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 70.660.2(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 EMPLOYEES’ RETIREMENT SYSTEM (LAGERS) 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 lumpsum 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. AUTHORITY: section 70.605.21, RSMo 2016.* Original rule filed Oct. 17, 2001, effective May 30, 2002. Amended: Filed May 3, 2019, effective Nov. 30, 2019. *Original authority: 70.605, RSMo 1967, amended 1974, 1992, 2000, 2003, 2013.