105.691. Definitions--agreements to transfer service between plans--election to transfer--transfer of service, determination of value--amount due, payment period--effect of transfer--transfer not to r
Definitions--agreements to transfer service between plans--electionto transfer--transfer of service, determination of value--amount due,payment period--effect of transfer--transfer not to result in receiptof benefits under more than one plan.
105.691. 1. As used in this section, unless a different meaning isplainly required by the context, the following terms mean:
(1) "Accumulated contributions", the sum of all amounts deducted fromthe compensation of an individual and credited to the person's individualaccount in the applicable plan, together with interest allowed thereon bythe plan;
(2) "Creditable service", the service of an individual, whetherrendered while a member of a plan or not, which is recognized by a plan indetermining the individual's eligibility for and the amount of theindividual's benefits under the plan;
(3) "Plan" or "retirement plan", any retirement system established bythe state of Missouri or any political subdivision or instrumentality ofthe state for the purpose of providing plan benefits for elected orappointed public officials or employees of the state of Missouri or anypolitical subdivision or instrumentality of the state;
(4) "Receiving plan", a plan which pursuant to this section isreceiving funds from another plan or an individual to provide creditableservice for that individual;
(5) "Transferring plan", a plan which pursuant to this section istransferring funds to another plan for the purpose of providing creditableservice for an individual;
(6) "Vested", having the right to receive the payment of a benefitfrom the plan, whether at present or at a future time. For the purpose ofdetermining eligibility for transferring service credit, all plans shall bedeemed to have five-year vesting.
2. Any retirement plan as defined in this section may enter intocooperative agreements to transfer creditable service from one retirementplan to another when a member who has been employed in a position coveredby one plan is employed in a position covered by another plan. If any twoplans already have in place on August 28, 1992, a cooperative agreement fortransferring service between those plans, the existing agreement may remainin force upon agreement of both plans.
3. Any individual who has not yet retired and has earned creditableservice under the provisions of a retirement plan which has entered into acooperative agreement as specified in subsection 2 of this section, and whois vested in any plan may elect in writing to transfer the individual'screditable service from one plan to another plan upon employment andvesting in a position covered by the receiving plan. Within sixty days ofsuch election the plan from which the individual is transferring shalltransfer on the individual's behalf to the receiving plan an amount equalto the employee's pension benefit obligation at the time of transfer usingthe same assumption used in performing the last regular actuarial valuationof the transferring plan; except that in no event shall the transferredamount be less than the employee's accumulated contributions on depositwith the transferring plan.
4. The receiving plan shall determine, using accepted actuarialmethods, the value of transferred service in the receiving plan. Theamount of creditable service which shall be recognized in the receivingplan shall be determined by the actuarial value of the funds transferred,but in no event shall such creditable service exceed the actual number ofyears of creditable service from the transferring plan. If the actuarialvalue of the funds transferred to the receiving plan is less than thatrequired to fund the liability created by the actual number of years ofcreditable service in the transferring plan, the employee may purchaseadditional creditable service in the receiving plan up to the actual numberof years of creditable service in the transferring plan by paying theamount required by the receiving plan.
5. Any individual having earned creditable service under theprovisions of any of the retirement plans identified in this section who isnot vested in such plans and who becomes employed and vested in a positioncovered by another retirement plan identified in this section shall bepermitted to purchase creditable service in the plan in which theindividual is vested up to the actual number of years of creditable servicethe individual has in the other plans. The cost shall be determined usingaccepted actuarial methods by the receiving plan.
6. Payment in full of an amount due by an individual electing totransfer or purchase creditable service pursuant to this section shall bemade over a period not to exceed two years, measured from the date ofelection, or prior to the effective date of retirement benefit payments tothat individual by the receiving plan, whichever is earlier, and withinterest compounded annually at the actuarially assumed interest rate ofthe plan receiving the payments. If payment in full is not made withinthis prescribed time period, any partial payments made by the individualbecause of the election shall be refunded, and no creditable service shallbe allowable in the receiving plan as a result of the partial payments.
7. Any individual employed in nonfederal public employment inMissouri but not covered by a retirement plan who becomes employed andvested in a position covered by a retirement plan identified in thissection shall be permitted to purchase creditable service in the plan up tothe actual number of years of public service in an uncovered position. Thecost and creditable service allowed shall be determined using acceptedactuarial methods by the receiving plan.
8. When an individual elects to transfer creditable service from oneplan to another plan, the individual thereby forfeits any claim to anybenefit based on such service under the provisions of the retirement planfrom which the creditable service is transferred.
9. In no event shall any individual receive credit or benefits forthe same period of service or employment under more than one retirementplan as a consequence of transfer or purchase pursuant to the provisions ofthis section. Benefits paid on the basis of creditable service transferredor purchased pursuant to the provisions of this section shall be calculatedusing the formula applicable to the receiving plan.
(L. 1992 S.B. 499, et al., A.L. 1993 H.B. 733 merged with S.B. 363, A.L. 1997 H.B. 356, A.L. 1999 S.B. 196)*Transferred 1994; formerly 105.985
CROSS REFERENCE:
Purchase or transfer of prior creditable service authorized for certain persons covered by retirement plans identified in chapter 104, 287 or 476, RSMo, RSMo 104.335