169.670. Benefits, how computed--beneficiary benefits, options, election of.
Benefits, how computed--beneficiary benefits, options, election of.
169.670. 1. The retirement allowance of a member whose age atretirement is sixty years or more and whose creditable service is fiveyears or more, or whose sum of age and creditable service equals eightyyears or more, or whose creditable service is thirty years or moreregardless of age, shall be the sum of the following items:
(1) For each year of membership service, one and sixty-one hundredthspercent of the member's final average salary;
(2) Six-tenths of the amount payable for a year of membership servicefor each year of prior service;
(3) Eighty-five one-hundredths of one percent of any amount by whichthe member's average compensation for services rendered prior to July 1,1973, exceeds the average monthly compensation on which federal SocialSecurity taxes were paid during the period over which such averagecompensation was computed, for each year of membership service credit forservices rendered prior to July 1, 1973, plus six-tenths of the amountpayable for a year of membership service for each year of prior servicecredit;
(4) In lieu of the retirement allowance otherwise provided bysubdivisions (1) to (3) of this subsection, between July 1, 2001, and July1, 2013, a member may elect to receive a retirement allowance of:
(a) One and fifty-nine hundredths percent of the member's finalaverage salary for each year of membership service, if the member'screditable service is twenty-nine years or more but less than thirty yearsand the member has not attained the age of fifty-five;
(b) One and fifty-seven hundredths percent of the member's finalaverage salary for each year of membership service, if the member'screditable service is twenty-eight years or more but less than twenty-nineyears, and the member has not attained the age of fifty-five;
(c) One and fifty-five hundredths percent of the member's finalaverage salary for each year of membership service, if the member'screditable service is twenty-seven years or more but less than twenty-eightyears and the member has not attained the age of fifty-five;
(d) One and fifty-three hundredths percent of the member's finalaverage salary for each year of membership service, if the member'screditable service is twenty-six years or more but less than twenty-sevenyears and the member has not attained the age of fifty-five;
(e) One and fifty-one hundredths percent of the member's finalaverage salary for each year of membership service, if the member'screditable service is twenty-five years or more but less than twenty-sixyears and the member has not attained the age of fifty-five; and
(5) In addition to the retirement allowance provided in subdivisions(1) to (3) of this subsection, a member retiring on or after July 1, 2001,whose creditable service is thirty years or more or whose sum of age andcreditable service is eighty years or more, shall receive a temporaryretirement allowance equivalent to eight-tenths of one percent of themember's final average salary multiplied by the member's years of serviceuntil such time as the member reaches the minimum age for Social Securityretirement benefits.
2. If the board of trustees determines that the cost of living, asmeasured by generally accepted standards, increases five percent or more inthe preceding fiscal year, the board shall increase the retirementallowances which the retired members or beneficiaries are receiving by fivepercent of the amount being received by the retired member or thebeneficiary at the time the annual increase is granted by the board;provided that, the increase provided in this subsection shall not becomeeffective until the fourth January first following a member's retirement orJanuary 1, 1982, whichever occurs later, and the total of the increasesgranted to a retired member or the beneficiary after December 31, 1981, maynot exceed eighty percent of the retirement allowance established atretirement or as previously adjusted by other provisions of law. If thecost of living increases less than five percent, the board of trustees maydetermine the percentage of increase to be made in retirement allowances,but at no time can the increase exceed five percent per year. If the costof living decreases in a fiscal year, there will be no increase inallowances for retired members on the following January first.
3. The board of trustees may reduce the amounts which have beengranted as increases to a member pursuant to subsection 2 of this sectionif the cost of living, as determined by the board and as measured bygenerally accepted standards, is less than the cost of living was at thetime of the first increase granted to the member; provided that, thereductions shall not exceed the amount of increases which have been made tothe member's allowance after December 31, 1981.
4. (1) In lieu of the retirement allowance provided in subsection 1of this section, called option 1, a member whose creditable service istwenty-five years or more or who has attained age fifty-five with five ormore years of creditable service may elect, in the application forretirement, to receive the actuarial equivalent of the member's retirementallowance in reduced monthly payments for life during retirement with theprovision that:
Option 2. Upon the member's death, the reduced retirement allowanceshall be continued throughout the life of and paid to such person as has aninsurable interest in the life of the member as the member shall havenominated in the member's election of the option, and provided further thatif the person so nominated dies before the retired member, the retirementallowance will be increased to the amount the retired member would bereceiving had the member elected option 1;
OR
Option 3. Upon the death of the member three-fourths of the reducedretirement allowance shall be continued throughout the life of and paid tosuch person as has an insurable interest in the life of the member and asthe member shall have nominated in an election of the option, and providedfurther that if the person so nominated dies before the retired member, theretirement allowance will be increased to the amount the retired memberwould be receiving had the member elected option 1;
OR
Option 4. Upon the death of the member one-half of the reducedretirement allowance shall be continued throughout the life of, and paidto, such person as has an insurable interest in the life of the member andas the member shall have nominated in an election of the option, andprovided further that if the person so nominated dies before the retiredmember, the retirement allowance shall be increased to the amount theretired member would be receiving had the member elected option 1;
OR
Option 5. Upon the death of the member prior to the member havingreceived one hundred twenty monthly payments of the member's reducedallowance, the remainder of the one hundred twenty monthly payments of thereduced allowance shall be paid to such beneficiary as the member shallhave nominated in the member's election of the option or in a subsequentnomination. If there is no beneficiary so nominated who survives themember for the remainder of the one hundred twenty monthly payments, thereserve for the remainder of such one hundred twenty monthly payments shallbe paid to the surviving spouse, surviving children in equal shares,surviving parents in equal shares, or estate of the last person, in thatorder of precedence, to receive a monthly allowance in a lump sum payment.If the total of the one hundred twenty payments paid to the retiredindividual and the beneficiary of the retired individual is less than thetotal of the member's accumulated contributions, the difference shall bepaid to the beneficiary in a lump sum;
OR
Option 6. Upon the death of the member prior to the member havingreceived sixty monthly payments of the member's reduced allowance, theremainder of the sixty monthly payments of the reduced allowance shall bepaid to such beneficiary as the member shall have nominated in the member'selection of the option or in a subsequent nomination. If there is nobeneficiary so nominated who survives the member for the remainder of thesixty monthly payments, the reserve for the remainder of such sixty monthlypayments shall be paid to the surviving spouse, surviving children in equalshares, surviving parents in equal shares, or estate of the last person, inthat order of precedence, to receive a monthly allowance in a lump sumpayment. If the total of the sixty payments paid to the retired individualand the beneficiary of the retired individual is less than the total of themember's accumulated contributions, the difference shall be paid to thebeneficiary in a lump sum;
OR
Option 7. A plan of variable monthly benefit payments which provides,in conjunction with the member's retirement benefits under the federalSocial Security laws, level or near-level retirement benefit payments tothe member for life during retirement, and if authorized, to an appropriatebeneficiary designated by the member. Such a plan shall be actuariallyequivalent to the retirement allowance under option 1 and shall beavailable for election only if established by the board of trustees underduly adopted rules.
(2) The election of an option may be made only in the application forretirement and such application must be filed prior to the date on whichthe retirement of the member is to be effective. If either the member orthe person nominated dies before the effective date of retirement, theoption shall not be effective, provided that:
(a) If the member or a person retired on disability retirement diesafter attaining age fifty-five and acquiring five or more years ofcreditable service or after acquiring twenty-five or more years ofcreditable service and before retirement, except retirement with disabilitybenefits, and the person named by the member as the member's beneficiaryhas an insurable interest in the life of the deceased member, thedesignated beneficiary may elect to receive either survivorship paymentsunder option 2 or a payment of the member's accumulated contributions. Ifsurvivorship benefits under option 2 are elected and the member at the timeof death would have been eligible to receive an actuarial equivalent of themember's retirement allowance, the designated beneficiary may further electto defer the option 2 payments until the date the member would have beeneligible to receive the retirement allowance provided in subsection 1 ofthis section.
(b) If the member or a person retired on disability retirement diesbefore attaining age fifty-five but after acquiring five but fewer thantwenty-five years of creditable service, and the person named as thebeneficiary has an insurable interest in the life of the deceased member ordisability retiree, the designated beneficiary may elect to receive eithera payment of the person's accumulated contributions or survivorshipbenefits under option 2 to begin on the date the member would first havebeen eligible to receive an actuarial equivalent of the person's retirementallowance, or to begin on the date the member would first have beeneligible to receive the retirement allowance provided in subsection 1 ofthis section.
5. If the total of the retirement or disability allowances paid to anindividual before the person's death is less than the person's accumulatedcontributions at the time of the person's retirement, the difference shallbe paid to the person's beneficiary or, if there is no beneficiary, to thesurviving spouse, surviving children in equal shares, surviving parents inequal shares, or person's estate, in that order of precedence; provided,however, that if an optional benefit, as provided in option 2, 3 or 4 insubsection 4 of this section, had been elected and the beneficiary diesafter receiving the optional benefit, then, if the total retirementallowances paid to the retired individual and the individual's beneficiaryare less than the total of the contributions, the difference shall be paidto the surviving spouse, surviving children in equal shares, survivingparents in equal shares, or estate of the beneficiary, in that order ofprecedence, unless the retired individual designates a different recipientwith the board at or after retirement.
6. If a member dies and his or her* financial institution is unableto accept the final payment or payments due to the member, the finalpayment or payments shall be paid to the beneficiary of the member or, ifthere is no beneficiary, to the surviving spouse, surviving children inequal shares, surviving parents in equal shares, or estate of the member,in that order of precedence, unless otherwise stated. If the beneficiaryof a deceased member dies and his or her* financial institution is unableto accept the final payment or payments, the final payment or paymentsshall be paid to the surviving spouse, surviving children in equal shares,surviving parents in equal shares, or estate of the member, in that orderof precedence, unless otherwise stated.
7. If a member dies before receiving a retirement allowance, themember's accumulated contributions at the time of the member's death shallbe paid to the member's beneficiary or, if there is no beneficiary, to thesurviving spouse, surviving children in equal shares, surviving parents inequal shares, or to the member's estate; provided, however, that no suchpayment shall be made if the beneficiary elects option 2 in subsection 4 ofthis section, unless the beneficiary dies before having received benefitspursuant to that subsection equal to the accumulated contributions of themember, in which case the amount of accumulated contributions in excess ofthe total benefits paid pursuant to that subsection shall be paid to thesurviving spouse, surviving children in equal shares, surviving parents inequal shares, or estate of the beneficiary, in that order of precedence.
8. If a member ceases to be an employee as defined in section 169.600and certifies to the board of trustees that such cessation is permanent orif the person's membership is otherwise terminated, the person shall bepaid the person's accumulated contributions with interest.
9. Notwithstanding any provisions of sections 169.600 to 169.715 tothe contrary, if a member ceases to be an employee as defined in section169.600 after acquiring five or more years of creditable service, themember may, at the option of the member, leave the member's contributionswith the retirement system and claim a retirement allowance any time afterthe member reaches the minimum age for voluntary retirement. When themember's claim is presented to the board, the member shall be granted anallowance as provided in sections 169.600 to 169.715 on the basis of themember's age and years of service.
10. The retirement allowance of a member retired because ofdisability shall be nine-tenths of the allowance to which the member'screditable service would entitle the member if the member's age were sixty.
11. Notwithstanding any provisions of sections 169.600 to 169.715 tothe contrary, any member who is a member prior to October 13, 1969, mayelect to have the member's retirement allowance computed in accordance withsections 169.600 to 169.715 as they existed prior to October 13, 1969.
12. Any application for retirement shall include a sworn statement bythe member certifying that the spouse of the member at the time theapplication was completed was aware of the application and the plan ofretirement elected in the application.
13. Notwithstanding any other provision of law, any person retiredprior to August 14, 1984, who is receiving a reduced retirement allowanceunder option 1 or 2 of subsection 4 of this section, as the option existedprior to August 14, 1984, and whose beneficiary nominated to receivecontinued retirement allowance payments under the elected option dies orhas died, shall upon application to the board of trustees have the person'sretirement allowance increased to the amount the person would have beenreceiving had the person not elected the option actuarially adjusted torecognize any excessive benefits which would have been paid to the personup to the time of the application.
14. Benefits paid pursuant to the provisions of the public educationemployee retirement system of Missouri shall not exceed the limitations ofSection 415 of Title 26 of the United States Code, except as provided underthis subsection. Notwithstanding any other law, the board of trustees mayestablish a benefit plan under Section 415(m) of Title 26 of the UnitedStates Code. Such plan shall be credited solely for the purpose describedin Section 415(m)(3)(A) of Title 26 of the United States Code. The boardof trustees may promulgate regulations necessary to implement theprovisions of this subsection and to create and administer such benefitplan.
15. Any member who has retired prior to July 1, 1999, and thedesignated beneficiary of a deceased retired member upon request shall bemade, constituted, appointed and employed by the board as a specialconsultant on the matters of education, retirement and aging. Ascompensation for such duties the person shall receive a payment equivalentto seven and four-tenths percent of the previous month's benefit, whichshall be added to the member's or beneficiary's monthly annuity and whichshall not be subject to the provisions of subsections 2 and 3 of thissection for the purposes of the limit on the total amount of increaseswhich may be received.
16. Any member who has retired prior to July 1, 2000, and thedesignated beneficiary of a deceased retired member upon request shall bemade, constituted, appointed and employed by the board as a specialconsultant on the matters of education, retirement and aging. Ascompensation for such duties the person shall receive a payment equivalentto three and four-tenths percent of the previous month's benefit, whichshall be added to the member's or beneficiary's monthly annuity and whichshall not be subject to the provisions of subsections 2 and 3 of thissection for the purposes of the limit on the total amount of increaseswhich may be received.
17. Any member who has retired prior to July 1, 2001, and thedesignated beneficiary of a deceased retired member upon request shall bemade, constituted, appointed and employed by the board as a specialconsultant on the matters of education, retirement and aging. Ascompensation for such duties the person shall receive a payment equivalentto seven and one-tenth percent of the previous month's benefit, which shallbe added to the member's or beneficiary's monthly annuity and which shallnot be subject to the provisions of subsections 2 and 3 of this section forthe purposes of the limit on the total amount of increases which may bereceived.
(L. 1965 p. 298 § 8, A.L. 1969 p. 284, A.L. 1973 H.B. 411, A.L. 1977 H.B. 135, A.L. 1981 S.B. 242, A.L. 1984 S.B. 407, A.L. 1986 S.B. 616, A.L. 1988 H.B. 1100, et al., A.L. 1990 H.B. 1347, et al., A.L. 1991 S.B. 242, et al., A.L. 1993 S.B. 126, A.L. 1994 H.B. 1544 merged with S.B. 575, A.L. 1995 S.B. 378, A.L. 1996 S.B. 860, A.L. 1997 S.B. 309, A.L. 1998 S.B. 501, S.B. 733, A.L. 1999 S.B. 308 & 314, A.L. 2000 H.B. 1808, A.L. 2001 H.B. 660, A.L. 2003 H.B. 346 & 174, A.L. 2005 H.B. 443, A.L. 2007 S.B. 406, A.L. 2009 H.B. 265)*Word "their" appears in original rolls.