To repeal sections 169.035, 169.050, 169.589 and 169.650, RSMo 1994, and sections 169.030, 169.055, 169.056, 169.057, 169.075, 169.560, 169.620, 169.630, 169.655 and 169.660, RSMo Supp. 1995, relating to teacher and school employee retirement systems, and to enact thirteen new sections relating to the same subject, with an effective date for certain sections.

Be it enacted by the General Assembly of the State of Missouri, as follows:

Section A. Sections 169.035, 169.050, 169.589 and 169.650, RSMo 1994, and sections 169.030, 169.055, 169.056, 169.057, 169.075, 169.560, 169.620, 169.630, 169.655 and 169.660, RSMo Supp. 1995, are repealed and thirteen new sections enacted in lieu thereof, to be known as sections 169.030, 169.035, 169.050, 169.055, 169.056, 169.075, 169.560, 169.589, 169.620, 169.630, 169.650, 169.655 and 169.660, to read as follows:

169.030. 1. The funds required for the operation of the retirement system created by sections 169.010 to 169.141 shall come from contributions made in equal amounts by members of the system and their employers, except as provided for certain members and employers by section 104.342, RSMo, and from such interest as may be derived from the investment of any part of such contributions. All contributions shall be transmitted to the board of trustees by employers in such manner and at such time as the board by rule shall require. The board by its rules may establish an interest charge to be paid by the employer on any payments of contributions which are delinquent. The rate charged shall not exceed the actuarially assumed rate of return on invested funds of the system.

2. For each school year following the date on which the system becomes operative, each and every employer of one or more persons who are members of the system shall transmit to the board of trustees, in the manner and accompanied by such supporting data as the board shall prescribe, twice the amount that is deductible from the pay of such employee or employees during the school year. Failure or refusal to transmit such amount as required shall render the person or persons responsible therefor individually liable for twice the amount so withheld. Suits for the recovery of amounts for which individuals are thus rendered liable shall be instituted and prosecuted by the board of trustees in the name of the retirement system. In addition to such civil penalty, and not in lieu thereof, any person or persons made responsible for the payment of contributions who shall willfully and knowingly fail or refuse to transmit such contributions or any part thereof to the board of trustees shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than twenty-five dollars and not more than two hundred dollars, and each day such person or persons shall so fail or refuse to transmit such contributions shall be deemed a separate offense.

3. The contributions of members of the retirement system shall be collected by their employers through appropriate deductions from paychecks, except as provided for certain members and employers by section 104.342, RSMo. The total amount deducted from the paychecks of members during any school year shall equal such a percent of their salary rates as may be required by the contribution rate then in effect. Effective December 31, 1995, compensation in excess of the limitations set forth in section 401(a)(17) of title 26 of the United States Code shall be disregarded for purposes of determining contributions under this section and calculating benefits paid by the public school retirement system of Missouri. The limitation on compensation for eligible employees shall not be less than the amount which was allowed to be taken into account under the system as in effect on July 1, 1993. For this purpose, an eligible employee is an individual who was a member of the system before July 1, 1996.

4. The contribution rate shall be three percent for the first year of the system s operation. After the first year of operation the board of trustees shall have authority to fix the level rate of contribution, not to exceed eleven and one-half percent, required for the operation of the system and to make adjustments in such rate as may thereafter be necessary; provided that if the level rate required for operation of the system shall exceed eleven and one-half percent for five consecutive years, all benefits provided herein shall be equitably reduced to such an extent that the rate required for the operation of the system shall be eleven and one-half percent.

5. Regardless of the provisions of any law governing compensation and contracts, every teacher or employee shall be deemed to consent and agree to the deductions provided herein. Payment of salary or compensation less such deduction shall be a full and complete discharge of all salary or compensation claims and demands during the period covered by such payment, except as to the benefits provided under sections 169.010 to 169.141.

169.035. A member may at his option, and under such regulations as the board of trustees may adopt, deposit additional sums in multiples of twenty-five dollars but not to exceed in total in any one year ten percent of the compensation on which contributions were collected during that year. Such deposits, together with interest thereon compounded in the same manner and at the same rate as for his contributions, shall be available to provide at the date of his retirement at net rates based on the actuarial assumptions then in use, a retirement allowance in addition to that provided under section 169.070. In the event of the death of a member before receiving a retirement allowance, the total amount of such accumulated deposits with interest shall be paid to his beneficiary, or to his estate if there be no beneficiary. In the event of the termination of membership before the member receives a retirement allowance, he shall be paid the total amount of such accumulated deposits with interest if he has contributed for more than five years, but without interest if he has contributed for not more than five years. Such deposits may be withdrawn without interest by a member prior to his retirement when he is not terminating his membership, in accordance with regulations of the board of trustees. In case a retired member who is receiving such an additional retirement allowance under this section shall die without having received in additional retirement allowances an amount equal to the amount of his accumulated deposits at retirement, the difference shall be paid to his beneficiary, or to his estate if there be no beneficiary. The option provided by this section shall apply only to members who have elected to begin such deposits before September 1, 1996.

169.050. 1. On and after the effective date of sections 169.010 to 169.140, all employees as herein defined of districts included in the retirement system thereby created shall be members of the system by virtue of their employment, except as provided by section 104.342, RSMo.

2. Any person who becomes a member before the end of the school year next following the date on which the system becomes operative may claim credit for service rendered as an employee in Missouri prior to said operative date, or for service rendered in the armed forces of the United States during a period of war, the same as if he were a teacher, provided he was a teacher in Missouri at the time he was inducted, by filing with the board of trustees, within such time as the board may specify, a complete and detailed record of the service for which credit is claimed, together with such supporting evidence as the board may require for verification of the record. To the extent that the board finds the record correct, it shall credit the claimant with prior service and shall notify him of its decision, but the amount of such credit shall not exceed thirty years.

3. No prior service credit shall be granted to any person who becomes a member after the first year of the system s operation, except as provided in subsection 5 of this section and subsection 2 of section 169.055 unless that person s failure to become a member before or during that year was due either to service in the armed forces of the United States or to attendance at a recognized educational institution for professional improvement; provided, that the board of trustees may grant prior service credit to a teacher who taught prior to August 1, 1945, if the teacher returns to teaching before July 1, 1950, and if such teacher teaches in the public schools of Missouri not less than seven years after returning before retirement, or the board of trustees may grant prior service credit to a teacher who taught prior to August 1, 1945, if the teacher returns to teaching and teaches at least one-half of the number of years between July 1, 1946, and age sixty but not less than seven years after returning before retirement, except that a member who will have thirty-five or more years of teaching service in Missouri at retirement shall be required to teach not less than three years after returning and before retirement. A person serving in the armed forces of the United States shall have the same right to prior service credit as one who became a member before the end of the first year of the system s operation, if he becomes a member within one year of the date of his discharge from such service or within one year of said date plus time spent as a student in a standard college or university in further preparation for service as a public school employee. A person attending a recognized educational institution for his professional improvement shall have the same right to prior service credit as one who became a member before the end of the first year of the system s operation, if he becomes a member within three years following the date on which the system became operative, and within one year of the date on which his attendance at said institution ceased.

4. Membership shall be terminated by failure of a member to [be] earn any membership service credit as a public school employee under this system for [more than four of any] five consecutive school years, by death, withdrawal of contributions, or retirement.

5. If a member withdraws or is refunded his contributions, he shall thereby forfeit any creditable service he may have; provided, however, if such person again becomes a member of the system, he may elect to reinstate the creditable service forfeited at times of previous withdrawals or refunds. The reinstatement shall be effected by the member s paying to the retirement system with interest the total amount of accumulated contributions withdrawn by him or refunded to him, including all amounts withdrawn or refunded for previously forfeited creditable service which he had applied to reinstate [on or before September 1, 1992,] but for which payment was not made within the prescribed time period[, and by teaching in districts included in the system not less than five years after returning before retirement]; provided, however, that if subsequent to the date such person withdrew his contributions and prior to the time he again becomes a member of the system he served not less than ten years as a member of the general assembly of the state of Missouri, reinstatement of his creditable service shall be effected by his again becoming a member of the system and payment to the system with interest the amount of accumulated contributions withdrawn by him or refunded to him[; provided, however, that reinstatement with respect to eligibility for disability retirement shall be effective after returning and teaching not less than three years in districts included in the system if such teaching makes a total of at least five years taught in such districts]. The payment may be made over a period of not longer than five years from the date of election, or prior to retirement, whichever is earlier, and with interest on the unpaid balance; provided, however, that if a member is retired on disability before completing such payments, the balance due with interest may be deducted from his disability retirement allowance.

169.055. 1. [A member who has rendered service as a teacher outside of this state including service in a public university or who has rendered service in the University of Missouri or Lincoln University after July 1, 1946, if such member is not receiving and is not eligible to receive retirement credit or benefits for such service in any other teacher retirement system, may elect, within ten years after employment in a district included in the system following such service outside of this state, or service in the University of Missouri or Lincoln University, or within ten years from June 19, 1987, and prior to retirement, whichever is later, to purchase equivalent membership service credit but not in excess of ten years, including any creditable service which the member had applied to purchase on or before August 13, 1988, but for which payment was not made within the prescribed time period, with a rate of compensation equal to the initial annual salary rate at which the member is employed by the district. The purchase shall be effected by the member paying to the retirement system with interest the amount the member would have contributed thereto had such person been a member for the number of years for which the person is electing to purchase credit, and had such member s compensation during such period been the same as the annual salary rate at which such person is initially employed in the district, and the contribution rate in effect on the date of election to purchase credit. The payment may be made over a period not longer than the period of membership service credit being purchased, measured from the date of election, and with interest on the unpaid balance. Notwithstanding other provisions of this section, no member may receive any benefit for any period of teaching service outside of this state or in the University of Missouri or Lincoln University which exceeds in length the member s period of membership service in this system subsequent to the date on which the member is employed in a district included in the system following the teaching service outside of this state or in the University of Missouri or Lincoln University for which the member has applied to purchase credit. If any payments are made for a period of service in excess of that for which membership service credit is allowed in accordance with this provision, such excess purchase payments shall be paid to the member at the time of retirement, and with interest from the end of the school year during which such payments were made. An affidavit shall be required stipulating that the member is not presently receiving compensation from another teacher retirement system and will not receive credit in another system for the creditable time purchased. If the member retires or has retired on a disability allowance prior to completing purchase of equivalent membership service for a period of teaching service outside this state and the amount paid in toward the purchase by the member is not used to compute pro rate credit or otherwise enhance benefits received by the member, the entire amount paid by the member, together with interest from the end of the final school year during which the member made payments, shall, upon written request, be refunded to the member in a lump sum payment.

2. A member who taught outside of the state or in the University of Missouri or Lincoln University prior to July 1, 1946, may qualify for not more than five years equivalent prior service credit, to be granted in accordance with regulations of the board of trustees, if the member purchases equivalent membership service credit for all of such member s allowable service as a teacher outside of this state or in the University of Missouri or Lincoln University after July 1, 1946, but in no event shall all credit granted for teaching service outside of this state be in excess of ten years nor in excess of the actual period of teaching service outside of this state.

3. A member who enters the service of the armed forces of the United States of America who is a teacher in a district included in the system at the time such member is inducted, enlisted, or called to active duty, and who without voluntary reenlistment is reemployed as a teacher within one year after discharge from such service, or within one year of such date plus time spent as a student in a standard college or university in further preparation for service as a public school employee, shall not be subject to the provisions of subsection 4 of section 169.050 with regard to termination of membership because of unemployment as a teacher due to actual service in the armed forces of the United States and such subsequent period spent as a student. Such a member may elect prior to retirement to purchase membership service credit, including any creditable service which such person had applied to purchase on or before September 1, 1980, but for which payment was not made within the prescribed time period, with a rate of compensation the same as the annual salary rate at which the person was employed at the time of induction for the period of service in the armed forces of the United States. The purchase shall be effected by the member paying to the retirement system with interest the amount the member would have contributed thereto had such member been teaching during the period for which such member is electing to purchase credit, and had such member s compensation during such period been the same as the annual salary at the time of this induction, and had the contribution rate as in effect at the date of purchase been in effect at that time. The payment shall be made over a period of not longer than five years, measured from the date of election, and with interest on the unpaid balance if such member is not receiving and is not eligible to receive retirement credit or benefits from any other public school or military retirement system for the years for which membership service credit is being purchased, and a sworn affidavit to this effect has been submitted by such member; and if such member was discharged or separated from the armed forces by other than a dishonorable discharge. In no event may a member receive any benefits for any period of membership service credit purchased which exceeds in length the member s period of membership service in this system.

4. A member who had served in the armed forces of the United States prior to becoming a member, or who is otherwise ineligible under subsection 3 of this section, and who began teaching in a member school system within ten years after such member s discharge under honorable conditions may elect, prior to retirement, to purchase membership service credit equivalent to such service in the armed forces, but not to exceed four years, with a rate of compensation equal to the initial annual salary rate at which the member was employed in the district included in the public school retirement system if such member is not receiving and is not eligible to receive retirement credits or benefits from any other public or private retirement plan for the service to be purchased, and an affidavit so stating is filed by the member with the retirement system. The purchase shall be effected by the member s paying to the retirement system with interest, the total amounts which would have been contributed by the member had such person been a member for the number of years for which such member is electing to purchase credit and had such member s compensation during such period of membership been the same as the annual salary rate at which the member was initially employed as a member of the public school retirement system, with the calculations based on the contribution rate in effect on the date of election to purchase credit. The payment shall be made over a period of not longer than five years, measured from the date of election, and with interest on the unpaid balance. In no event may a member receive any benefits for any period of membership service credit purchased which exceeds in length the member s period of membership service in this system.

5. Any member who has purchased membership credit or equivalent credit in this system for membership service under one of the Missouri retirement systems governed by sections 169.270 to 169.400 or 169.410 to 169.540 and who had served in the armed forces of the United States prior to becoming a member of such other retirement system and who began teaching in the school district under such other retirement system within one year after the member s discharge under honorable conditions may elect prior to retirement to purchase membership service credit equivalent to such service in the armed forces, but not to exceed four years, with a rate of compensation equal to the initial annual salary rate at which the member was initially employed in the district included in the public school retirement system, if such member has not received credit for such military service in this system and such member is not receiving and is not eligible to receive retirement credits or benefits from any other public or private retirement plan for the service to be purchased, and an affidavit so stating is filed by the member with the retirement system. The purchase shall be effected by the member paying to the retirement system with interest, the total amounts which would have been contributed by the member had such person been a member for the number of years for which such member is electing to purchase credit and had such member s compensation during such period of membership been the same as the annual salary rate at which the member was initially employed as a member of the public school retirement system, with the calculations based on the contribution rate in effect on the date of the election to purchase credit. The payment shall be made over a period of not longer than five years, measured from the date of election, and with interest on the unpaid balance. In no event may a member receive any benefits for any period of membership service credit purchased which exceeds in length the member s period of membership service in this system.

6. Any member who entered on active duty in the armed forces no later than the date on which services were to have begun under an employment agreement with a district included in the retirement system in a position entitling such member to membership service credit, and whose total period of active military service that school year would have entitled such member to a year of creditable service had that service been rendered in that position with the district, shall be entitled to purchase a full year of membership credit for the period under the terms of subsection 3, 4, or 5 of this section, but no member shall receive more than one year of creditable service for any school year regardless of the provisions of this subsection.

7. Any former employee of Central Missouri State University who accumulated eight or more years of service under the public school retirement system as established under this chapter, and who has not yet retired under this chapter, may elect, in writing, to:

(1) Become a member of the Missouri state employees retirement system effective January 1, 1989. Any person who, by virtue of an election made under this subsection, becomes a member of the Missouri state employees retirement system shall be entitled to creditable prior service for service rendered as an employee of Central Missouri State University. Any person who so elects shall be eligible, upon written request filed with the public school retirement system under sections 169.010 to 169.141, to receive a refund of such person s accumulated contributions for the creditable service, including interest of at least six percent. Upon payment of such refund, the public school retirement system shall pay to the state employees retirement system on or before June 30, 1989, an amount equal to the amount paid to the public school retirement system on behalf of each member so electing by the member s employer for such service; or

(2) Continue as a member of the appropriate public school retirement system under this chapter. Any person entitled to make the election provided by this subsection who does not make such election, in writing, by December 31, 1988, shall be deemed to have elected to be governed by subdivision (2) of this subsection.

8.] A member who is assigned to a leave of absence by the member s employer, with compensation provided in the contract of employment for the leave period to be not less than fifty percent of the amount which would have been paid had the member not been on leave, may acquire creditable service for the period of leave. [according to one of the following:

(1)] A member may elect to receive credit for the time spent on leave of absence at the time of the leave of absence and shall retain continued membership in the system during the leave period provided the full contributions are withheld and remitted on the basis of the compensation which would have been received if the member had not been on leave of absence and the employer s matching amount is remitted on the basis of the same amount of compensation which would have been paid if the member had not been on leave of absence.[; or

(2) Within two years of August 13, 1988, and prior to retirement a member may elect to purchase credit for the time spent on leave of absence if that leave of absence occurred prior to August 1, 1974. The purchase shall be effected by the member paying to the retirement system the amount that the member would have contributed on the basis of the compensation that the member would have received had such member not been on leave of absence plus the amount equal to what would have been the employer s matching amount plus interest. Payment of the total amount due shall be made at the time of election to purchase the credit.

9. Any former employee of Central Missouri State University who retired under the public school retirement system as established under this chapter may elect in writing to:

(1) Become a member of the Missouri state employees retirement system effective January 1, 1990. Any person who, by virtue of an election made under this subsection, becomes a member of the Missouri state employees retirement system shall be entitled to creditable prior service for service rendered as an employee of Central Missouri State University. Any person who so elects shall be eligible, upon written request filed with the public school retirement system under sections 169.010 to 169.141, to receive a refund of accumulated contributions for creditable service, including interest of at least six percent, less the total amount of benefits received to the date of selection. Upon payment of such refund, the public school retirement system shall pay to the state employees retirement system on or before June 30, 1990, an amount equal to the amount paid to the public school retirement system on behalf of each member so electing by such member s employer for such service; or

(2) Continue as a member of the appropriate public school retirement system under this chapter. Any person entitled to make the election provided by this subsection who does not make such election, in writing, by December 31, 1989, shall be deemed to have elected to be governed by subdivision (2) of this subsection.

10. Any member granted unpaid maternity or paternity leave for a period, from a position covered by the retirement system who returned to employment in such a position within five years of the ending date of the leave period, and who does not have creditable service for the leave period with any other retirement system except the federal social security system, may elect prior to retirement to purchase creditable service for the period of leave. No member may purchase more than four years of creditable service under this subsection. The purchase shall be effected by the member paying to the system, with interest, an amount equal to the total contributions which would have been made by the member and the school district at the contribution rate then in effect had the member continued in service in the position during the period of leave at the same salary rate. Payment of the total amount due shall be made within two years of the date of election to purchase the creditable service, or prior to retirement, whichever is earlier.

11. Notwithstanding any provision of law to the contrary, any member of a retirement system established under the provisions of sections 169.010 to 169.141, who is or was certified as a vocational-technical teacher on the basis of having a college degree and who was required to have a period of work experience of at least two years in the area of the subject being taught in order to qualify for such certification may, upon written application to the board, purchase equivalent creditable service for such work experience which shall not exceed the two years necessary for certification if the work experience was in the area that the member taught or is teaching and was completed in two years. Such credit may be purchased at any time prior to retirement, if the member is not receiving and is not eligible to receive retirement credit or benefits for such service in any other public retirement system, by the member paying to the retirement system, with interest, the amount the member would have contributed and the amount the school district would have contributed thereto had such member been a member for the number of years for which such member is electing to purchase credit, and had the member s compensation during such period been the same as the annual salary rate at which such member is initially employed after completion of vocational-technical experience in a position requiring membership in the retirement system, and at the contribution rate in effect on the date of the election to purchase credit. The payment may be made over a period not longer than the period of membership service credit being purchased, measured from the date of election, and with interest on the unpaid balance.

12.] 2. Notwithstanding any provision of this chapter to the contrary, any person employed as of August 28, 1993, by the department of elementary and secondary education whose employment is covered by the retirement system provided by sections 169.010 to 169.141, and who without terminating that employment subsequently becomes a part-time employee of that department in a position requiring services for at least twenty hours per week on a regular basis, may elect within ninety days of August 28, 1993, or within ninety days of the date upon which the part-time employment begins, whichever is later, to be covered by that retirement system and shall receive pro rate creditable service with that retirement system for such part-time employment. Credit shall not be allowable in both that retirement system and another Missouri public retirement system for such employment.

[13. Any member who had creditable service for membership service with the nonteacher school employee retirement system governed by sections 169.600 to 169.715 as a certificated employee under the law governing the certification of teachers but which creditable service was forfeited by withdrawal or refund, may elect within five years of August 28, 1993, or within five years of entry into membership in this system, whichever is later, but prior to retirement, to purchase credit for such service and receive pro rate credit not to exceed a total of ten years in this system for the service. The purchase shall be effected by the member paying to the system, with interest, the amount the member would have contributed thereto had such person been a member of this system during the periods for which such person is electing to purchase credit, had such member s annual salary rate during such periods been the same as the annual salary rate at which the member was initially employed in this system following the service being purchased or the annual salary rate the member would have received had that initial employment been for full-time service, whichever is greater, and had the contribution rate in effect at the date of election been in effect during the periods of service being purchased. The payment shall be made over a period of not longer than five years, measured from the date of the election, but before retirement, and with interest on the unpaid balance. No credit shall be allowed under this subsection which exceeds in length the member s credit for service in a position covered by this system, and in no event may the member receive credit with both this system and the nonteacher school employee retirement system for the same service.]

169.056. [1. As used in this section, the term private school means a school which is not a part of the public school system of this state and which charges tuition for the rendering of elementary and secondary educational services.

2. A member having membership service in the retirement system provided by sections 169.010 to 169.141, after the member was employed by a private school on a full-time basis and duly certified under the law governing the certification of teachers during all of such employment, may elect to purchase membership credit for service rendered to the private school, but not to exceed three years. The purchase allowed by this section shall be effected by the member paying to the retirement system with interest an amount based on the annual salary rate of the member s initial employment after private school employment in the public school district under the system in which credit is being purchased and the contribution rate in effect in that system at the date of the election to purchase credit. Such payments shall include any payments that would have been made by the employer of the member during the period for which creditable service is being purchased, for each year of creditable service being purchased, plus interest at the rates fixed by the board of trustees. The purchase allowed by this section shall be effected before retirement of the member, and may be paid in installments over a period not to exceed five years. The purchase allowed by this section shall be subject to all rules and regulations of the board of trustees.] 1. Members who have accrued at least one year of membership service credit for employment in a position covered by this system may purchase membership service credit under the circumstances, terms and conditions provided in this section. With respect to each such purchase authorized by this section the following provisions apply:

(1) The purchase shall be effected by the member s paying to the retirement system with interest, the amount the member would have contributed and the amount the employer would have contributed had such member been an employee for the number of years for which the member is electing to purchase credit, and had the member s compensation during such period been the same as the annual salary rate at which the member is first employed in a position qualifying for membership in the retirement system after the period being purchased. For purposes of this section annual salary rate shall mean the annual salary rate for full-time service for the position of employment. The contribution rate used in determining the amount to be paid shall be the contribution rate in effect on the date of election to purchase credit. The interest rate used in determining the amount to be paid shall be the actuarially assumed rate of return on invested funds of the system in effect at the date of election to purchase credit;

(2) Payment shall be made over a period not longer than the period of membership service credit being purchased, measured from the date of election, and with interest on the unpaid balance;

(3) Membership service credit purchased pursuant to this section shall be deemed to be membership service in Missouri for purposes of subsection 7 of section 169.020;

(4) An election to purchase membership service credit pursuant to this section and payment for the purchase must be completed prior to retirement;

(5) Members may purchase membership service credit in increments of one-tenth of a year, and multiple elections to purchase may be made;

(6) Additional terms and conditions applicable to purchases made pursuant to this section including, but not limited to, minimum payments, payment schedules and provisions applicable when a member fails to complete payment may be set by rules of the board.

2. Membership service credit shall not be allowed under this section which exceeds in length the member s membership service credit for employment in a position covered by this system, and in no event may the member receive membership service credit with both this system and another public retirement plan, as defined in section 105.660, RSMo, for the same service.

3. A member who has rendered service as a teacher outside of this state including service in a public university or who has rendered service in the University of Missouri or Lincoln University after July 1, 1946, if such member is not receiving and is not eligible to receive retirement credit or benefits for such service in any other teacher retirement system, may elect prior to retirement to purchase equivalent membership service credit but not in excess of ten years. An affidavit shall be required stipulating that the member is not presently receiving compensation from another teacher retirement system and will not receive credit in another system for the creditable time purchased.

4. (1) A member who enters the service of the armed forces of the United States of America who is an employee in a district included in the system at the time such member is inducted, enlisted, or called to active duty, and who without voluntary reenlistment becomes an employee in a district within one year after discharge from such service shall not be subject to the provisions of subsection 4 of section 169.050 with regard to termination of membership due to the period of actual service in the armed forces of the United States. Such a member may elect prior to retirement to purchase membership service credit for the entire period of service in the armed forces of the United States, but not to exceed five years. The purchase may be made only if the member was discharged or separated from the armed forces by other than a dishonorable discharge.

(2) A member who had served in the armed forces of the United States prior to becoming a member, and who becomes employed in a position qualifying for membership in the retirement system within five years after such member s discharge under honorable conditions may elect, prior to retirement, to purchase membership service credit for the entire period of service in the armed forces, but not to exceed five years.

5. Any member granted unpaid maternity or paternity leave for a period, from a position covered by the retirement system, who returned to employment in such a position within five years of the ending date of the leave period, and who does not have creditable service for the leave period with any other retirement system except the federal social security system, may elect prior to retirement to purchase membership service credit for the period of leave. No member may purchase more than four years of membership service credit under this subsection.

6. Any member who is or was certified as a vocational-technical teacher on the basis of having a college degree and who was required to have a period of work experience of at least two years in the area of the subject being taught in order to qualify for such certification may, upon written application to the board, purchase equivalent membership service credit for such work experience which shall not exceed the two years necessary for certification if the work experience was in the area that the member taught or is teaching and was completed in two years.

7. Any member who had membership service credit with the nonteacher school employee retirement system of Missouri governed by sections 169.600 to 169.175 as a certificated employee under the law governing the certification of teachers but which membership service credit was forfeited by withdrawal or refund, may elect prior to retirement, to purchase credit for such service and receive pro rata credit not to exceed a total of ten years in this system for the service.

8. A member may elect to purchase membership service credit for service rendered while on leave from an employer, as defined in section 169.010, for a not-for-profit corporation or agency whose primary purpose is support of education or education research, not to exceed two years; provided the member is not receiving and is not eligible to receive retirement benefits from any other retirement system for the years for which membership service credit is being purchased and provided the member has returned to service for at least one year as an employee of the employer that granted the leave.

9. A member having membership service credit in the retirement system provided by sections 169.010 to 169.141, after the member was employed by a private school on a full-time basis and duly certified under the law governing the certification of teachers during all of such employment, may elect to purchase membership service credit for service rendered to the private school, but not to exceed three years. As used in this subsection, the term private school means a school which is not a part of the public school system of this state and which charges tuition for the rendering of elementary and secondary educational services.

[169.057. A member having membership service in the retirement system provided by sections 169.010 to 169.130 may elect to purchase creditable service for service rendered while on leave from an employer, as defined in section 169.010, for a not for profit corporation or agency whose primary purpose is support of education or education research, not to exceed two years; provided the member is not receiving and is not eligible to receive retirement benefits from any other retirement system for the years for which creditable service is being purchased and provided the member has returned to service for at least one year as an employee of the employer that granted the leave. The cost for such purchase shall be determined in the same manner as for service purchased under section 169.056.]

169.075. 1. Certain survivors specified in this section and meeting the requirements hereof may elect to forfeit any payments payable under subsection 3 or 5 of section 169.070 and to receive certain other benefits described in this section upon the death of a member prior to retirement, except retirement with disability benefits, whose period of creditable service in districts included in the retirement system is two years or more and who dies (a) while teaching in a district included in the retirement system, or (b) as a result of an injury or sickness incurred while teaching in such a district and within one year of the commencement of such injury or sickness, or (c) while eligible for a disability retirement allowance hereunder.

2. Upon an election pursuant to subsection 1 of this section, a surviving spouse sixty years of age, or upon attainment of age sixty, or a surviving spouse who has been totally and permanently disabled for not less than five years immediately preceding the death of a member if designated as the sole beneficiary, and if married to the member at least three years, and if living with such member at the time of his death, and if not remarried subsequent to the member s death, shall be entitled to a monthly payment equal to twenty percent of one-twelfth of the annual salary rate on which the member contributed for his last full year of creditable service as a teacher in a district included in the retirement system until death or recovery prior to age sixty from the disability which qualified the spouse for the benefit, whichever first shall occur; provided that the monthly payment shall not be less than four hundred dollars or more than six hundred dollars. A surviving spouse, who is eligible for benefits under this subsection and also under subsection 3 of this section may receive benefits only under subsection 3 of this section as long as the surviving spouse remains eligible under both subsections, but shall not be disqualified for the benefit provided in this subsection because the surviving spouse may have received payments under subsection 3 of this section.

3. Upon an election pursuant to subsection 1 of this section, a surviving spouse, if designated as the sole beneficiary, who has in the surviving spouse s care a dependent unmarried child, including a stepchild or adopted child, of the deceased member, under eighteen years of age, shall be entitled to a monthly payment equal to twenty percent of one-twelfth of the annual salary rate on which the member contributed for the member s last full year of creditable service as a teacher in a district included in the retirement system until the surviving spouse s death, or the first date when no such dependent unmarried child under age eighteen remains in the surviving spouse s care, whichever first shall occur; provided that the monthly payment shall not be less than four hundred dollars or more than six hundred dollars. In addition the surviving spouse shall be entitled to a monthly payment equal to one-half this amount for each such dependent unmarried child under eighteen years of age who remains in the surviving spouse s care. Further, in addition to the monthly payment to the surviving spouse as provided for in this subsection, each dependent unmarried child under the age of eighteen years of the deceased member not in the care of such surviving spouse shall be entitled to a monthly payment equal to one-half of the surviving spouse s monthly payment which shall be paid to the child s primary custodial parent or legal guardian; provided that the payment because of an unmarried dependent child shall be made until the child attains age twenty-two if the child is enrolled in school on a full-time basis; provided, however, that the total of all monthly payments to the surviving spouse, primary custodial parent or legal guardian, including payments for such dependent unmarried children, shall in no event exceed one thousand five hundred dollars, the amount of the children s share to be allocated equally as to each dependent unmarried child under eighteen years of age.

4. Upon an election pursuant to subsection 1 of this section if the designated beneficiary is a dependent unmarried child as defined in this section or automatically upon the death of a surviving spouse receiving benefits under subsection 3 of this section, each surviving dependent unmarried child, including a stepchild or adopted child, of the deceased member, under eighteen years of age, or such a child under age twenty-two if the child is enrolled in school on a full-time basis, shall be entitled to a monthly payment equal to sixteen and two-thirds percent of one-twelfth of the annual salary rate on which the member contributed for the member s last full year of creditable service as a teacher in a district included in the retirement system until death, marriage, adoption, or attainment of age eighteen or age twenty-two if enrolled in school on a full-time basis, whichever first shall occur; provided that the monthly payment shall not be less than three hundred fifty dollars or more than five hundred dollars, and provided further that any child of the deceased member who is disabled before attainment of age eighteen because of a physical or mental impairment which renders the child unable to engage in any substantial gainful activity and which disability continues after the child has attained age eighteen shall be entitled to a like monthly payment, until death, marriage, adoption, or recovery from the disability, whichever first shall occur; provided, however, that the total of all monthly payments to the surviving dependent unmarried children shall in no event exceed one thousand five hundred dollars.

5. Upon an election pursuant to subsection 1 of this section, a surviving dependent parent of the deceased member, over sixty-five years of age or upon attainment of age sixty-five if designated as the sole beneficiary, provided such dependent parent was receiving at least one-half of the parent s support from such member at the time of the member s death and provided the parent files proof of such support within two years of such death, shall be entitled to a monthly payment equal to sixteen and two-thirds percent of one-twelfth of the annual salary rate on which the member contributed for the member s last full year as a teacher in a district included in the retirement system until death; provided that the monthly payment shall not be less than three hundred fifty dollars or more than five hundred dollars. If the other parent also is a dependent, as defined herein, the same amount shall be paid to each until death.

6. All else herein to the contrary notwithstanding, a survivor may not be eligible to benefit under this section because of more than one terminated membership, and be it further provided that the board of trustees shall determine and decide all questions of doubt as to what constitutes dependency within the meaning of this section.

7. The provisions added to subsection 3 of this section in 1991, other than the provisions increasing dollar limitations, are intended to clarify the scope and meaning of this section as originally enacted and shall be applied in all cases in which such an election has occurred or will occur.

8. The system shall pay a monthly retirement allowance [to the beneficiary designated by the retired member, or to the retired member s estate if there is no beneficiary] for the month in which a retired member receiving a retirement allowance dies.

169.560. Any person retired and currently receiving a retirement allowance under sections 169.010 to 169.141, other than for disability, may be employed in any capacity in a district included in the retirement system created by those sections on either a part-time or temporary-substitute basis not to exceed a total of five hundred fifty hours in any one school year, without a discontinuance of the person s retirement allowance. Such a person shall not contribute to the retirement system, or to the nonteacher school employee retirement system established in sections 169.600 to 169.715, because of earnings during such period of employment. If such a person is employed in any capacity by such a district on a regular, full-time basis, the person shall not be eligible to receive the person s retirement allowance for any month during which the person is so employed and shall contribute to the retirement system.

169.589. 1. A member of the system established by sections 169.010 to 169.141 or sections 169.600 to 169.715 who enters the uniformed services of the United States of America, and who is reemployed pursuant to the Uniformed Services Employment and Reemployment Rights Act of 1994, or any subsequent revisions, shall be deemed to have been an employee for purposes of vesting and because of qualifying service in the uniformed services of the United States shall not be subject to the provisions of subsection 4 of section 169.050 or subsection 3 of section 169.650 with regard to termination of membership. In addition, such a member may elect within the period allowed by the Uniformed Services Employment and Reemployment Rights Act of 1994 to pay the contributions the member would have paid but for service in the uniformed services. Upon completing payment the member shall be entitled at retirement to payment of benefits based on the period of service. When a member has elected to make contributions as described in this section, the school district reemploying the member shall pay the employer contributions it would have paid with respect to the individual, with interest. The board of trustees of the retirement system may adopt rules for administration of this section consistent with the Uniformed Services Employment and Reemployment Rights Act of 1994.

2. For the purposes of chapter 169, discharge from the armed forces shall mean the final date of discharge and shall not mean the last day of active duty.

169.620. 1. The funds required for the operation of the retirement system created by sections 169.600 to 169.715 shall come from contributions made in equal amounts by employees as herein defined and their employers, beginning November 1, 1965, and from such interest or income as may be derived from the investment of funds of the system. All contributions shall be transmitted to the board of trustees by employers in such manner and at such times as the board by rule shall require. The board by its rules may establish an interest charge to be paid by the employer on any payments of contributions which are delinquent. The rate charged shall not exceed the actuarially assumed rate of return on invested funds of the system.

2. For each school year following the date on which the system becomes operative, each and every employer of one or more persons who are members of the system shall transmit to the board of trustees, in the manner and accompanied by such supporting data as the board shall prescribe, twice the amount that is deductible from the pay of such employee or employees during the school year. Failure or refusal to transmit such amount as required shall render the person or persons responsible therefor individually liable for twice the amount so withheld. Suits for the recovery of amounts for which individuals are thus rendered liable shall be instituted and prosecuted by the board of trustees in the name of the retirement system. In addition to such civil penalty, and not in lieu thereof, any person or persons made responsible for the remittance of contributions who shall willfully and knowingly fail or refuse to transmit such contributions or any part thereof to the board of trustees shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than twenty-five dollars and not more than two hundred dollars. Each day such person or persons shall so fail or refuse to transmit such contributions shall be deemed a separate offense. The board of trustees may request the employer to provide the information necessary to administer the system and to advise each member of his status.

3. The contributions of members of the retirement system shall be collected by their employers through appropriate deductions from paychecks. The total amount deducted from the paychecks of members during any school year shall equal such a percent of their salary rates as may be required by the contribution rate then in effect. For contribution purposes any annual salary rate less than one thousand two hundred dollars shall be regarded as one thousand two hundred dollars. Effective December 31, 1995, compensation in excess of the limitations set forth in section 401(a)(17) of title 26 of the United States Code shall be disregarded for purposes of determining contributions under this section and calculating benefits paid by the nonteacher school employee retirement system of Missouri. The limitation on compensation for eligible employees shall not be less than the amount which was allowed to be taken into account under the system as in effect on July 1, 1993. For the purpose of this subsection, an eligible employee is an individual who was a member of the system before July 1, 1996.

4. The contribution rate shall be three percent of earnings until July 1, 1982. After July 1, 1982, the board of trustees is authorized to fix the level rate of contribution, which shall not exceed four and one-half percent, required for the operation of the system and to make adjustments in such rate as may thereafter be necessary; provided that, if the level rate required for the operation of the system shall exceed four and one-half percent for five consecutive years, all benefits herein provided shall be equitably reduced to such an extent that the rate required for the operation of the system shall be four and one-half percent.

5. Regardless of the provisions of any law governing compensation and contracts, every employee shall be deemed to consent and agree to the deductions provided herein. Payment of salary or compensation less such deduction shall be a full and complete discharge of all salary or compensation claims and demands during the period covered by such payment, except as to the benefits provided under sections 169.600 to 169.715.

6. A person serving as an employee as defined in section 169.600, who became a member after November 1, 1965, and before July 1, 1974, and who was regularly employed to serve for twenty or more hours per week at some time during the period November 1, 1965, to July 1, 1974, may receive membership service credit for such service by paying into the system the amount, with interest at such rate as may be set by the board within the limits set by law for interest rates, the person would have contributed had the person been eligible for membership.

7. Any member who rendered service as an employee as defined in section 169.600 for a junior college district at any time between October 31, 1965, and the effective date of an agreement between the junior college and the board of trustees as provided in section 169.600 may elect to purchase membership service credit for that service. The election shall include all service for which the member is eligible to purchase credit, and shall be made within five years of August 28, 1991, or within five years of the date on which membership in the system is established following the service, whichever is later, and prior to retirement. The purchase shall be effected by the member s paying to the system with interest, and within the time period allowed by law for the election, the contributions which would have been deducted from the employee s salary had the employee been a member during the period or periods of such service, and had the contribution rate in effect at the date of election been in effect at the time the service was rendered. Other provisions of law to the contrary notwithstanding, no membership credit shall be allowed under the provisions of this section which exceeds in length the member s creditable service for employment rendered after October 31, 1965.

169.630. 1. All funds arising from the operation of sections 169.600 to 169.715 shall belong to the retirement system herein created and shall be controlled by the board of trustees and that board shall provide for the collection of these funds, see that they are safely preserved, and shall permit their disbursement only for the purposes herein authorized. These funds are declared and shall be deemed to be the moneys and funds of this retirement system and not general funds of the state and shall not be commingled with any state funds or other retirement funds, except that the funds may be combined with the funds of the public school retirement system of Missouri solely for the purpose of investing the funds, but the funds of each system shall be accounted for separately and for all other purposes shall be separate.

2. The board shall invest all funds under its control which are in excess of a safe operating balance. The investment shall be made only in securities authorized and under the same standards set for investment by section 169.040.

3. No investment transaction authorized by the board shall be handled by any company or firm in which a member of the board has an interest, nor shall any member of the board profit directly or indirectly from any such investment. All investments shall be made for the account of the retirement system, and any securities or other properties obtained by the board of trustees may be held by a custodian in the name of the retirement system, or in the name of a nominee in order to facilitate the expeditious transfer of such securities or other property. Such securities or other properties which are not available in registered form may be held in bearer form or in book entry form. The retirement system is further authorized to deposit, or have deposited for its account, eligible securities in a central depository system or clearing corporation or in a federal reserve bank under a book entry system as defined in the Uniform Commercial Code, sections 400.8-102 and 400.8-108, RSMo. When such eligible securities of the retirement system are so deposited with a central depository system, the securities may be merged and held in the name of the nominee of such securities depository and title to such securities may be transferred by bookkeeping entry on the books of such securities depository or federal reserve bank without physical delivery of the certificates or documents representing such securities.

4. With appropriate safeguards against loss by the system in any contingency, the board may designate a bank or trust company to serve as a depository of system funds and intermediary in the investment of those funds and payment of system obligations.

169.650. 1. On and after October 13, 1965, all employees as herein defined of districts included in this retirement system shall be members of the system by virtue of their employment, and all persons who had five years of prior service who were employees of districts included in sections 169.600 to 169.710 during the school year next preceding October 13, 1965, but who ceased to be employees prior to October 13, 1965, because of physical disability, shall be members of this system by virtue of that prior service.

2. Any member who rendered service prior to November 1, 1965, as an employee as defined in section 169.600 in a district or junior college district included in the system may claim credit for that service by filing with the board of trustees a complete and detailed record of the service for which the credit is claimed, together with such supporting evidence as the board may require for verification of the record. To the extent that the board finds the record correct, it shall credit the claimant with prior service and shall notify him of its decision.

3. Membership shall be terminated by failure of a member to [be] earn any membership service credit as a public school employee under this system for [more than four of any] five consecutive school years, by death, withdrawal of contributions, or retirement.

4. If a member withdraws or is refunded his contributions, he shall thereby forfeit any creditable service he may have; provided, however, if such person again becomes a member of the system, he may elect prior to retirement to reinstate any creditable service forfeited at the time of withdrawal or refund, including all payments withdrawn or refunded for previously forfeited creditable service which he had applied to reinstate but for which payment was not made within the prescribed time period. The reinstatement shall be effected by the member s paying to the retirement system, with interest, the amount of accumulated contributions withdrawn by him or refunded to him at the time of withdrawal or refund [and by serving as an employee for not less than five years after returning before retirement; provided, however, that reinstatement with respect to eligibility for disability retirement shall be effective after returning and serving not less than two years as an employee if such service makes a total of at least five years served]. The payment may be made over a period not to exceed five years from the date of election and with interest on the unpaid balance; provided, however, that if a member is retired on disability before completing such payments, the balance due, with interest, shall be deducted from his disability retirement allowance.

169.655. [A member having membership service in the retirement system provided by sections 169.600 to 169.715 may elect to purchase creditable service for service rendered while on leave from an employer, as defined in section 169.600, for a not for profit corporation or agency whose primary purpose is support of education or education research, but not to exceed two years; provided the member is not receiving and is not eligible to receive retirement benefits from any other retirement system for the years for which creditable service is being purchased and provided the member has returned to service for at least one year as an employee of the employer that granted the leave. The cost for such purchase shall be determined in the same manner as for service purchased under section 169.056.] 1. Members who have accrued at least one year of membership service credit for employment in a position covered by this system may purchase membership service credit under the circumstances, terms and conditions provided in this section. With respect to each such purchase authorized by this section the following provisions apply:

(1) The purchase shall be effected by the member s paying to the retirement system with interest, the amount the member would have contributed and the amount the employer would have contributed had such member been an employee for the number of years for which the member is electing to purchase credit, and had the member s compensation during such period been the same as the annual salary rate at which the member is first employed in a position qualifying for membership in the retirement system after the period being purchased. The contribution rate used in determining the amount to be paid shall be the contribution rate in effect on the date of election to purchase credit. The interest rate used in determining the amount to be paid shall be the actuarially assumed rate of return on invested funds of the system in effect at the date of election to purchase credit;

(2) Payment shall be made over a period not longer than the period of membership service credit being purchased, measured from the date of election, and with interest on the unpaid balance;

(3) Membership service credit purchased pursuant to this section shall be deemed to be membership service as defined in subsection 10 of section 169.600;

(4) An election to purchase membership service credit pursuant to this section and payment for the purchase must be completed prior to retirement;

(5) Members may purchase membership service credit in increments of one-tenth of a year, and multiple elections to purchase may be made;

(6) Additional terms and conditions applicable to purchases made pursuant to this section including, but not limited to, minimum payments, payment schedules and provisions applicable when a member fails to complete payment may be set by rules of the board.

2. Membership service credit shall not be allowed under this section which exceeds in length the member s membership service credit for employment in a position covered by this system, and in no event may the member receive membership service credit with both this system and another public retirement plan, as defined in section 105.660, RSMo, for the same service.

3. A member who has rendered service as an employee for at least twenty hours per week for a public school district outside of this state including service in a public university or who has rendered service in the University of Missouri or Lincoln University after November 1, 1965, if such member is not receiving and is not eligible to receive retirement credit or benefits for such service in any other school employee retirement system, may elect prior to retirement to purchase equivalent membership service credit but not in excess of ten years. An affidavit shall be required stipulating that the member is not presently receiving compensation from another school employee retirement system and will not receive credit in another system for the creditable time purchased.

4. (1) A member who enters the service of the armed forces of the United States of America who is an employee in a district included in the system at the time such member is inducted, enlisted, or called to active duty, and who without voluntary reenlistment becomes an employee in a district within one year after discharge from such service shall not be subject to the provisions of subsection 3 of section 169.650 with regard to termination of membership due to the period of actual service in the armed forces of the United States. Such a member may elect prior to retirement to purchase membership service credit for the entire period of service in the armed forces of the United States, but not to exceed five years. The purchase may be made only if the member was discharged or separated from the armed forces by other than a dishonorable discharge.

(2) A member who had served in the armed forces of the United States prior to becoming a member, and who becomes employed in a position qualifying for membership in the retirement system within five years after such member s discharge under honorable conditions may elect, prior to retirement, to purchase membership service credit for the entire period of service in the armed forces, but not to exceed five years.

5. Any member granted unpaid maternity or paternity leave for a period, from a position covered by the retirement system, who returned to employment in such a position within five years of the ending date of the leave period, and who does not have creditable service for the leave period with any other retirement system except the federal Social Security system, may elect prior to retirement to purchase membership service credit for the period of leave. No member may purchase more than four years of membership service credit under this subsection.

6. Any member who is or was certified as a vocational-technical teacher on the basis of having a college degree and who was required to have a period of work experience of at least two years in the area of the subject being taught in order to qualify for such certification may, upon written application to the board, purchase equivalent membership service credit for such work experience which shall not exceed the two years necessary for certification if the work experience was in the area that the member taught or is teaching and was completed in two years.

7. Any member who had membership service credit with the public school retirement system of Missouri governed by sections 169.010 to 169.141 but which membership service credit was forfeited by withdrawal or refund, may elect prior to retirement, to purchase credit for such service and receive pro rata credit not to exceed a total of ten years in this system for the service.

8. A member may elect to purchase membership service credit for service rendered while on leave from an employer, as defined in section 169.600, for a not-for-profit corporation or agency whose primary purpose is support of education or education research, not to exceed two years if the member was employed by that organization to serve twenty or more hours per week; provided the member is not receiving and is not eligible to receive retirement benefits from any other retirement system for the years for which membership service credit is being purchased and provided the member has returned to service for at least one year as an employee of the employer that granted the leave.

9. A member having membership service credit in the retirement system provided by sections 169.600 to 169.715, after the member was employed by a private school to serve twenty or more hours per week, may elect to purchase membership service credit for service rendered to the private school, but not to exceed three years. As used in this subsection, the term private school means a school which is not a part of the public school system of this state and which charges tuition for the rendering of elementary and secondary educational services.

169.660. 1. On and after the first day of July next following the operative date, any member who is sixty or more years of age and who has at least five years of creditable service, or who has attained age fifty-five and has at least twenty-five years of creditable service, or who has at least thirty years of creditable service regardless of age may retire and receive the full retirement benefits based on the member s creditable service. A member whose creditable service at retirement is less than five years shall not be entitled to a retirement allowance but shall be entitled to receive the member s contributions.

2. Any person retired and currently receiving a retirement allowance under sections 169.600 to 169.715, other than for disability, may be employed on a temporary-substitute basis by a district included in the retirement system not to exceed a total of five hundred fifty hours in any one school year, without a discontinuance of the person s retirement allowance. Such a person shall not contribute to the retirement system, or to the public school retirement system established in sections 169.010 to 169.141, because of earnings during such period of employment. If such a person is employed in any capacity by such a district on a regular basis, or the person s temporary-substitute service in any capacity exceeds five hundred fifty hours in any one school year, the person shall not be eligible to receive the person s retirement allowance for any month during which the person is so employed.

Section B. The repeal and reenactment of sections 169.055, 169.056 and 169.057 shall become effective on July 1, 1998.