PURPOSE: This rule describes what constitutes creditable service under the plan, and describes how such service may be purchased.

1. (1) General Rule. Creditable service means a participant’s period of employment as an employee, including the participant’s prior service, except as provided in section (2). In addition, absences for sickness and injury of less than twelve (12) months shall be counted as creditable service, and any periods of service in a uniformed service (as defined in section 414(u) of the Internal Revenue Code (Code)), shall be included in creditable service to the extent required by the Uniformed Services Employment and Reemployment Rights Act of 1994. A participant (other than a part-time employee) shall receive credit for one-twelfth (1/12) of a year for each month in which the participant earns an hour of service. Elective or appointive county officials receive one (1) year of service for each year in office. A person may not earn more than one (1) year of creditable service in any plan year.

2. (2) Excluded Service. Unless the participant purchases such service in accordance with section (3), a participant’s creditable service shall not include:

   1. (A) A period of employment during which the participant opted out of the plan, and any prior service excluded under the terms of the prior plan as a result of the opt-out;
   2. (B) Prior service by a former employee, unless purchased in accordance with the terms of the prior plan or unless purchased by a special consultant as provided for in section 50.1090.2, RSMo and in 16 CSR 50-3.060;
   3. (C) Service prior to a separation from service, if the participant was not vested at the time of the separation from service;
   4. (D) If the participant is a part-time employee, service prior to the participant’s entry date, unless the participant purchases service (up to a maximum of one (1) year) pursuant to section (3) of this regulation;
   5. (E) Service after a participant’s entry date, if the required two percent (2%) contribution is not withheld from the participant’s pay for any reason; or
   6. (F) A participant’s stint in a uniformed service (within the meaning of section 414(u) of the Code), if the participant was not a member of Local Government Employees’ Retirement System (LAGERS) before such stint.
3. (3) Purchase of Service. A participant described in subsections (2)(A), (2)(B), (2)(D), (2)(E) or (2)(F) may purchase his or her service excluded under such paragraphs by notifying the board, in writing, of his or her election to buy back such service within sixty (60) days following the date the employee becomes a plan participant. A participant described in subsection (2)(C) who purchases excluded service as described in the preceding sentence will become vested in his or her accrued benefit only if the participant completes eight (8) years of uninterrupted creditable service after his or her return to county employment. The written election shall include a statement indicating the portion of the excluded service he or she elects to purchase. If a participant makes a request in accordance with this section to purchase service, the board, or its designee, will calculate the cost of buying back the service including interest and penalties provided by statute. The participant shall be notified of the cost to buy back service. After receiving this notice, the participant may elect to buy back service either through a lump-sum payment due at the time of the election or a payroll deduction beginning with the first pay period after the participant makes the election. The participant may request that the payroll deduction be made in equal monthly installments over a period not to exceed the period of prior service being purchased or four (4) years, whichever is shorter. If the participant elects to buy back excluded service through an installment plan of payroll deductions and either dies or separates from service prior to completing the installment plan, then the participant or his or her spouse may pay the remaining amount due under the installment plan within sixty (60) days following the participant’s death or separation from service in a manner acceptable to the board or its designee. If such payment is not made, the participant shall not receive credit towards his or her retirement benefits for any unpaid portion of the service which is the subject of the installment plan.

4. (4) Part-Time Employees.

   1. (A) Working More Than One Thousand (1,000) Hours. If a part-time employee works more than one thousand (1,000) hours of service in a plan year, he or she will receive one

5. (1) full year (or twelve (12) months) of creditable service.

   1. (B) Working Less Than One Thousand (1,000) Hours. If a part-time employee works less than one thousand (1,000) hours of ser- 16 CSR 50-3

vice in a plan year, his or her creditable service shall be calculated by dividing the total number of hours worked by ninety-one (91) to arrive at the number of months of creditable service. This number shall be rounded to the next nearest whole number of months. If a part-time employee started or terminated employment within the calendar year, he or she may not receive more months of creditable service than the actual number of months worked.

AUTHORITY: section 50.1032, RSMo Supp. 1999.* Original rule filed Oct. 11, 1995, effective May 30, 1996. Rescinded and readopted: Filed Sept. 29, 2000, effective March 30, 2001. *Original authority: 50.1032, RSMo 1995.