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 10-6.020 - Source of Funds

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This amendment clarifies the treatment of
				  employer contributions to employee Health Savings Accounts (HSAs) as salary
				  rate as defined in section
				  169.600, RSMo. The
				  amendment also rearranges some existing language and adds subsections to better
				  organize the regulation.
(1)
				Each employer reporting to The Public Education Employee Retirement System of
				Missouri shall report required data on employees and all contributions to the
				retirement system using the Online Automated System Integrated Solution
				(OASIS).
(2) Employers shall use
				OASIS to report salary payments made to all employees, contributions withheld
				from employees included in the retirement system, and supporting information
				required by the board of trustees. Transmission of data must be sent to the
				board of trustees no later than ten (10) working days after the last day of
				each calendar month of the school year in which salaries are paid.
(3) Employers of persons included in the
				retirement system shall withhold from each salary payment issued to such
				persons during the school year in which the services are rendered an amount
				which is the percent of salary rate required by the contribution rate then in
				effect; and employers shall transmit to the board of trustees, not later than
				ten (10) days after the last day of each calendar month of the school year,
				twice the amount withheld during the month.
(4) All deductions of contributions from
				salary payments made by employers for the retirement system are declared and
				shall be considered to be funds belonging to the retirement system; and no
				employer shall refund or repay any contributions or any part of any
				contributions so deducted to any employee for any cause but shall transmit all
				contributions deducted, together with an equal amount, to the board of
				trustees, which board shall settle all claims against funds so
				deducted.
(5) All contributions
				withheld from salaries paid to members along with an equal contribution of the
				employer shall be transmitted to the board of trustees by check, bank draft,
				electronic funds transfer, or any negotiable instrument collectible at par
				through a bank in the state of Missouri, made payable to The Public Education
				Employee Retirement System of Missouri.
(6) If remittance for the full amount of both
				employee's and employer's contributions which are due the retirement system is
				not received in accordance with these regulations, it shall be considered a
				failure or refusal by the employer to transmit such amount and suit for
				recovery of the amount may be instituted as provided for in section
				169.620,
				RSMo.
(7) Errors by employers in
				reporting of eligibility for membership, assigning of employees, and in
				remitting of contributions will be corrected retroactively, provided the
				employer certifies that an error was made, provides evidence adequate to
				support the correction, and remits any balance due from the employer and
				employee. If the employer has overremitted, the amount of the employer's
				portion of the overpayments will be credited to the employer to be applied
				against future contributions. The amount withheld by the employer from the
				employee shall be refunded to the employee in a manner consistent with the
Internal Revenue Code
.
(8) Any refund of contributions remitted in
				error for a member or an employee shall include the total interest, if any,
				which was credited to those contributions by the retirement system. Any credit
				provided to the employer for matching employer contributions required in such
				an instance shall be equal to the total amount paid to the member or employee,
				including interest. Any correcting remittance of contributions for a member
				shall include the total interest, if any, which would have been credited to
				those contributions by the retirement system had the contributions been
				remitted on a correct and timely basis. Any matching employer contribution
				remitted in such an instance shall be equal to the total amount remitted for
				the member, including interest.
(9)
				For purposes of determining retirement contributions and benefits, salary rate
				includes medical insurance premiums (including dental and vision) paid by the
				employer on behalf of the member and payments made by the employer on behalf of
				the member to a self-funded medical benefits plan. The employer shall withhold
				from the member's salary and remit to the system contributions on any such
				premiums and payments, along with matching employer contributions. The payment
				reported for each member covered by a self-funded medical benefits plan shall
				be determined by the employer.
(A) Salary
				rate also includes payments made by the employer on behalf of the member to
				purchase an annuity, or fund a deferred compensation plan, in lieu of medical
				insurance or a self-funded medical benefits plan.
(B) Premiums and payments for prescription
				drug, life, and other ancillary benefits determined separately from premiums
				and payments for general medical benefits are not part of salary
				rate.
(C) Beginning July 1, 2017,
				premiums paid by the employer on behalf of the member and payments made by the
				employer on behalf of the member to a self-funded medical benefits plan for
				prescription drug coverage shall be included in salary rate as defined in
				section
				169.600, RSMo,
				whether or not such premiums or payments for prescription drug coverage were
				determined separately from premiums and payments for general medical benefits.
				Contributions transmitted to the retirement system before July 1, 2017, based
				on salary rates which either included or excluded employer-paid premiums or
				payments to a self-funded medical benefits plan for prescription drug coverage
				for members shall be deemed to have been in compliance with this section. The
				retirement system shall not refund or adjust contributions or adjust benefit
				determinations with respect to any period before July 1, 2017, solely because
				of the treatment of employer-paid premiums or payments to a self-funded medical
				benefits plan for prescription drug coverage for members.
(D) Beginning July 1, 2020, certain payments
				made by the employer on behalf of the member to a Health Savings Account (HSA)
				shall be included in salary rate as defined in section
				169.600, RSMo,
				whether or not such payments were determined separately from premiums and
				payments for general medical benefits. Payments made by an employer to a
				member's HSA shall be included in salary rate up to the amount that is offered
				to all employer's employees and not to exceed the applicable annual HSA
				contribution limit set by Internal Revenue Code for single coverage. The annual
				contribution limit used will be the one in effect for the calendar year in
				which a plan year begins. Contributions transmitted to the retirement system
				before July 1, 2020, based on salary rates which either included or excluded
				employer payments to a member's HSA shall be deemed to have been in compliance
				with this section. The retirement system shall not refund or adjust
				contributions or adjust benefit determinations with respect to any period
				before July 1, 2020, solely because of the treatment of employer-paid HSA
				contributions.
(E) Salary, salary
				rate, or compensation as defined in section
				169.600, RSMo, shall
				not be reduced due to premium rebates or refunds received by the employer as a
				result of the implementation of the "Patient Protection and Affordable Care
				Act,"
				Public Law
				111-148.