AI-assisted research summary: The board must set up and manage the retirement plan rules for outside employees, including contribution rates and investment options.
104.1205. Duties of board. — The board of trustees of the Missouri state employees' retirement system shall: (1) Establish a defined contribution plan for outside employees which, among other things, provides for immediate vesting; (2) Select a third-party administrator to provide such services as the board determines to be necessary for the proper administration of the defined contribution plan; (3) Select the investment products which shall be made available to the participants in the defined contribution plan; (4) Annually establish the contribution rate used for purposes of subsection 3 of section 104.1066 for employees of institutions who are other than outside employees, which shall be done by considering all such employees to be part of the general employee population within the Missouri state employees' retirement system; (5) Establish the contribution rate for outside employees which shall be equal to six percent of payroll; (6) Require outside employees hired on or after July 1, 2018, to contribute two percent of the employee's pay to the defined contribution plan which shall be credited to a separate account within the outside employee's individual account. The employing institution, pursuant to the provisions of 26 U.S.C. Section 414(h)(2), shall pick up and pay such contributions. The contributions so picked up shall be treated as employer contributions for purposes of determining the outside employee's pay that is includable in the outside employee's gross income for federal income tax purposes. The outside employee's contributions picked up by the employing institution shall be: (a) Paid from the same source of funds used for the payment of pay to an outside employee. A deduction shall be made from each outside employee's pay equal to the amount of the outside employee's contributions picked up by the employing institution; and (b) Paid by the employing institution in lieu of the contributions by the outside employee, although designated as employee contributions. The outside employee shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the employing institution to the defined contribution plan; (7) Establish such rules and regulations as may be necessary to carry out the purposes of this section; and (8) Allow outside employees to contribute to a supplemental account established by the employer. Such employees may elect to change the contribution rate in accordance with the terms of the supplemental account. (L. 2001 S.B. 371, A.L. 2017 S.B. 62) Effective 7-01-18