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Board Rules - Chapter 2 Retirement
Under the Closed Plan (104.010-104.800)
2-1 Military Service
2-2 Notification by the State Agency of Unpaid Leave
2-3 Notification by the State Agency of Termination of
Active Employment and Unused Sick Leave
2-4 Computation of Credit
2-5 Verification of Service
2-6 Cost of Living Allowance
2-7 Break in Service
2-8 Employees Working in More Than One Position
2-9 Options Under Section 104.395, RSMo.
2-10 Service Adjustments for Wrongful Termination
2-11 Former Employees on Layoff Status
2-12 Creditable Prior Service for Members of the General
Assembly
2-13 Disability Retirement
2-14 Benefit Eligibility For Full-time and Temporary
Employees
2-15 Electronic Funds Transfer
2-16 Selection of Actuary
2-1 Military Service
(1) A member shall not receive credit under sections 104.330 and 104.340,
RSMo, for active duty and active duty for training unless such service
is shown on Form DD 214, NGB Form 23, or other comparable form.
(2) Purchased military service will be credited under the type of
service the member is accruing when the purchase is completed. If the
member is not accruing service when the purchase is completed, the purchased
service will be credited under the type of service last accrued prior
to the completion of the purchase. No military service will be credited
until final payment has been received.
(3) Members may not purchase or receive additional creditable service
for periods of military service that coincide with periods of state
employment for which the member has already received creditable service.
2-2 Notification by the State
Agency of Unpaid Leave
The employing department shall give written notice on a form provided
by the retirement system when the employee goes on an unpaid leave due
to illness and when the employee returns to work, or at the end of twelve
(12) months absence, whichever is sooner. Absence because of pregnancy
shall be considered absence for sickness or injury.
2-3 Notification by the State
Agency of Termination of Active Employment and Unused Sick Leave
(1) The employing department shall give written notice on a form provided
by MOSERS when each officer or employee leaves state employment, which
notice shall include a statement of the date of the last payroll period
for which the employee will be paid.
(2) For purposes of section 104.601, RSMo, the employing department
shall report unused sick leave expressed in hours through the financial
and human resources system maintained by the Office of Administration,
known as the Statewide Advantage for Missouri (SAM II) system. If a
department’s employees are not paid through SAM II, it shall report
unused sick leave expressed in hours using a form provided by MOSERS.
MOSERS will credit one twelfth of a year of service for every one hundred
and sixty eight hours of unused sick leave.
2-4 Computation of Credit
In determining prior service credit and in calculation of creditable
service, one (1) calendar month equals one-twelfth (1/12) of a year
and any remaining days shall be converted into months (or one-twelfth
(1/12) of a year) on the basis that each thirty (30) calendar days equals
one (1) month and a remainder of twenty-seven (27) or more days will
be credited as an additional month. Any balance of less than twenty-seven
(27) days will not be used in the calculation. Credit will be computed
using the date of employment to the date of termination. Credit will
be granted for up to one (1) year of authorized sick leave without pay
due to an employee's illness or injury. Credit will not be granted for
any other periods of leave without pay unless otherwise provided by
law.
2-5 Verification of Service
(1) Service must be verified before credit is granted. Proof of service that will be accepted by MOSERS is listed in order of preference:
(A) Certification by the employing state department's payroll/personnel officer listing periods of employment by dates, position, and status or similar certification from the Personnel Division of the Office of Administration for employment in agencies for which the division maintains central payroll/personnel records. Such employing state department must certify that the position in which service was rendered required at least one thousand and forty hours of service per year during any time period on or after August 28, 2007, at least one thousand hours of service per year for service during any time period on or after October 1, 1984 but prior to August 28, 2007, and at least one thousand five hundred hours of service per year for service during any time period prior to October 1, 1984.
(B) Certification from retirement records, listing employing state department, periods of employment by dates and, if available, position and status.
(2) Service may not be purchased pursuant to sections 104.344, RSMo, unless [:
(A)] the employer was a governmental entity created pursuant to state law and the employer certifies that the position in which service was rendered required at least one thousand and forty hours of service per year during any time period on or after August 28, 2007, at least one thousand hours of service per year for service during any time period on or after October 1, 1984 but prior to August 28, 2007, and at least one thousand five hundred hours of service per year for service during any time period prior to October 1, 1984 [; or
(B) the employer was a contractor who had a contract with a state department, and the employer and the state department certify that the position in which service was rendered required at least one thousand hours of service per year to the state department for service during any time period on or after October 1, 1984, and at least one thousand five hundred hours of service per year to the state department for service during any time period prior to October 1, 1984].
(3) Service may not be purchased pursuant to sections 105.691, RSMo, unless the employer was a governmental entity created pursuant to state law and the employer certifies that the position in which service was rendered required at least one thousand and forty hours of service per year during any time period on or after August 28, 2007, at least one thousand hours of service per year for service during any time period on or after October 1, 1984 but prior to August 28, 2007, and at least one thousand five hundred hours of service per year for service during any time period prior to October 1, 1984.
2-6 Cost of Living Allowance
Pursuant to sections 104.415 and 104.612, RSMo, the annual increase
in benefits and/or compensation for retirees and consultants shall be
calculated based upon the average of the monthly values of the consumer
price index for all urban consumers (CPI-U) for a calendar year and
the increase shall be calculated to the nearest one-thousandth (1/1000)
of a percent.
2-7 Break in Service
An employee will have a break in service when the employee is off
payroll for an entire calendar month, except when the employee is on
an approved leave-of-absence. An approved leave-of-absence without pay
will not constitute a break in service.
2-8 Employees Working in More
Than One Position
If a person is employed in at least one (1) position qualifying under
the retirement system, the employee shall accrue membership service
at a rate of one (1) day for each calendar day of employment and shall
not accrue more than one (1) day of service for any one (1) day of employment.
The total compensation received by an employee for all positions qualifying
under the retirement system and from each position which would otherwise
qualify except the position normally requires less than one thousand
(1000) hours per year, shall be recognized in determining the amount
of the member's benefits.
2-9 Options Under Section 104.395,
RSMo.
(1) The option election under section 104.395 is irrevocable after
the first retirement benefit payment is mailed or electronically transferred
by MOSERS, except as specifically provided in section 104.395, RSMo.
(2) With respect to options 1 and 2 under section 104.395, RSMo, spouse
means the spouse at the time the retirement application is filed. The
election of option 1 or 2 and the eligibility for survivor's benefits
are not affected by the subsequent dissolution of the marriage.
(3) With respect to options 3 and 4 under section 104.395, RSMo, the
beneficiary or beneficiaries must be designated in the retirement application.
The beneficiaries may be changed by a subsequent designation filed by
the member.
2-10 Service Adjustments for
Wrongful Termination
In order for an employee to receive retirement credit for the period
since his/her dismissal, the employee must be paid a salary or wage
for that period of time and the appropriate contribution must be made
to the retirement system. The amount of the salary or wage is not pertinent
to the employee receiving retirement credit from the retirement system;
the amount of salary or wage is a matter to be agreed upon by the department
and the employee. However, the amount of salary or wage paid to the
employee may affect the amount of the member's retirement benefit. In
addition to the previous requirements, any agreement where a dismissed
employee receives retirement credit must be approved by a court of law,
or administrative tribunal with jurisdiction, so that it has the effect
of a court order. The member shall be considered to be on a leave-of-absence
without pay (no credit) for the period(s) for which the member receives
no back wages, which will not constitute a break in service.
2-11 Former Employees on Layoff
Status
(1) For purposes of this rule, a "layoff" occurs when an employer
lays off an employee by reason of a shortage of work or funds, the abolition
of the position, or other material change in the duties or organization,
or for other related reasons which are outside the employee's control
and which do not reflect poor job performance by the employee.
(2) Former employees on layoff status may continue their basic and
optional group life insurance and long-term disability coverage at their
own expense. The continuation of such insurance is subject to the terms
of coverage for such insurance, but in no event may such insurance be
continued beyond twelve (12) months after the employee is laid off.
The premium for an individual on layoff status for basic and optional
life insurance will be based on the premium that would have been paid
by the state for basic coverage and by the individual for optional coverage
if the individual had been on active status during the layoff period.
The amount of life insurance will be limited to the amount in effect
at the date of the layoff. The charge to an individual for long-term
disability coverage will be based on the rate of pay in effect at the
time of the layoff and the long-term disability rates in effect for
active employees during the layoff period.
(3) Upon reinstatement of an employee on layoff status, the system
will reestablish service credit for the employee as of the date of reinstatement.
2-12 Creditable Prior Service
for Members of the General Assembly
(1) Except as otherwise provided by law, creditable prior service
shall be credited for members of the general assembly by adding all
of the creditable prior service that a member has immediately prior
to retirement to arrive at total years and months of creditable service
and dividing that by 24 (two years expressed in months). Each whole
two-year period shall be credited as a biennial assembly and any remaining
period of less than two years shall be credited as a biennial assembly.
(2) This rule shall not apply to any creditable prior service of a
member that has been previously credited in the member's record by staff
prior to June 30, 1997.
2-13 Disability Retirement
(1) The board has the authority to enter into a formal agreement with
a medical review agency for review of disability examinations. The physician
reviewer shall complete a standard medical review form, approved by
the retirement system, including the recommendations of the medical
reviewer. If the MOSERS' medical reviewer determines that claimant is
not sufficiently disabled, the claimant will be notified and advised
that s/he may appeal the decision by notifying the retirement system
in writing within thirty (30) days of the date of the denial letter.
If appealed, the case will be heard at the next regularly scheduled
board meeting that is held at least thirty (30) days after the receipt
of the claimant's written appeal unless otherwise agreed to by the parties.
The decision of the board is final and no further appeals to the board
of trustees are permissible. Any further appeal is to a court of law.
At any point in this process, the board may request a medical examination
including any additional tests. The board reserves the right to select
the physician to do the examination and test.
(2) MOSERS will verify annually whether or not the disabled member
has or has not regained fifty percent (50%) of his/her earning capacity
until the member reaches normal retirement eligibility. If the response
is positive, disability benefits are to be discontinued immediately
and the member is to be advised that s/he has the right to appeal.
2-14 Benefit Eligibility For
Full-time and Temporary Employees
(1) Employees who work in positions after October 1, 1984, normally
requiring at least 1000 hours a year are eligible for benefits from
MOSERS. Employees who work in positions prior to that date normally
requiring at least 1500 hours a year are eligible for benefits from
MOSERS
(2) The employer shall determine benefit eligibility at the time the
employee is hired. Benefit eligibility also shall be determined under
these procedures by the employer for all employees who were hired prior
to 1/1/99 and who are actively employed on or after 1/1/99.
(3) If an employee is determined to be in a benefit eligible position,
a membership form shall be completed and sent to MOSERS. The employer
shall give the employee the appropriate handbooks describing benefits
from MOSERS.
(4) If an employee is determined not to be in a benefit eligible position,
the employer should inform the employee of that fact and maintain documentation
to that effect. If the employer is requested by the employee or MOSERS
to provide information about the position at a later date, the employer
should advise the employee and MOSERS that the service in that position
was not benefit eligible.
(5) MOSERS will grant service credit requests for service rendered
if: (1) the employer determines that the employee was in a benefit eligible
position as described in section (1) of this rule, (2) the employer
submits a membership form for the employee backdated to the original
start date, (3) the employer provides MOSERS with information regarding
salary earned by the employee for each month of service requested, and
(4) MOSERS receives contributions for the salary and period of service
requested.
2-15 Electronic Funds Transfer
All retirement and survivor benefits or other periodic payments paid by the
system shall be paid to the recipients of such payments by electronic funds
transfer, unless the benefit recipient requests not to use electronic funds
transfer. Staff shall strongly encourage all benefit recipients to receive payments
by electronic funds transfer, but the payment of benefits shall not be delayed
or withheld if the member does not submit a direct deposit authorization form.
This rule shall be effective December 1, 2006.
2-16 Selection of Actuary
Beginning 2003, the Executive Director shall retain an independent
actuarial firm to perform an actuarial audit at least every 5 years
in order to evaluate the actuarial firm that is currently providing
actuarial services to the Board and report the results of that audit
to the Board at a Board meeting held during the first quarter of that
year. The Executive Director may recommend changes to the contract with
the actuarial firm that is currently providing actuarial services to
the Board or the issuance of a request for proposal from additional
actuarial firms:
- based on the information provided in the actuarial audit report,
or
- whenever the Executive Director determines it is appropriate to
do so.
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