PURPOSE: This rule clarifies the procedures for buying back prior creditable service when a member has opted out of membership in the County Employees’ Retirement Fund for a period of time.
- (1) Any member of the County Employees’ Retirement Fund who elects to opt-out of membership in the fund and then later elects to reinstate membership in the fund in accordance with applicable laws and regulations, may buy back his/her prior creditable service by notifying the board, in writing, of his/her election to buy back prior creditable service at the time the employee elects to reinstate membership in the system. The written election shall include a statement indicating the portion of prior service s/he elects to purchase.
- (2) The board, or its designee, will calculate the cost of buying back the prior service, including interest and penalties provided by statute. The member will be notified of the cost to buy back the prior service.
- (3) Members who are buying back prior service accrued during a period that the member had opted out of membership in the County Employees’ Retirement Fund shall buy back their prior service either through a lump-sum payment at time of reinstatement or through a payroll deduction beginning with the first pay period after reinstatement. The member 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. Any plan for installment payments is subject to approval by the board.
- (4) If the member elects to buy-back prior service through an installment plan of payroll deductions and dies prior to completing the installment plan, the member shall not receive credit towards his/her retirement benefits for any portion of the prior service which is the subject of the installment plan.
AUTHORITY: section 50.1032, RSMo 1994.* Original rule filed Oct. 11, 1995, effective May 30, 1996. 16 CSR 50-3
*Original authority 1995.