16 CSR 50-2.020 - Employee Contributions
PURPOSE: This rule clarifies the nature of
payroll contributions required from employees both in counties which are members of the Local Government Employees' Retirement System and those counties which are not members of the Local Government Employees' Retirement System.
(1) A
Participantst who is not a member of Local Government Employees' Retirement
System (LAGERS) is subject to a two percent (2%) monthly payroll deduction
beginning with the first payroll period after the Participantst's entry date;
except that, for each payroll period ending after December 31, 2002, a
Participantst who is not a member of LAGERS and who is hired or rehired by a
county on or after February 25, 2002, is subject to a monthly payroll deduction
of not less than two percent (2%) and not more than six percent (6%), in
accordance with sections
50.1020(6)
and 50.1040(2), RSMo and with
16 CSR
50-2.080. Any payroll deduction described in this
section shall constitute the Participantst's required contribution to the plan
and shall be designated as an employer "pickup" contribution, as described in
section 414(h)(2) of the Internal Revenue Code. A
Participantst may not waive this contribution, or terminate this contribution
requirement by opting out of the plan.
(2) For each payroll period ending after
December 31, 2002, Participantsts who are members of LAGERS and who are hired
or rehired by a county on or after February 25, 2002, are subject to a monthly
payroll deduction not to exceed four percent (4%), in accordance with sections
50.1020(6)
and 50.1040(2), RSMo and
16 CSR
50-2.080. Any payroll deduction pursuant to this
section shall constitute the Participantst's required contribution to the plan
and shall be designated as an employer "pick-up" contribution, as described in
section 414(h)(2) of the Internal Revenue Code. A
Participantst may not waive this contribution, or terminate this contribution
requirement by opting out of the plan.
(3) Contributions Required from Part-Time or
Seasonal Employees. Participantsts have two (2) options with regard to the
prior service earned while they are still qualifying for entry into the plan. A
Participantst must make his or her election to either forego or purchase this
prior service as outlined in subsections (A) and (B) upon their entry into the
plan at the first available entry date. Such Participantst may either-
(A) Forego those months of prior service and
accrue eight (8) years of service from their entry into the plan; or
(B) A Participantst who is a member of LAGERS
and who is hired by a county on or after February 25, 2002, may purchase prior
service earned on or after January 1, 2003 at the rate of four percent (4%)
times the total compensation earned during this prior service period. A
Participantst who is a member of LAGERS is not required to purchase prior
service earned on or before December 31, 2002. A Participantst who is not a
member of LAGERS and who is hired by a county on or after February 25, 2002,
may purchase prior service earned on or after January 1, 2003 at the rate of
six percent (6%), and service earned before January 1, 2003 at the rate of two
percent (2%), times the total compensation earned during this prior service
period. Any other Participantst who is not a member of LAGERS may purchase the
prior service at the rate of two percent (2%) times the total compensation
earned during this prior service period. Participantsts selecting this option
may purchase the prior service with a lump-sum contribution or through periodic
payroll deductions, in accordance with such procedures as established by the
board, in addition to the regular periodic payroll deduction. If the
Participantst elects to purchase the prior service with an additional payroll
deduction, then the deduction shall not extend longer than the period of prior
service being purchased.
(4) A Participantst shall not be eligible for
a benefit under this plan until all contributions and other payments required
by law have been received on behalf of a Participantst.
(5) When a Participantst receives a refund of
contributions from LAGERS, pursuant to section
70.690,
RSMo, the county clerk shall forward a copy of the LAGERS report of the refund
to the plan administrator of County Employees' Retirement Fund (CERF) to notify
CERF of the change in the Participantst's LAGERS status. The Participantst's
service for the period refunded shall become non-LAGERS service and shall be
calculated as such for purposes of the Participantst's retirement annuity and
any purchase of prior service related thereto. The Participantst is responsible
for notifying CERF of his or her intention to apply for a section
70.690
refund and for verifying that the information on any retirement information
received from CERF is correct with respect to the Participantst's LAGERS or
non-LAGERS status. If the Participantst fails to notify CERF of an incorrect
LAGERS status on his or her retirement paperwork, the Participantst will be
subject to the provisions of sections
50.1034
and
50.1036,
RSMo.
Notes
*Original authority: 50.1032, RSMo 1995.
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