PURPOSE: This rule clarifies the treatment of a former employee who returns to covered employment.

1. (1) Suspension of Benefits. If a participant returns to employment after a separation from service, benefit payments to the individual will be suspended, pending the termination of employment and completion of a new retirement application. After any such suspension of benefits and subsequent termination of employment, the participant will resume benefits under the payment option originally selected with respect to those benefits. If the individual has started a buyback of prior service during the first benefit payment period, the total paid toward the buyback will be subtracted from the new buyback figure. Benefits with respect to the prior service period less any remaining buyback will recommence upon termination of employment. The buyback will extend for a maximum of forty-eight (48) months less the total number of months during which the individual had already made a buyback. While subsequently employed after a separation from service, the individual will accrue creditable service, which, upon termination of employment and submission of a new retirement application in accordance with the plan rules, will be used to calculate a benefit with respect to that period of service in accordance with the provisions of this chapter. For such subsequent period of service, benefits will also be calculated using the average final compensation with respect to that period of service. The benefits payable with respect to any employment period after a rehire shall be added to the benefits payable in accordance with a previous service period, provided that, in no event shall the participant’s total creditable service when added together for all service periods exceed twenty-nine (29) years (or, to the extent so limited for the purpose of the applicable formula, twenty-five (25) years) for purposes of 16 CSR 50-2.090, and benefits shall be determined on the basis that a participant forever ceases accruing creditable service for this purpose in the service period in which such participant first attains twenty-nine (29) years of creditable service. The new retirement application with respect to employment after a rehire shall specify the form of benefit and beneficiary with respect to any benefits payable in connection with such period of service, and the form and beneficiary may, but are not required to, differ from those elected with respect to benefits relating to a prior service period. Notwithstanding anything in the plan to the contrary, if a participant was receiving benefits in the form of the level income option and has such benefit payments suspended upon returning to employment before attaining age sixty-two (62) in accordance with this section, the remaining payments under the form shall resume at termination of employment in the monthly amount determined in accordance with 16 CSR 50- 2.035(1)(E) or (F) as though the participant were the age he or she had attained upon his/her return to employment.
2. (2) Rejoining the Plan. Notwithstanding the provisions of section (1), a participant may work as a part-time or seasonal employee and continue to receive benefit payments. Such service as a part-time or seasonal employee shall not increase or change the participant’s benefit, unless the participant has an entry date, and again becomes an active participant in the plan. In such case, a participant shall not receive creditable service for any period of employment preceding his or her entry date unless i) the participant purchases such service in accordance with section 16 CSR 50-3.010(3) or ii) such creditable service was used in calculating the participant’s accrued benefit as of the date of his or her separation from service.
3. (3) Nonvested Participants. A participant who has a separation from service with less than eight (8) years of creditable service forfeits creditable service at the time of his or her separation from service. Accordingly, if such an individual is rehired as an employee, that individual is treated as a new employee for all purposes under the plan. However, such a rehired individual may be able to repurchase his or her forfeited creditable service under section 16 CSR 50-3.010(3).

AUTHORITY: section 50.1032, RSMo 2000.* Original rule filed Sept. 29, 2000, effective March 30, 2001. Amended: Filed Feb. 24, 2005, effective Aug. 30, 2005. Amended: Filed Dec. 26, 2007, effective June 30, 2008. Amended: Filed June 4, 2010, effective Dec. 30, 2010.

*Original authority: 50.1032, RSMo 1995.