Definitions

PURPOSE: This rule provides the definitions needed to describe the terms of the defined contribution plan authorized by sections 50.1210 to 50.1260, RSMo. (1) Whenever used in this Chapter 10, the following terms shall have the meanings as set forth in this rule 16 CSR 50-10.010 unless a different meaning is clearly required by the context: (A) Account means the individual bookkeeping account maintained for each Participant that represents his or her total proportionate interest in the Trust Fund and shall include the following subaccounts of the Participant: seed account, Board matching account, Employer matching account, and rollover account. (B) Beneficiary means the person, persons, or legal entity entitled to receive benefits under this Plan which become payable in the event of the Participant’s death. (C) Board means the Board of Directors of the County Employees’ Retirement Fund. (D) Code means the Internal Revenue Code of 1986, as amended, and includes any regulations thereunder. (E) Compensation means all salary and other compensation paid by an Employer to a county employee for personal services rendered as a county employee, as shown on the Employee’s Form W-2, plus amounts paid by an Employer but excluded from W-2 compensation by reason of Code sections 125, 402(g)(3), 414(h)(2), or 457, but not including travel and mileage reimbursement, and not including compensation in excess of the limit imposed by section 401(a)(17) of the Code. Effective January 1, 2009, in accordance with section 414(u) (12) of the Code, compensation shall include any differential wage payment (within the meaning of section 3401(h)(2) of the Code) made by the Employer to an individual who does not currently perform services for the Employer by reason of qualified military service (within the meaning of section 414(u)(5) of the Code) to the extent those payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Employer. Notwithstanding the foregoing, compensation shall only include amounts paid during an employee’s employment, except as provided in the remainder of this paragraph. To the extent that the following amounts are otherwise included in the definition of compensation and are paid no later than the date which is two and one-half (2 1⁄2) months after termination of employment, or, if later, the end of the plan year in which such termination occurs, such amounts paid after an employee’s termination of employment shall be deemed compensation: regular pay, including compensation for services during regular working hours, overtime, shift differential, commissions, bonuses, or other similar payments; and payment for unused accrued sick, vacation, or other leave, but only if the employee would have been able to use the leave if employment had continued. The exclusions provided for in the first sentence of this paragraph with respect to post-employment payments shall not apply to payments to an individual who does not currently perform services for the Employer by reason of qualified military service, to the extent such payments do not exceed the compensation such individual would have received from the Employer if he or she had continued to perform services for the Employer. (F) Employee means any person, an elective or appointive county official, or employee regularly employed by a county who is under the direct control and supervision of a county or an elected or appointed county official and who is subject to continued employment, promotion, salary review or termination by a county or an elected or appointed county official and who is compensated directly from county funds and whose position requires the actual performance of duties during not less than one thousand (1,000) hours per calendar year, except county prosecuting attorneys covered under sections 56.800–56.840, RSMo, circuit clerks and deputy circuit clerks covered under the Missouri State Retirement System, and county sheriffs covered under sections 57.949–57.997, RSMo, and employees who received some compensation from the county but who are subject to hiring, supervision, promotion, or termination by an entity other than the county such as an extension council or the circuit court. (G) Employer means each county in the state, except any city not within a county and counties of the first classification with a charter form of government. (H) 457 Plan means the County Employees’ Deferred Compensation Plan described in 16 CSR 50-20.010 et seq. (I) Hardship means an immediate and heavy financial need of the Participant resulting from— 1. Expenses for medical care described in Code section 213(d), previously incurred by the Participant, the Participant’s spouse, or any dependents of the Participant (as defined in Code section 152) or necessary for these persons to obtain medical care described in Code section 213(d)); 2. Costs directly related to the purchase of a principal residence for the Participant (excluding mortgage payments); 3. Payment of tuition and related educational fees for the next twelve (12) months of postsecondary education for the Participant, or the Participant’s spouse, children, or dependents (as described in Code section 152); or 4. Payments necessary to prevent the eviction of the Participant from the Participant’s principal residence or foreclosure on the mortgage on that residence. Payment may not be made in the event that the Hardship is or may be relieved through reimbursement or compensation by insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship, or by cessation of deferrals under the 457 Plan. (J) Hour of Service means each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Employer, or each hour for which an Employee is otherwise credited during an absence for sickness and injury of less than twelve (12) months to the extent so certified on a form provided by the board or its designee to be on an approved leave of absence for medical reasons under the written policies of an Employer, or as required by the Family and Medical Leave Act of 1993, by the Uniformed Services Employment and Reemployment Rights Act of 1994, or other applicable law. (K) Investment Manager means any individual or entity described in 16 CSR 50-10.080 who is designated by the Board as having the power to manage, acquire, or dispose of any asset of the Plan in accordance with the provisions of the Plan. (L) Investment Option means one (1) of the options established by the Board, in which amounts contributed to a Participant’s Account may be invested at the Participant’s discretion. There is no limit on the type of investment that the Board may designate as an option. RETIREMENT FUND (M) LAGERS means the Local Government Employees’ Retirement System presently codified at sections 70.600 to 70.755, RSMo. (N) Participant means an Employee or former Employee who has joined the Plan in accordance with rule 16 CSR 50-10.020 and who retains his or her Account under the Plan. (O) Plan means the County Employees’ Defined Contribution Plan as set forth in this Chapter 10 and sections 50.1210 to 50.1260, RSMo. (P) Plan Year means the calendar year. (Q) Separation from Service means the severance of a Participant’s employment with an Employer for any reason, including retirement or disability. (R) Trust Fund means the County Employees’ Retirement Fund. (S) Trustee means the entity, or individuals, or committee that is responsible for holding and managing the Trust Fund. (T) Year of Service means the amount of an Employee’s employment as a county employee used to determine the Employee’s vested interest in his or her Board matching account and Employer matching account as described in 16 CSR 50-10.070. AUTHORITY: section 50.1000, RSMo Supp. 2010 and sections 50.1210–50.1260, RSMo 2000 and Supp. 2010.* Original rule filed May 9, 2000, effective Jan. 30, 2001. Amended: Filed April 25, 2002, effective Nov. 30, 2002. Amended: Filed Dec. 22, 2008, effective July 30, 2009. Amended: Filed Jan. 25, 2010, effective July 30, 2010. Amended: Filed Dec. 20, 2010, effective June 30, 2011. *Original authority: 50.1000, RSMo 1994, amended 1998, 1999, 2001 and 50.1210– 50.1260, see Missouri Revised Statutes 2000 and Supp. 2010.