Is the MSEP 2011 Still a Contributory Plan?

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I have an employee who was hired June 2011. He has a question about the 5 year vesting. Since 5 year vesting is back he would like to know if Moser's will start contributing to retirement or if he will still have to make those contributions through his payroll.
MSEP 2011 members will still have to contribute 4% of pay to their future retirement benefit. Other than the vesting period changing from 10 years to 5 years for MSEP 2011 members employed on or after January 1, 2018, the provisions of SB 62 have NO impact on members of MSEP 2011 who work in a MOSERS benefit-eligible position until they reach normal retirement eligibility.

Money to pay current and future MOSERS pension benefits comes from:

  1. Contributions from employees who are members of the MSEP 2011 or Judicial Plan 2011 (4% of pay for MOSERS members; typically 5-10% nationally*),
  2. Earnings on investments of money in the MOSERS trust fund (61% of assets in the MOSERS trust fund have come from investment earnings), and
  3. Contributions from employers (state agencies) as a percent of active employee payroll.

Below is a simplified example of what future retirement benefit might look like over time. The benefit would be even more with compounding cost-of-living adjustments (COLAs), which are included in MSEP 2011, but not shown here for simplicity. The benefit formula is:

Final Average Pay x Credit Service x Multiplier = Monthly Base Benefit



























*Understanding Public Pensions, April 2017, Center for State & Local Government Excellence, AARP




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1099-Rs for MOSERS Retirees

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When will 1099s be distributed, or is there a way I can go online to get my last years benefit information? 
We will mail your 1099-R form by January 31. If you prefer an electronic copy of your 1099-R or if you find you need a replacement copy of it, simply log in to your Member Homepage and you will find it listed under Personal Information. Your 1099-R form will be available for you to view or print after they have been mailed.


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MSEP 2011 Survivor Benefits

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I am a MSEP 2011 Employee and had a question regarding the new retirement benefit plan. I understand you can now become vested at 5 years instead of 10, but my question is, if my spouse and I are both deceased before the retirement age, who will receive my benefits? The previous handbook states if there is no eligible spouse, a total of 80% of your monthly base benefits will be paid to your natural or legally adopted children who are younger than age 21. Who will have children at the retirement age of 67 under the age of 21? A vast majority of employees will not have dependent children at retirement age, so where will the retirement benefits go then? Will there be a new MSEP2011 general employee handbook sent out soon? 
It is accurate that, if you are an active general state employee, married, vested in MOSERS, and die before you retire with MOSERS, your eligible surviving spouse will receive survivor benefits, and also that if there is no surviving spouse, a survivor benefit is payable to your natural or legally adopted child(ren) younger than age 21. If you die without any eligible beneficiaries, no survivor benefits are paid.

If you made employee contributions to MOSERS and die without any eligible survivors, a refund of your contributions plus interest will be made to the beneficiary(ies) you have listed on your Contribution Beneficiary(ies) form or as otherwise permitted by law.

All of the above information applies if you die while actively employed and BEFORE you begin receiving your MOSERS pension benefit. Members often have similar questions about death AFTER retirement. A key feature of your MOSERS defined benefit (DB) pension plan is that it can provide financial security for your eligible survivor(s) as well. During the retirement process, you will make elections to determine if any potential survivor benefits will be paid to anyone after your death or not – to a spouse if you are married, or, potentially, to another beneficiary. 

If you terminate employment, then die before retirement, other stipulations apply. Effective January 1, 2018 for MSEP 2011 terminated-vested members: If you die after leaving state employment but prior to normal retirement eligibility age, monthly pension benefits will be payable to your eligible survivor(s) when you would have reached normal retirement eligibility. Please see the updated MSEP 2011 Handbook on our website for more information.

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MSEP 2011 Retirement Eligibility

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I know that the 10 years vested has been reversed back to 5 years, however I'm inquiring where the process is with going back to 80 & out vs. 90 & out. Is this still on the table?
We are not aware of any plans to change retirement eligibility requirements.

The 5-year vesting for MSEP 2011 members went into effect on 1/1/2018, and MSEP 2011 members must be actively employed on or after 1/1/2018 to be covered by this change.

Members of MSEP 2011* will become eligible for normal retirement when they reach age 67 and have at least 5 years of service OR under the “Rule of 90,” which is when they are at least age 55 and their age and service equals 90 prior to leaving state employment.

The 2018 legislative session began January 3 and will end on May 18th. We do not know what might happen with individual bills during the legislative session, but we will monitor all legislation impacting MOSERS and inform our members of any changes that become law.

*Members of MSEP 2011 are those who were first employed in a MOSERS benefit-eligible position on or after January 1, 2011. 

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Missouri Public Pension Exemption

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I have heard a rumor that the exemption from state income taxes for the state pension and deferred comp is going away. Please comment.
We are not aware of any changes to the Missouri Public Pension Exemption. We included a reminder about the exemption in the Fall/Winter issue of RetireeNews that is now online and on its way to mailboxes soon. For specific questions, we would suggest you contact the Missouri Department of Revenue or your tax professional. Print Friendly and PDF

Department of Corrections Rumor

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I JUST HEARD A VICIOUS RUMOR THAT MISSOURI MIGHT PRIVATIZE THEIR PRISON SYSTEM. IF THAT HAPPENS, HOW WILL IT AFFECT MY BACKDROP AND PENSION?
We are not familiar with that rumor. Any hypothetical privatization of services provided by the Department of Corrections would likely require legislative approval and/or action by the Governor.

MOSERS would pay any accrued pension benefits (including BackDROP) to employees once they reach retirement eligibility age & service based on the pension formula for general state employees as outlined in state law as of the date the member leaves state employment.

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Moody's Ratings

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As a prospective state employee, I am curious on how any municipal ratings changes by Moody's will affect payout on MO Pensions.
Moody’s ratings do not affect the amount of MOSERS pensions payments. As a new state employee, you would receive a Statewide Employee Benefit Enrollment System (SEBES) brochure with an overview of benefits, including those offered by MOSERS. Along with other benefits, we administer a defined-benefit (DB) pension plan with payments based on a formula as shown below. (The multiplier is determined by your plan; 1.6% for MSEP; 1.7% for MSEP 2000/MSEP 2011). We encourage you to explore the section of our website called “What Plan Am I In?” to read more about the specific provisions in each plan.

Pension formula for general state employees: 

Final Average Pay (FAP) x Credited Service x Multiplier = Monthly Base Benefit

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