From a Jefferson County Sheriff’s Office news release
HILLSBORO – Jefferson County Sheriff Dave Marshak acknowledges big changes coming to the Missouri Sheriff’s Retirement System.
He said these changes will undoubtedly impact future candidates when current sheriffs leave office.
“These changes significantly impact the larger Sheriff’s Offices in the state and could potentially discourage leaders from larger departments from running for the position as it will negatively impact their retirement,” said Marshak.
As a county employee before being elected, Sheriff Marshak participated in both LAGERS (the Missouri Local Government Employees Retirement System) and CERF (the Missouri County Employee Retirement System).
Current Sheriffs are already exempt from participating in CERF as soon as they are elected. For example, Sheriff Marshak’s CERF retirement was frozen, and he started in the new Sheriff’s Retirement System in January 2017. He will be vested at the end of this term on January 1, 2024.
Last week, Governor Mike Parson signed Senate Bills 20 and 75, prohibiting future Sheriffs from participating in other pensions or retirement systems, including LAGERS. They will only be allowed to participate in the Sheriff’s Retirement System after eight full years (two elected four-year terms), with increased benefits atier twelve years (three fully completed elected terms).
Under the bills, Sheriffs currently in office are not impacted. Other changes include counties contributing five percent of sheriff’s pay into the retirement system. The Missouri Sheriff’s Retirement System Board had a difficult job, and approximately half of the Sheriffs in the state have zero retirements other than the Sheriffs system. For them, this was a win. In contrast, the other half of the Sheriffs/counties also participate in LAGERS. A couple of legislators insisted on this change before moving the legislation forward. In positive news, the board can now accept financial gitis and appropriations into the fund. For example, Governor Parson signed House Bill 5 this session, which moved $2.5 million into the fund. In the long term, they will seek a solution to ensure the fund is solvent for future Sheriffs. Right now, it’s not.
The Sheriff’s Retirement Board has been working on a solution since the Missouri Supreme Court ruled in January 2021 that the fees collected to fund the system were unconstitutional. Since then, the board has worked with legislators to provide a solution. The work continues.
Sheriff Marshak has pledged to work with the County Council, County Executive, and legislators to find workable solutions to future challenges. Sheriff Marshak states, “Jefferson County must have future (competent) leadership to address the agency’s myriad challenges. Convincing commanders to drop out of their two other retirement systems and gamble with eight years of assets is a huge risk.”