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: The amendment to 16 CSR 10-6.060 (adding a
				  new section (5)) relates to working after retirement for PEERS 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
				  limitations normally placed on PEERS 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 PEERS retirees; it
				  applies only to hours for PEERS retirees who return to work to substitute
				  teach. Therefore, to administer this legislation as it relates to PEERS
				  retirees, PEERS must define what it considers to be work that qualifies as
				  substitute teaching under this temporary legislative waiver.
(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. 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.