Missouri Code of State Regulations › Title 16 - RETIREMENT SYSTEMS › Division 10 - The Public School Retirement System of Missouri › Chapter 6 - The Public Education Employee Retirement System of Missouri › Section 16 CSR 10-6.060 - Service Retirement

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This amendment clarifies procedures for
				  completing an application to claim service retirement benefits and revises the
				  restrictions on employment as provided in section 169.596, RSMo, by expanding
				  the amount of time Public School Education Employee Retirement System retirees
				  are allowed to work fulltime if there is a critical shortage of noncertificated
				  employees in a school district.
(1) The earliest date on which retirement may
				become effective is the first day of the calendar month following the calendar
				month in which the services of the member are terminated, or the first day of
				the calendar month following the filing of the application for retirement,
				whichever is later; except that the earliest date on which retirement may
				become effective for a member who receives a year of membership service credit
				for the final school year in which the member serves shall be July 1 next
				following the member's last day of service. The member must complete any
				changes to the application by the close of business on the day the member's
				first monthly benefit is paid by the Public Education Employee Retirement
				System of Missouri. Termination from employment covered by the retirement
				system prior to the effective date of retirement is required to be eligible for
				a retirement benefit. A member shall not be deemed to have terminated
				employment if the member is employed in any capacity by an employer covered by
				the retirement system within one (1) month after his or her effective date of
				retirement. Effective July 1, 2016, a member shall not be deemed to have
				terminated employment if, prior to receipt of his or her first benefit payment,
				the member reaches an agreement, whether written or unwritten, for future
				employment in any capacity by an employer covered by the retirement system. The
				member shall be required to repay any benefit payments paid if it is determined
				that the member did not terminate employment covered by the retirement
				system.
(2) If a retiree receiving
				a retirement allowance returns to active service, his/her retirement allowance
				shall cease, s/he shall become a new member of the retirement system and s/he
				shall make contributions to the system. Upon a subsequent termination of
				his/her services, payment of his/her previously determined retirement allowance
				shall be resumed.
(3) A retirement
				allowance shall not be paid a retiree for any month in which compensation is
				earned for services as a regular employee of a school district included in the
				system.
(4) A retiree may serve as
				an employee of a district included in the system on a part-time or
				temporary-substitute basis not to exceed five hundred fifty (550) hours in a
				school year and continue to receive a retirement allowance. To be considered as
				serving on a temporary-substitute basis, a person must be serving for a regular
				employee who is temporarily absent or in a position which is temporarily
				vacant. The employer covered by the Public Education Employee Retirement System
				of Missouri and the retiree shall maintain a log of all dates worked, hours
				worked, wage earned, and the employer in substantially the same form as
				provided below. The employer and retiree shall provide a copy of the work log
				upon request of retirement system.
Employee Name:
School Year:
Date Worked
Hours Worked
Wage Earned
Employer
The working after retirement limits set forth in section
				  169.660.2, RSMo, shall be
				  applied on a pro rata basis as provided below to a retiree's hours of work
				  during the school year in which the retiree's date of retirement is
				  effective.
Effective date of retirement
Hours allowed after retirement for school
						  year
July 1
550
August 1
504
September 1
458
October 1
413
November 1
367
December 1
321
January 1
275
February 1
229
March 1
183
April 1
138
May 1
92
June 1
0
(5)
				Effective July 1, 2022, and until June 30, 2025, pursuant to section
				168.036.6, RSMo, and
				notwithstanding any other provisions to the contrary, any person retired and
				currently receiving a retirement benefit under sections
				169.600 to
				169.715, RSMo, other than for
				disability, may be employed to substitute teach on a part-time or temporary
				substitute basis by an employer included in the retirement system and for such
				work may exceed five hundred fifty (550) hours in any one (1) school year
				without a discontinuance of the retiree's retirement allowance. For purposes of
				administering this section as applicable to PEERS retirees, to substitute teach
				shall mean to instruct or guide the studies of students in a teaching position
				which requires a DESE-issued certificate in place of a regularly employed
				teacher who is temporarily unavailable. For community colleges, to substitute
				teach shall mean to instruct or guide the studies of students in a teaching
				position certified by the executive officer of the institution pursuant to
				section 169.140, RSMo, in place of a
				regularly employed teacher who is temporarily unavailable. A regularly employed
				teacher is considered temporarily unavailable when the teacher's position is
				unfilled due to the absence of the regular or former teacher for twelve (12)
				months or less.
(6) Effective July
				1, 2015, for any employment teaching at a community college included in the
				system, each credit hour taught by a retired member will be the equivalent of
				thirty (30) hours for the purposes of this rule and section
				169.560, RSMo, regardless of the
				number of hours actually worked by the retired member related to the course(s)
				taught. For any said course(s) taught during summer session, all hours for said
				course(s) shall be counted as having occurred during the school year in which
				the course(s) commence. Any hours worked performing additional duties for a
				community college not related to said course(s) for which a retired member
				receives compensation above and beyond that received for teaching said
				course(s) shall be counted on a hour-by-hour basis for the purposes of this
				rule and section 169.560, RSMo.
(7) A member electing Option 2, Option 3, or
				Option 4 in his/her application for service retirement shall furnish proof of
				date of birth of the person nominated to receive the survivorship
				payments.
(8) A member electing
				Option 2, Option 3, or Option 4 in his/her application for service retirement
				shall indicate the relationship establishing an insurable interest in his/her
				life for the person nominated and, if requested by the board, shall furnish
				evidence of the existence of the insurable interest. An insurable interest
				shall be considered to exist because of the relationship to a member of a wife,
				husband, father, mother, child (including a stepchild or adopted child), or any
				other person who has a financial interest in the continued life of the member
				or who is dependent upon the member for all or part of his/her
				support.
(9) Any member retiring
				under the provisions of section
				169.563, RSMo, shall have the
				same rights of retirement benefit plan election as a member retiring under
				section 169.670, RSMo. Further, the
				surviving spouse of any member who dies prior to retirement and while eligible
				to retire under section
				169.563, RSMo, shall have the
				same survivorship benefit rights as provided under section
				169.670, RSMo.
(10) Any actuarial adjustment to a retirement
				allowance payment made because of the nomination of a successor beneficiary as
				provided in 169.715, RSMo, shall take effect in the month a properly completed
				nomination of successor beneficiary form is received by the Retirement System
				or the month of the retiree's marriage to the successor beneficiary, whichever
				occurs later. The nomination of a successor beneficiary shall be effective
				immediately upon receipt by the Retirement System of the properly completed
				nomination of successor beneficiary form or the date of the retiree's marriage
				to the successor beneficiary, whichever occurs later. Effective August 28,
				2017, the properly completed nomination of successor beneficiary form submitted
				pursuant to section 169.715, RSMo, must be received
				by the Retirement System within one (1) year of remarriage of the retirement
				member and the new spouse.
(11) The
				effective date of any monthly benefit to a service retiree shall be the first
				day of the calendar month following the event establishing eligibility for the
				benefit, assuming all other requirements of the law and rules of the board of
				trustees have been met. Monthly benefit payments shall be made on the last day
				of each calendar month and shall be only for complete months. The initial
				payment shall include all benefits accrued since the effective date.
(12) A qualified member who desires to elect
				retirement Option 7 "Accelerated Payment Option" must do so in accordance with
				the terms, conditions, and limitations of this paragraph and section
				169.670, RSMo.
(A) By selecting the Accelerated Payment
				Option, the member is electing to utilize the retirement allowance the member
				is eligible to receive from this retirement system in conjunction with the
				retirement benefit the member is eligible to receive from the federal Social
				Security Administration commencing at the minimum Social Security retirement
				age (as established by law at the time the Accelerated Payment Option is
				elected), in order to receive from the two (2) systems combined, and within the
				limitations noted herein, level or near level monthly retirement benefits
				during the member's retirement.
(B)
				Under the Accelerated Payment Option, the member must select a benefit payment
				plan authorized by section
				169.670, RSMo, for which the
				member qualifies, including the options for reduced monthly benefit payments
				for life (with continuing payments to a designated beneficiary), but the amount
				of the benefit payment the member would otherwise be eligible to receive under
				the plan selected will be modified in the manner described herein.
1. The retirement allowance paid to the
				member by this retirement system under the Accelerated Payment Option will be
				actuarially equivalent to the retirement allowance the member would normally
				receive under the benefit payment plan selected, but to facilitate level or
				near level monthly benefit payments during retirement in the manner described
				herein, the member agrees to accept a plan of monthly benefit payments from
				this retirement system that will vary in amount, depending on the age of the
				member.
A. By electing the Accelerated Payment
				Option, the member agrees to accelerate payment of a portion of the member's
				retirement allowance to the early months of retirement, but as a consequence,
				and in order to maintain actuarial equivalence, the member further agrees to
				receive a reduced benefit payment amount over the remainder of the retirement
				period.
B. Under the Accelerated
				Payment Option, from the effective date of retirement from this retirement
				system until the retiree reaches the minimum Social Security retirement age (as
				established by law at the time the Accelerated Payment Option is elected), the
				retiree will receive a larger monthly benefit payment from this retirement
				system than would otherwise be paid under the benefit payment plan selected by
				the retiree. Upon reaching the minimum Social Security retirement age (as
				previously defined), the retiree will receive a smaller monthly benefit payment
				from this retirement system than would otherwise be paid under the benefit
				payment plan selected by the retiree.
2. The amount of the variable monthly benefit
				payment received from this retirement system will be actuarially determined by
				the retirement system using the benefit payment plan selected by the member and
				the member's projected retirement benefit from Social Security at the minimum
				eligible retirement age (as established by law at the time the Accelerated
				Payment Option is elected). The actuarial calculation will identify the
				necessary increase over and reduction below the monthly benefit otherwise
				payable under the benefit payment plan selected by the member, so that in
				conjunction with the monthly retirement benefit the member is eligible to
				receive from Social Security commencing at the minimum retirement age (as
				established by law at the time the Accelerated Payment Option is elected), the
				member can potentially receive level or near level monthly benefit payments
				during the member's retirement.
3.
				The plan of variable monthly benefit payments from this retirement system under
				the Accelerated Payment Option contemplates that the retiree will apply for and
				begin receiving retirement benefits from Social Security at the minimum Social
				Security retirement age set by law at the time the Accelerated Payment Option
				is elected, but nothing herein or in section
				169.670, RSMo, shall be
				construed as a promise or guarantee by this retirement system that the Social
				Security Administration will make such payments, or that any payments made will
				comport with the estimate of projected Social Security benefits used to
				calculate the variable monthly benefits from this retirement system, or that
				such payments will commence at the time originally identified by the Social
				Security Administration. Similarly, nothing herein or in section
				169.670, RSMo, shall be
				construed as a promise or guarantee that this retirement system will make up
				any shortfall in Social Security benefits from those projected at the time the
				Accelerated Payment Option is elected, or that this retirement system has any
				obligations other than those expressly assumed herein to assure a stream of
				level or near level monthly retirement benefits. It shall be the sole
				responsibility of the retiree and the Social Security Administration,
				respectively, to secure and/or pay Social Security retirement benefits
				sufficient to combine with the plan of variable retirement benefits available
				from this system to yield a level or near level stream of monthly benefit
				payments during retirement. Neither a failure by the retiree or the Social
				Security Administration to fulfill their respective obligations, nor a
				subsequent change in the minimum Social Security retirement age, will nullify
				the retiree's election of the Accelerated Payment Option or compel
				recalculation of the plan of variable monthly benefits determined at the time
				of election.
4. The retirement
				allowance the member is eligible to receive from this retirement system will
				determine the capacity of the Accelerated Payment Option to effectively provide
				level or near level monthly benefit payments for a retiree in the manner
				described herein. Some members may not be eligible for sufficient benefits to
				achieve a meaningful leveling of benefit payments under the Accelerated Payment
				Option and a member must exercise independent judgement in deciding whether the
				Accelerated Payment Option is appropriate in light of the member's particular
				circumstances. Nothing in this paragraph or in section
				169.670, RSMo, shall be
				construed as a promise or guarantee by this retirement system that the
				Accelerated Payment Option will provide a level or near level combination of
				benefit payments for all retirees, and in no case will the necessary
				adjustments to the monthly benefit otherwise payable under the plan selected by
				the member cause the amount to be paid when the member reaches the minimum
				Social Security retirement age (as established by law at the time the
				Accelerated Payment Option is elected) to be less than twenty-five percent
				(25%) of the member's original, non-adjusted benefit (i.e., the monthly benefit
				that would otherwise be payable under the benefit payment plan selected by the
				member).
5. If the retiree selects
				a benefit payment plan that provides for the payment of retirement benefits to
				a beneficiary upon the retiree's death, the amount of the beneficiary's payment
				in any particular month will be established by determining the monthly benefit
				amount the retiree would have received under the Accelerated Payment Option
				were the retiree still living, and then incorporating any reduction from that
				benefit level, if appropriate, based on the benefit payment plan selected by
				the retiree.
(C) The
				provisions in section
				169.670, RSMo, and 16 CSR
				106.100 concerning the right to receive a cost-of-living adjustment (COLA), the
				amount of any COLA, and any other limitations concerning COLAs shall apply with
				equal effect to benefits paid under the Accelerated Payment Option, except as
				follows:
1. Any COLA the retiree is eligible
				to receive will be based on the amount of the monthly benefit payable by this
				retirement system when the COLA takes effect; and
2. If a retiree has received COLAs prior to
				reaching the minimum Social Security retirement age (as established by law at
				the time the Accelerated Payment Option is elected), the reduced benefit paid
				by this retirement system from that point forward will include only that
				percentage of the previously awarded COLAs that would have been earned by the
				benefit amount payable after the retiree reaches the Social Security minimum
				retirement age (as previously defined).
(D) Limitations on and other provisions
				concerning post-retirement employment found in this rule and in Chapter 169,
				RSMo, shall apply with equal effect to a retiree under the Accelerated Payment
				Option, except as follows:
1. If a retiree
				under the Accelerated Payment Option subsequently returns to employment covered
				by this retirement system, benefit payments will be suspended, and the
				retiree's covered service will recommence under a new membership;
2. While the retirement benefits are
				suspended, they will continue to accrue COLAs based on the benefit that would
				have been paid to the retiree had the individual not returned to covered
				employment;
3. When the individual
				terminates covered employment and is again eligible to begin receiving
				retirement benefits, the retirement system will recalculate and, if necessary,
				adjust the amount of the prospective benefit payments under the Accelerated
				Payment Option to assure that they remain actuarially equivalent to the benefit
				payment plan selected at the time of the original retirement; and
4. A retiree under the Accelerated Payment
				Option who returns to covered employment and thereby qualifies for a second
				benefit based on the new membership may not elect the Accelerated Payment
				Option for the second benefit.
(E) A member who wishes to elect to receive
				retirement benefits under the Accelerated Payment Option, or who wants to
				receive an estimate of benefits under the Accelerated Payment Option, must
				provide the retirement system with a written estimate of the member's projected
				Social Security retirement benefit at the minimum eligible retirement age (as
				then in effect), prepared and issued by the Social Security Administration. The
				Social Security benefit estimate must have been issued no more than one hundred
				eighty (180) days prior to the date of the application for retirement or the
				date of the request for an Accelerated Payment Option benefit estimate. The
				Social Security benefit estimate must identify the projected retirement
				benefits for the member only, and may not include any benefits that could
				accrue to the member from a spouse, family member, or some other
				source.
(F) If a member dies prior
				to retirement, the member's surviving spouse cannot elect to receive benefits
				from this retirement system under the Accelerated Payment Option.