Proposed Board Rule on Separation of Service and Other Revisions

Nov 19, 2020, 15:37 PM

At their November 19, 2020 meeting, the MOSERS Board of Trustees adopted:

  • Board Rule 9-2, "Termination of Employment and Reemployment of MSEP/MSEP2000/MSEP 2011 Retiree",
  • Board Rule 4-9, "Termination of Employment and Reemployment of ALJLAP Retiree",
  • Board Rule 4-10, "Termination of Employment and Reemployment of Judicial Plan or Judicial Plan 2011 Retiree", and 
  • Revisions to various other MOSERS Board Rules.

All board rule changes will take effect on December 21, 2020.  

9-2 Termination of Employment and Reemployment of MSEP/MSEP 2000/MSEP 2011 Retiree

PURPOSE: The purpose of this rule is to set-forth procedures relative to compliance with the Internal Revenue Code and Treasury Regulations regarding retiree re-employment and in-service distributions.

(1)   A member is not entitled to receive an in-service distribution from the system, except as described in Section 104.1089, RSMo.

(2)   An in-service distribution occurs when a member receives a distribution from the system without a bona fide termination of the member’s employment. To receive retirement benefits from the system, a member must have a bona fide termination of the member’s employment and satisfy the other requirements of Chapter 104.

(3)   For purposes of this rule, a "bona fide termination" occurs when: (i) a member has completely severed the member’s employment; (ii) the member has not entered into a prearranged agreement, prior to retirement, with any employer for subsequent employment on any basis (full-time, part-time, or other); and (iii) the member is not subsequently employed by any employer on any basis (full-time, part-time, or other) within 30 days after the member’s employment with the member’s prior employer has ended.

(4)   For purposes of this rule, “employer” means the State of Missouri or any other employer covered by Chapters 104, 287, or 476, RSMo.

(5)   If a member receives retirement benefits without a bona fide termination, then: (a) all further benefit payments shall cease; and (b) the member shall be required to repay to the system all retirement benefits received from the system plus applicable interest based on the assumed rate of return on the date of the member's retirement. Any amounts, including interest, not repaid by the member to the system shall be subject to collection from the member's future retirement benefits. The member’s retirement shall be deemed null and void and during the member’s continued employment, the member shall be treated as having not retired for purposes of benefit accrual and shall be subject to all plan provisions for active members. In addition, any payment deemed to be an in-service distribution may be subject to a 10% early distribution penalty.

4-9 Termination of Employment and Reemployment of ALJLAP Retiree

PURPOSE: The purpose of this rule is to set-forth procedures relative to compliance with the Internal Revenue Code and Treasury Regulations regarding retiree re-employment and in-service distributions.

(1)   An administrative law judge or legal advisor (collectively, a “member”) is not entitled to receive an in-service distribution from the system.

(2)   An in-service distribution occurs when a member receives a distribution from the system without a bona fide termination of the member’s employment. To receive retirement benefits from the system, a member must have a bona fide termination of the member’s employment and satisfy the other requirements of Chapter 287.

(3)   For purposes of this rule, a "bona fide termination" occurs when: (i) a member has completely severed the member’s employment; (ii) the member has not entered into a prearranged agreement, prior to retirement, with any employer for subsequent employment on any basis (full-time, part-time, or other); and (iii) the member is not subsequently employed by any employer on any basis (full-time, part-time, or other) within 30 days after the member’s employment with the member’s prior employer has ended.

(4)   For purposes of this rule, “employer” means the State of Missouri or any other employer covered by Chapters 104, 287, or 476, RSMo.

(5)   If a member receives retirement benefits without a bona fide termination, then: (a) all further benefit payments shall cease; and (b) the member shall be required to repay to the system all retirement benefits received from the system plus applicable interest based on the assumed rate of return on the date of the member's retirement. Any amounts, including interest, not repaid by the member to the system shall be subject to collection from the member's future retirement benefits. The member’s retirement shall be deemed null and void and during the member’s continued employment, the member shall be treated as having not retired for purposes of benefit accrual and shall be subject to all plan provisions for active members. In addition, any payment deemed to be an in-service distribution may be subject to a 10% early distribution penalty.

4-10 Termination of Employment and Reemployment of Judicial Plan or Judicial

Plan 2011 Retiree

PURPOSE: The purpose of this rule is to set-forth procedures relative to compliance with the Internal Revenue Code and Treasury Regulations regarding retiree re-employment and in-service distributions.

(1)   A judge is not entitled to receive an in-service distribution from the system, except while serving as a senior commissioner or a senior judge.

(2)   An in-service distribution occurs when a judge receives a distribution from the system without a bona fide termination of the judge’s employment. To receive retirement benefits from the system, a judge must have a bona fide termination of the judge’s employment and satisfy the other requirements of Chapter 476.

(3)   For purposes of this rule, a "bona fide termination" occurs when: (i) a judge has completely severed the judge’s employment; (ii) the judge has not entered into a prearranged agreement, prior to retirement, with any employer for subsequent employment on any basis (full-time, part-time, or other); and (iii) the judge is not subsequently employed by any employer on any basis (full-time, part-time, or other) within 30 days after the judge’s employment with the judge’s prior employer has ended.

(4)   For purposes of this rule, “employer” means the State of Missouri or any other employer covered by Chapters 104, 287, or 476, RSMo.

(5)   If a judge receives retirement benefits without a bona fide termination, then: (a) all further benefit payments shall cease; and (b) the judge shall be required to repay to the system all retirement benefits received from the system plus applicable interest based on the assumed rate of return on the date of the judge’s retirement. Any amounts, including interest, not repaid by the judge to the system shall be subject to collection from the judge’s future retirement benefits. The judge’s retirement shall be deemed null and void and during the judge’s continued employment, the judge shall be treated as having not retired for purposes of benefit accrual and shall be subject to all plan provisions for active judges. In addition, any payment deemed to be an in-service distribution may be subject to a 10% early distribution penalty.

You may submit written comments to MOSERS' general counsel regarding these changes at any time prior to December 21, 2020. The Board will consider any comments received and has the authority to take additional action as it deems appropriate regarding these rules.

Back to News

News Archive

Calendar