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Section: 169.0440 Years of service, how determined--purchase of credit for service, limitations and conditions. RSMO 169.440


Published: 2015

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Missouri Revised Statutes













Chapter 169

Teacher and School Employee Retirement Systems

←169.435

Section 169.440.1

169.450→

August 28, 2015

Years of service, how determined--purchase of credit for service, limitations and conditions.

169.440. 1. In no case shall more than one year of service be credited

for all service in one calendar year.



2. The board of trustees shall include an employee's accumulated and

unused days of sick leave, if any, in computing the employee's credited

service upon the employee's retirement.



3. Any member inducted into the Armed Forces of the United States while

an employee, and discharged or separated from such service by other than

dishonorable discharge, shall be credited with such period or periods of time,

not exceeding a total of four years, spent in such service during time of war

or national emergency, and any additional period or periods of involuntary

service as if such member had been for all effects and purposes in active

service as an employee during such period or periods of time. Periods of

national emergency, as that term is used in this section, shall be prescribed

by rule of the board of trustees, giving due regard to the acts and

resolutions of Congress and the proclamations and orders of the President.



4. Any member who is granted a leave of absence with reduced pay may

authorize deduction of contributions based on full compensation, the same as

if not on leave, and in such case the full compensation shall be used as

annual compensation in determining the final average compensation for

calculation of benefits.



5. A member may elect to purchase and receive credit for service in

accordance with the following conditions and limitations:



(1) The member must have a minimum of five years of continuous credited

membership service in this retirement system prior to the member's election to

purchase;



(2) The member must have one year of credited service in this retirement

system for each year to be credited;



(3) The member must purchase the entire amount of credited service the

member is eligible to purchase in a given category;



(4) Eligible categories of credited service that can be purchased are:



(a) Service rendered in a public school district in the state of

Missouri, or outside the state of Missouri;



(b) Service as an employee which at the time was not classified as

membership service nor were contributions paid but which would be classified

as membership service under later law and regulations;



(c) The period during which an employee's membership was terminated

during the years 1944 to 1947, inclusive, pursuant to a rule of the board of

education prohibiting the employment of married women teachers, provided the

member was reemployed on or before January 1, 1950, and was a member as of

October 13, 1969;



(d) A period of up to five years during which a member was involuntarily

laid off in a staff reduction by the board of education after 1980, provided

the member was restored to full-time employment and the member did not receive

a refund of the member's accumulated contributions for credited service

rendered prior to the layoff;



(e) Service for which the member received a refund of the member's

accumulated contributions;



(f) Up to three years of service rendered in a school, which is not part

of the public school system of this state and which charged tuition for the

rendering of elementary and secondary educational services, as a full-time

employee who was duly certified under the law governing the certification of

teachers during all of such years of employment;



(5) The member must pay for the purchase of service the amount required

by the rules and regulations established by the board of trustees of the

retirement system;



(6) The retirement system may accept a transfer of funds from a plan

qualified under Section 401(a) or 403(b) of the Internal Revenue Code in full

or partial payment of the amount required to purchase the credited service;



(7) A member shall receive credit at retirement for only such service as

has met the conditions of this subsection. If the member has paid for any

service which has not been credited, the member shall receive a refund of the

excess payment. If the member has not completed such member's payment at time

of retirement, the first benefits from the retirement system shall be applied

to pay the balance of the amount due and thereafter the full benefits shall be

payable.



(L. 1943 p. 805 § 4, A.L. 1949 p. 532, A.L. 1953 p. 438, A.L. 1957

p. 462, A.L. 1961 p. 384, A.L. 1969 p. 282, A.L. 1972 H.B. 1266,

A.L. 1973 S.B. 256, A.L. 1978 S.B. 542, A.L. 1979 S.B. 392, A.L.

1981 H.B. 33, et al., A.L. 1983 S.B. 3, A.L. 1996 S.B. 860, A.L.

1997 H.B. 612 merged with S.B. 309, A.L. 2001 H.B. 660)





1997



1997



169.440. 1. The board of trustees shall fix and determine by proper

rules and regulations how much service in any year is equivalent to one

year of service, but in no case shall more than one year of service be

creditable for all service in one calendar year. Notwithstanding any other

provisions of this subsection, the board of trustees shall include an

employee's accumulated and unused days of sick leave, if any, in computing

the employee's creditable service upon the employee's retirement.



2. Under such rules and regulations as the board of trustees shall

adopt, each employee who was employed by the school district on and prior

to the date this retirement system becomes operative and who becomes a

member within one year from such date, shall file a detailed statement of

all service as such employee rendered by the member to the school district

prior to that date and prior to the member's attainment of age sixty-five,

for which the member claims credit; provided, however, that teachers may,

in addition, claim credit in such statement for not more than ten years of

service rendered in public schools outside the school district. Any member

with service prior to January 1, 1944, who became a member after January 1,

1945, may file claim for prior service up to a maximum of twelve years

provided the member has a minimum of five continuous years of membership

service and a total membership service of not less than the years of prior

service being claimed.



3. Subject to the above restrictions and to such other rules and

regulations as the board of trustees may adopt, the board of trustees shall

verify the service claims as soon as practicable after the filing of such

statements of service.



4. Upon verification of the statements of service, the board of

trustees shall issue prior service certificates, certifying to each member

the length of prior service with which the member is credited on the basis

of the member's statement of service. So long as the holder of such a

certificate continues to be a member, a prior service certificate shall be

final and conclusive for retirement purposes as to such service; provided,

however, that any member may, within one year from the date of issuance, or

modification, of such certificate, request the board of trustees to modify

or correct the member's prior service certificate. When any employee

ceases to be a member the employee's prior service certificate shall become

void, and should such employee again become a member such employee shall

enter the retirement system as a member not entitled to prior service and

membership service credit. After the member has five years of continuous

membership service since last date of reemployment and provided the member

could not under the applicable law at date of the member's termination have

left such member's accumulated contributions for accrued deferred

retirement benefits, the member may reinstate the member's creditable

service as of such date by paying to the system the accumulated

contributions the member withdrew with interest to the date of repayment.



5. Membership service at retirement shall include creditable service

as an employee, on account of which contributions are made by the employing

board and by the member except as to creditable military service and

accumulated and unused days of sick leave.



6. Creditable service upon retirement of a member, or upon such other

date as a member shall cease to be an employee shall consist of membership

service, and if the member has a prior service certificate in full force

and effect it shall include service certified on the member's prior service

certificate, except that in determining the amount of any benefits pursuant

to sections 169.410 to 169.585 the years of prior service creditable shall

not exceed the number of years which, when added to the membership service

of the member, equals thirty-five years.



7. Any member inducted into the armed forces of the United States

while an employee, and discharged or separated from such service by other

than dishonorable discharge, shall be credited with such period or periods

of time, not exceeding a total of four years, spent in such service during

time of war or national emergency, and any additional period or periods of

involuntary service as if such member had been for all effects and purposes

in active service as an employee during such period or periods of time.

Periods of national emergency, as that term is used in this section, shall

be prescribed by rule of the board of trustees, giving due regard to the

acts and resolutions of Congress and the proclamations and orders of the

President.



8. Any employee whose membership was terminated during the years 1944

to 1947, inclusive, pursuant to a rule of the board of education

prohibiting the employment of married women teachers and who was reemployed

on or before January 1, 1950, and is a member as of October 13, 1969, may

reinstate the creditable service forfeited by the termination and acquire

credit as membership service for service rendered subsequent to the

termination. In order to obtain such credit, the member must pay the

unpaid accumulated contributions for the approved years of membership

service to be credited together with any contributions which have been

refunded to the member plus interest from the date of the refund or from

the date of membership service to the date of repayment as provided herein.

No prior service may be reinstated or other service credited unless full

payment is made for contributions for all possible service which is

classified as membership service.



9. Any member who is granted a leave of absence with reduced pay may

authorize deduction of contributions based on full compensation, the same

as if not on leave, and in such case the full compensation shall be used as

annual compensation in determining the final average compensation for

calculation of benefits.



10. Any employee who rendered service which at the time was not

classified as membership service nor were contributions paid but which

would be classified as membership service under later law and regulations

may receive credit for such service by paying the required contributions

for such period of service with interest to date.



11. A member who has rendered service in a public school district in

the state of Missouri, or outside the state of Missouri, may elect to

purchase and receive credit for such service in accordance with the

following conditions and limitations:



(1) The member must have a minimum of five years of continuous

creditable membership service in this retirement system prior to the

member's election to purchase;



(2) Service to be credited must be service for which the member did

not and could not receive accrued benefits by leaving contributions with

any other retirement system under the applicable law in effect at the

termination of such service;



(3) The member must have one year of creditable service in this

system for each year to be credited;



(4) The maximum period of service which can be credited pursuant to

this subsection is ten years;



(5) The member must pay for the purchase of service after January 1,

1944, the total amount of member's contributions for such years being

purchased plus interest at the rates fixed by the board of trustees with

the contributions based on the compensation at which the member initially

was employed in this school district and the contribution rates then in

effect;



(6) If all service after January 1, 1944, for which a member is

eligible has been purchased and it is less than ten years, the member may

apply for credit for service prior to January 1, 1944, provided the total

credit does not exceed ten years, subject to applicable conditions and

limitations in this subsection, but no payment shall be required;



(7) A member shall receive credit at retirement for only such service

as has met the conditions of this subsection. If the member has paid for

any service which has not been credited, the member shall receive a refund

of the excess payment. If the member has not completed such member's

payment at time of retirement, the first benefits from the system shall be

applied to pay the balance of the amount due and thereafter the full

benefits shall be payable; and



(8) Any credit granted for service outside the school district prior

to January 1, 1944, pursuant to subsection 2 of this section shall be

included in determining whether any additional credit may be obtained

pursuant to this subsection.



12. An active member who is involuntarily laid off in a staff

reduction by the board of education or board of regents after 1980 may, if

the member is restored to full-time employment, elect to purchase and

receive credit for service retirement for the period of such layoff in

accordance with the following conditions and limitations:



(1) The member shall be an employee with a minimum of five years of

continuous creditable membership service in this retirement system prior to

the time the member elects to purchase service for the period of such

layoff;



(2) The member shall not have been paid the member's accumulated

contribution credited to the member's individual account after such layoff;



(3) The maximum period of creditable service which may be credited

pursuant to this subsection is five years;



(4) The member shall pay for the purchase of creditable service the

total cost of such service as determined by the board of trustees based on

accepted actuarial methods using the same assumptions used by the

retirement system at the time of such election. Such cost shall include

both the employee's and the system's share of the cost of such credited

service;



(5) The member shall make payment in full for the purchase of

creditable service pursuant to this subsection over a period not to exceed

five years, measured from the date of election, or prior to the effective

date of retirement of the member, whichever is earlier, and with interest

compounded annually at the rate established by the board of trustees.



13. Notwithstanding any other provision of sections 169.410 to

169.540 to the contrary, any member with five or more years of creditable

service who ceased to be an employee, who has received a refund of such

member's accumulated contributions pursuant to subsection 9 of section

169.460, who again becomes a member of the retirement system, may elect to

reinstate any creditable service forfeited at time or times of any previous

refunds. Such reinstatement shall be effected by the member paying to the

retirement system with interest the amount of accumulated contributions

refunded to the member on or after the time such member ceased to be an

employee, and by continuous employment in the district for at least an

additional seven years of creditable service before such member retires.

Such payment with interest shall be made over a period of not longer than

five years from the date of such member's election to reinstate creditable

service, provided that such payment shall in all events be made prior to

the retirement of such member. The member electing to reinstate such

creditable service may not receive or be eligible to receive retirement

benefits from any other retirement system for the period for which

creditable service is being reinstated, and such member shall furnish an

affidavit to the retirement system so stating.



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