Mo. Code Regs. tit. 16 § 10-5.010
Current through Register Vol. 49, No.12, June 17, 2024
Section 16 CSR 10-5.010 - Service RetirementPURPOSE: 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 |
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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% |
(7) 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 an hour-by-hour basis for the purposes of this rule and section 169.560, RSMo.(8) For purposes of applying the provisions of section 169.560, RSMo only, no state college, state university, or state agency shall be considered to be a district, employer, or public school as those terms are defined in section 169.010, RSMo. Any retired member who is employed by a state college, a state university, or any state agency shall not be subject to the requirements and restrictions of section 169.560, RSMo.(9) Any person who is receiving or has received a retirement allowance from the system, other than a disability retirement allowance, who returns to employment in a position covered by the system shall undertake such employment under a new and separate membership in the system.(A) Such person shall be eligible for a subsequent retirement allowance after one (1) year of creditable service under the new membership in the system. Such subsequent retirement allowance shall be separate and distinct from such person's previous retirement allowance.(B) After earning at least one (1) year of creditable service and upon termination of employment under the subsequent membership with the system, such person may: 1) withdraw from the system and receive a refund of the person's contributions made during the subsequent membership and interest credited thereon;2) apply for a subsequent retirement allowance; or3) leave the contributions with the system.(C) Such person shall not receive a retirement allowance for any previous membership service while the person is earning creditable service under a subsequent membership with the system.(D) The minimum benefit amounts provided in section 169.070.17, RSMo, shall not apply to any retirement allowance other than such person's initial retirement allowance provided by the system.(E) All previous years of creditable service, not otherwise forfeited, will be considered to determine the formula factor to be used in calculating the subsequent retirement allowance.(10) 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.(11) 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.(12) The 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.(13) 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 169.070, 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 169.070, RSMo.(14) A member who has made additional deposits with the system will, upon retirement, receive an addition to the retirement allowance provided for in section 169.070, RSMo unless s/he elects to withdraw his/her accumulated deposits without interest.(15) The provisions of subsection 15 of section 169.070, RSMo, shall be applicable to retirement allowance payments made on September 30, 1987 and thereafter. In determining any increase in benefits allowable under subsection 15 to those retirees receiving benefits under section 169.070.9(4), RSMo, the "retirement allowance" shall be deemed to be the amount which would have been payable had the allowance not been reduced to two-thirds (2/3) as provided in section 169.070.9(4), RSMo.(16) Any actuarial adjustment to a retirement allowance payment made because of the nomination of a successor beneficiary as provided in 169.141, 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 a successor beneficiary form submitted pursuant to section 169.141, RSMo must be received by the Retirement System within one (1) year of remarriage of the retirement member and the new spouse.(17) 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.(18) Pursuant to section 169.596, RSMo, a person receiving a retirement benefit from the Public School Retirement System of Missouri (PSRS) may teach up to full-time for no more than twenty-four months for a PSRS-covered school district without a suspension of his or her retirement benefit provided that such school district certifies that it has met the requirements set forth in section 169.596, RSMo, and provided that such school district does not exceed the limit on the number of PSRS retirees that may be hired pursuant to section 169.596, RSMo. (A) As used in section 169.596, RSMo, "teacher" shall have the same definition as provided in section 169.010(17), RSMo.(B) As used in section 169.596, RSMo, "early retirement incentive" shall have the same definition as "consideration for agreeing to terminate employment" provided in 16 CSR 10-3.010(9)(B) 6., except that it shall not include retirement notice or separation notice incentives of total value of five thousand dollars ($5,000) or less for providing notice of intent to retire or separate employment.(C) As used in section 169.596, RSMo, "teach" shall mean to be employed in any position for a school district covered by PSRS.(D) The school district shall notify PSRS in a manner acceptable to PSRS of the school district's intent to hire a PSRS retiree under section 169.596 prior to the first date of such employment.(E) A school district hiring a PSRS retiree under section 169.596, RSMo, shall certify to PSRS through the Online Automated System Integrated Solution (OASIS) or in another manner acceptable to PSRS that- 1. It has met the requirements of section 169.596, RSMo; and2. It has not exceeded the limit on the number of PSRS retirees it may hire under section 169.596, RSMo(19) If the designated joint and survivor beneficiary of a retiree who elected Option 2, 3, or 4 dies before the retired member, the retired member's retirement allowance will be increased to the amount the retired member would be receiving had the retired member elected Option 1. The increase in retirement allowance shall be effective the month of the beneficiary's death.(20) Any member receiving a retirement allowance from the Public School Retirement System of Missouri who elected a reduced retirement allowance under subsection 3 of section 169.070, RSMo who, at the time of that election, named his or her spouse as the nominated beneficiary may have the retirement allowance increased to the amount the retired member would be receiving had the retired member elected Option 1 under the following circumstances:(A) Where the marriage of the retired member and the nominated spouse was dissolved on or after September 1, 2017, the dissolution decree must clearly provide for sole retention by the retired member of all rights in the retirement allowance to the satisfaction of the Public School Retirement System.(B) Where the marriage of the retired member and the nominated spouse was dissolved prior to September 1, 2017: 1. If the dissolution decree clearly provides for sole retention by the retired member of all rights in the retirement allowance to the satisfaction of the Public School Retirement System, the parties must either obtain an amended or modified dissolution decree after September 1, 2017 that provides for the immediate removal of the nominated spouse, or the nominated spouse must sign a notarized statement on a form designated by the Public School Retirement System consenting to his or her immediate removal as the nominated beneficiary and disclaiming all rights to future benefits; and2. If the dissolution decree does not clearly provide for sole retention by the retired member of all rights in the retirement allowance to the satisfaction of the Public School Retirement System, the parties must obtain an amended or modified dissolution decree after September 1, 2017, which provides for sole retention by the retired member of all rights in the retirement allowance;(C) The retired member and the nominated spouse must have been married at the time of the election of the reduced retirement allowance under subsection 3 of section 169.070, RSMo;(D) In order to receive the increased retirement allowance, a retired member who elected a term certain plan under subsection 3 of section 169.070, RSMo must have named his or her spouse as the primary beneficiary at the time of retirement. The increased retirement allowance shall continue for the remainder of the retired member's lifetime and no provisions of the term certain plan shall continue to apply to the retired member. All beneficiaries nominated by the retired member under the term certain plan shall be void, and the retired member must name new beneficiaries for any accumulated contributions payable upon the retired member's death. The retired member shall not be eligible to nominate a new spouse pursuant to section 169.141, RSMo; and(E) Any such increase in the retirement allowance shall be effective upon the receipt of an application for such increase, including the nominated spouse's consent and disclaimer form, if required, and a certified copy of the decree of dissolution (and separation agreement, if applicable) that meets the requirements of this section. The increased retirement allowance will be paid prospectively only after receipt of all of the aforementioned documents. No retroactive benefits will be paid. AUTHORITY: section 169.020, RSMo Supp. 2013.* Original rule filed Dec. 19, 1975, effective Jan. 1, 1976. Amended: Filed June 10 , 1980, effective Sept. 15, 1980. Emergency amendment filed Sept. 10, 1987, effective Sept. 20, 1987, expired Jan. 18, 1988. Amended: Filed Sept. 10, 1987, effective Jan. 29, 1988. Emergency amendment filed Dec. 29, 1987, effective Jan. 8, 1988, expired April 27, 1988. Amended: Filed Dec. 29, 1987, effective May 26, 1988. Emergency amendment filed Aug. 24, 1988, effective Sept. 3, 1988, expired Jan. 1, 1989. Amended: Filed Aug. 24, 1988, effective Dec. 29, 1988. Emergency amendment filed Dec. 20, 1989, effective Dec. 30, 1989, expired April 29, 1990. Amended: Filed Dec. 20, 1989, effective April 12, 1990. Amended: Filed Nov. 8, 1991, effective March 9, 1992. Amended: Filed April 29, 1993, effective July 1, 1994. Amended: Filed June 28, 1993, effective Dec. 9, 1993. Amended: Filed Oct. 29, 1993, effective May 9, 1994. Amended: Filed July 31, 1995, effective Feb. 25, 1996. Amended: Filed Feb. 26, 1996, effective Aug. 30, 1996. Amended: Filed Aug. 9, 1999, effective Feb. 29, 2000. Amended: Filed Aug. 29, 2003, effective Feb. 29, 2004. Amended: Filed Nov. 1, 2006, effective April 30, 2007. Amended: Filed Jan. 4, 2010, effective July 1, 2010. Amended: Filed July 20, 2010, effective Jan. 30, 2011 . Amended: Filed July 2, 2012, effective Dec. 30, 2012. Amended: Filed June 24, 2013, effective Jan. 30, 2014. Amended by Missouri Register May 1, 2015/Volume 40, Number 09, effective 6/30/2015Amended by Missouri Register September 15, 2015/Volume 40, Number 18, effective 10/31/2015Amended by Missouri Register February 1, 2018/Volume 43, Number 3, effective 4/2/2018Amended by Missouri Register June 3, 2019/Volume 44, Number 11, effective 7/31/2019Amended by Missouri Register February 18, 2020/Volume 45, Number 4, effective 3/31/2020Amended by Missouri Register December 15, 2022/Volume 47, Number 24, effective 1/29/2023*Original authority: 169.020, RSMo 1945, amended 1951, 1953, 1967, 1973, 1983, 1990, 1995, 1996, 1998, 2005, 2009, 2013.