PURPOSE: This rule establishes a procedure for calculating the cost of and crediting the purchase of military service pursuant to section 104.340, RSMo. (1) Purchased military service will be credited as the same type of service the member is accruing at the date of purchase. No military service will be credited until the final payment has been received.

1. (2) The principal amount is determined by taking the number of months of military service to be purchased times the monthly salary rate on the initial date of hire times the retirement contribution rate in effect on initial date of membership. Interest is determined by taking the years between the date of hire and the date of election times the interest rate used in the valuation in effect on the date of election times the principal amount. Monthly payments are calculated by charging interest on the unpaid balance.

AUTHORITY: section 104.010, RSMo (Cum. Supp. 1989) and 104.500, RSMo (Supp. 1988).* Original rule filed Nov. 25, 1992, effective June 7, 1993. *Original authority: 104.010, RSMo (1955), amended 1965, 1969, 1972, 1981, 1982, 1983, 1987, 1988, 1989 and 104.500, RSMo (1957), amended 1981, 1984, 1988.