Missouri Code of State Regulations
Title 16 - RETIREMENT SYSTEMS
Division 20 - Missouri Local Government Employees' Retirement System (LAGERS)
Chapter 2 - Administrative Rules
Section 16 CSR 20-2.056 - Lump-Sum Cash Payout of Retirement Allowance
Current through Register Vol. 49, No. 18, September 16, 2024
PURPOSE: The proposed amendment increase the value of reserve amount for accounts eligible to apply for a lump-sum payout and correct a statutory reference within the rule language.
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 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, may, in accordance with section 70.660.2(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 twenty thousand dollars ($20,000).
(2) The election to receive a lump-sum cash payment must be made before the first payment of a retirement allowance becomes due and payable, but not thereafter.
(3) The reserve value of the lump-sum payout shall be calculated at the time of the member or former member's retirement.
(4) A member or former member electing to receive a lump-sum cash payout pursuant to the provisions of this rule shall do so by electing payment under Option "D" on the LRS-9, "Election of Allowance Option" form.
*Original authority: 70.605, RSMo 1967, amended 1974, 1992, 2000.
