Mo. Code Regs. tit. 16 § 10-6.040

Current through Register Vol. 49, No.12, June 17, 2024

Section 16 CSR 10-6.040 - Membership Service Credit

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.

16 CSR 10-6.040

AUTHORITY: section 169.610, RSMo Supp. 2010.* Original rule filed Dec. 19, 1975, effective Jan. 1, 1976. Emergency amendment filed June 20, 1988, effective July 1, 1988, expired Oct. 28, 1988. Amended: Filed June 20, 1988, effective Sept. 29, 1988. Emergency amendment filed Aug. 24, 1988, effective Sept. 3, 1988, expired Jan. 1, 1989. Amended: Filed Aug. 24, 1988, effective Dec. 29, 1988. Amended: Filed Sept. 25, 1991, effective March 9, 1992. Amended: Filed Dec. 22, 1993, effective July 10, 1994. Amended: Filed June 14, 1996, effective Dec. 30, 1996. Amended: Filed Oct. 24, 1996, effective July 1, 1997. Amended: Filed Aug. 9, 1999, effective Feb. 29, 2000. Amended: Filed June 15, 2000, effective Dec. 30, 2000. Amended: Filed Feb. 14, 2002, effective July 30, 2002. Amended: Filed Sept. 1, 2005, effective Feb. 28, 2006. Amended: Filed July 20, 2010, effective Jan. 30, 2011 . Amended: Filed Dec. 15, 2010, effective June 30, 2011 . Amended: Filed June 30, 2011 , effective Jan. 30, 2012.

*Original authority: 169.610, RSMo 1965, amended 1977, 2005.