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: This amendment clarifies procedures for
				  completing an application to claim service retirement benefits and revises the
				  restrictions on employment as provided in sections 169.560 and 169.596, RSMo,
				  by increasing the earnings limit for Public School Retirement System retirees
				  working in noncertificated positions; exempting retirees who are employed by a
				  statewide nonprofit educational association or organization, as defined under
				  169.130, RSMo, from certain earnings limits; and expanding the amount of time
				  retirees are allowed to work full-time if there is a critical shortage of
				  certified teachers in a school district.
(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. 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
				School 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.
(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 a position that does not
				normally 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, beginning on August 28, 2023, and ending on June 30, 2028,
				up to one hundred and thirty-three percent (133%) of the annual earnings
				exemption amount applicable to a Social Security recipient before the calendar
				year of attainment of full retirement age under  20 CFR section 404.430, and
				after June 30, 2028, up to the annual earnings exemption amount applicable to a
				Social Security recipient before the calendar year of attainment of full
				retirement age under  20 CFR section 404.430, without a discontinuance of the
				retiree's retirement allowance. The Social Security annual earnings exemption
				amount applied shall be the exemption amount in effect for the calendar year in
				which the school year begins. 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
				10-3.010(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, or an employer under section 169.130.4, RSMo.  20 CFR 404.430, dated
				May 19, 2005, is incorporated by reference in this rule as published by the
				National Archives in the Code of Federal Regulations and available at the
				National Archives, 700 Pennsylvania Ave. NW, Washington, DC 20408-0001, or at
				ecfr.gov. This rule does not incorporate any subsequent amendments or
				additions.
(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%