Consistent with IRS standards, the University of Missouri (UM) System requires the following process under the Retirement, Disability and Death (RDD) Benefit Plan for rehiring a former employee who (i) is less than age 62 and (ii) is currently receiving a retirement benefit; has received a lump sum retirement benefit; or has elected to receive a retirement benefit:
The employee must have made a “bona fide” termination from employment and therefore the rehire cannot be pursuant to a discussion, understanding or agreement (written or oral) that occurred prior to the effective date of retirement/separation from employment with the University or commencement of a retirement benefit.
The effective date of rehire must be at least 90-days after the effective date of retirement/separation, unless the rehire is part of a competitive hiring process. Please note, a competitive hiring process generally includes posting of the position, receipt of applications, and interviewing candidates. In order to ensure that there is not an understanding or agreement to rehire prior to effective date of retirement, the employee may not apply for a position until after the effective date of the employee’s retirement/separation.
- The employee's signature is required on applicable benefit documents (i.e., the Notice of Intent to Retire form) acknowledging the rehire requirements.
If the former employee is receiving benefits, exceeding 74% FTE upon rehire it will cause benefits to cease under the RDD plan.
For purposes of measuring the 75% FTE limitation under the RDD plan, all active appointments will be considered. Those who reach or exceed 75% FTE will have their benefits terminated. It is highly recommended that the total of all active appointments remain below 70% FTE.
Failure to comply with the rehire requirements outlined above may result in the rehired individual's termination of employment pursuant to applicable procedures.
These rules do not apply to anyone who is age 62 or older and has completed the applicable benefit documents for in-service distributions from the RDD plan.