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Proposed Board Rules

Board Member Designees and Terminated-Vested Member Second Chance Buyout Program

[Posted on 03/30/2018 at 12:00 AM]

Board Rules 1-6, 2-19, and 3-18 were adopted by the Board on March 29, 2018 and shall take effect on April 28, 2018.

Board Rule 1-6 clarifies that those who serve as a designee on the MOSERS Board are subject to Missouri Revised Statutes relating to MOSERS, MOSERS Governance Policies and MOSERS Board Rules in the same manner as a member of the Board of Trustees.

Board Rules 2-19 and 3-18 establish the Terminated-Vested Member Second Chance Buyout Program (the “Second Chance Buyout Program”) in accordance with sections 104.1063 and 104.1092 RSMo.

You may submit written comments regarding these rules to MOSERS' chief counsel at any time prior to April 28, 2018. The Board will consider any comments received and has the authority to take additional action as it deems appropriate regarding these rules.


1-6 Board Member Designees

  1. The commissioner of administration may delegate his/her duties as a member of MOSERS board of trustees to a subordinate who has taken the same oath as the Commissioner pursuant to Subsection 4 of Section 37.010, RSMo. The Commissioner will advise the board chair of any such delegation.
  2. The assistant treasurer appointed by the treasurer pursuant to Section 30.120, RSMo, may assume the treasurer’s duties as member of MOSERS board of trustees in the treasurer’s absence.
  3. A person who serves as a designee on the MOSERS Board of Trustees, pursuant to section 1 or 2 of this board rule, shall be subject to Missouri Revised Statutes relating to MOSERS, MOSERS Governance Policies and MOSERS Board Rules in the same manner as a member of the Board of Trustees. [1]

[1] The board of trustees shall consist of the state treasurer, the commissioner of administration, two members of the senate appointed by the president pro tem of the senate, two members of the house of representatives appointed by the speaker of the house, two member appointed by the governor, and three members who are members of the system. Mo. Rev. Stat. §104.450.


2-19 & 3-18 Terminated Vested Member Second Chance Buyout Program

Eligibility

  1. Except as otherwise provided under this board rule, a member of the closed plan or the year 2000 plan may elect to participate in the Second Chance Buyout Program if the member:
    1. has not been employed at any time after June 30, 2017 in any position covered by any retirement plan administered under Chapters 104, 287, and 476, RSMo;
    2. is eligible for a deferred retirement annuity from MOSERS under RSMo Chapter 104;
    3. did not reach normal retirement age and was not eligible to receive a normal retirement annuity from the system under Chapter 104, RSMo, before June 1, 2018;
    4. has not received any annuity from the system;
    5. did not elect to participate in the Buyout Program established under Board Rule 2-18 or 3-17; and
    6. files a complete application with the system by May 31, 2018, to make a one-time election to receive a lump sum buyout of all of the member’s deferred annuities that such member is eligible for under Chapter 104, RSMo, as provided in the Second Chance Buyout Program
  2. Notwithstanding section 1 of this board rule, a member may not participate in the Second Chance Buyout Program if the member:
    1. is eligible for a refund of contributions under section 104.1091, RSMo, and the amount of the refund would be greater than the amount of the buyout payment otherwise payable under the Second Chance Buyout Program;
    2. is eligible for a present value payment under section 104.335.6, RSMo any time on or after August 28, 2017;
    3. is subject to a Division of Benefit Order (“DBO”) issued by a court under sections 104.312 or 104.1051, RSMo, and the system has received notice of the DBO before the system issues the buyout payment;
    4. is married at the time of the election to participate in the Second Chance Buyout Program unless the member’s spouse consents in writing to the election;
    5. dies and the system receives timely notice of the member’s death before the system issues the buyout payment;
    6. becomes employed in any position covered by any retirement plan administered under Chapters 104, 287, and 476, RSMo, and the system has received timely notice of such employment before the system issues the buyout payment; or
    7. is receiving a long-term disability benefit from MOSERS.
  3. A member may rescind an election in writing made under section 1 of this board rule if such rescission is received by MOSERS no later than May 31, 2018.

Payment Calculation

  1. The buyout payment made under the Second Chance Buyout Program shall be equal to 60 percent of the present value of the member’s deferred normal retirement annuity as determined under this board rule.
  2. The discount rate used to calculate the present value of the member’s deferred normal retirement annuity shall be 7.50 percent. The assumption for cost of living adjustments used to calculate the present value of the member’s deferred normal retirement annuity shall be 4.00% compounded until the 65% cap is reached, then at 2.00% compounded for life for members of the closed plan. The assumption for cost of living adjustments used to calculate the present value of the member’s deferred normal retirement annuity shall be 2.00% compounded for life for members of the year 2000 plan. Present value is based on assumed life expectancy.
  3. The present value of the member’s deferred normal retirement annuity shall be determined as of October 1, 2017, regardless of when the member makes an election to participate in the Second Chance Buyout Program or the system issues the buyout payment to the member.
  4. The system’s actuary shall determine the present value of the member’s deferred normal retirement annuity based on the member’s expected eligibility date for a normal retirement annuity.
  5. For any member who is covered by the closed plan and is eligible to elect coverage under the year 2000 plan, the member shall be deemed to have elected coverage in the plan that results in the greater buyout payment for the member.
  6. The system shall provide each member who is eligible to participate in the Second Chance Buyout Program with: (a) an estimate comparing the amount of the projected buyout payment under the Second Chance Buyout Program with the monthly amount of the member’s projected normal retirement annuity; and (b) a description of the actuarial assumptions used in the calculation of the present value of the member’s deferred normal retirement annuity under the Second Chance Buyout Program.


You may submit written comments regarding these rules to MOSERS' chief counsel at any time prior to April 28, 2018. The Board will consider any comments received and has the authority to take additional action as it deems appropriate regarding these rules.

MOSERS
Missouri State Employees' Retirement System
Address: 907 Wildwood Dr., Jefferson City, MO 65102
https://www.mosers.org/images/mosers-logo-bg-375-280.jpg Phone: 800.827.1063 URL: Email: mosers@mosers.org Founded On: September 1, 1957