.
  • Allow the purchase of eligible prior service at any time prior to retirement with minimum of three years prior service.
  • Added Prudential as a real estate manager.
  • Added Abbott Capital as a private equity manager.

2006

  • Provide 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

  • Required 15 or more years of service, or retirement on a duty or non-duty disability, to be eligible for the supplemental benefit.
  • Added Milliman as actuarial consultants replacing Gabriel Roeder Smith & Co.
  • Added GE and LSV as emerging market fund 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 PIMCO as commodity fund manager.

 2009

  • 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.
  • Clarify language related to the final payment of any remaining amounts due upon the death of a member or surviving spouse.
  • Clarify that pension benefits paid in the Civilian Employees’ plan shall continue to be paid on the first business day of the month for that month.
  • Add provision that allows members to purchase any unpaid leave time at the actuarial cost at any time prior to retirement.
  • 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 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 civilians who become members on or after August 28, 2013. Tier II members normal retirement is at age 67 or twentieth anniversary of employment. Early retirement provisions include age 62 with at least twenty years of creditable service or the Rule of 85. Reduced early retirement benefits at age 62 with at least 5 years of creditable service. Final average salary is calculated over highest 36 months of service. The initial cost of living adjustment, following retirement, may be delayed up to 5 years depending on total creditable service at retirement.
  • 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.

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 PIMCO as commodity managers.

 

Civilian Employees' Retirement System Cost of Living Adjustments as a Percentage of Base Pension

Year

Percent

Year

Percent

Year

Percent

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%

 

Civilian Employees' Retirement System Monthly Supplemental Benefit

Year

Increase

Total

1992

$50

$50

1999

$70

$120

2000

$40

$160

 

Civilian Employees' Retirement System Contribution Rates as a Percentage of Base Pay

Year

Member Contributions

Year

Employer Contributions

1965

2.5% on Social Security Base. 5% above Social Security Base.

1965

5.92%

1972

5.00%

1975

5.17%

 

 

1982

3.00%

 

 

1997

3.64%

 

 

1998

4.38%

 

 

1999

5.76%

 

 

2000

7.14%

 

 

2005

9.14%

 

 

2006

11.14%

 

 

2007

13.14%

 

 

2008

13.14%

 

 

2009

13.14%

 

 

2010

13.14%

 

 

2011

13.14%

 

 

2012

13.14%

 

 

2013

16.33%

 

 

2014

17.96%

 

 

2015

17.97%

 

 

2016

17.50%

 

 

2017

17.72%

 

 
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