While You Are Employed ...
During your years of employment with the police department, you are a member of the System. This section provides information about your relationship to the System during your working years.

Becoming a Member
If you became a Police Officer in the City of St. Louis after October 1, 1957, you automatically became a member as of your date of hire. The System covers all officers and employees of the police department who perform police duties. This includes turnkeys, probationary patrolmen, patrolmen, corporals, sergeants, lieutenants, drill masters, captains, senior officers and detectives. Membership in the System is not open to police commissioners, clerical staff or other employees who do not have police duties.

Your membership in the System will continue as long as you are a Police Officer and receiving compensation for your services. If you leave the police department and later are rehired as a Police Officer with the City of St. Louis, you will again become a member as of your date of rehire.

Contributing to The Police Retirement System
You make your contributions to the System automatically. Each pay period, 7% of your eligible compensation is deducted and placed in your individual account in the System’s Members’ Savings Fund. Your contributions earn interest until you die or retire, or until your contributions are withdrawn, whichever occurs first. No contributions are made while you are participating in DROP.

The City of St. Louis also contributes to the System. The City’s contribution is a percentage of the annual police payroll. The actual amount is based on the funding requirements of the System as determined by an outside actuary. The actuary determines the amount of contributions needed to provide all future allowances and benefits expected to be paid by the System.

Electing the Deferred Retirement Option Plan
A Deferred Retirement Option Plan (DROP) is available to members who reach age 55 or complete 20 years of creditable service. You have the option to enroll at any time after you become eligible, as long as you are an active police officer. Your monthly retirement benefit (service retirement allowance) will not increase while you are in DROP.

Under DROP, your service retirement allowance is frozen and you stop making contributions. Your period of DROP participation does not count as creditable service. In return, the System credits your monthly service retirement allowance to your DROP account while you remain an active police officer. For example, if your service retirement allowance on the date you enter DROP is $1,000 a month, $1,000 a month will be credited to your DROP account within the System Trust Fund. This will continue for up to 60 months, or until you die, retire or elect to exit DROP early. Your service retirement allowance will not be increased or decreased for cost-of-living adjustments until after you actually retire.

Your DROP account will be credited with the annual investment return that the System Trust Fund earned the previous year (after reduction for investment expenses), beginning with the second fiscal year of your DROP participation. For example, if you entered DROP in February 1997, you will receive no interest in September 1997. Your October 1, 1997 DROP account balance will be credited interest on September 30, 1998 using the Trust Fund’s overall rate of investment return for the fiscal year ending September 30, 1997. While you have a DROP account, the System will provide you with an annual statement of your DROP account balance.

To elect DROP, you must make an appointment with the System’s Administrative Director at least 30 days before you want to begin participating in DROP. The System’s Administrative Director will review your election and its implications. Following your appointment, you can complete a DROP election form.

More information about DROP can be found in other sections of this summary plan description.

Exiting the Deferred Retirement Option Plan
Your DROP participation will end at the earliest of completion of 5 years in DROP, termination of employment as a police officer due to death, disability, retirement or your election to end DROP participation early. An Early Exit Election can become effective as of the first day of any month ending on or after October 1, 2001.

Once your DROP participation ends for any reason, you cannot re-enter DROP.

If you continue to be employed as a police officer after your DROP participation ends, you will automatically re-enter active participation in the System. If you participated in DROP before October 1, 2001 and your DROP participation ended prior to October 1, 2001, you will re-enter the System as an active member on October 1, 2001 if you are still actively employed.

If you re-enter the System following DROP, you will resume making contributions. Service earned after re-entry will count as creditable service and earnings paid on or after such date will be included in your average final compensation.

No further payments will be credited to your DROP account after your DROP participation ends, but your DROP account will continue to be credited with the System’s investment results until your retirement date. The DROP account is not payable until you terminate employment.

Purchasing Creditable Service (Portability)
You may purchase creditable service towards a benefit from the System once you reach age 55 or complete 5 years of creditable service under the System if either:

• You earned creditable service but are not vested under the provisions of any state or local retirement system in Missouri;
• You were a state or local government employee in Missouri and you were not covered by a retirement plan.

(See “How to Reinstate or Purchase Creditable Service” on page 11.)
Similarly, if you earned creditable service under the System and you quit before age 55 and before completing 20 years of creditable service, you may be able to purchase creditable service under another state or local retirement system in Missouri that covers you in a new job or upon re-employment with the Department.

Military Service
If you are reemployed as a Police Officer within 90 days after your discharge from the military, your period of military service will count as creditable service and your prior creditable service will be reinstated. Creditable service will not be reinstated if you withdrew your accumulated contributions when you left for military service and you fail to repay them, with interest, following your return. Notwithstanding the foregoing, in no event will your creditable service and your benefit be less than the amount determined in accordance with the Uniformed Services Employment and Reemployment Act of 1994 (USERRA) if you are entitled to reemployment under USERRA. (See “How to Reinstate or Purchase Creditable Service” on page 11).

How to Reinstate or Purchase Creditable Service
Effective January 1, 2002, three methods are available to you for reinstating your prior creditable service following your return to police duty and purchasing creditable service towards a benefit from the System. You may use one or more of the following methods, as long the total amount paid to the System does not exceed the amount required to reinstate your prior service or purchase creditable service, whichever is applicable:

• Payment to the System of your own funds on an after-tax basis.
• Direct or indirect rollover to the System of an eligible rollover distribution from a traditional IRA, a tax-sheltered “403(b)” annuity, an eligible governmental deferred compensation plan or another qualified retirement plan. The rollover cannot include any non-taxable funds.
• “Trustee to trustee” transfer to the System of funds from your tax-sheltered “403(b)” annuity or your account under an eligible governmental deferred compensation plan. The custodian or trustee of the annuity or plan must agree to make the transfer. The transfer cannot include any non-taxable funds.

All payments, rollovers and transfers must comply with procedures established by the Board of Trustees.

In-Service Death
If You Die While A Member (except accidentally in the line of duty), then…

If you die while you are a member (except accidentally in the line of duty), your surviving spouse will receive a benefit equal to 40% of your average final compensation. This benefit will be paid in monthly installments until death or remarriage of surviving spouse, whichever occurs first. (Your spouse may also be eligible to receive cost-of-living adjustments. For more information, see page 22 of this handbook.)

Your surviving spouse will also receive a lump sum payment of your contributions to the System without interest. Effective January 1, 2002 this lump sum is an “eligible rollover distribution” (see “Direct Rollover Option” on page 16).

The System will pay an additional 15% of your average final compensation for each of up to three of your dependent children. This additional 15% benefit per child is also paid in monthly installments and continues as long as that child qualifies as dependent. The System defines dependent children as unmarried children who are either:

• Under age 18, or under age 23, if enrolled as a full-time student;
• Totally and permanently disabled and unable to care for themselves. A disabled child must have become disabled before age 18 and must not be a resident of a public-supported institution.

If you do not have a surviving spouse, your dependent children will receive the monthly benefit that would have been paid if you had a spouse (40% of your average final compensation plus 15% per dependent child, up to three). Each of your dependent children will receive an equal share of this benefit in monthly installments until they no longer qualify as a “dependent child.” (However, if at any time there is only one dependent child, he or she will receive half of the spouse's benefit amount plus the additional 15% child’s benefit.)

If you have neither a surviving spouse nor dependent children, your designated beneficiary will receive your accumulated contributions (contributions plus interest) in a lump sum.

If you are participating in the Deferred Retirement Option Plan (DROP), your DROP account balance will be paid to your surviving spouse in a lump sum. The surviving spouse’s lump sum is an “eligible rollover distribution.” (See “Direct Rollover Option” on page 16.) Otherwise:

• If you do not have a surviving spouse, your dependent children will receive equal shares;
• If you have no dependent children, your mother or father (if dependent on you for support) will receive the payment;
• If you have no dependent mother or father, payment will be made to your beneficiary;
• If no beneficiary is then living, payment will be made to your estate.

For more information about the in-service death benefits for your spouse and dependent children and/or parents, see Section 86.280, 86.251 and 86.288 RSMo.

Accidental Service-Connected Death
If You Die in an Accident through no negligence of your own, then ...

If you die in an accident in the line of duty (through no negligence of your own), your surviving spouse and dependent children may be eligible for benefits. Your spouse will receive a benefit equal to 75% of your average final compensation. This benefit will be paid in monthly installments for your spouse’s life or until your spouse remarries, whichever occurs first. The System will pay an additional 15% of your average final compensation for each of up to three of your dependent children. This additional benefit is also paid in monthly installments.

Your surviving spouse will also receive a lump sum refund of your contributions to the System without interest. Effective January 1, 2002, this lump sum is an “eligible rollover distribution” (see “Direct Rollover Option” on page 16).

If you do not have a surviving spouse, your dependent children will receive the monthly benefit that would have been paid to the spouse (75% of your average final compensation plus 15% per dependent child, up to three). Each of your dependent children will receive an equal share of this benefit in monthly installments until they no longer qualify as a “dependent child.” (However, if at any time there is only one dependent child, he or she will receive half of the spouse’s benefit amount plus the additional 15% child’s benefit.)

If you do not have a surviving spouse or dependent children, the monthly benefit that would have been paid to your spouse (75% of your average final compensation) may be paid to your father or mother, if the Board of Trustees determines that one is dependent on you for support.

If you do not have a surviving spouse, dependent children or dependent parents, your designated beneficiary will receive your accumulated contributions (contributions plus interest) in a lump sum.

If you are participating in the Deferred Retirement Option Plan (DROP), your DROP account balance will be paid to your surviving spouse in a lump sum. The surviving spouse’s lump sum is an “eligible rollover distribution.” (See “Direct Rollover Option” on page 16.) Otherwise:

• If you do not have a surviving spouse, your dependent children will receive equal shares;
• If you have no dependent children, your mother or father (if dependent on you for support) will receive the payment;
• If you have no dependent mother or father, payment will be made to your beneficiary;
• If no beneficiary is then living, payment will be made to your estate.

If your death occurs in the line of duty, and meets certain requirements of the IRS, your surviving spouse or dependent child may elect to have your DROP account balance paid in the form of a monthly survivor annuity that is exempt from income tax.

For more specific information about the benefits payable to your spouse, dependent children and/or dependent parents, see Section 86.287, 86.251 and 86.288 RSMo.