PURPOSE: The OftIce of Administration has authority to establish rules concerning deductions from employee compensationforparticlpation in uolun. my retirement plans, group hospital seruiceplans,grolkp lifeinsuranceplans, medical seruice plans, labor unions, employee association and credit unions. This rule establishes criteria for vendors and procedures which must be fulfilled prior to receiving payroll deduction authority.

1. (1) Definitions. For the purposes of this rule, terms and their meanings are-

   1. (A) Vendor--any private insurance carrier or company, a labor union, an employee association or credit union;
   2. (B) Labor union--an exclusive state employee bargaining representative established in accordance with sections 105.500- 105.530, RSMo;
   3. (C) Employee association-an organized group of state employees that has a written document, such as bylaws, which govern its activity; and
   4. (D) Credit union-a financial institution located in Missouri, which has a state charter and is insured by an agency of the United States government or credit union share .-.,, guarantee corporation approved by the dime tor of the Missouri Division of Credit Unions.

2. (2) The following requirements apply to payroll deductions:

   1. (A) The vendor providing a product or service must have fulfilled all prescribed standards with applicable federal and state regulatory agencies; (BJ The proposed payroll deductions must be for programs or services which do not duplicate existing programs and services provided by statutorily authorized entities (for example, Missouri State Employees’ Retirement System, Missouri State Highway Employees’ Retirement System and State of Missouri Deferred Compensation Commisxion);

      Roy D. Blunt (9/1X/90) EPcietary Of %,a 1 CSR 10-4 , m

   2. (C) The proposed service or program must be offered on a consistent and continuing basis and must be reasonably anticipated to be available for a period of five (5) or more years;
   3. (D) The vendor must obtain a written request for each proposed new payroll deduction from a department director or university president in the executive branch or chief administrative officer in the legislative or judicial branch;
   4. (E) The vendor must provide the Office of Administration a request for payroll deduction in writing on official company or association stationery plus all relevant product information and marketing materials that fully describe the proposed product and a copy of the sponsorship letter obtained as required in subsection (2)(D);
   5. (F) Within a period of ninety (90) days, the vendor applicant for payroll deduction authority must obtain a minimum of one hundred

3. (100) state employee-signed applications for the proposed product, employee association or credit union membership. The ninety (90).day period for obtaining one hundred (100) employee signatures will commence on the date designated by the Office of Administration acknowledgment to a payroll deduction request required in subsection (2)(E);

   1. (G) Solicitation by a vendor of signed employee applications or memberships may not be performed in state facilities at any time; and
   2. (H) Labor unions are not required to comply with subsections (2)(D)-(F) but must be recognized as an exclusive bargaining representative by separate resolution agreement with the commissioner of administration in accordance with sections 36.510 and 105.500- 105.525, RSMo.
4. (3) The commissioner of administration may reduce, suspend or discontinue an employee’s voluntary deduction when the net pay, after all mandatory deductions required by law, is insufficient to meet wage garnishments, sequestrations or levies required by law or court order or when the vendor fails to fulfill the required standards prescribed by law or applicable federal and state regulatory agencies.

5. (4) Request for payroll deduction authority must be addressed to: Commissioner of Administration,Office ofAdministration,P.O. Box 809, Jefferson City, MO 65102. Auth: sections 33.103, RSMo (Cum. Supp. 1989) and 370.395, RSMo (1986). Original rule filed May 15,1990, effectiue Sept.28,1990.

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