Current through Register Vol. 49, No. 18, September 16, 2024
PURPOSE: This rule further defines the procedures to
be used when a political subdivision and the Missouri Local Government
Employees' Retirement System (LAGERS) enter into an agreement for LAGERS to
assume all duties and responsibilities for operating the political
subdivision's prior retirement plan pursuant to section
70.621,
RSMo.
(1) As used in this
rule, the terms below shall be defined as follows:
(A) "LAGERS Plan" means a political
subdivision's active retirement benefit program with LAGERS; and
(B) "Legacy Plan" means a plan similar in
purpose to LAGERS for which the political subdivision and LAGERS have entered
into an agreement whereby LAGERS assumes all duties and responsibilities of
operating the plan pursuant to 70.621, RSMo.
(2) When calculating an employer's
contribution rate pursuant to 70.730, RSMo when the employer and LAGERS have
entered into an agreement for LAGERS to administer the member's Legacy Plan,
the following procedures shall be applied:
(A)
For purposes of computing the employer contribution rates under section
70.730,
RSMo, separate employer contribution rates will be computed for the LAGERS Plan
and the Legacy Plan. The contribution rate for the Legacy Plan will be
expressed as a dollar amount;
(B)
For the purposes of calculating the limitation on increases to an employer's
contribution provided by subsection 6 of 70.730, RSMo, the employer
contribution rate will be calculated as a combined employer contribution rate
expressed as a percentage of total (i.e., LAGERS Plan plus Legacy Plan)
payroll, including when the Legacy Plan has active members and when the Legacy
Plan does not have active members. Both the LAGERS Plan contribution rate and
the combined employer contribution rate shall be subject to the limitation on
increases to an employer's contribution rate;
(C) For the first year in which the Legacy
Plan is operated by LAGERS, the limitation on increases in an employer's
contribution provided by subsection 6 of 70.730, RSMo shall not apply to any
contribution increase; and
(D) The
Board of Trustees may, in its sole discretion, elect to establish a fixed
payment schedule for a Legacy Plan. At such time as a fixed payment schedule is
established, a combined employer contribution rate, as described above in
subsection (2)(B), will no longer be calculated and the employer contribution
rate will again be expressed as a percentage of total LAGERS Plan payroll. For
the first year in which a fixed payment schedule is established and the
combined employer contribution rate is no longer calculated, the limitation on
increases in an employer's contribution provided by subsection 6 of 70.730,
RSMo shall not apply to any contribution increase.
(3) An active, deferred, or retired member of
a Legacy Plan shall not be eligible to hold the position of a member trustee on
the LAGERS Board of Trustees, to serve as a member delegate to the LAGERS
annual meeting, or to participate in the election of the member delegate to
attend the LAGERS annual meeting. However, an active, deferred, or retired
member of a Legacy Plan may be eligible to hold the position of an employer
trustee on the LAGERS Board of Trustees or the trustee appointed by the
governor, provided that he or she meets the other criteria for eligibility for
those positions.
