16 CSR 10-5.010 Service Retirement

Title 16—RETIREMENT SYSTEMS
Division 10—The Public School Retirement System of Missouri
Chapter 5—Retirement, Options and Benefits

PROPOSED AMENDMENT: 16 CSR 10-5.010 Service Retirement. The Public School Retirement System of Missouri is amending sections (6) and (18).

Summary:

These amendments relate to working after retirement for PSRS members. The amendment to section (6) is required due to Senate Bill 892 enacted August 28, 2018, which amends restrictions on post-retirement employment as provided by section 169.560, RSMo. The amendment to section (18) allows a PSRS retiree to work under section 169.596 in any position and up to full-time for a PSRScovered school employer and also sets forth when employers must notify the Public School Retirement System of critical shortage employment.

Proposed Rule:

(6) Part-time employment is any employment which is less than fulltime. Temporary-substitute employment is any employment either in a position held by a regularly employed person who is temporarily absent or in a position which is temporarily vacant.

(A) A [retired member] retiree may be employed by an [district] employer included in the system to serve on a part-time or temporary-substitute basis in [any capacity] any position that would normally require that person to be duly certificated by the Department of Elementary and Secondary Education (DESE), including substituting in a teaching position, not to exceed five hundred fifty (550) hours in any one (1) school year and through such employment may earn an amount not in excess of the compensation limit set forth in this rule and section 169.560, RSMo, without a discontinuance of the retired member’s retirement allowance. The limit on compensation shall be determined as set forth in section 169.560, RSMo. If the position or positions did not previously exist, a retired member may earn up to fifty percent (50%) of the annual compensation payable for the position within the [district] employer that is most comparable to the position filled by the retired member without exceeding the compensation limit. If such employment exceeds either the limitation on hours worked or the limitation on compensation, payment of benefits to the retired member shall cease until the employment terminates or a new school year begins.

(B) The provisions above shall apply to any person retired and currently receiving a retirement allowance under sections 169.010, RSMo to 169.141, RSMo who is employed by a third party or is performing work as an independent contractor, if such person is performing work in an [district] employer 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 if such person was employed by the [district] employer. The retirement system may require the [district] employer, the third-party employer, the independent contractor, and the retiree, subject to this section, to provide documentation showing compliance with this section. If such documentation is not provided, the retirement system may deem the retiree to have exceeded the limitations provided in this section.

(C) A retiree receiving a retirement benefit, other than a disability benefit, from the Public School Retirement System of Missouri (PSRS) may be employed by an employer included in that system in any position that normally does not require a person employed in that position to be duly certificated by the Department of Elementary and Secondary Education and through such employment may earn during the school year not more than sixty percent (60%) of the minimum teacher’s salary for a teacher without a master’s degree as set forth in section 163.172 without a discontinuance of the retiree’s retirement allowance. The employer shall contribute to the Public Education Employee Retirement System of Missouri (PEERS) at the rate set for that system on all salary as defined in section 169.010 and 16 CSR 10-3.010(9) of the person so employed. Such employee shall not contribute on such earnings and shall earn no service credit in either system for such employment. If such employment exceeds the limitation on compensation, the retiree’s retirement benefit from PSRS shall cease until the employment terminates or a new school year begins, and such person shall become a member of and contribute to any retirement system described in this subsection if the person satisfies the retirement system’s membership eligibility requirements. A PSRS retiree who meets PSRS eligibility requirements after exceeding the limits set forth above shall not be eligible to elect membership in PEERS under section 169.712.

(D) This rule shall not apply to employment with a state college, a state university, or any state agency.

(E) The employer covered by the Public School Retirement System of Missouri, the third-party employer, the independent contractor, and the retiree shall maintain a log of all dates worked, hours worked, wage earned, and the employer. The employer covered by the Public School Retirement System of Missouri, the third-party employer, the independent contractor, and retiree shall provide a copy of the work log upon request of retirement system.

Employee Name:

 

School Year:

 

Date Worked

Hours Worked

Wage Earned

Employer

 

 

 

 

 

 

 

 

The working after retirement limits set forth in section 169.560, RSMo, shall be applied on a pro rata basis as provided below to a retiree’s hours of work during the school year in which the retiree’s date of retirement is effective.

Effective date of retirement

Hours allowed after retirement for school year

July 1

550

August 1

504

September 1

458

October 1

413

November 1

367

December 1

321

January 1

275

February 1

229

March 1

183

April 1

138

May 1

92

June 1

0

The working after retirement limits set forth in section 169.560, RSMo, shall be applied on a pro rata basis as provided below to a retiree’s base salary to determine the retiree’s earnings limit during the school year in which the retiree’s date of retirement is effective.

Effective date of retirement

Percentage of base salary allowed after retirement for school year

July 1

50%

August 1

46%

September 1

42%

October 1

38%

November 1

33%

December 1

29%

January 1

25%

February 1

21%

March 1

17%

April 1

13%

May 1

8%

June 1

0%


(18) Pursuant to section 169.596, RSMo, a [retired certificated teacher] person receiving a retirement benefit from the Public School Retirement System of Missouri (PSRS) may teach up to fulltime for [up to two (2) years] no more than twenty-four months for a PSRS-covered school district without a suspension of his or her retirement benefit provided that such school district certifies that it has met the requirements set forth in section 169.596, RSMo, and provided that such school district does not exceed the limit on the number of PSRS retirees that may be hired pursuant to section 169.596, RSMo.

(A) As used in section 169.596, RSMo, “teacher” shall have the same definition as provided in section 169.010(17), RSMo. [(B) As used in section 169.596.1, RSMo, “full-time” shall have the same definition as provided in 16 CSR 10- 4.005(4).]

[(C)](B) As used in section 169.596, RSMo, “early retirement incentive” shall have the same definition as “consideration for agreeing to terminate employment” provided in 16 CSR 10-3.010(9)(B)6., except that it shall not include retirement notice or separation notice incentives of total value of five thousand dollars ($5,000) or less for providing notice of intent to retire or separate employment.

[(D)](C) As used in section 169.596, RSMo, “teach” shall mean to be employed in any position [that requires a certificate issued by the Missouri Department of Elementary and Secondary Education (DESE)] for a school district covered by PSRS.

(D) The school district shall notify PSRS in a manner acceptable to PSRS of the school district’s intent to hire a PSRS retiree under section 169.596 prior to the first date of such employment.

(E) A school district hiring a PSRS retiree under section 169.596, RSMo, shall certify to PSRS through the Online Automated System Integrated Solution (OASIS) or in another manner acceptable to PSRS that— 1. It has met the requirements of section 169.596, RSMo; and 2. It has not exceeded the limit on the number of PSRS retirees it may hire under section 169.596, RSMo[; and 3. The retired certificated teacher has been employed by the school district in a position that requires a certificate issued by DESE].

MO State Register