Missouri Revised Statutes
Chapter 169
Teacher and School Employee Retirement Systems
←169.650
Section 169.655.1
169.660→
August 28, 2015
Purchase of membership credit for service to organization supporting education or research--limitations, requirements--transfer of funds.
169.655. 1. Members who have accrued at least one year of membership
service credit for employment in a position covered by this retirement system
and who have covered employment with this retirement system following the
service for which credit is being purchased may purchase membership service
credit under the circumstances, terms and conditions provided in this section.
With respect to each such purchase authorized by this section the following
provisions apply:
(1) The purchase shall be effected by the member paying to the
retirement system the amount the member would have contributed and the amount
the employer would have contributed had such member been an employee for the
number of years for which the member is electing to purchase credit, and had
the member's compensation during such period been the highest annual salary
rate on record with the retirement system on the date of election to purchase
credit. The contribution rate used in determining the amount to be paid shall
be the contribution rate in effect on the date of election to purchase credit.
Notwithstanding the provisions of this subsection, for all elections to
purchase credit received by the retirement system on or after January 1, 2006,
the member shall receive credit based on the amount paid by the member for
such credit and received by the retirement system by the close of business on
June thirtieth of each year. In lieu of charging the member interest on such
purchase of credit, the amount to be paid by the member for any remaining
credit the member has elected to purchase but has not paid for by September
thirtieth of each year shall be recalculated on the following October first
using the contribution rate in effect on that July first and the highest
salary of record for the member as of that July first. For all elections to
purchase credit received by the retirement system prior to January 1, 2006,
the retirement system shall determine the cost of such purchase using the
calculation method in effect for elections to purchase credit received by the
retirement system on or after January 1, 2006, provided that the member shall
have a one-time, irrevocable option to continue to have the cost of such
purchase be determined using the calculation method in effect at the time of
such election to purchase such credit. To be effective, such option must be
elected by the member on a form approved by the retirement system and such
form must be received by the retirement system by the close of business on
June 30, 2006. The retirement system reserves the right to prohibit a
purchase, impose additional requirements for making a purchase, or limit the
amount of credit purchased if necessary for the retirement system to comply
with federal law, including but not limited to, the provisions of Section 415
of Title 26 of the United States Code. The board of trustees may promulgate
such rules and regulations consistent with the provisions of this section
deemed necessary for its proper administration, pursuant to the provisions of
this section and this chapter. Any rule or portion of a rule, as that term is
defined in section 536.010, that is created under the authority delegated in
this section shall become effective only if it complies with and is subject to
all of the provisions of chapter 536 and, if applicable, section 536.028.
This section and chapter 536 are nonseverable and if any of the powers vested
with the general assembly pursuant to chapter 536 to review, to delay the
effective date, or to disapprove and annul a rule are subsequently held
unconstitutional, then the grant of rulemaking authority and any rule proposed
or adopted after August 28, 2009, shall be invalid and void;
(2) Membership service credit purchased pursuant to this section shall
be deemed to be membership service as defined in subdivision (10) of section
169.600;
(3) An election to purchase membership service credit pursuant to this
section and payment for the purchase shall be completed prior to termination
of membership with the retirement system with interest on the unpaid balance;
(4) Members may purchase membership service credit in increments of
one-tenth of a year, and multiple elections to purchase may be made;
(5) Additional terms and conditions applicable to purchases made
pursuant to this section including, but not limited to, minimum payments,
payment schedules and provisions applicable when a member fails to complete
payment may be set by rules of the board.
2. Membership service credit shall not be allowed pursuant to this
section or sections 169.570 and 169.577 which exceeds in length the member's
membership service credit for employment in a position covered by this system,
and in no event may the member receive membership service credit with both
this system and another public retirement system for the same service.
3. A member who was employed for at least twenty hours per week on a
regular basis by a public school district, public community college, public
college, or public university, either inside or outside of this state, may
elect to purchase equivalent membership service credit.
4. A member who has served in the Armed Forces of the United States of
America and who was discharged or separated from the Armed Forces by other
than a dishonorable discharge may elect to purchase membership service credit
for the period of active duty service in the Armed Forces.
5. Any member granted unpaid maternity or paternity leave for a period,
from a position covered by the retirement system, who returned to employment
in such a position, may elect to purchase membership service credit for the
period of leave.
6. Any member who is or was certified as a vocational-technical teacher
on the basis of having a college degree or who was required to have a period
of work experience of at least two years in the area of the subject being
taught in order to qualify for such certification may, upon written
application to the board, purchase equivalent membership service credit for
such work experience which shall not exceed the two years necessary for
certification if the work experience was in the area that the member taught or
is teaching and was completed in two years.
7. Any member who had membership service credit with the public school
retirement system of Missouri governed by sections 169.010 to 169.141 but
which membership service credit was forfeited by withdrawal or refund may
elect to purchase credit for such service. The public school retirement
system of Missouri shall transfer to this system an amount equal to the
employer contributions for the forfeited service being purchased, plus
interest, which shall be applied to reduce the amount the member would
otherwise pay for the purchase, provided that the amount transferred shall not
exceed one-half of the purchase cost.
8. A member may elect to purchase membership service credit for service
rendered while on leave from an employer, as defined in section 169.600, for a
not-for-profit corporation or agency whose primary purpose is support of
education or education research if the member was employed by that
organization to serve twenty or more hours per week on a regular basis.
9. A member who was employed by a private school, private community
college, private college, or private university, either inside or outside of
this state, for at least twenty or more hours per week on a regular basis, may
elect to purchase membership service credit for such service rendered.
10. A member who was employed in nonfederal public employment for at
least twenty hours a week on a regular basis shall be permitted to purchase
equivalent creditable service in the retirement system for such employment
subject to provisions of this section.
11. A member who, while eighteen years of age or older, was employed in
a position covered by Social Security for at least twenty hours a week on a
regular basis shall be permitted to purchase equivalent creditable service in
the retirement system for such employment subject to provisions of this
section.
(L. 1995 S.B. 378, A.L. 1996 S.B. 860, A.L. 1998 S.B. 733, A.L. 1999
H.B. 514 merged with S.B. 308 & 314, A.L. 2003 H.B. 346 & 174,
A.L. 2005 H.B. 443, A.L. 2009 H.B. 265)
2005
2003
1999
2005
169.655. 1. Members who have accrued at least one year of membership
service credit for employment in a position covered by this retirement system
and who have covered employment with this retirement system following the
service for which credit is being purchased may purchase membership service
credit under the circumstances, terms and conditions provided in this section.
With respect to each such purchase authorized by this section the following
provisions apply:
(1) The purchase shall be effected by the member paying to the
retirement system the amount the member would have contributed and the amount
the employer would have contributed had such member been an employee for the
number of years for which the member is electing to purchase credit, and had
the member's compensation during such period been the highest annual salary
rate on record with the retirement system on the date of election to purchase
credit. The contribution rate used in determining the amount to be paid shall
be the contribution rate in effect on the date of election to purchase credit.
Notwithstanding the provisions of this subsection, for all elections to
purchase credit received by the retirement system on or after January 1, 2006,
the member shall receive credit based on the amount paid by the member for
such credit and received by the retirement system by the close of business on
June thirtieth of each year. In lieu of charging the member interest on such
purchase of credit, the amount to be paid by the member for any remaining
credit the member has elected to purchase but has not paid for by June
thirtieth of each year shall be recalculated on the following July first using
the contribution rate in effect on that July first and the highest salary of
record for the member as of that July first. For all elections to purchase
credit received by the retirement system prior to January 1, 2006, the
retirement system shall determine the cost of such purchase using the
calculation method in effect for elections to purchase credit received by the
retirement system on or after January 1, 2006, provided that the member shall
have a one-time, irrevocable option to continue to have the cost of such
purchase be determined using the calculation method in effect at the time of
such election to purchase such credit. To be effective, such option must be
elected by the member on a form approved by the retirement system and such
form must be received by the retirement system by the close of business on
June 30, 2006. The retirement system reserves the right to limit the amount
of credit purchased by the member in any year if the amounts paid by the
member in that year would exceed any applicable contribution limits set forth
in Section 415 of Title 26 of the United States Code;
(2) Membership service credit purchased pursuant to this section shall
be deemed to be membership service as defined in subdivision (10) of section
169.600;
(3) An election to purchase membership service credit pursuant to this
section and payment for the purchase shall be completed prior to termination
of membership with the retirement system with interest on the unpaid balance;
(4) Members may purchase membership service credit in increments of
one-tenth of a year, and multiple elections to purchase may be made;
(5) Additional terms and conditions applicable to purchases made
pursuant to this section including, but not limited to, minimum payments,
payment schedules and provisions applicable when a member fails to complete
payment may be set by rules of the board.
2. Membership service credit shall not be allowed pursuant to this
section or sections 169.570 and 169.577 which exceeds in length the member's
membership service credit for employment in a position covered by this system,
and in no event may the member receive membership service credit with both
this system and another public retirement system for the same service.
3. A member who was employed for at least twenty hours per week on a
regular basis by a public school district, public community college, public
college, or public university, either inside or outside of this state, may
elect to purchase equivalent membership service credit.
4. A member who has served in the armed forces of the United States of
America and who was discharged or separated from the armed forces by other
than a dishonorable discharge may elect to purchase membership service credit
for the period of active duty service in the armed forces.
5. Any member granted unpaid maternity or paternity leave for a period,
from a position covered by the retirement system, who returned to employment
in such a position, may elect to purchase membership service credit for the
period of leave.
6. Any member who is or was certified as a vocational-technical teacher
on the basis of having a college degree or who was required to have a period
of work experience of at least two years in the area of the subject being
taught in order to qualify for such certification may, upon written
application to the board, purchase equivalent membership service credit for
such work experience which shall not exceed the two years necessary for
certification if the work experience was in the area that the member taught or
is teaching and was completed in two years.
7. Any member who had membership service credit with the public school
retirement system of Missouri governed by sections 169.010 to 169.141 but
which membership service credit was forfeited by withdrawal or refund may
elect to purchase credit for such service. The public school retirement
system of Missouri shall transfer to this system an amount equal to the
employer contributions for the forfeited service being purchased, plus
interest, which shall be applied to reduce the amount the member would
otherwise pay for the purchase, provided that the amount transferred shall not
exceed one-half of the purchase cost.
8. A member may elect to purchase membership service credit for service
rendered while on leave from an employer, as defined in section 169.600, for a
not-for-profit corporation or agency whose primary purpose is support of
education or education research if the member was employed by that
organization to serve twenty or more hours per week on a regular basis.
9. A member who was employed by a private school, private community
college, private college, or private university, either inside or outside of
this state, for at least twenty or more hours per week on a regular basis, may
elect to purchase membership service credit for such service rendered.
10. A member who was employed in nonfederal public employment for at
least twenty hours a week on a regular basis shall be permitted to purchase
equivalent creditable service in the retirement system for such employment
subject to provisions of this section.
11. A member who, while eighteen years of age or older, was employed in
a position covered by Social Security for at least twenty hours a week on a
regular basis shall be permitted to purchase equivalent creditable service in
the retirement system for such employment subject to provisions of this
section.
2003
169.655. 1. Members who have accrued at least one year of membership
service credit for employment in a position covered by this retirement
system and who have covered employment with this retirement system
following the service for which credit is being purchased may purchase
membership service credit under the circumstances, terms and conditions
provided in this section. With respect to each such purchase authorized by
this section the following provisions apply:
(1) The purchase shall be effected by the member paying to the
retirement system the amount the member would have contributed and the
amount the employer would have contributed had such member been an employee
for the number of years for which the member is electing to purchase
credit, and had the member's compensation during such period been the
highest annual salary rate on record with the retirement system on the date
of election to purchase credit. The contribution rate used in determining
the amount to be paid shall be the contribution rate in effect on the date
of election to purchase credit;
(2) Membership service credit purchased pursuant to this section
shall be deemed to be membership service as defined in subdivision (10) of
section 169.600;
(3) An election to purchase membership service credit pursuant to
this section and payment for the purchase shall be completed prior to
termination of membership with the retirement system with interest on the
unpaid balance;
(4) Members may purchase membership service credit in increments of
one-tenth of a year, and multiple elections to purchase may be made;
(5) Additional terms and conditions applicable to purchases made
pursuant to this section including, but not limited to, minimum payments,
payment schedules and provisions applicable when a member fails to complete
payment may be set by rules of the board.
2. Membership service credit shall not be allowed pursuant to this
section or sections 169.570 and 169.577 which exceeds in length the
member's membership service credit for employment in a position covered by
this system, and in no event may the member receive membership service
credit with both this system and another public retirement system for the
same service.
3. A member who was employed for at least twenty hours per week on a
regular basis by a public school district, public junior college, public
community college, public college, or public university, either inside or
outside of this state, may elect to purchase equivalent membership service
credit.
4. A member who has served in the armed forces of the United States
of America and who was discharged or separated from the armed forces by
other than a dishonorable discharge may elect to purchase membership
service credit for the period of active duty service in the armed forces.
5. Any member granted unpaid maternity or paternity leave for a
period, from a position covered by the retirement system, who returned to
employment in such a position, may elect to purchase membership service
credit for the period of leave.
6. Any member who is or was certified as a vocational-technical
teacher on the basis of having a college degree or who was required to have
a period of work experience of at least two years in the area of the
subject being taught in order to qualify for such certification may, upon
written application to the board, purchase equivalent membership service
credit for such work experience which shall not exceed the two years
necessary for certification if the work experience was in the area that the
member taught or is teaching and was completed in two years.
7. Any member who had membership service credit with the public
school retirement system of Missouri governed by sections 169.010 to
169.141 but which membership service credit was forfeited by withdrawal or
refund may elect to purchase credit for such service. The public school
retirement system of Missouri shall transfer to this system an amount equal
to the employer contributions for the forfeited service being purchased,
plus interest, which shall be applied to reduce the amount the member would
otherwise pay for the purchase, provided that the amount transferred shall
not exceed one-half of the purchase cost.
8. A member may elect to purchase membership service credit for
service rendered while on leave from an employer, as defined in section
169.600, for a not-for-profit corporation or agency whose primary purpose
is support of education or education research if the member was employed by
that organization to serve twenty or more hours per week on a regular
basis.
9. A member who was employed by a private school, private junior
college, private community college, private college, or private university,
either inside or outside of this state, for at least twenty or more hours
per week on a regular basis, may elect to purchase membership service
credit for such service rendered.
1999
169.655. 1. Effective January 1, 1997, members who have accrued at
least one year of membership service credit for employment in a position
covered by this section may purchase membership service credit under the
circumstances, terms and conditions provided in this section. With respect to
each such purchase authorized by this section the following provisions apply:
(1) The purchase shall be effected by the member paying to the
retirement system with interest, the amount the member would have contributed
and the amount the employer would have contributed had such member been an
employee for the number of years for which the member is electing to purchase
credit, and had the member's compensation during such period been the same as
the annual salary rate at which the member is first employed in a position
qualifying for membership in the retirement system after the period being
purchased, provided that the cost shall not exceed the actuarial value of the
credit being purchased. The contribution rate used in determining the amount
to be paid shall be the contribution rate in effect on the date of election to
purchase credit. The interest rate used in determining the amount to be paid
shall be the actuarially assumed rate of return on invested funds of the
system in effect at the date of election to purchase credit;
(2) Payment shall be made over a period not longer than the period of
membership service credit being purchased, measured from the date of election,
and with interest on the unpaid balance;
(3) Membership service credit purchased pursuant to this section shall
be deemed to be membership service as defined in subdivision (10) of section
169.600;
(4) An election to purchase membership service credit pursuant to this
section and payment for the purchase shall be completed prior to retirement;
(5) Members may purchase membership service credit in increments of
one-tenth of a year, and multiple elections to purchase may be made;
(6) Additional terms and conditions applicable to purchases made
pursuant to this section including, but not limited to, minimum payments,
payment schedules and provisions applicable when a member fails to complete
payment may be set by rules of the board.
2. Membership service credit shall not be allowed pursuant to this
section which exceeds in length the member's membership service credit for
employment in a position covered by this system, and in no event may the
member receive membership service credit with both this system and another
public retirement plan, as defined in section 105.660, RSMo, for the same
service.
3. A member who had rendered service as an employee for at least twenty
hours per week for a public school district outside of this state including
service in a public university or who has rendered service in the University
of Missouri or Lincoln University after November 1, 1965, may elect prior to
retirement to purchase equivalent membership service credit but not in excess
of ten years. An affidavit shall be required stipulating that the member is
not presently receiving compensation from another school employee retirement
system and will not receive credit in another system for the creditable time
purchased.
4. (1) A member who enters the service of the armed forces of the
United States of America who is an employee in a district included in the
system at the time such member is inducted, enlisted or called to active duty,
and who without voluntary reenlistment becomes an employee in a district
within one year after discharge from such service shall not be subject to the
provisions of subsection 3 of section 169.650 with regard to termination of
membership due to the period of actual service in the armed forces of the
United States. Such a member may elect prior to retirement to purchase
membership service credit for the entire period of service in the armed forces
of the United States, but not to exceed five years. The purchase may be made
only if the member was discharged or separated from the armed forces by other
than a dishonorable discharge.
(2) A member who had served in the armed forces of the United States
prior to becoming a member, and who becomes employed in a position qualifying
for membership in the retirement system after such member's discharge under
honorable conditions may elect, prior to retirement, to purchase membership
service credit for the entire period of service in the armed forces, but not
to exceed five years.
5. Any member granted unpaid maternity or paternity leave for a period,
from a position covered by the retirement system, who returned to employment,
may elect prior to retirement to purchase membership service credit for the
period of leave. No member may purchase more than four years of membership
service credit pursuant to this subsection.
6. Any member who is or was certified as a vocational-technical teacher
on the basis of having a college degree or who was required to have a period
of work experience of at least two years in the area of the subject being
taught in order to qualify for such certification may, upon written
application to the board, purchase equivalent membership service credit for
such work experience which shall not exceed the two years necessary for
certification if the work experience was in the area that the member taught or
is teaching and was completed in two years.
7. Any member who had membership service credit with the public school
retirement system of Missouri governed by sections 169.010 to 169.141 but
which membership service credit was forfeited by withdrawal or refund, may
elect prior to retirement, to purchase credit for such service and receive pro
rata credit not to exceed a total of ten years in this system for the service.
The public school retirement system of Missouri shall transfer to this system
an amount equal to the employer contributions for the forfeited service being
purchased, plus interest, which shall be applied to reduce the amount the
member would otherwise pay for the purchase, provided that the amount
transferred shall not exceed one-half of the purchase cost.
8. A member may elect to purchase membership service credit for service
rendered while on leave from an employer, as defined in section 169.600, for a
not-for-profit corporation or agency whose primary purpose is support of
education or education research, not to exceed two years if the member was
employed by that organization to serve twenty or more hours per week; provided
the member has returned to service for at least one year as an employee of the
employer that granted the leave.
9. A member having membership service credit in the retirement system
provided by sections 169.600 to 169.715, after the member was employed by a
private school to serve twenty or more hours per week, may elect to purchase
membership service credit for service rendered to the private school, but not
to exceed three years. As used in this subsection, the term "private school"
means a school which is not a part of the public school system of this state
and which charges tuition for the rendering of elementary and secondary
educational services.
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