Out of State Taxes

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After retiring, relocating to a state that doesn't have state tax. Will MO. still deduct state taxes from retirement checks/ money withdrawn from Deferred Comp.
For your retirement benefit payment, MOSERS will not withhold taxes for any state other than Missouri. We recommend you contact the appropriate state and local tax authorities to determine the taxability of your MOSERS benefit.

For the State of Missouri Deferred Compensation Plan, a mandatory 20% federal tax is withheld from all plan distributions. State taxes are not withheld, (unless you elect to do so), regardless of where you are living.

Refund of Contributions for MSEP 2011

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A relative of mine has recently become a full-time state employee, but expects to work only two or three years. Since she won't become vested, will she be able to recoup her contributions to the retirement system?
Yes. An MSEP 2011 member who leaves state employment prior to becoming vested (10 years) may request a refund of their contributions. Interest will not continue to accrue on their contributions if they terminate employment prior to becoming vested. Members leaving a MOSERS-covered position have a number of options available for managing their pension assets. They may:
  • Option 1 - Leave their contributions with MOSERS (if they expect to return to a MOSERS-covered position.)
  • Option 2* - Rollover the total amount of their contributions plus interest into an IRA or qualified retirement plan.
  • Option 3* - Elect a combination rollover and cash payment (less applicable mandatory withholdings and IRS penalties).
  • Option 4* - Request a full refund (less applicable mandatory withholdings and IRS penalties).
Please see the Member Contributions (MSEP 2011) brochure on our website for more information.

* Please Note - By receiving a refund, terminated members forfeit all their credited service and any future rights to receive any retirement and long-term disability benefits, and rights to coverage through Missouri Consolidated Health Care Plan (MCHCP) other than as a dependent under provisions of COBRA. 

Friday Top Five: Retirement Related News for 10/31

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From BenefitsPro: Retirement plan participation increased in 2013

Not since 2010 has the percentage of workers participating in an employment-based retirement plan risen, but in 2013 it finally did.

So says a report from the Employee Benefit Research Institute, which found that in 2013, the percentage of all workers rose from 2010’s level of 39.7 percent to 40.8 percent.

From Huffington Post: 10 Things to Do to Prepare for Retirement

If retirement is on your horizon, there are 10 things to do now.

From US News: Investing: 2 men save same, end up $234K apart

Out here in Exampleland, Pete and Frank always leave Philadelphia at noon and pass Helen and Irma in Altoona at 4:30, but no one will tell you how fast they're going. And when you're planning for retirement, you can always figure out what percentage of your income you can save, but no one here will tell you what you'll have when you leave the office for the last time.

Today we're going to show why, and what you can learn from that — because you can always learn something in Exampleland. We're going to start with Joe, who started saving for retirement at age 30 in 1975 and retired at age 65. Joe's younger brother, Ralph, also started saving at age 30, but does so four years later. You'll soon see why Joe hates Ralph, and it's not because Ralph briefly dated Abba's Agnetha Fältskog while visiting relatives in Sweden.

From The US News: 4 Ways to Find Meaning In Retirement

Most of us paint mental pictures of happy stress-free days to be enjoyed in retirement. However, once you have rested up a bit, retirement can become mundane and even boring. You need to create your own fun and excitement and find a way to fill the hours with something meaningful. Here are a few ways to set yourself up for a fulfilling retirement.

From The Kansas City Star: Missouri pension system will no longer exclude same-sex couples

Same-sex spouses of state employees in Missouri who legally married in other states will soon be eligible for retirement benefits through the state employee pension plan.
Similar stories also appeared in the St. Louis Post-Dispatch and the Riverfront Times on Oct 27th and again in the St. Louis Post Dispatch on Oct 30th.

Legally Married Same-Sex Spouses Are Eligible for Lifetime Survivor Benefits

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How does the recent ruling in Jackson ordering the state to recognize same sex marriages legally performed in other states and the Missouri Attorney General's decision not to challenge that decision affect MOSERS?
 In response to the Jackson County Circuit Court ruling and the Attorney General’s decision not to challenge the decision, the Board of Trustees of the Missouri State Employees’ Retirement System (MOSERS) took action on October 27, 2014 to change its policy and will no longer enforce section 104.012 of the Revised Statutes of Missouri (RSMo) which states, “For the purposes of public retirement systems administered pursuant to this chapter, any reference to the term “spouse” only recognizes marriage between a man and a woman”. This means that MOSERS retirees may elect a lifetime survivor benefit at retirement for their same-sex spouse to whom they were legally married in another state. Same-sex spouses of members who die prior to retirement may also be eligible for survivor benefits. The same laws and requirements that apply to legally married opposite-sex spouses will apply to legally married same-sex spouses.

The decision by the MOSERS Board will be implemented after the time for appealing the Jackson County Court decision has expired (November 13, 2014).

MOSERS members who believe they may be affected should contact a MOSERS benefit counselor to discuss the details of their individual situation at (800) 827-1063, (573) 632-6100 or mosers@mosers.org.

Friday Top Five: Retirement Related News for 10/24

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From BenefitsPro: 401(k) contribution limits raised to $18K

Will it help Americans save more for retirement?

Perhaps, though the more immediate impact of the news Thursday from the IRS was to once more focus attention on the savings rates of workers and their “retirement readiness.”

The news was certainly welcome by the industry – cost-of-living adjustments that will allow participants next year in 401(k), 403(b), 457 plans and those in the federal Thrift Savings Plan to boost their maximum annual elective deferral rate to $18,000, up from $17,500.

From The New York Times: Making Sure Retirement Savings Don’t Run Out

We are living longer, but the life expectancy of our money may have trouble keeping pace.

The combination of longer retirements and more exaggerated cycles in financial markets heightens what financial advisers call longevity risk, the possibility of running out of money before running out of time. But adjustments can be made to investment portfolios, financial plans and lifestyles — before and after retirement — to limit the risk, they say, without increasing other risks.

From Huffington Post: Baby Boomers and Student Loans are Pouring into Retirement

No, your eyes aren't playing tricks on you. I knowingly wrote the words "baby boomers" and "student loans" in the same sentence. And yes, they are related. Surprised? So was I.

We talk a lot about the 10,000 baby boomers reaching age 65 every day and the challenges they face as they pour into retirement. One challenge rarely associated with baby boomers is how student loan debt is jeopardizing their retirement nest egg. Really? Student loan debt? That's a Millennial issue, right? Not exactly.

From USA Today: Investing: Can you retire on $1 million?

If you read any financial advertising, you know that your savings are inadequate, and you're likely to freeze to death in the dark a few weeks after retirement. For this reason, most Americans' retirement planning involves keeling over at their desks, or, failing that, starting a bomb-disposal unit as a retirement business.

But how much is enough? How about $1 million?

If results from the past decade are any indication, the answer is a moderately qualified "yes." The qualification depends on how much you withdraw each month, and how you invest it.

From Bank Investment Consultant: For Older Middle-Class Americans, Retirement Reality Check Kicks In

Investor optimism over their retirement readiness quickly fades with age.

That's one of the notable takeaways from the fifth annual Wells Fargo Middle-Class Retirement study released on Wednesday.

Almost half of the 1,000 middle-income Americans surveyed (48%) said they lacked confidence that they had saved enough for retirement. Among the older crowd—those between ages 50 and 59—the lack of confidence was much more prevalent, with 71% saying they hadn't saved enough "to live the retirement lifestyle they want."

Retirement & Social Security

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Can I draw my MOSERS retirement check plus draw social security too?
Yes. In fact, the combination of your MOSERS defined benefit retirement plan, social security earnings, and personal savings & investment income form the foundation for a financially secure retirement. Use the State of Missouri Deferred Compensation Plan’s RetiremenTrack program to help you see how these three sources of income add up for your retirement.

You may have heard about the temporary benefit that is available to members who retire under the MSEP 2000 or MSEP 2011. The temporary benefit is available in retirement until a person turns age 62 but the MOSERS base benefit continues for life.  Workers can apply for early social security benefits, with a reduction, at age 62. However, the two are technically unrelated. There are many Rumor Central questions that may provide you with more insight.

We recommend that you get a MOSERS benefit estimate and contact the Social Security Administration at (800)772-1213 or visit www.ssa.gov for more information and details regarding your particular situation including your personal Social Security Statement.

Friday Top Five: Retirement Related News for 10/17/14

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From CBS MoneyWatch: How much longer might you live? Think Again

Consider this: A 65 year-old woman has a 50/50 chance of living another 20 years to age 85, according to an online calculator maintained by the Society of Actuaries (SOA). Similarly, a 65 year-old man has a 50/50 chance of living another 17 years to age 82.

This information might cause you some confusion if you've read that the average life expectancy in the U.S. is currently 81 for women and 76 for men. But these are life expectancies from birth -- they don't apply to someone who's already reached age 65.

From CNN Money: Seniors lose average of $30,000 to financial scammers

Senior victims of financial abuse report losing big money to scammers, caregivers and even their family members.

According to a recent survey of 2,000 seniors and other adults by Allianz Life Insurance Co., elderly victims reported losing an average of $30,000, while some suffered losses of more than $100,000.

From Forbes: Start Now: A Step By Step, Tough Love Guide To Saving For Retirement In Your 20s

As Stuart Ritter instructed new T. Rowe Price hires on the retirement savings options available to them, a woman in the back of the room at a recent orientation started pounding on the table in front of her. The 53 year-old told her mostly 20-something colleagues that after she graduated from college she figured saving for retirement would be easier once she paid off her student debt. Then she fell in love, so she saved for a wedding. Then for a house, some kids and college for those kids. Easier never came and 30-years after college graduation she doesn’t have any money saved for retirement. Her message: Don’t let this happen to you.

“There will always be competing demands for you money,” says Ritter, vice president of T. Rowe Price Investment Services. “There will always be more things you want to buy than money to buy them with. So the sooner you get past ‘O, but, I don’t have much money’ the better off you’ll be.”

From USA Today: How to find your passion after you retire

Many people want to continue working well beyond the traditional retirement age, and to do that they're finding new creative ways to stay employed in not just one new career, but two, three or more careers.

Take Fred Weinberg of New York City who retired at age 55 after working for almost three decades as a New York State parole officer who tracked down missing parolees.

From The Motley Fool: What the Retirement Calculators Won't Tell You

Saving enough for retirement has become a huge topic for today's baby boomers. There's no shortage of retirement calculators out there to help you determine whether you have what you need to enjoy your golden years.

Given the great divide between what the average boomer has saved for retirement and what he or she needs, it's understandable that many believe tomorrow's retirees are headed for absolute disaster.