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Rep. Bromley seeks to raise PSRS death benefit to $10,000; PSRS estimates $137.8M actuarial cost
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Summary
Rep. Bob Bromley introduced HB 21‑44 to raise the PSRS death benefit from $5,000 to $10,000, citing constituent need for higher funeral assistance; PSRS counsel estimated an actuarial cost of about $137.8 million and said the change would apply to vested members (~1,900 deaths/year).
Representative Bob Bromley presented House Bill 21‑44, which would increase the PSRS death benefit from $5,000 to $10,000. Bromley described a constituent case and said funeral costs now commonly approach $10,000, arguing the change would spare families additional hardship.
"$5,000 will not, basically afford you to have a funeral nowadays," Bromley said, explaining the policy intent of helping widows and vulnerable survivors.
Maria Walden of the Missouri Retired Teachers Association supported the bill and urged the committee to consider parity for the PEERS system (which currently has no death benefit). She said the existing PSRS $5,000 notification benefit dates to about 1999 and that raising it would be worthwhile if the system remained solvent.
Mike Moorefield (PSRS chief counsel) provided informational testimony on the fiscal and operational effects. He described death‑notification processes (third‑party matching vendors) and said PSRS’ actuarial estimate for doubling the death benefit is approximately $137,800,000 in increased liabilities, which corresponds to about 1,900 deaths annually and would change the fund’s net position by the net present value equivalent of about 0.19 percentage points.
Committee members questioned funding timing and effects on contribution rates; Moorefield said the actuarial number is the standard method of measuring the benefit’s present value across all members and that the change would apply to every vested PSRS member. The hearing closed without a committee vote on HB 21‑44.