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.
Notes
*Original authority: 50.1032, RSMo 1995.
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