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. (1) Contributions Required in Counties Which Are Not Members of the Local Government Employees’ Retirement System (Non-LAGERS Counties). Eligible full-time employees in counties which do not participate in the local government employees’ retirement system, “LAGERS,” are subject to a two percent (2%) monthly payroll deduction beginning with the first payroll period after the employee’s entry date. 16 CSR 50-2

2. (2) Contributions Required from Part-Time Employees in Non-LAGERS Counties. Employees in non-LAGERS counties have two (2) options with regard to the prior service earned while they are still qualifying for entry into the plan. An employee must make his/her election to either forego or purchase this prior service as outlined in subsections (2)(A) and (B) upon their entry into the plan at the first available entry date. Such employees may either—

   1. (A) Forego those months of prior service and accrue eight (8) years of service from their entry into the plan; or
   2. (B) Purchase the prior service at rate of two percent (2%) times the total compensation earned during the prior service period. Employees selecting this option may purchase the prior service with a lump-sum contribution or through monthly payroll deductions in addition to the regular monthly payroll deduction. If the employee 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.
3. (3) Contributions Required from Members of the Local Government Employees’ Retirement System (LAGERS Counties). Eligible employees in LAGERS counties who qualify for membership in LAGERS are not subject to any payroll deductions in connection with their membership in the County Employees’ Retirement Fund.

4. (4) Contributions Required from Employees in LAGERS Counties Who Do Not Qualify for Membership in LAGERS.

   1. (A) Employees in LAGERS counties who do not qualify for membership in LAGERS who do qualify for membership in the County Employees’ Retirement Fund shall be eligible for membership in the County Employees’ Retirement Fund upon the completion of one thousand (1,000) hours of work for the county. These employees will become members of the County Employees’ Retirement Fund by electing to enter the plan upon the first available semiannual entry date after completing one thousand (1,000) hours of service in a calendar year and will be subject to a two percent (2%) payroll contribution.

   2. (B) With regard to the prior service earned while they are still qualifying for entry into the plan, an employee must make his/her election to either forego or purchase this prior service as outlined in paragraphs (4)(B)1. and 2. upon their entry into the plan at the first available entry date. Such employees may either—

      1. 1. Forego those months of prior service

and accrue eight (8) years of service from their entry into the plan; or

1. 2. Purchase the prior service at a rate of

two percent (2%) times the total compensation earned during the prior service period. Employees selecting this option may purchase the prior service with a lump-sum contribution or through monthly payroll deductions in addition to the regular monthly payroll deduction. If the employee 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. (5) If, for any reason, the two percent (2%) payroll contribution is not withheld from an employee’s paycheck beginning with his/her date of hire or date of eligibility, at the time that the employee enrolls in the County Employees’ Retirement Fund and commences payroll contributions, the employee will be required to elect whether to purchase the service that would have accrued. The employee may elect to either—

1. (A) Purchase the service with a lump sum contribution;
2. (B) Make an additional payroll contribution of two percent (2%) based on salary during the period of missed contributions over the same number of months that are being purchased; or
3. (C) Forego the service. If the member elects to forego purchase of the service at the time of enrollment in the plan, the service will be treated as forfeited service and may only be repurchased in the future with penalties provided by law.

AUTHORITY: section 50.1032, RSMo Supp. 1996.* Original rule filed Oct. 11, 1995, effective May 30, 1996. Amended: Filed July 29, 1997, effective Jan. 30, 1998. *Original authority 1995.