HB 864 – Most Dangerous Bill in 27 Years A Warning from Director Kreider

In Director Kreider’s 27 years of experience and involvement with the Missouri legislature, he has not seen legislation as dangerous as this to our pension benefits and pension system to-date.

UPDATE: HB 864 was not EVEN assigned to a committee! Thanks to YOU we have SQUASHED this legislation. Please stay tuned as the target will still be on us in 2020.

Dear MRTA:

HB 864 is a bill targeting educator pensions. Creating an “OPTION for all educators to get into a 401(k) plan. This is targeted to NEW HIRES. This is Sinquefield/Show Me Institute model legislation Introduced by none other than my own Representative Jered Taylor of Nixa. The PSRS/PEERS Systems are having the actuaries look at the bill. To put it simply: No money, no pensions. HB 864 will take away employee and employer contributions (currently 29% of payroll) from the system by allowing educators to OPT OUT the current system and into a 401(k). This will lower the amount of dollars for investment. Currently, 61 cents of every dollar paid to retirees comes from investment returns. Representative Taylor is using Show-Me Institute talking points and therefore is misinformed on how a Defined Benefits plan works. HB 864 is an attack on public education and educators.

If this type of legislation is passed it WILL:
1. Eventually, bankrupt our system. The system would run out of money in about 25 years. Fewer contributions will be paid into the system for investments which are needed to pay benefits. The average retiree uses the amount they contributed in less than 6 years!!

2. Immediately eliminate any future COLAs.

3. Likely result in benefit reductions by possibly 25% or more for current retirees.

4. Cause drastic increases in the contribution percentage paid by active vested educators Currently, they are paying 14.5%. This will be necessary to try to stretch benefits into the future. How much will active educators be willing to pay?

COMMENT: MRTA strongly opposes any legislation like HB 864 as it threatens pension benefits educators have worked so hard for. 401(k)s have been described as a “failed experiment.” Only 40% of Americans have any retirement savings. 401(k)s are at the mercy of the stock market. Do you feel lucky?! 401(k)s can be raided by individuals as life creates needs for cash. To be simply put 401(k)s do NOT offer retirement security. Our pension plan does! Our defined benefit system pays you until you pass. Now that is retirement security! But it takes everyone to participate. HB 864 was designed to divide and conquer us!

OUR job is to convince our own Missouri State Representative and State Senator to oppose this type of legislation. Stay vigilant in 2020. Educate your friends and family now. Ask someone to join MRTA today – “Strength in Numbers!” Legislation like HB 864 threatens our pension system and our pension benefits. Just leave us alone!

Please see recent articles regarding HB 864 and Representative Taylor:
Springfield News Leader Article Jered Taylor Comments – Feb. 15, 2019
Springfield News Leader Article Jered Taylor Comments – March 20, 2019

13 thoughts on “HB 864 – Most Dangerous Bill in 27 Years A Warning from Director Kreider

  1. Dear Jim,
    Great News Jim. So Thankful this was not assigned to a committee. What do you mean by 2020? Will this resurface then?
    Have a good weekend.

    Sincerely, Anita Henson

  2. Kreider’s comments/explanation will NOT be read/seen by every person who receives his/her monthly PSRS pension. Could this USPS/mailed by PSRS as soon as possible ?????????????
    Retired from the St. Louis Public Schools and NOT receiving monthly pension payments from PSRS.

  3. Great work & letter, Jim, and fellow members – THANKS!
    Looking forward to seeing you at our Belton meeting this August.

  4. Very poorly informed representative! Our retirement system is known as the Missouri Model another words other systems want to be us! ” If it ain’t broke don’t fix it!” Please Mr. Taylor put your energy into issues that need to be taken care of and leave our retirement system alone,

  5. Thank you, Jim Kreider, for leading our MRTA members in fighting these greedy politicians. We retired teachers are so blessed to have the security of a retirement paycheck that affords us to pay our bills and to live comfortably. May God bless you, and may God bless America. May He lead our state legislators in keeping our Missouri teachers secure.

  6. I am so tired of legislators trying to take away our earned pension benefits and giving them to entities who just seem to be greedy. As the lady said” leave retiree benefits alone”. We dont need your kind of “help”.

  7. I retired from two states, Illinois and Missouri. I also invested in a 401 Andover the years since 2013 I have made about $2,000 on my 401. This is really no money. I would hate to think I was depending on this for my retirement.

  8. PLEASE! tell me WHY?I loose my husband’s Social Security money. I am a retired reading specialist. I know I get 2/3rds but why do teachers loose anything from a non-teaching spouse’s Social Security? I am so sorry that I became a teacher for Missouri.I worked my way through college. It took me a long time to do this. I worked full time went to school at night. Mo. took 2/3rds. of all the SS$ I earned while I was working towards my degree. The Wind Fall law takes money we earned .NO ONE ever told me about this”hate Mo. teachers” law. I tell everyone, “DON’T TEACH FOR MO.!” I have a disabled daughter and a special needs grandson. I will be on food stamps and any other Mo. program for people at the poverty level. How dare they take my husband’s SS$ !

  9. Isn’t this legislation similar to HB409 that was introduced in 2011 by Andrew Koenig? Was Rex behind that effort as well?

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