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 10-6.040 - Membership Service Credit

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule sets forth the manner in which
				  credit is to be earned or purchased in accordance with the provisions of
				  sections
				  105.985,
				  169.595,
				  169.600, 169.620, and
				  169.650, RSMo.
(1) Membership
				service credit for regularly employed members will be calculated based on the
				following ratio beginning July 1, 1997: The actual compensation received by the
				member for the school year divided by the minimum annual compensation expected
				to be paid for that position for a complete school year, as reflected on the
				beginning of the year report from the employer (or as later amended). Both the
				numerator and denominator will be determined without regard to the medical
				benefits that are otherwise included in compensation. Credit resulting from the
				above calculation shall be rounded to the nearest hundred-thousandth. Not more
				than one (1) year of membership service credit will be allowed for any school
				year.
(2) When a member terminates
				employment with an employer included in the retirement system before the end of
				a school year, the maximum credit that may be received for that school year for
				employment with such employer will be calculated based on the portion of the
				school year completed before termination of membership. When a member begins
				employment with an employer included in the retirement system after the start
				of a school year, the maximum credit that may be received for that school year
				for employment with such employer will be calculated based on the portion of
				the school year completed after starting covered employment. Provided, however,
				that the beneficiary of a deceased member may elect to have membership service
				credit calculated pursuant to section (1) of this rule if such beneficiary is
				eligible or would become eligible for benefits pursuant to section
				169.670.4(2), RSMo. In no event will benefit payments commence prior to July 1
				if the member is allowed one (1) year of membership service credit.
(3) Any credit earned for a period of leave
				under section
				169.595,
				RSMo, shall be secured only during the leave period; provided that if all
				contributions due for such credit are received within the school year in which
				the leave occurred, the credit shall be allowable.
(4) Any credit earned for a period of leave
				under section
				169.595,
				RSMo, shall be secured only if the necessary contributions are remitted by the
				employing district by June 30 of the school year that occurs two (2) years
				after the school year in which the leave period occurred and are accompanied by
				a statement from the employing district certifying the name of the member for
				whom the contributions are being remitted and that the member was either on
				sick leave in accordance with the sick leave provisions of the employer or was
				under Workers' Compensation during the period of leave.
(5) A member may elect to purchase creditable
				service under section
				105.985, RSMo, only
				if the member had previously acquired creditable service in a retirement plan
				defined in that section for the employment to which the election applies;
				except that if the service did not meet the membership requirements of the
				employer's retirement plan or the employer had no retirement plan at the time
				the service was rendered, but the service would otherwise have met the
				membership requirements of this system as in effect when the election is made,
				the member shall be eligible to purchase this creditable service. The
				creditable service allowable shall be determined in accordance with the
				provision of section
				105.985, RSMo, and
				the rules of the board of trustees.
(6) A member who does not complete payment in
				full on an application to purchase creditable service under section
				105.985, RSMo, within
				the time limit prescribed by law may reapply to purchase creditable service for
				that same period of employment. The member may apply within the limits of the
				law to purchase creditable service for any other period of employment for which
				application to purchase creditable service was not previously made.
(7) For the purpose of determining
				eligibility for retirement as a result of the sum of a member's age and years
				of creditable service equaling eighty (80) years or more, the member's age
				shall be determined by adding the member's age on the date of his or her most
				recent birthday and the partial year following the member's most recent
				birthday. Such partial year shall be determined by converting the member's age
				to the nearest day into a number rounded to the nearest
				hundred-thousandth.
(8) For all
				elections to purchase credit received by the retirement system on or after
				January 1, 2006, the member shall receive credit based on the amount paid by
				the member for such credit and received by the retirement system by the close
				of business on June 30 of each year.
(9) In lieu of charging the member interest
				on elections to purchase credit received on or after January 1, 2006, the
				amount to be paid by the member for any remaining credit the member has elected
				to purchase, but has not paid for by September 30 of each calendar year, shall
				be recalculated on the following October 1 using the contribution rate in
				effect on July 1 of that same calendar year and the highest salary of record
				for the member as of that July 1.
(10) For all elections to purchase credit
				received by the retirement system prior to January 1, 2006, the retirement
				system shall determine the cost of such purchase using the calculation method
				in effect for elections to purchase credit received by the retirement system on
				or after January 1, 2006, provided that the member shall have a one (1)-time,
				irrevocable option to continue to have the cost of such purchase be determined
				using the calculation method in effect at the time of such election to purchase
				such credit. To be effective, such option must be elected by the member on a
				form approved by the retirement system and such form must be received by the
				retirement system by the close of business on June 30, 2006.
(11) The retirement system may limit the
				amount of credit purchased by a member in any year if allowing such purchase
				would jeopardize the retirement system's tax qualified status under Title 26 of
				the
United States Code
.
*Original authority: 169.610, RSMo 1965, amended 1977,
					 2005.