State considers end for special pensions

JEFFERSON CITY, Mo. -- A Senate committee on Tuesday considered multiple bills aimed at reining in -- or outright eliminating -- a special pension system that provides generous benefits to a handful of state workers.

The sponsor of one such bill, state Sen. Matt Bartle, R-Lee's Summit, called the system "the not-so-secret dirty little secret of state government."

The special pension package, which provides substantially better retirement pay than that available to most state workers, is given to certain administrative law judges and others who fulfill quasi-judicial functions. Some employees with similar jobs, however, aren't eligible for that package.

State Sen. Jason Crowell, R-Cape Girardeau, said it is simply unfair to treat some state workers differently than others. If the "sweetheart pension plan," as he labeled it, isn't eliminated, Crowell said untold numbers of other workers eventually will demand to be included.

"It will be an explosion of costs to the state that I think the state can ill afford," Crowell said.

Under his bill, anyone hired after Jan. 1, 2006, for a position currently covered by the special plan would be put under the regular Missouri State Employees' Retirement System. Crowell said it wouldn't be legal to retroactively strip the added benefits from those already eligible.

State retirement system executive director Gary Findlay told the Senate Pensions, Veterans Affairs and General Laws Committee Crowell chairs that a study of compensation for state employees conducted a couple of years ago found no logical reason for having separate and unequal systems.

"There is continual concern about benefit equity among the various classifications of employees," Findlay said. "That is very much an issue."

Findlay said that the special plan currently applies to just 57 people.

The issue recently stirred controversy because of frequent turnover on the three-member Labor and Industrial Relations Commission. Former governor Bob Holden made numerous appointments to the panel. Some appointees left after just months and in one case after a mere 14 days. Those members, particularly former lawmakers, departed with massive increases in their retirement pay.

Republican governors have also used labor commission appointments to take care of legislative allies.

"The reality is everybody in this place knows this little loophole has been used to reward political favorites," Bartle said.

Bartle's bill would place labor commissioners and other affected positions under the regular retirement system for their first three years of service, after which they would qualify for the special plan. Although Bartle conceded an argument can be made for doing away with the more generous system, he has concerns that doing so will make it harder to attract the best talent to quasi-judicial posts.

Crowell said the pensions committee will review the various bills on the subject and decide what course of action to pursue.

The bills are SBs 33, 45, 183 and 202.

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