Opinion Letter to The Honorable Charles J. Becker

JOHN ASHCROFT (314) 751-3321 ATTORNEY G;:::NEI1AL 65101 Nay 18, 1979 OPINION LETTER NO. 23 The Honorable Charles J. Becker Representative, District 123 Room L~06, State Capitol Building Jefferson City, Missouri 65101 Dear Mr. Becker: This letter is in response to your opinion request 'l:.rh:i.ch asks whet:her the City of Ar:nold, Missouri, v.1hich has an assr.~ssed valuation of less than forty million dollars can establish .an Individual Retirement Account, as defined by the United States Internal Revenue Service, for all city employees other than policemen or firemen. We understand that cities generally may establish Individual Retirement Accounts for their employees. Iri your opinion request you state that the mayor and council of the City of Arnold, Missouri, are looking into a pension plan for city employees. You state that to date they h.ave been led to believe that nLagers" is the only plan that can be implemented by the city. In this connection, we call your attention to Section 70.615, RSMo, which provides: "After October 13, 1967, a political sub-· division shall ~~ ~ommence ~over~ge of its employees wno are nei.ther poB.cemen nor fire- men under another plan similar in purpose to this system, other than under this system, except the federal social security old age, survivors, and disability insurance program, as amended; except that any political corpora- tion o:r subdivision of this state, nov.J having or which may hereafter have an assessed valua- tion of forty million dollars or more, which does not now have a pension system for its officers and employees adopted purstiant to The Honorable Charles J. Becker state law 1 may provide by proper legis- lative action of its governing body for the pensioning of its officers and employees and the widows and minor children of deceased officers and employees under a plan separate and apart from that provided in sections 70.600 and 70.670 and appropriate and utilize its revenues and other avail- able funds for such purposes." (Emphasis added) In our Opinion No. 128-1972, copy enclosed, we concluded that a city is prohibited by Section 70.615 from establish- ing a pension and retirement fund for employees, other than policemen or firemen, except under Lagers, other than the federal social security old age, survivors, and disability insurance program, as amended, unless the city has an assessed valuation of at least forty million dollars. Clearly Section 70.61.5 provides that such a city "shall not conm1ence coverage of its employees who are neither police- men nor firemen under another plan similar in purpose to this system (Lagers)" and clearly the express exceptions are not releva.nt in the premises. Since the IRA is a plan similar in purpose to Lagers, in view of this prohibition, we conclude that the city cannot establish Individual Retirement Accounts for its employees. Enclosure Opinion No. 128-1972 Very truly yours, JOHN ASHCROFT Attorney General -2 ...