A stampede of confusion

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A stampede of confusion

• A discussion on retirement eligibility

Hosted by
Little Joe Scott Simon, Manager of Benefit
Services
Hoss Gary Hollis, Benefits Auditor
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Why focus on retirement eligibility?

• Minimize confusion
• Promote consistency
• Recruitment tool
• Retention tool
• Legalities

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What will we cover?

• Define the problem
• Review the law
• Offer examples
• Reemployed retirees
• Retirement eligibility reporting
• Updated definition of eligibility?

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The problems

• Law changes
• Tracking 1,000 hours
• Permanent vs. temporary

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What determines retirement eligibility?

• Revised statutes of Missouri
• Chapter 104, sections 010 and 1003
• Definition of employee

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How is employee defined?

• "Employee shall be any person who is employed
  by a department and is paid a salary or wage by a
  department in a position normally requiring the
  performance of duties of not less than one
  thousand hours per year,

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How is employee defined?

• Does not include any patient or inmate of any
  state institution
• A person employed in multiple positions within a
  single agency will be treated as if they are in
  one position for eligibility purposes

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In plain English

• It means that any regular (on-going) position
  that is at least half time, qualifies for
  benefits.

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Its all about the position

• Is the position permanent?
• Does the position normally require the person to
  work at least 1,000 hours per year?

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Yes

• If the answer to both questions is yes, then
  you have a benefit eligible position.

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No

• If no is the answer to one or both questions,
  then the position is NOT eligible for benefits.

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Example 1

• A person is hired for a part-time position that
  normally works less than 1,000 hours per year,
  except one year the person actually works over
  1,000 hours. Is the position eligible?
• 1999 905 hrs
• 2000 890 hrs
• 2001 925 hrs
• 2002 1105 hrs

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NO

• The pattern clearly indicates the position does
  not normally require 1,000 hours.

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Example 2

• A person is hired into a part-time position that
  normally requires over 1,000 hours per year, and
  after working a few years in that capacity, the
  person works less than 1,000 hours one year. Is
  the position eligible?
• 1999 1125hrs
• 2000 1095 hrs
• 2001 1101 hrs
• 2002 940 hrs

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YES

• The position would be eligible even during the
  year that went under 1,000 hours because
  normally the position did meet the 1,000 hour
  requirement.

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Duties of the position

• If, in either example, the duties were
  permanently changed, the positions status could
  change from that point forward.

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What about multiple positions?

• If a person works part-time in multiple
  positions within a single agency, you should
  consider all positions when determining
  eligibility under the 1,000 hour rule.

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Temporary positions?

• Generally speaking, temporary employees are not
  eligible for benefits. However, sometimes
  agencies will hire a temporary even though the
  employee is filling a full-time position.

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Temporary positions?

• Example A merit employee may be hired before
  being certified on the register. In that case,
  the employee should be coded for benefits from
  the beginning because the position is eligible.

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Reemployed retirees?

• Have the exact same criteria placed upon their
  positions.
• Those returning to retirement eligible positions
  will have their benefit frozen and will accrue
  additional service credit.
• Those returning to non-retirement eligible
  positions do not effect their benefits.

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What is retirement eligibility reporting?

• Reporting that will help support and enhance
  consistent application of the 1,000 hour rule.

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Retirement eligibility reporting

• Includes three different scenarios
• Persons reported as being eligible yet their
  hours do not appear to support eligibility.
• Persons not reported as being eligible yet their
  hours seem to support eligibility.
• Reemployed retirees.

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Round up a solution?

• An updated definition of employee may be coming
  soon!

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Comments or Questions

• Scott Scotts_at_mosers.org or 573-632-6139
• Gary Garyh_at_mosers.org or 573-632-6133