Missouri Code of State Regulations › Title 16 - RETIREMENT SYSTEMS › Division 10 - The Public School Retirement System of Missouri › Chapter 5 - Retirement, Options and Benefits › Section 16 CSR 10-5.010 - Service Retirement

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: The amendment to section (6) of 16 CSR
				  10-5.010 relates to working after retirement for PSRS members and is necessary
				  pursuant to CCS#2/HCS/SS/SCS/SBs 681 and 662 which became effective on July 1,
				  2022, pursuant to the bill's emergency clause. This legislation provides for a
				  temporary waiver (through June 30, 2025) of certain hourly and salary
				  limitations normally placed on PSRS retirees who return to work for covered
				  employers. This legislation was passed to assist covered employers who are
				  struggling to find enough qualified and available substitute teachers. The
				  temporary waiver does not apply to all work performed by PSRS retirees; it
				  applies only to hours and salary for PSRS retirees who return to work to
				  substitute teach. Therefore, to administer this legislation as it relates to
				  PSRS retirees, PSRS must define what it considers to be work that qualifies as
				  substitute teaching under this temporary legislative waiver.
(1) A member qualifying for service
				retirement shall file a written application with the board of trustees on a
				form provided by the board before s/he can become eligible to receive
				retirement allowance payments.
(2)
				The earliest date on which service 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 Service Retirement, whichever is later; except
				that the earliest date on which service retirement may become effective for a
				member retiring after receiving credit for a year of membership service shall
				be July 1, the first day of the fiscal year following the termination of
				services. 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.
(3) The first retirement allowance, because
				of service retirement, shall be paid not later than the calendar month
				immediately following the month in which the application is approved. The first
				payment after the approval shall include any allowances which have accrued
				between the effective date of retirement and the date of the first
				payment.
(4) Except as provided in
				section (6), if a retired member receiving a retirement allowance returns to
				employment in a position covered by the retirement system, the retirement
				allowance shall cease, s/he shall become a new member of the retirement system
				and shall make contributions to the system. Upon a subsequent termination of
				services as a teacher, payment of the previously determined retirement
				allowance shall be resumed.
(5)
				Except as provided in section (6), a retirement allowance shall not be paid a
				retired member during any month in which compensation is earned as specified in
				section
				169.560,
				RSMo; provided that this rule shall not apply to employment with a state
				college, a state university, or any state agency.
(6) Part-time employment is any employment
				which is less than full-time. Temporary-substitute employment is any employment
				either in a position held by a regularly employed person who is temporarily
				absent or in a position which is temporarily vacant.
(A) A retiree receiving a retirement benefit,
				other than a disability benefit, from the Public School Retirement System of
				Missouri (PSRS) may be employed by an employer included in the system to serve
				on a part-time or temporary-substitute basis in any position that would
				normally require that person to be duly certificated by the Department of
				Elementary and Secondary Education (DESE), including substituting in a teaching
				position, or in any position at a community college included in the system not
				to exceed five hundred fifty (550) hours in any one (1) school year and through
				such employment may earn an amount not in excess of the compensation limit set
				forth in this rule and section
				169.560,
				RSMo, without a discontinuance of the retired member's retirement allowance.
				The limit on compensation shall be determined as set forth in section
				169.560,
				RSMo. If the position or positions did not previously exist, a retired member
				may earn up to fifty percent (50%) of the annual compensation payable for the
				position within the employer that is most comparable to the position filled by
				the retired member without exceeding the compensation limit. If such employment
				exceeds either the limitation on hours worked or the limitation on
				compensation, payment of benefits to the retired member shall cease until the
				employment terminates or a new school year begins.
(B) The provisions above shall apply to any
				person retired and currently receiving a retirement allowance under sections
				169.010, RSMo to
				169.141, RSMo who is employed by a third party or is performing work as an
				independent contractor, if such person is performing work in an employer
				included in the retirement system as a temporary or long-term substitute
				teacher or in any position that would normally require that person to be duly
				certificated by the Missouri Department of Elementary and Secondary Education
				if such person was employed by the employer. The retirement system may require
				the employer, the third-party employer, the independent contractor, and the
				retiree, subject to this section, to provide documentation showing compliance
				with this section. If such documentation is not provided, the retirement system
				may deem the retiree to have exceeded the limitations provided in this
				section.
(C) 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 169.010 to 169.141,
				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 and may earn an amount in excess of the compensation
				limit set forth in subsection (6)(A) of this rule and section 169.560, RSMo,
				without a discontinuance of the retiree's retirement allowance. This section
				shall also apply to work performed by PSRS retirees, other than disability
				retirees, who are employed to substitute teach by third parties or as
				independent contractors for employers included in the retirement system. For
				purposes of administering this section as applicable to PSRS 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.
(D) A retiree receiving a
				retirement benefit, other than a disability benefit, from PSRS may be employed
				by an employer included in that system in any position that normally does not
				require a person employed in that position to be duly certificated by the
				Department of Elementary and Secondary Education and through such employment
				may earn during the school year not more than sixty percent (60%) of the
				minimum teacher's salary for a teacher without a master's degree as set forth
				in section 163.172, RSMo, without a discontinuance of the retiree's retirement
				allowance. The employer shall contribute to the Public Education Employee
				Retirement System of Missouri (PEERS) at the rate set for that system on all
				salary as defined in section 169.010, RSMo, and 16 CSR 103.010(9) of the person
				so employed. Such employee shall not contribute on such earnings and shall earn
				no service credit in either system for such employment. If such employment
				exceeds the limitation on compensation, the retiree's retirement benefit from
				PSRS shall cease until the employment terminates or a new school year begins,
				and such person shall become a member of and contribute to any retirement
				system described in this subsection if the person satisfies the retirement
				system's membership eligibility requirements. A PSRS retiree who meets PSRS
				eligibility requirements after exceeding the limits set forth above shall not
				be eligible to elect membership in PEERS under section 169.712, RSMo. The
				provisions of this subsection shall not apply to positions held by a PSRS
				retiree employed by a community college included in the system.
(E) This rule shall not apply to employment
				with a state college, a state university, or any state agency.
(F) The employer covered by PSRS, the
				third-party employer, the independent contractor, and the retiree shall
				maintain a log of all dates worked, hours worked, wage earned, and the
				employer. The employer covered by PSRS, the third-party employer, the
				independent contractor, 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
				  169.560, 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
The working after retirement limits set forth in section
				  169.560, RSMo, shall be applied on a pro rata basis as provided below to a
				  retiree's base salary to determine the retiree's earnings limit during the
				  school year in which the retiree's date of retirement is effective.
Effective date of retirement
Percentage of base salary allowed after
							 retirement for school year
July 1
50%
August 1
46%
September 1
42%
October 1
38%
November 1
33%
December 1
29%
January 1
25%
February 1
21%
March 1
17%
April 1
13%
May 1
8%
June 1
0%