Missouri Code of State Regulations › Title 16 - RETIREMENT SYSTEMS › Division 50 - The County Employees' Retirement Fund › Chapter 2 - Membership and Benefits › Section 16 CSR 50-2.020 - Employee Contributions

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule clarifies the nature
				  of
payroll contributions required from employees both in
				  counties which are members of the Local Government Employees' Retirement System
				  and those counties which are not members of the Local Government Employees'
				  Retirement System.
(1) A
				Participantst who is not a member of Local Government Employees' Retirement
				System (LAGERS) is subject to a two percent (2%) monthly payroll deduction
				beginning with the first payroll period after the Participantst's entry date;
				except that, for each payroll period ending after December 31, 2002, a
				Participantst who is not a member of LAGERS and who is hired or rehired by a
				county on or after February 25, 2002, is subject to a monthly payroll deduction
				of not less than two percent (2%) and not more than six percent (6%), in
				accordance with sections
				50.1020(6)
				and 50.1040(2), RSMo and with
				16 CSR
				50-2.080. Any payroll deduction described in this
				section shall constitute the Participantst's required contribution to the plan
				and shall be designated as an employer "pickup" contribution, as described in
				section 414(h)(2) of the
Internal Revenue Code
. A
				Participantst may not waive this contribution, or terminate this contribution
				requirement by opting out of the plan.
(2) For each payroll period ending after
				December 31, 2002, Participantsts who are members of LAGERS and who are hired
				or rehired by a county on or after February 25, 2002, are subject to a monthly
				payroll deduction not to exceed four percent (4%), in accordance with sections
				50.1020(6)
				and 50.1040(2), RSMo and
				16 CSR
				50-2.080. Any payroll deduction pursuant to this
				section shall constitute the Participantst's required contribution to the plan
				and shall be designated as an employer "pick-up" contribution, as described in
				section 414(h)(2) of the
Internal Revenue Code
. A
				Participantst may not waive this contribution, or terminate this contribution
				requirement by opting out of the plan.
(3) Contributions Required from Part-Time or
				Seasonal Employees. Participantsts have two (2) options with regard to the
				prior service earned while they are still qualifying for entry into the plan. A
				Participantst must make his or her election to either forego or purchase this
				prior service as outlined in subsections (A) and (B) upon their entry into the
				plan at the first available entry date. Such Participantst may either-
(A) Forego those months of prior service and
				accrue eight (8) years of service from their entry into the plan; or
(B) A Participantst who is a member of LAGERS
				and who is hired by a county on or after February 25, 2002, may purchase prior
				service earned on or after January 1, 2003 at the rate of four percent (4%)
				times the total compensation earned during this prior service period. A
				Participantst who is a member of LAGERS is not required to purchase prior
				service earned on or before December 31, 2002. A Participantst who is not a
				member of LAGERS and who is hired by a county on or after February 25, 2002,
				may purchase prior service earned on or after January 1, 2003 at the rate of
				six percent (6%), and service earned before January 1, 2003 at the rate of two
				percent (2%), times the total compensation earned during this prior service
				period. Any other Participantst who is not a member of LAGERS may purchase the
				prior service at the rate of two percent (2%) times the total compensation
				earned during this prior service period. Participantsts selecting this option
				may purchase the prior service with a lump-sum contribution or through periodic
				payroll deductions, in accordance with such procedures as established by the
				board, in addition to the regular periodic payroll deduction. If the
				Participantst elects to purchase the prior service with an additional payroll
				deduction, then the deduction shall not extend longer than the period of prior
				service being purchased.