Mo. Code Regs. tit. 16 § 50-3.010

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

Section 16 CSR 50-3.010 - Creditable Service

PURPOSE: This rule describes what constitutes creditable service under the plan, and describes how such service may be purchased.

(1) General Rule. Creditable service means a Participantst's period of employment as an employee, including the Participantst's prior service, except as provided in section (2). In addition, absences for sickness and injury of less than twelve (12) months shall be counted as creditable service. For this purpose, a Participantst will be deemed to be absent for sickness and injury only to the extent certified by the county clerk on a form provided by the board or its designee to be on an approved leave of absence for medical reasons under the written policies of an employer. Any periods of service in a uniformed service (as defined in section 414(u) of the Internal Revenue Code (Code)) shall be included in creditable service to the extent required by the Uniformed Services Employment and Reemployment Rights Act of 1994. A Participantst (other than a part-time or seasonal employee) shall receive credit for one-twelfth (1/12) of a year for each month in which the Participantst earns an hour of service. Elective or appointive county officials receive one (1) year of service for each year in office. A person may not earn more than one (1) year of creditable service in any plan year.

(2) Excluded Service. Unless the Participantst purchases such service in accordance with section (3), a Participantst's creditable service shall not include:

(A) A period of employment during which the Participantst opted out of the plan, and any prior service excluded under the terms of the prior plan as a result of the opt-out;

(B) Prior service by a former employee, unless purchased in accordance with the terms of the prior plan or unless purchased by a special consultant as provided for in section 50.1090.2, RSMo, and in 16 CSR 50-3.060;

(C) Service prior to a separation from service, if the Participantst was not vested at the time of the separation from service;

(D) If the Participantst is a part-time or seasonal employee, service prior to the Participantst's entry date, unless the Participantst purchases service (up to a maximum of one (1) year) pursuant to section (3) of this regulation;

(E) Service after a Participantst's entry date, if the required contribution, determined in accordance with 16 CSR 50-2.020, is not withheld from the Participantst's pay or otherwise paid by the county for any reason; or

(F) A Participantst's stint in a uniformed service (within the meaning of section 414(u) of the Code), if the Participantst was not a member of Local Government Employees' Retirement System (LAGERS) before such stint or if the Participantst was a member of LAGERS and was hired or rehired by a county on or after February 25, 2002, before such stint.

(3) Purchase of Service. A Participantst described in subsections (2)(A), (2)(B), (2)(D), (2)(E), or (2)(F) may purchase his or her service excluded under such paragraphs by notifying the board, in writing, of his or her election to buy back such service within sixty (60) days following the date the employee becomes a plan Participantst. A Participantst described in subsection (2)(C) who purchases excluded service as described in the preceding sentence will become vested in his or her accrued benefit only if the Participantst completes eight (8) years of uninterrupted creditable service after his or her return to county employment. The written election shall include a statement indicating the portion of the excluded service he or she elects to purchase. If a Participantst makes a request in accordance with this section to purchase service, the board, or its designee, will calculate the cost of buying back the service including interest and penalties provided by statute. The Participantst shall be notified of the cost to buy back service. After receiving this notice, the Participantst may elect to buy back service either through a lump-sum payment due at the time of the election or a payroll deduction beginning with the first pay period after the Participantst makes the election. The Participantst may request that the payroll deduction be made in equal monthly installments over a period not to exceed the period of prior service being purchased or four (4) years, whichever is shorter. If the Participantst elects to buy back excluded service through an installment plan of payroll deductions and either dies or separates from service prior to completing the installment plan, then the Participantst or his or her spouse may pay the remaining amount due under the installment plan within sixty (60) days following the Participantst's death or separation from service in a manner acceptable to the board or its designee. If such payment is not made, the Participantst shall not receive credit towards his or her retirement benefits for any unpaid portion of the service which is the subject of the installment plan.

(4) Part-Time and Seasonal Employees.

(A) Part-Time and Seasonal Employees Working One Thousand (1,000) Hours or More. If a part-time or seasonal employee works one thousand (1,000) hours of service or more in a plan year, he or she will receive the lesser of one (1) full year (or twelve (12) months) or the actual number of months worked as creditable service. For this purpose, a part-time or seasonal employee will be considered to have worked a month if the part-time or seasonal employee worked any portion of such month for an employer.

(B) Part-Time and Seasonal Employees Working Less Than One Thousand (1,000) Hours. If a part-time or seasonal employee works less than one thousand (1,000) hours of service in a plan year, his or her creditable service shall be calculated by dividing the total number of hours worked by ninety-one (91) to arrive at the number of months of creditable service. This number shall be rounded to the nearest whole number of months. Notwithstanding the foregoing, in no event shall a part-time or seasonal employee receive more months of creditable service than the actual number of months worked.

(5) A former employee may elect to purchase his or her service excluded under subsections (2)(A), (2)(B), (2)(D), (2)(E), and/or (2)(F) at any time, whether before or after attaining age sixty-two (62), but before such person begins receiving benefits under the plan, to the extent and in the manner prescribed by the board, in order to have such service transferred and credited under the Missouri State Employees' Retirement System, RSMo sections 104.320, et seq. (MOSERS) or under the Highways and Transportation Employees and Highway Patrol Retirement System, RSMo sections 104.010, et seq. (HTEH-PRS), to the extent provided under and otherwise in accordance with the rules of such system. Such election shall be made in writing to the board at such time as the person desires to transfer such service to MOSERS or HTEHPRS, in accordance with applicable law and regulations, but in no event after the date on which such person begins receiving benefits under the plan. The written election shall include a statement indicating the portion of the excluded service he or she elects to purchase. If a former employee makes a request in accordance with this section to purchase service, the board, or its designee, will calculate the cost (if any) of buying back the service, and any required payment shall be made in accordance with rules established by the board. The board may, in its discretion, permit a Participantst to purchase such service in the form of a direct rollover from another plan. The board may, in its discretion, deny the election and prohibit the purchase and transfer of service as described in this section (5) for any reason the board deems appropriate, including, without limitation, in the event the board or the plan's actuary determines that any purchase and transfer of service hereunder would create an actuarial loss to the plan.

16 CSR 50-3.010

AUTHORITY: section 50.1032, RSMo 2000.* Original rule filed Oct. 11, 1995, effective May 30, 1996. Rescinded and readopted: Filed Sept. 29, 2000, effective March 30, 2001. Amended: Filed Dec. 10, 2002, effective June 30, 2003. Amended: Filed Feb. 21, 2006, effective Sept. 30, 2006. Amended: Filed Dec. 22, 2008, effective July 30, 2009. Amended: Filed June 4, 2010, effective Dec. 30, 2010. Amended: Filed Aug. 30, 2010, effective June 30, 2011. Amended: Filed Dec. 19, 2011, effective July 30, 2012.

*Original authority: 50.1032, RSMo 1995.