Calculation of Benefits Under Social Security Offset

PURPOSE: This rule complies with the provisions of 104.342.7(2), RSMo requiring an offset of the Public School Retirement System benefit for Social Security benefits accrued after 1989, for employees of the Department of Elementary and Secondary Education. PUBLISHER’S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. Therefore, the material which is so incorporated is on file with the agency who filed this rule, and with the Office of the Secretary of State. Any interested person may view this material at either agency’s headquarters or the same will be made available at the Office of the Secretary of State at a cost not to exceed actual cost of copy reproduction. The entire text of the rule is printed here. This note refers only to the incorporated by reference material. (1) The offset amount will be determined using the maximum offset allowance defined in the Internal Revenue Code Section 401(1) and related regulations. The computed Public School Retirement System (PSRS) regular retirement benefit will be reduced by the offset amount, effective with the month of first eligibility for Social Security benefits after PSRS retirement. (2) The PSRS benefit will not be reduced if the retiree certifies 1) ineligibility for Social Security benefits because of insufficient coverage, or 2) that Social Security benefit payments have not yet commenced. Periodic recertification will be required. The retiree shall notify the system immediately upon commencement of Social Security benefit payments. (3) The retiree shall have the opportunity to demonstrate that the Social Security benefit payable is less than the maximum offset allowance. In such case, the regular retirement benefit will be reduced by the actual Social Security benefit payable. (4) Once the offset has been applied, each future cost-of-living adjustment will be based on the then-current benefit payable. AUTHORITY: section 169.020, RSMo 1994.* Original rule filed Oct. 21, 1994, effective April 30, 1995. *Original authority: 169.020, RSMo 1945, amended 1951, 1953, 1967, 1973, 1983, 1990.