16 CSR 10-5.020 Disability Retirement

Title 16—RETIREMENT SYSTEMS

Division 10—The Public School Retirement System of Missouri

Chapter 5—Retirement, Options and Benefits

PROPOSED AMENDMENT

16 CSR 10-5.020 Disability Retirement.  The Public School Retirement System is amending Section (1), (6), and (9) and adding a new Section (13).

PURPOSE: This amendment is to clarify the timing to file an application for disability retirement, the termination of employment requirements for disability retirement, that disability retirees may work after retirement if they meet certain requirements and that such retirees will not pay contributions on these earnings or receive service credit for working after retirement, and that disability retirement for any retiree whose is 60 years of age or older is considered a service retirement.

(1) A member claiming disability retirement must file an application for retirement with the board of trustees on a form provided by the board. The application for disability retirement must be filed no later than one year (twelve months) after the member becomes disabled.

(6) The earliest date on which disability retirement may become effective is the first day of the calendar month following the calendar month in which the services of the member are terminated, or the first day of the month following the month in which the claim is approved, whichever is later; except that the earliest date on which disability retirement may become effective for a member retiring after receiving credit for a year of membership service shall be July 1, the first day of the school year following the termination of services. Termination from employment covered by the retirement system prior to the effective date of disability retirement is required to be eligible for a disability retirement benefit.  A member shall not be deemed to have terminated employment if the member is employed in any capacity by an employer covered by the retirement system or  by a third party or independent contractor if such member is performing work in a district included in the retirement system as a temporary or long-term substitute teacher or in any position that would normally require that person to be duly certificated by the Missouri Department of Elementary and Secondary Education within one (1) month after his or her effective date of retirement. A member shall not be deemed to have terminated employment if, prior to receipt of his or her first benefit payment, the member reaches an agreement, whether written or unwritten, for future employment in any capacity by an employer covered by the retirement system. A member also shall not be deemed to have terminated employment if, prior to receipt of his or her first benefit payment, the member reaches an agreement, whether written or unwritten, for future employment with a third party or independent contractor if such member is performing work in a district included in the retirement system as a temporary or long-term substitute teacher or in any position that would normally require that person to be duly certificated by the Missouri Department of Elementary and Secondary Education. The member shall be required to repay any benefit payments paid if it is determined that the member did not terminate employment covered by the retirement system.

(9) Any member who is receiving a disability retirement allowance from the retirement system and who has not attained age sixty (60) may not be employed for any employer the compensation for which employment would constitute a livelihood, and continue to receive the disability retirement allowance. Such member working for an employer covered by the retirement system shall not contribute on such earnings and shall earn no service credit for such employment. The board of trustees will determine that a member who has been approved for disability retirement and is receiving a disability retirement allowance is earning a livelihood for any given year when, not including the member’s disability retirement allowance, the member earns more than twelve (12) times the Substantial Gainful Activity monthly limit for non-blind Social Security Disability Insurance recipients for that year. Income is earned for purposes of this section when it is received as a result of wages including bonuses, commissions, severance pay, or is net earnings from self-employment. Investment income, pensions, capital gains, legal settlements or judgments, rental income that is not a part of self-employment (e.g., someone who is in the business of renting property), support or alimony payments, and inheritances are some examples of unearned income which would not count toward the earnings limit. The recipient of disability retirement benefits who has not attained age sixty (60) shall be required to submit an annual verification of income and may be required to submit tax returns, W-2 forms, paystubs, and other forms of documentation as evidence of continued eligibility for disability retirement.

(13) When a disability retiree reaches the age of sixty (60), the retiree’s retirement will be considered a service retirement rather than a disability retirement and the applicable service retirement regulations shall apply.

AUTHORITY: section 169.020, RSMo Supp. 2024.* Original rule filed Dec. 19, 1975, effective Jan. 1, 1976. Amended: Filed Aug. 11, 1977, effective Nov. 15, 1977. Amended: Filed Aug. 14, 1989, effective Nov. 11, 1989. Amended: Filed April 13, 1994, effective Sept. 30, 1994. Amended: Filed July 31, 1995, effective Feb. 25, 1996. Amended: Filed Aug. 9, 1999, effective Feb. 29, 2000. Amended: Filed Sept. 1, 2005, effective Feb. 28, 2006. Amended: Filed Jan. 4, 2010, effective July 1, 2010. Amended: Filed Feb. 15, 2013, effective July 30, 2013. Amended: Filed May 20, 2020, effective Nov. 30, 2020. Amended: Filed May 5, 2022, effective Nov. 30, 2022. Amended: Filed Oct. 2, 2024, effective April 30, 2025. Amended: Filed February 2, 2026.

*Original authority: 169.020, RSMo 1945, amended 1951, 1953, 1967, 1973, 1983, 1990, 1995, 1996, 1998, 2005, 2009, 2013, 2020.

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.