PURPOSE: This rule provides for retirement, return to service and limitations on employment in a member district as authorized by section 169.670, RSMo.

1. (1) The earliest date on which 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 retirement, whichever is later; except that the earliest date on which retirement may become effective for a member who receives a year of membership service credit for the final school year in which the member serves shall be July 1 next following the member’s last day of service.
2. (2) If a retiree receiving a retirement allowance returns to active service, his/her retirement allowance shall cease, s/he shall become a new member of the retirement system and s/he shall make contributions to the system. Upon a subsequent termination of his/her services, payment of his/her previously determined retirement allowance shall be resumed.
3. (3) A retirement allowance shall not be paid a retiree for any month in which compensation is earned for services as a regular employee of a school district included in the system.
4. (4) A retiree may serve as an employee of a district included in the system on a part-time or temporary-substitute basis not to exceed five hundred fifty (550) hours in a school year and continue to receive a retirement allowance. To be considered as serving on a temporary-substitute basis, a person must be serving for a regular employee who is temporarily absent or in a position which is temporarily vacant.
5. (5) 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.
6. (6) A 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.
7. (7) 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 169.670, 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 169.670, RSMo.
8. (8) The effective date of a retirement allowance payment made because of the nomination of a successor beneficiary as provided in House Bill 496 enacted by the 87th General Assembly shall be the next regular payment date following receipt in the retirement office of the properly completed nomination of successor beneficiary form (see 16 CSR 10- 5.010).
9. (9) 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.

10. (10) A qualified member who desires to elect retirement Option 7 “Accelerated Payment Option” must do so in accordance with the terms, conditions and limitations of this paragraph and section 169.670, RSMo.

    1. (A) By selecting the Accelerated Payment Option, the member is electing to utilize the retirement allowance the member is eligible to receive from this retirement system in conjunction with the retirement benefit the member is eligible to receive from the federal Social Security Administration commencing at the minimum Social Security retirement age (as established by law at the time the Accelerated Payment Option is elected), in order to receive from the two (2) systems combined, and within the limitations noted herein, level or near level monthly retirement benefits during the member’s retirement.

    2. (B) Under the Accelerated Payment Option, the member must select a benefit payment plan authorized by section 169.670, RSMo for which the member qualifies, including the options for reduced monthly benefit payments for life (with continuing payments to a designated beneficiary), but the amount of the benefit payment the member would otherwise be eligible to receive under the plan selected will be modified in the manner described herein.

       1. 1. The retirement allowance paid to the

member by this retirement system under the Accelerated Payment Option will be actuarially equivalent to the retirement allowance the member would normally receive under the benefit payment plan selected, but to facilitate level or near level monthly benefit payments during retirement in the manner described herein, the member agrees to accept a plan of monthly benefit payments from this retirement system that will vary in amount, depending on the age of the member.

1. A. By electing the Accelerated

Payment Option, the member agrees to accelerate payment of a portion of the member’s retirement allowance to the early months of retirement, but as a consequence, and in order to maintain actuarial equivalence, the member further agrees to receive a reduced benefit payment amount over the remainder of the retirement period.

1. B. Under the Accelerated Payment

Option, from the effective date of retirement from this retirement system until the retiree reaches the minimum Social Security retirement age (as established by law at the time the Accelerated Payment Option is elected), the retiree will receive a larger monthly benefit payment from this retirement system than would otherwise be paid under the benefit payment plan selected by the retiree. Upon reaching the minimum Social Security retirement age (as previously defined), the retiree will receive a smaller monthly benefit payment from this retirement system than would otherwise be paid under the benefit payment plan selected by the retiree.

1. 2. The amount of the variable monthly

benefit payment received from this retirement system will be actuarially determined by the retirement system using the benefit payment plan selected by the member and the member’s projected retirement benefit from Social Security at the minimum eligible retirement age (as established by law at the time the Accelerated Payment Option is elected). The actuarial calculation will identify the necessary increase over and reduction below the monthly benefit otherwise payable under the benefit payment plan selected by the member, so that in conjunction with the monthly retirement benefit the member is eligible to receive from Social Security commencing at the minimum retirement age (as established by law at the time the Accelerated Payment Option is elected), the member can potentially receive level or near level monthly benefit payments during the member’s retirement.

1. 3. The plan of variable monthly benefit

payments from this retirement system under the Accelerated Payment Option contemplates that the retiree will apply for and begin receiving retirement benefits from Social Security at the minimum Social Security retirement age set by law at the time the Accelerated Payment Option is elected, but nothing herein or in section 169.670, RSMo shall be construed as a promise or guarantee by this retirement system that the Social Security Administration will make such payments, or that any payments made will comport with the estimate of projected Social Security benefits used to calculate the variable monthly benefits from this retirement system, or that such payments will commence at the time originally identified by the Social Security Administration. Similarly, nothing herein or in section 169.670, RSMo shall be construed as a promise or guarantee that this retirement system will make up any shortfall in Social Security benefits from those projected at the time the Accelerated Payment Option is elected, or that this retirement system has any obligations other than those expressly assumed herein to assure a stream of level or near level monthly retirement benefits. It shall be the sole responsibility of the retiree and the Social Security Administration, respectively, to secure and/or pay Social Security retirement benefits sufficient to combine with the plan of variable retirement benefits available from this system to yield a level or near level stream of monthly benefit payments during retirement. Neither a failure by the retiree or the Social Security Administration to fulfill their respective obligations, nor a subsequent change in the minimum Social Security retirement age, will nullify the retiree’s election of the Accelerated Payment Option or compel recalculation of the plan of variable monthly benefits determined at the time of election.

1. 4. The retirement allowance the member

is eligible to receive from this retirement system will determine the capacity of the Accelerated Payment Option to effectively provide level or near level monthly benefit payments for a retiree in the manner described herein. Some members may not be eligible for sufficient benefits to achieve a meaningful leveling of benefit payments under the Accelerated Payment Option and a member must exercise independent judgement in deciding whether the Accelerated Payment Option is appropriate in light of the member’s particular circumstances. Nothing in this paragraph or in section 169.670, RSMo shall be construed as a promise or guarantee by this retirement system that the Accelerated Payment Option will provide a level or near level combination of benefit payments for all retirees, and in no case will the necessary adjustments to the monthly benefit otherwise payable under the plan selected by the member cause the amount to be paid when the member reaches the minimum Social Security retirement age (as established by law at the time the Accelerated Payment Option is elected) to be less than twenty-five percent (25%) of the member’s original, nonadjusted benefit (i.e., the monthly benefit that would otherwise be payable under the benefit payment plan selected by the member).

1. 5. If the retiree selects a benefit payment

plan that provides for the payment of retirement benefits to a beneficiary upon the retiree’s death, the amount of the beneficiary’s payment in any particular month will be established by determining the monthly benefit amount the retiree would have received under the Accelerated Payment Option were the retiree still living, and then incorporating any reduction from that benefit level, if appropriate, based on the benefit payment plan selected by the retiree.

1. (C) The provisions in section 169.670, RSMo and 16 CSR 10-6.100 concerning the right to receive a cost-of-living adjustment (COLA), the amount of any COLA, and any other limitations concerning COLAs shall apply with equal effect to benefits paid under the Accelerated Payment Option, except as follows:

   1. 1. Any COLA the retiree is eligible to

receive will be based on the amount of the monthly benefit payable by this retirement system when the COLA takes effect; and

1. 2. If a retiree has received COLAs prior

to reaching the minimum Social Security retirement age (as established by law at the time the Accelerated Payment Option is elected), the reduced benefit paid by this retirement system from that point forward will include only that percentage of the previously awarded COLAs that would have been earned by the benefit amount payable after the retiree reaches the Social Security minimum retirement age (as previously defined).

1. (D) Limitations on and other provisions concerning post-retirement employment found in this rule and in Chapter 169, RSMo shall apply with equal effect to a retiree under the Accelerated Payment Option, except as follows:

   1. 1. If a retiree under the Accelerated

Payment Option subsequently returns to employment covered by this retirement system, benefit payments will be suspended, and the retiree’s covered service will recommence under a new membership;

1. 2. While the retirement benefits are sus-

pended, they will continue to accrue COLAs 16 CSR 10-6

based on the benefit that would have been paid to the retiree had the individual not returned to covered employment;

1. 3. When the individual terminates cov-

ered employment and is again eligible to begin receiving retirement benefits, the retirement system will recalculate and, if necessary, adjust the amount of the prospective benefit payments under the Accelerated Payment Option to assure that they remain actuarially equivalent to the benefit payment plan selected at the time of the original retirement; and

1. 4. A retiree under the Accelerated

Payment Option who returns to covered employment and thereby qualifies for a second benefit based on the new membership may not elect the Accelerated Payment Option for the second benefit.

1. (E) A member who wishes to elect to receive retirement benefits under the Accelerated Payment Option, or who wants to receive an estimate of benefits under the Accelerated Payment Option, must provide the retirement system with a written estimate of the member’s projected Social Security retirement benefit at the minimum eligible retirement age (as then in effect), prepared and issued by the Social Security Administration. The Social Security benefit estimate must have been issued no more than one hundred eighty (180) days prior to the date of the application for retirement or the date of the request for an Accelerated Payment Option benefit estimate. The Social Security benefit estimate must identify the projected retirement benefits for the member only, and may not include any benefits that could accrue to the member from a spouse, family member or some other source.
2. (F) If a member dies prior to retirement, the member’s surviving spouse cannot elect to receive benefits from this retirement system under the Accelerated Payment Option.

1. (11) 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.

   1. (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.
   2. (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; 2) apply for a subsequent retirement allowance; or 3) leave the contributions with the system.
   3. (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.
   4. (D) 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.

AUTHORITY: section 169.610, RSMo 1994.* Original rule filed Dec. 19, 1975, effective Jan. 1, 1976. Amended: Filed Aug. 11, 1977, effective Nov. 15, 1977. Emergency amendment filed June 20, 1988, effective July 1, 1988, expired Oct. 28, 1988. Amended: Filed June 20, 1988, effective Sept. 29, 1988. Emergency amendment filed Aug. 24, 1988, effective Sept. 3, 1988, expired Jan. 1, 1989. Amended: Filed Aug. 24, 1988, effective Dec. 29, 1988. Amended: Filed June 29, 1993, effective Dec. 9, 1993. Amended: Filed Oct. 29, 1993, effective May 9, 1994. Amended: Filed June 15, 1994, effective Nov. 30, 1994. Amended: Filed July 31, 1995, effective Feb. 25, 1996. Amended: Filed Oct. 15, 1997, effective April 30, 1998. Amended: Filed Dec. 23, 1998, effective June 30, 1999. Amended: Filed Aug. 9, 1999, effective Feb. 29, 2000. *Original authority: 169.610, RSMo 1965, amended 1977.