PURPOSE: This rule explains the process for handling early buyback of prior service.

1. (1) An active member or a terminated member with at least eight (8) years of available service of the County Employees’ Retirement Fund may elect to purchase prior creditable service. In order to purchase prior creditable service while employed, the member must complete Form #10—Early Buyback and submit the form to the plan administrator. Provisions of the Early Buyback Program are as follows:

   1. (A) A member may elect to buy back the total prior creditable service available to them or any portion thereof;
   2. (B) The early buyback amount will be calculated on the member’s current highest two

2. (2) years’ salaries at the time of application;

   1. (C) If the member dies while participating in the Early Buyback Program, the surviving spouse will be required to satisfy the debt in accordance with section 50.1090, RSMo;
   2. (D) The buyback time shall not extend longer than the period of prior service being purchased or forty-eight (48) months, whichever is less;
   3. (E) Participants may complete the buyback with a lump sum payment, monthly coupon payments, or automatic withdrawal;
   4. (F) The first payment will be due approximately thirty (30) days after Form #10 is received by the plan administrator;
   5. (G) If a participant defaults on monthly payments or debits by missing more than two

3. (2) payments or debits without hardship approval, his/her participation in the program will be terminated. The amount paid in to the Early Buyback Program will be retained by the County Employees’ Retirement Fund and will be applied toward the buyback of prior creditable service at time of retirement; and

   1. (H) If a hardship arises that causes the participant to miss one (1) or two (2) payments, the participant may request an extension of payment by notifying the plan administrator Chapter3—Creditable Service 16 CSR 50-3

in writing immediately. The executive director will determine the reasonableness of the request and either grant or deny an extension.

AUTHORITY: section 50.1032, RSMo Supp. 1997. Original rule filed Sept. 17, 1998, effective March 30, 1999. *Original authority 1995.