In accordance with RSMo. 536.016, below are the proposed rules of the LAGERS system which have been recently published by the Missouri Register.

 

 

16 CSR 20-1.010 General Organization

6/15/19

 

Summary of Proposed Amendment: The Retirement System is amending Section 2 to update the rule to more accurately reflect the structure of the Retirement System organization as it currently functions.

 

Title 16-RETIREMENT SYSTEMS

Division 20-Missouri Local Government Employees’ Retirement System (LAGERS)

Chapter 1—General Organization

16 CSR 20-1.010 General Organization.

 

PURPOSE: The purpose of this regulation is to comply with section 536.023(3), RSMo 1986 which requires each agency to adopt as a regulation, a description of its operation and the procedures where the public may obtain information or make submissions or requests.

 

(2) The general administration and the responsibility for the proper operation of the system is vested in a board of trustees consisting of seven (7) persons. Three (3) trustees are elected by the employees who participate in the system, three (3) trustees are elected by the members of the governing bodies of those political subdivisions which participate in the system and one (1) trustee is appointed by the governor. The board of trustees employs an executive secretary, who may also be referred to as the executive director, not one of their number, who shall be the executive officer of the board and a chief investment officer, not one of their number, who shall report directly to the board on all system investment activity. The board also may employ[s] or contract[s] for the services of [an]

actuar[y]ies, legal advisors, investment counselors, medical advisors, [and a] certified public accountants, and such other services providers as the board shall deem necessary.

 

 

16 CSR 20-2.040 Refunds

6/15/19

 

Summary of Proposed Amendment: The Retirement System is amending Sections 2, 3, 4 and 5 to update the guidelines regarding refunds of employee contributions and reflect current practices including the use of electronic means of refund requests.

 

Title 16-RETIREMENT SYSTEMS

Division 20-Missouri Local Government Employees’ Retirement System (LAGERS)

Chapter 2-Administrative Rules

16 CSR 20-2.040 Refunds.

 

PURPOSE: The purpose of this rule is to establish guidelines regarding refunds of employee contributions.

 

(2) The employee must submit a written request for the refund of [his/her] the member’s accumulated contributions[, the request to be made out] on a form furnished by the board, which may be an electronic form.

 

(3) The member’s employer must certify[, in writing,] that the employee has left the employ of the employer.

 

(4) [Missouri Local Government Employees’] The Retirement System (LAGERS) will not refund a member’s accumulated contributions until the employer has remitted the employer statement certifying that the member is no longer receiving remuneration or making contributions to the system. [Refunds will not be made before the expiration of sixty (60) days from the date of a member’s termination of employment] . Refunds are issued on the first and fifteenth [working] days of a month (or the first business day thereafter if the 1st or 15th day is not a business day).

 

(5) The executive secretary shall report to the board at each meeting of the board, the refunds of employees’ accumulated contributions made by [him/her] LAGERS since the last meeting of the board. [The reports shall be attached to and made a part of the minutes of the board meeting.]

 

 

 

 

16 CSR 20-2.045 Application for Retirement

6/15/19

 

Summary of Proposed Amendment: The Retirement System is amending Sections 1 and 2 to update the guidelines regarding applications for retirement and reflect current practices including the use of electronic applications.

 

Title 16-RETIREMENT SYSTEMS

Division 20-Missouri Local Government Employees’ Retirement System (LAGERS)

Chapter 2-Administrative Rules

16 CSR 20-2.045 Application for Retirement.

 

PURPOSE: This rule sets forth the factors that will determine the date a member’s application for retirement will be considered to have been filed, for purposes of determining the retirement effective date.

 

(1) Any vested member who has attained the minimum service retirement age, the minimum early service retirement age pursuant to Section 70.670, RSMo, or, if an election has been made in accordance with section 70.646, RSMo [1994] to provide for alternate eligibility, have years of attained age and credited service in force which total eighty (80) or more, may file a written or electronic application for retirement with the system, including the date on which the member desires [his/her] retirement to be effective.

 

(2) For purposes of section 70.645, RSMo [1994], and this rule, the following factors shall determine the date that an application for retirement shall be deemed to have been filed with Missouri Local Government Employees’ Retirement System (LAGERS):

(A) If the application is mailed to LAGERS via the U.S. Postal Service, the postmark date, or postal meter date;

(B) If the application is sent to LAGERS via private/commercial delivery service, the date the application is shipped by the commercial delivery service;

(C) If the application is sent to LAGERS electronically or through facsimile transmission, the date and time the [fax transmission] application is received by LAGERS; and

(D) If the application is personally given to a LAGERS [board member or] employee, the date of personal delivery.

 

 

16 CSR 20-2.056 Lump-Sum Cash Payout of Retirement Allowance

6/15/19

 

Summary of Proposed Amendment: The Retirement System is amending the Purpose and Section 1 to correct a statutory reference and increase the reserve amount of payment that will make a member eligible to apply the optional retirement election providing for a lump-sum cash payout in lieu of a monthly benefit.

 

Title 16-RETIREMENT SYSTEMS

Division 20-Missouri Local Government Employees’ Retirement System (LAGERS)

Chapter 2-Administrative Rules

16 CSR 20-2.056 Lump-Sum Cash Payout of Retirement Allowance.

 

PURPOSE: This rule establishes the circumstances under which a member or former member may receive a lump-sum cash payout in lieu of a monthly benefit, as provided for in section 70.660.[1]2(4), RSMo [2000] regarding optional retirement elections.

 

(1) A member or former member who is entitled to a retirement allowance, as defined in section 70.655 or section 70.765, RSMo [2000], may, in accordance with section 70.660.[1]2(4), elect to receive a lump-sum cash payout at retirement that is the actuarial equivalent of the retirement allowance otherwise payable, provided that the value of the reserve at the time of payment is less than [ten] twenty thousand dollars ($[1]20,000).

 

 

 

16 CSR 20-2.070 Collection of Delinquent Payments

6/15/19

 

Summary of Proposed Amendment: The Retirement System is amending Sections 1 and 2 to update the procedure for when a political subdivision is delinquent in remitting payments to the system.

 

Title 16-RETIREMENT SYSTEMS

Division 20-Missouri Local Government Employees’ Retirement System (LAGERS)

Chapter 2-Administrative Rules

16 CSR 20-2.070 Collection of Delinquent Payments.

 

PURPOSE: This rule clarifies the procedures to follow when a political subdivision is delinquent in payments to the system.

 

(1) The system [shall notify] will provide each political subdivision [when its] with a monthly employer statement of account, which will indicate the [and] remittance [is] due the system from the political subdivision.

 

(2) If any political subdivision fails to make any payment due, as indicated on the employer statement of account, by 12th day of the month (or the first business day thereafter if the 12th day is not a business day), the system shall make the payment due a receivable or shortage on the employer’s statement and notify the political subdivision in writing, which may be sent to the employer electronically or via U.S. Mail. [The political subdivision shall remit the shortage to the system within forty-five (45) days] If the political subdivision fails to make any payment due the retirement system for a period of sixty days (60) after the payment becomes due, as set forth above, the retirement system may consider the political subdivision delinquent and seek relief as provided in R.S.Mo. §70.735.

 

 

 

16 CSR 20-2.105 Determination of Amount Otherwise Payable During Deflation

6/15/19

 

Summary of Proposed Amendment: The Retirement System is amending the Title, Purpose and Section 1, and adding a new Section 2 to clarify how the Consumer Price Index will be used to redetermine allowances during deflation and which Consumer Price Indices may be considered by the Board of Trustees in making such redeterminations.

 

Title 16-RETIREMENT SYSTEMS

Division 20-Missouri Local Government Employees’ Retirement System (LAGERS)

Chapter 2-Administrative Rules

16 CSR 20-2.105 Redetermination of [Amount Otherwise Payable] Allowances During Deflation and Consumer Pricing Indices To Be Considered.

 

PURPOSE: The purpose of this rule is to [provide Missouri Local Government Employees’ Retirement System’s (LAGERS’) interpretation of] clarify how retiree allowances will be redetermined pursuant to section 70.655.7–.10 et. seq., RSMo, [regarding] during periods of deflation and which Consumer Pricing Indices may be considered in making the redetermination.

 

(1) For purposes of calculating the redetermined amount of the allowance as set forth under section 70.655.7–.10 et. seq., RSMo, [the Missouri Local Government Employees’ Retirement System’s (LAGERS’) Board of Trustees interprets sections 70.655.7–.10 et.seq., RSMo, to not require an actual reduction in the redetermined amount of the retirant’s allowance] during periods of deflation[.  I], if the annual Consumer Price Index (CPI) is negative, there shall be no actual reduction in the redetermined amount of the retiree[’]s’ allowancesHowever, in the next year in which the annual Consumer Price Index (CPI) is positive, the Board of Trustees may consider the cumulative net increase or decrease in the Consumer Price Index (CPI) inclusive of the negative and positive years when redetermining any amount of the retirees’ allowances.

 

(2)  In order to continue the original intent of the use of the Consumer Price Index, as defined by Section 70.655.7, the Board of Trustees of the Retirement System may also consider the Consumer Price Index for All Urban Consumers (CPI-U), as determined by the United States Department of Labor, when redetermining any amount of the retirees’ allowances.

 

 

 

NOTICE TO SUBMIT COMMENTS: Any interested person or entity may submit written comments in support of or in opposition to the proposed rule. Comments should be directed to the Missouri Local Government Employees Retirement System (LAGERS), Attn: Jason A. Paulsmeyer, Chief Counsel, P.O. Box 1665, Jefferson City, MO  65102.  To be considered, comments must be received within thirty (30) days after publication of this notice in the Missouri Register. No public hearing is scheduled.

 

 

Periodic Rule Review

Missouri Local Government Employees Retirement System
Missouri Local Government Employees Retirement System
Missouri Local Government Employees Retirement System