16 CSR 10-5.010 - Service Retirement
(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. The
member must complete any changes to the application by the close of business on
the day the member's first monthly benefit is paid by the Public School
Retirement System of Missouri. 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 or effective July 1, 2025, by a third party or
independent contractor if such member is performing work in a district 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 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. Effective July 1, 2025, a member also 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 with a third party or independent contractor
if such member is performing work in a district 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. 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
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 employer does not utilize a salary
schedule, or if the position in question is not subject to the employer's
salary schedule, a retired member may earn up to fifty percent (50%) of the
annual compensation paid to the person or persons who last held such position
or positions, or may earn up to fifty percent (50%) of the limit set for the
position by the school board of the employer which has been submitted and
approved by the board of trustees of the retirement system. The board of
trustees may delegate this review and approval to the employees of the PSRS. 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 may cease until the
employment terminates or a new school year begins. If such employment exceeds
either the limitation on hours worked or the limitation on compensation, the
person shall repay the retirement systems the total amount earned in excess of
the limit, or the entire amount of their monthly benefit for any month during
which the limit was exceeded, whichever is less. Any such payment, except for
excess payments as a result of fraud by the retired member or any other person
who received such payment, shall be considered de minimis if the amount of the
excess payment is fifty ($50) dollars or less and shall not be collected.
Effective July 1, 2025, if a person is retired from both PSRS and PEERS, the
person is covered by the above provisions and the retirement system shall only
recover the amount the person earned in excess of the PSRS limitations if the
excess meets the above requirements.
(B) The provisions above shall apply to any
person retired and currently receiving a retirement allowance under sections
169.010 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 for 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 annual base to be
used to calculate the earnings limit for a retiree working for a third party is
the minimum salary for a teacher with a master's degree and ten (10) years of
experience in section 163.172, RSMo. 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 from PSRS may be employed by an employer
included in that system in a position that does not normally 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,
beginning on August 28, 2023, and ending on June 30, 2028, up to one hundred
and thirty-three percent (133%) of the annual earnings exemption amount
applicable to a Social Security recipient before the calendar year of
attainment of full retirement age under 20 CFR section 404.430, and after June
30, 2028, up to the annual earnings exemption amount applicable to a Social
Security recipient before the calendar year of attainment of full retirement
age under 20 CFR section 404.430, without a discontinuance of the retiree's
retirement allowance. The Social Security annual earnings exemption amount
applied shall be the exemption amount in effect for the calendar year in which
the school year begins. 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 10-3.010(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 may 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.
If such employment exceeds the limitation on compensation, the person shall
repay the retirement systems the total amount earned in excess of the limit, or
the entire amount of their monthly benefit for any month during which the limit
was exceeded, whichever is less. Any such payment, except for excess payments
as a result of fraud by the retired member or any other person who received
such payment, shall be considered de minimis if the amount of the excess
payment is fifty ($50) dollars or less and shall not be collected. The
provisions of this subsection shall not apply to positions held by a PSRS
retiree employed by a community college included in the system or an employer
under section 169.130.4, RSMo. 20 CFR 404.430, dated May 19, 2005, is
incorporated by reference in this rule as published by the National Archives in
the Code of Federal Regulations and available at the National Archives, 700
Pennsylvania Ave. NW, Washington, DC 20408-0001 or at ecfr.gov. This rule does
not incorporate any subsequent amendments or additions.
(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 |
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; or
3) 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 section
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 forty-eight (48)
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, RSMo, 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; and
2. 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. If the retired member
passes away before the increase in his or her benefit can be paid to him or
her, such payment shall not be made if all of the required documents have not
been provided for approval to PSRS.
(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; and
2. 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.
Notes
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