16 CSR 10-4.014 Reinstatement and Credit Purchases

Title 16—RETIREMENT SYSTEMS

Division 10—The Public School Retirement System of Missouri

Chapter 4—Membership and Creditable Service

PROPOSED AMENDMENT

16 CSR 10-4.014 Reinstatement and Credit Purchases.  The Public School Retirement System is deleting sections (7) and (12) and amending Section (16) and renumbering sections.

Purpose: This amendment is to clarify that a member must have five years of credible service and be vested in order to purchase social security covered employment service credit and to delete obsolete or duplicate provisions.

[(7) “Public college” as that phrase is used in section 169.056.3, RSMo, and “private college” as that phrase is used in section 169.056.9, RSMo, shall include junior colleges and community colleges either inside or outside of Missouri. “Private school, college, or university” as that phrase is used in section 169.056.9, RSMo, shall not include trade schools.]

[(8)] (7) The following provisions shall apply to the purchase of creditable service under section 105.691, RSMo:

(A) A member may elect to purchase creditable service under section 105.691, RSMo, only if the member had previously acquired creditable service in a retirement plan defined in that section for the employment to which the election applies; except that if the service did not meet the membership requirements of the employer’s retirement plan or the employer had no such retirement plan at the time the service was rendered, but the service would otherwise have met the membership requirements of this system as in effect when the election is made, the member shall be eligible to purchase such creditable service.  The creditable service allowable shall be determined in accordance with the provisions of section 105.691, RSMo, and the rules of the board of trustees; and

(B) A member who does not complete payment in full on an application to purchase creditable service under section 105.691, RSMo, within the time limit prescribed by law may reapply to purchase creditable service for that same period of employment. The member may apply within the limits of the law to purchase creditable service for any other period of employment for which application to purchase creditable service was not previously made.

[(9)] (8) The purchase of creditable service pursuant to section 169.577, RSMo, shall be administered as follows:

(A) Any member will be considered “within five (5) years of being eligible to retire with a retirement allowance” if that person would be eligible to begin receiving a full or reduced retirement allowance from the public school retirement system, by virtue of accrual of five (5) or fewer years of creditable service or the passage of five (5) or fewer calendar years;

(B) The salary used in calculating the cost of creditable service purchased pursuant to section 169.577, RSMo, is not “compensation payable to a member” as that phrase is used in section 169.010(8), RSMo, and shall not be used in determining final average salary;

(C) Credit purchased shall be used for all purposes except vesting;

(D) The cost of the purchase shall be calculated pursuant to the provisions of 16 CSR 10-4.012;

(E) A purchase shall be made in increments of at least one-one-hundred thousandth (0.00001) year and may not exceed five-tenths (0.5) year; and

(F) If the total payments made prior to termination of membership with the retirement system are insufficient to purchase all the credit for which the member applied, proportional credit shall be allowed based upon the ratio between the amount due for the entire period for which election to purchase was made and the total amount of the payments applied to reduce the principal amount due in increments of one-one-hundred thousandth (0.00001) year. The amount of partial payments not used to purchase credit or pay interest shall be refunded.

[(10)] (9) A member electing to purchase membership service credit for service in the armed forces shall receive one (1) year of credit for each twelve- (12-) month period of such service. For any such period of service in the armed forces of less than twelve (12) months, the member shall receive proportional credit computed to the nearest one-one-hundred thousandth (0.00001) of a year; provided that, if the member entered on active duty in the armed forces no later than the date on which the member’s services were to have begun under an employment agreement with a district included in the retirement system and if the total period of active military service that year would have entitled the member to a year of creditable service had that service been rendered in that position with the district, the member shall be entitled to purchase a full year of membership service credit for the period of service. No more than one (1) year of membership service credit shall be allowed for service in the armed forces or for a combination of service in the armed forces and actual service in a district included in the retirement system, for any one (1) school year.

[(11)] (10) Unless otherwise required by law, membership service credit purchased under the laws governing the retirement system cannot be used to establish eligibility for benefits under sections 169.010 to 169.141, RSMo, but such purchased credit may be used in computing the value of any benefits to which a member would otherwise qualify under those sections.

[(12) The salary used in calculating the cost of creditable service purchased is not compensation payable to a member as that phrase is used in section 169.010(8), RSMo, and shall not be used in determining final average salary.]

[(13)] (11) Unless a different amount is required by law, members must have accrued at least one (1) year of membership service credit for employment in a position covered by the retirement system in order to apply to purchase service credit.

[(14)] (12) Unless otherwise required by law, if the total payments made within the time allowed to purchase credit is insufficient to purchase all the credit for which the member applied, proportional credit shall be allowed based on the ratio between the amount due for the entire period for which the member applied and the total amount of the payments applied to reduce the principal amount due.

[(15)] (13) Members electing to reinstate or purchase credit may make payments in any amount and at any time during the period allowed for payment.

[(16)] (14) A purchase of credit for Social Security covered employment pursuant to section 169.056.11, RSMo, shall be allowed only in a manner consistent with Title 26 of the United States Code and, in addition, shall be governed by the following provisions:

(A) The member must have five (5) years of creditable service and be vested with the retirement system prior to purchasing credit for Social Security covered employment pursuant to section 169.056.11, RSMo;

AuthORITY: section 169.020, RSMo Supp. 2024.* Original rule filed June 23, 1998, effective Jan. 30, 1999. Amended: Filed Oct. 25, 1999, effective April 30, 2000. Amended: Filed Aug. 21, 2000, effective Feb. 28, 2001. Amended: Filed Feb. 14, 2002, effective July 30, 2002. Amended: Filed Aug. 29, 2003, effective Feb. 29, 2004. Amended: Filed Sept. 1, 2005, effective Feb. 28, 2006. Amended: Filed June 30, 2011, effective Jan. 30, 2012. Amended: Filed April 30, 2014, effective Oct. 30, 2014. Amended: Filed February 2, 2026.

*Original authority: 169.020, RSMo 1945, amended 1951, 1953, 1967, 1973, 1983, 1990, 1995, 1996, 1998, 2005, 2009.

PUBLIC COST: This proposed amendment will not cost state agencies or political subdivisions more than five hundred dollars ($500) in the aggregate.

PRIVATE COST: This proposed amendment will not cost private entities more than five hundred dollars ($500) in the aggregate.