If I retire and have chosen a survivor benefit for my spouse and my spouse dies first, does the benefit increase to the full amount?

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If I retire and have chosen a survivor benefit for my spouse and my spouse dies first, does the benefit increase to the full amount?
Yes. If you elect the Joint & 50% Survivor Option or the Joint & 100% Survivor Option and your spouse precedes you in death, your benefit will revert (popup) to the Life Income Annuity amount. The effective date of the pop-up will be the first of the month following your spouse’s date of death. The pop-up is not automatic. You must provide MOSERS with a certified copy of your spouse’s death certificate before your benefit will be adjusted. Print Friendly and PDF

I received the memo regarding the medical insurance retirement incentive legislation

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I received the memo regarding the medical insurance retirement incentive legislation and want to know if I have my spouse on my insurance and this incentive package passes, would he be covered and included in the active member rate? The memo states "may be eligible to continue medical coverage for themselves and, if applicable, their dependents at the active member rate.....". Thank you.
Yes, as presently drafted, your spouse would be covered under this provision if he is already covered by MCHCP under your medical benefits. If the bill passes in its present form and you were to retire directly from active employment during the incentive window, you, and any dependents (including your spouse) already receiving active medical benefits, would be eligible to keep medical benefits at the active rate for the first five years of retirement or until becoming eligible for Medicare coverage.
For those members employed by one of the regional universities or the department of Conservation, any potential incentive would be subject to the direction and approval of the appropriate governing body. Print Friendly and PDF

I saw that Senate Bill 748 was pre-filed on 12/7/2005 which would create a new retirement incentive

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I saw that Senate Bill 748 was pre-filed on 12/7/2005 which would create a new retirement incentive with the window of eligibility for employees whose "annuity" commences on or after May 15 but no later than August 15, 2006. I had planned to retire effective April 1, 2006 but would certainly hold off if this goes into effect. Since this bill shows an effective date as "emergency clause", assuming it passes can you give me a time frame I need to work with?
The bill has a window of May 15 to August 15. Since members must retire on the first day of a month, June, July and August would be the only applicable months. However, the bill must be signed into law by the Governor if it is passed by both the House and Senate. Governor Blunt would have to sign SB 748 into law prior to June 1 for June, July and August to be applicable, after June 1 but prior to July 1 for July and August to be applicable, and after July 1 but prior to August 1 for August to be applicable. At this point, we have no way of knowing whether the bill will pass, and, if so, when the Governor may sign it into law. Please keep in mind that applications for retirement must be filed at least two months prior to the desired effective date. Print Friendly and PDF

I understand that when you retire you “have to” at that time add your spouse to your

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I understand that when you retire you “have to” at that time add your spouse to your health insurance. This is something that puzzles me if my understanding of what the State has to pay is correct. As I understand it the State continues to pay a portion of your insurance premium and I assume that includes a portion of the premium when you have elected to add your spouse. My spouse is currently employed and has medical insurance through his employer which will continue until he retires and at present he does not have any immediate plans to retire. It seems to me that the State would save some money by removing this clause and allowing a retiree to add their spouse when their spouse is no longer covered under their employer’s insurance plan.
Since this question pertains to provisions of the health care plan, we asked the Missouri Consolidated Health Care Plan (MCHCP) to respond to this question. If you are covered by another health care plan, please contact that plan for further information.
MCHCP’s response:
You are correct that the provision found in RSMo Chapter 103, which governs MCHCP, requires that dependents be added at the time an employee retires. It would take statutory change to remove that requirement. This provision was included in the statutes to help stabilize cost increases to the plan. Print Friendly and PDF

Can you tell me why retirees do not have a cafeteria or flex pay plan?

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Can you tell me why retirees do not have a cafeteria or flex pay plan?
Also, when the Legislature passed the 80 and out provision for state retirement in the 90's, my impression was that the state wanted employees to retire so they could replace them with new and lower paid employees. Then the Legislature passed the "BackDROP Provision," which in turn promotes working past the the rule of 80 timetable, therefore encouraging employees to work beyond their earliest retirement eligibility age. What gives? Isn't this a mixed message?
Cafeteria plans, also called flexible savings accounts (FSA), are governed by federal regulations that restrict participants to employees only, which is why those benefits are unavailable to retirees. Since these plans are authorized and controlled by federal laws/regulations, the state cannot expand coverage to include retirees.
As to your question about the BackDROP provision, it might be helpful for you to know that the BackDROP was designed as a no cost addition to the current menu of retirement payment options. The provision was proposed by several legislators who were interested in developing a Deferred Retirement Option Plan (DROP) for state employees in Missouri because of interest from their constituents who were aware of similar plans in other states. These plans are fairly common throughout the country, but they are designed somewhat differently from state to state. In order to gain the support of the administration at that time, the legislation had to be cost neutral. Proponents felt that adding the BackDROP provision to the current menu of retirement options would help state agencies in succession planning and provide members with an additional benefit payment option, without increasing the cost to the state. Print Friendly and PDF

I am 60 years old and have 17 years of service. The retirement calculations on your website show me eligible for BackDROP

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I am 60 years old and have 17 years of service. The retirement calculations on your website show me eligible for BackDROP (assuming I continue to work...) when I turn 62. All the questions about BackDROP seem to refer to those who retire thru the '80 and out' provision. Do you have to qualify for '80 and out' to be eligible for BackDROP?
No, you do not have to qualify for the Rule of 80 (“80 & Out”) to be eligible for the BackDROP. You must only be eligible for normal retirement, under any provisions of the law, and continue to work in a benefit eligible position at least two years beyond first becoming eligible for normal retirement. Print Friendly and PDF

It is my understanding that an employee must physically be at work the last day before retirement. Is that correct?

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It is my understanding that an employee must physically be at work the last day before retirement. Is that correct?
There is nothing in the retirement law requiring that an employee physically be at work the last day before retirement. However, state agencies may have personnel rules that do go beyond the general law. You should check with your human resources office to find out whether or not your agency has such a requirement. Print Friendly and PDF

I am confused about how the timing of the purchase of military service will affect the projected retirement income.

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I am confused about how the timing of the purchase of military service will affect the projected retirement income. I purchased my military time about 6 years ago. When I became 80 and out eligible (because of the purchase) the computations were based on my highest 36 months of pay. Had I waited until now to purchase the time my highest 36 months are the most recent, not those that were computed to make me eligible for 80 and out. Should employees wait to make the purchase so the computations are based on the most recent (typically highest) earnings?
The timing of your military purchase is unrelated to your highest 36 months of salary. Your military service helped you reach “80 and out” sooner than if you had decided not to purchase the service, but there is no relationship between the timing of your service credit purchase and the salary used to determine your retirement benefit. The primary timing issue for you to consider when making a service purchase is that you need to know the longer you wait the more it will cost. In other words, it is often to your advantage, in terms of cost, to purchase service sooner rather than later to avoid additional interest costs. Print Friendly and PDF

If I would marry while receiving my pension benefit could I name my spouse as my beneficiary, or would I have to be married before I retire to do that

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If I would marry while receiving my pension benefit could I name my spouse as my beneficiary, or would I have to be married before I retire to do that?
Yes, assuming you meet one of the following criteria:
  1. You were not married upon retirement and you chose the life income annuity payment option; or
  2. You were married at retirement and elected a joint and survivor payment option and your spouse died resulting in your benefit reverting to the life income annuity.
If you meet one of these criteria and marry (or marry again) after you retire and make your election within one year of your marriage, you may designate your new spouse as the beneficiary under a joint and survivor option. Print Friendly and PDF

Generally speaking, would it be better to cash in one's vacation, or stretch it out and

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Generally speaking, would it be better to cash in one's vacation, or stretch it out and collect two more months of vacation, sick leave and BackDROP? Thanks.
While we are not in a position to provide a blanket answer to your question, we are available to provide benefit estimates that would help you come to a conclusion based on the factors you mention. Contact one of our benefit counselors at (800) 827-1063 and they will provide the estimates necessary to help you arrive at a more specific answer.
In addition, please contact your agency human resources office to discuss the agency’s personnel rules and policies regarding the use of annual leave prior to retirement. Print Friendly and PDF

Updated Response - My office has been hearing that Governor Blunt is planning

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Updated ResponseMy office has been hearing that Governor Blunt is planning on prefiling legislation in December 2005 which would raise the current "80 and out" to "85 and out" and would eliminate the BackDROP that a lot of employees have been working for and planning on. Is there any indication this would happen? What would be the effective date if this legislation was passed?
We are not aware of any intention by any legislator to file such legislation on the Governor’s behalf. According to Commissioner of Administration Mike Keathley, there have been no discussions on this subject by the Governor or his staff and no plans to do so. However, if such a bill is filed we would monitor the bill’s progress and notify our members who may be affected.
As a point of clarification, the Governor can not pre-file or file legislation, but s/he could ask a legislator to do so on the Governor’s behalf. Print Friendly and PDF

Hoping to retire soon and heard rumors that there were some hidden charges, (taxes?)

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Hoping to retire soon and heard rumors that there were some hidden charges, (taxes?) that would show up as well as retirement figures given on paper are not what they wind up to be. Just need to know if my retirement income will cover my retirement expenses.
Your retirement benefit is subject to state and federal income taxes. When you submit your application for retirement, we require you to fill out a tax withholding form that tells us how much you would like to withhold from your benefit each month for federal and state taxes. You may then choose to have other expenses deducted from your benefit, such as medical and life insurance premiums, if you so choose. MOSERS is up front about our retirement process, so rest assured that there won’t be any “hidden costs” from us when you choose to retire. Print Friendly and PDF

I read in the newspaper about our MOSERS’ money, being invested in Iraq/Iran Palestinian people

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I read in the newspaper about our MOSERS’ money, being invested in Iraq/Iran Palestinian people who are terrorists. What can I do to prevent that? Who can I write to speak against such practices? I appreciate your help.
There has been a lot of media coverage in the past few months about one common stock holding of about $130,000 in Arab Bank, which appears to be the issue to which you are referring.
All of MOSERS’ trustees and staff are concerned about doing the right thing for our state employees and retirees, including ensuring that we do not inadvertently invest in companies that support terrorism. There has been discussion among members of the board trustees as to whether divesting of Arab Bank is appropriate or not. This discussion has revolved around the facts that while this bank has been cited and fined by the U.S. Treasury’s Office of the Comptroller of Currency for internal control weaknesses related to international fund transfers, they have not been accused by any federal agency of any conscious act in support of terrorism. There have been numerous banks (including large U.S. banks) fined or cited for similar internal controls weaknesses.
MOSERS was one of the first public retirement systems in the country to develop an anti-terrorism investment policy in early 2004. At the July 2005 board meeting, trustees voted to strengthen the 2004 policy and to develop a process for screening the entire investment portfolio for holdings that might have terrorists’ links. The process is targeted for implementation by year end. Currently, investment holdings are compared to the U.S. Treasury’s Office of Foreign Asset Control (OFAC) list of entities with whom doing business is in violation of U.S. law. Arab Bank is not listed as a prohibited entity.
If you are interested in expressing your opinion on any issue related to the board of trustees, you can send your comments by mail or email to Lori Leeper at:
Lori Leeper
Board Secretary
MOSERS
P.O. Box 209
Jefferson City, MO 65102
loril@mosers.org Print Friendly and PDF

I am eligible to retire but do not plan to retire for about 5 years. What happens to my pension if I die before I retire?

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I am eligible to retire but do not plan to retire for about 5 years. What happens to my pension if I die before I retire?
If you have at least five years of credited service at the time of death, a survivor benefit will be paid to your spouse. Your spouse must be married to you on the date of your death. This benefit will be based on the Joint & 100% Survivor Option. This benefit will be payable to your spouse for the remainder of your spouse’s life.
If you are not married at the time of your death, your natural or legally adopted children may be eligible for a survivor benefit until they reach age 21. This benefit will be a total of 80% of what your monthly base benefit would have been. If you have more than one child under the age of 21, the benefit will be divided equally among them.
If you are not married and have no dependent children, no benefits will be payable. Print Friendly and PDF

Is it true that the only employees who will receive credit for military service under SB 375 are those

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Is it true that the only employees who will receive credit for military service under SB 375 are those who work for the state and are covered by MOSERS for 10 years after January 1, 2000?
SB 375 was considered in the legislature during the 2005 legislative session, but the bill did not pass. However, to answer your question, last year’s SB 375 would have applied only to employees who began working for the state on or after July 1, 2000, once they accrued 10 years of service. Print Friendly and PDF

I realize that SB 375 is probably not going anywhere this year but in case it does in

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I realize that SB 375 is probably not going anywhere this year but in case it does in the future I would like to know why it only applies to MSEP 2000 employees and not the rest of us. Seems a little discriminatory can you explain this for me?
As was stated in our answer to the previous question, SB 375 did not pass. The next legislative session begins in early January 2006 and ends mid-May 2006. If legislation similar to SB 375 is filed during this next session MOSERS will be tracking the bill. MOSERS was not involved in drafting SB 375, so we do not know why this bill was drafted as it was. The cost of SB 375 was estimated to be $2.8 million in the first year after the benefit change. The cost would increase if the group of eligible employees were to be expanded.
To express your opinion about a legislative proposal or to suggest revisions after the bill is filed, you can contact the sponsor of the bill, or your state representative or senator. Print Friendly and PDF

When I was buying out some previous time from another position, I thought I had

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When I was buying out some previous time from another position, I thought I had asked one of your representatives if you have to enroll in backdrop to receive it and the answer was no. Recently, I was told by another staff you do. I am just checking to make sure. Thanks.
You do not have to enroll in the BackDROP to be eligible to receive it. You must simply work at least two years past your normal retirement eligibility date. Once you decide to retire and are eligible for a BackDROP, you must elect it on your retirement election form. This form is completed once MOSERS has received and processed your retirement application. Until that point, you need not enroll or apply for the BackDROP. Print Friendly and PDF

Optional life insurance child coverage - is there an age limit?

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Optional life insurance child coverage - is there an age limit?
You may elect to carry optional coverage for your child(ren) until your child reaches age 23. Disabled children over age 23, who are continuously incapable of self-sustaining employment because of mental retardation or physical handicap and dependent on you for support may be eligible for continuation of coverage if approved by the insurance carrier. Print Friendly and PDF

I was employed by the State of Missouri for over 20 years and have since relocated

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I was employed by the State of Missouri for over 20 years and have since relocated and am currently working for a state agency in Arizona. Can I transfer my years of service to the Arizona retirement system?
No, there is no provision in the law that authorizes MOSERS to transfer service to retirement systems outside of the state of Missouri. Having 20 years of service with MOSERS will provide you with a retirement benefit once you are eligibile to retire. For more information on your specific retirement situation, including estimates, please contact a benefit counselor at (800) 827-1063. Print Friendly and PDF

Thank you for your response to my previous question, but maybe I wasn't clear on my previous question.

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Thank you for your response to my previous question, but maybe I wasn't clear on my previous question. The employee handbook says, "You may receive one month creditable service for every 168 hours of unused sick leave." This indicates to me that when I retire if I have 2,520 hours of unused sick leave, I would be credited with 1 year and 3 months creditable service for calculating benefits. But the Pensions Plus news letter on page 9 says up to one year of creditable service can be accrued for retirement. Does this mean that if I have 2,520 unused sick leave that I will only be credited for 1 year and not 1 year and 3 months?
Assuming that you have 2,520 hours of unused sick leave upon retiring, an additional 1 year and 3 months of service will be added to your length of service (2,520 / 168 = 15 months).
Again, we apologize for the confusion our “Leave” article in the spring 2005 PensionsPlus may have caused. The one year of creditable service to which the article refers only applies to those on a leave of absence for medical purposes. Members can accrue up to 1 year of creditable service while on a leave. This is unrelated to the amount of accrued unused sick leave that may be applied to your total service at the time of retirement. Print Friendly and PDF

If a person retired in 1988 when the basic life insurance was $5,000 and the basic life

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If a person retired in 1988 when the basic life insurance was $5,000 and the basic life insurance is now at $15,000, would they receive $5,000 or $15,000 at the time of death?
Basic life insurance for MOSERS retired members who retired on or after October 1, 1985 remains at $5,000. The $15,000 that you refer to applies to active employees. Print Friendly and PDF

If you are already eligible for retirement and you are working on a BackDROP will

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If you are already eligible for retirement and you are working on a BackDROP will your sick hours (168 hours = 1 month) count toward meeting your BackDROP time, or does it only count toward the amount of your retirement check?
Your unused sick leave cannot be used to meet the eligibility requirements for the BackDROP or extend the BackDROP period. Once you’ve met your BackDROP eligibility requirements, your unused sick leave will only be used to calculate the amount of your retirement benefit and lump sum payment.
For further information, please take a look at our BackDROP brochure or the BackDROP section of our website. Print Friendly and PDF

Can one transfer an IRA bond account into the State Retirement savings system? If so, how is it done?

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Can one transfer an IRA bond account into the State Retirement savings system? If so, how is it done?
No. MOSERS is funded exclusively by state contributions to the trust fund and investment earnings on those contributions. This money is then distributed to individual state employees upon retirement based on a retirement formula. We do not manage individual accounts for each MOSERS member. If you are interested in transferring funds from an IRA, it would be best to contact Missouri’s deferred compensation program (PEBSCO). You may contact them at www.pebscomo.com, or at (800) 392-0925. Print Friendly and PDF

We hear there will be another state or DMH layoff either in September or December? Is that true?

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We hear there will be another state or DMH layoff either in September or December? Is that true?
Your best source for information about potential layoffs, or rumors about layoffs, is your agency personnel office. MOSERS has no role in the layoff determination process, so we are not your best source of information about this issue. Print Friendly and PDF

I was speaking with a state park employee this afternoon concerning BackDROP.

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I was speaking with a state park employee this afternoon concerning BackDROP. She claims a MOSERS representative told her that when an employee meets the two year anniversary past their "80 and out" date for retirement, the employee may elect to take two and up to five years of BackDROP. It is my understanding that an employee would need to work five years past their "80 and out" date to qualify for five years of BackDROP. What is the correct interpretation of this program?
Your assessment is correct. Any regular state employee who works at least two years after his/her normal retirement date is eligible for the BackDROP. Working two years would grant you the option of a two year BackDROP. If you want to qualify for a 5 year BackDROP, you must work at least 5 years past your earliest eligibility date for normal retirement. Print Friendly and PDF

I read in the summer 2005 PensionsPlus that medical leave can be accrued for up to one year of creditable service.

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I read in the summer 2005 PensionsPlus that medical leave can be accrued for up to one year of creditable service. I have never seen this limitation in any of the employee handbooks. Is this new or has it always been that way?
Medical leave, if approved by your agency, can be taken for up to one year without a break in your service. A description of service credit and leaves of absence (Service Credit While on a Leave of Absence) is found on page 9 of the General Employees' Retirement Handbook. We are sorry for any confusion that our newsletter article may have caused. Print Friendly and PDF

Is it true that once a state employee is vested in MOSERS, that if fired, the person would lose their MOSERS retirement?

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Is it true that once a state employee is vested in MOSERS, that if fired, the person would lose their MOSERS retirement?
A vested member is entitled to retirement benefits once they meet eligibility requirements. Currently, most members must have at least five years of credited service in order to be vested and qualify for a retirement benefit from MOSERS. A termination, even firing, cannot revoke the right to vested benefits. Print Friendly and PDF

Is it true that you can transfer in years of service worked at the University and have them count towards your retirement?

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The University of Missouri retirement plan is one of several plans with which MOSERS has an agreement for the transfer of service, assuming the following criteria is met:
  • You must be an active state employee
  • You must have completed at least 10 years of service in the MSEP 2000 (or elect the MSEP 2000 upon retirement and have at least 10 years service at that time)
  • You must be vested in the other Missouri retirement plan (in this scenario, you must be vested with the University of Missouri retirement plan)
  • The other retirement system must agree to transfer the required funds (benefit value) to MOSERS.
If you meet the above criteria, you are eligible to transfer this service at the time of retirement. Contact a benefit counselor at (800) 827-1063 for more information, or download our Acquiring Service Credit brochure. Print Friendly and PDF

There is news coverage that State Treasurer Sarah Steelman is pushing to utilize

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There is news coverage that State Treasurer Sarah Steelman is pushing to utilize MOSERS retirement funds to invest in Missouri's economic development, primarily biotechnology, and to also utilize the fund to prevent firms from leaving the state because of lack of sufficient venture capital. I understand that in 1987 MOSERS was required by the state legislature to invest in local business and suffered a loss due to bankruptcies. I would appreciate MOSERS addressing this.
The topic of using the retirement fund to invest in Missouri's economic development sparked media interest in June after Treasurer Steelman appointed a task force to explore increasing access to capital for Missouri-based businesses. This task force is presently studying the possible use of retirement funds as a source of investment capital; however, this issue has not been brought to the MOSERS board of trustees for their consideration.
The legislature adopted a law in 1987 which required the state pension fund to invest a certain percentage of assets in Missouri businesses. Several of the companies that received money went bankrupt and the legislature subsequently repealed the law in 1992. Since that time, the MOSERS board of trustees has adopted a policy that requires any investment to be analyzed solely on its own risk and return characteristics relative to the holdings in the entire investment portfolio. Print Friendly and PDF

I heard another rumor that Governor Blunt wanted to try and take hold of MOSERS’ flush account and replace it

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I heard another rumor that Governor Blunt wanted to try and take hold of MOSERS’ flush account and replace it with Missouri bonds which would affect all retirees, is there any truth to this rumor?
The assets of MOSERS are held in a "trust fund," which is what we think you may be referring to as a flush account. Responsibility for administration of MOSERS is vested in an eleven member board of trustees. The trustees are fiduciaries who have a duty by trust law to operate the system for the "exclusive" benefit of the employees and their beneficiaries. A basic financial objective of MOSERS is to establish a state contribution rate which, when combined with investment returns, will be sufficient to pay retirement benefits as promised to present and future state retirees. The state of Missouri has always funded the contribution rate certified by the board as being the necessary amount.
Since you referred to Missouri bonds, we think this question may relate to what are called pension obligation bonds. We posed your question to the Commissioner of Administration and he stated that you may be assured that the administration has no plans to “borrow” from any pension funds to remedy any structural imbalance in the state budget or for any other reason. Print Friendly and PDF

If an employee is fired and has many years of service, but is not yet eligible for 80 and out, when will they

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If an employee is fired and has many years of service, but is not yet eligible for 80 and out, when will they become eligible? For example, they are 47 years old and have almost 29 years of service. When and how much of their retirement can they get?
If an employee’s service stops increasing due to a termination, it will take longer for him or her to become eligible for the “Rule of 80.” While employed, both service and age continually increase toward eligibility. However, when service stops, a member must rely only on their age to make them eligible for the “Rule of 80.” With 29 years of service, a member must wait until their age, when combined with 29 years, adds up to 80. 29 + 51 = 80. A terminated member with 29 years of service must be at least 51 years of age to qualify for the “Rule of 80.”
As each member’s situation is different, it is best for an individual to contact a MOSERS’ benefit counselor for personalized retirement estimates with dates and benefit amounts. To contact a benefit counselor, please call MOSERS at (800) 827-1063. Print Friendly and PDF

Regarding the "rumor" about the possible elimination of the "80 and Out." I became

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Regarding the "rumor" about the possible elimination of the "80 and Out." I became eligible for this in July 2004. With the recent introduction (and subsequent demise) of the proposed retirement insurance incentive, I had hoped to retire this Sept. (2005) had the governor approved the bill. Now I plan to retire in June 2006 since I'll have worked two years past my 80 and out to qualify for the BackDROP. If the legislators or the governor would introduce and pass such a bill eliminating the "80 and out" before my retirement date of June 2006, would I not be able to retire using the 80 and out? I would have already qualified for this but was staying to become eligible for the BackDROP.
MOSERS hasn’t received any word from the legislature or the Governor’s office with regards to changing or eliminating the “Rule of 80.” We cannot predict whether you would be affected by legislation that would change or eliminate Rule of 80 unless we are able to review the specific legislative proposal. If a bill is filed we will review the bill in detail and let members know the implications of any proposal. Again, we have not received any information indicating whether or not any retirement bills will be introduced. Print Friendly and PDF

Several of my employees who are eligible to retire within the next 2-6 years under

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Several of my employees who are eligible to retire within the next 2-6 years under the "80 and out" at age 48, have heard that the age requirement may be changed to 60. Is there any truth to this or is this just a rumor?
MOSERS hasn't heard anything from the legislature or the Governor’s office regarding any intentions to modify or eliminate the “Rule of 80” in the future. MOSERS will track all legislation that is filed for the next legislative session. Generally, legislators may begin filing bills in December. Print Friendly and PDF

Is it true that Gov. Blunt plans to eliminate the BackDROP option by executive order by the end of this year?

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Is it true that Gov. Blunt plans to eliminate the BackDROP option by executive order by the end of this year?
The BackDROP provision is written in the law, therefore the Governor cannot change the statute by Executive Order, but would have to work with the legislators next session if it were something he wished to pursue.
MOSERS forwarded this question to Mike Keathley, Commissioner of Administration. He responded as follows: "The Governor has no plans to pursue legislation to eliminate the BackDROP option, nor has it ever been discussed." Print Friendly and PDF

I would like to know when you turn 62 and are eligible to draw social security and are retired under

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I would like to know when you turn 62 and are eligible to draw social security and are retired under the provision of drawing the extra money over and above the retirement amount earned, does the extra money automatically drop the day you turn 62 or does it continue until you actually apply for social security and begin drawing it before the difference is changed in your benefits? I understand certain people have to wait at least three months after the age of 62 before they can start actually receiving a social security check and I want to prepare in the event the extra benefit difference changes or drops. Thank you very much.
Members retiring under the "Rule of 80" in the new plan (MSEP 2000) are eligible for a temporary benefit until they reach age 62. Therefore, the benefit check you receive during the month of your 62nd birthday will be the last one that includes the temporary benefit. Print Friendly and PDF

Congratulations on the 12.5% rate of return! Is there any way that Missouri State employees/retirees can use

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Congratulations on the 12.5% rate of return! Is there any way that Missouri State employees/retirees can use funds that they currently have in PEBSO to invest in a “MOSERS” option?
We are pleased that our investment returns have been exceptional this year. MOSERS exists to pay retirement benefits to current and future retirees of the state of Missouri and we know that our track record of generating consistently strong investment results is beneficial to both our members and the taxpayers of the state.
The Missouri State Public Employees Deferred Compensation Commission administers the state deferred compensation plan. The Office of Administration, Division of Accounting provides staff support to the commission and the commission selected PEBSCO through a competitive bid process to serve as third party administrator for the plan. We sent your question to the Office of Administration and their response is:
The Deferred Compensation Commission has discussed including the MOSERS portfolio as a plan option. At that time, the Deferred Compensation Commission determined the expense of the daily valuation (pricing) of the portfolio made this option impractical. Due to advances in software, MOSERS could now provide a daily valuation on much of their portfolio at minimal cost. However, we believe daily valuation is still not viable for their relatively illiquid investments (hedge funds, timber, private placements, etc.) Therefore, it is unlikely these investments would be included in a portfolio offered to deferred compensation plan participants.
The Commission plans to reevaluate the investments in the portfolio once the Third-Party Administrator (TPA), fixed annuity and stable value awards have been completed. The contracts should be awarded in December 2005 and the transition should be complete by June. With the assistance of the (possibly new) TPA, the Commission expects to reevaluate the portfolio either during or after the transition.
Thank you for your suggestion to the Deferred Compensation Commission, it will be noted at the next Commission meeting. Print Friendly and PDF

When is the next chance to replace the board members who favor continuing to invest MOSERS funds in the Arab Bank?

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When is the next chance to replace the board members who favor continuing to invest MOSERS funds in the Arab Bank?
The next board election will be in August of 2006. At that time, active members will elect two representatives to the board and retirees will elect one representative to the board. All other board members are either appointed or are on the board by reason of the office they hold (ex-officio).
The MOSERS Board of Trustees is currently reviewing its investment policy to see if changes are needed. As one of the first retirement systems in the country to adopt an anti-terrorism policy, this is an important issue to us. Our portfolio holdings are presently screened against a list maintained by the US Department of the Treasury’s Office of Foreign Asset Control and we will immediately divest of any investments if a match is discovered. Further, if any other agency of the federal government tells us not to invest in a specific company because of terrorist ties, we will, without question, comply.
Our earnings for the fiscal year ended June 30, 2005 were 12.5% and every dollar we earn from investments is a dollar that taxpayers save on contributions the state is required to make. Our performance consistently ranks in the top 10% to 25% of the returns of large public employee retirement systems. More information can be found on our home page under the Feature section and in the Latest News posting on Terrorism and Investments. Print Friendly and PDF

There is a rumor that the legislature has plans to eliminate the 80 and out option. Is there any truth to this?

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There is a rumor that the legislature has plans to eliminate the 80 and out option. Is there any truth to this?
This seems to be a persistent rumor, however, MOSERS hasn't received any questions or comments from the Governor's Office or from legislators concerning potential legislation to eliminate the "Rule of 80" provision. Print Friendly and PDF

We are continuing to hear that rumors are spreading about the legislature

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We are continuing to hear that rumors are spreading about the legislature considering a retirement incentive proposal when they meet in the special session that the governor may be calling later this year. According to the Office of Administration, the Governor does not intend to include a retirement incentive bill in his special session call. If the subject is not included in the Governor's special session call, it cannot be taken up by the legislature during the special session. Print Friendly and PDF

I heard a "rumor" that the governor is looking at discontinuing "80 and out" for retirement.

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I heard a "rumor" that the governor is looking at discontinuing "80 and out" for retirement. If so, what would be the process and possible time frame to reach a decision like this?
The 2005 legislative session ended May 13, 2005, without any legislative proposals to eliminate the "Rule of 80." If legislators and/or the Governor were interested in submitting such legislation, proposals could be drafted and pre-filed in December 2005, or during the first few months of the 2006 legislative session, which begins next January. MOSERS tracks all retirement legislation on a daily basis during session. The legislature would have until mid-May 2006 to deliberate on any such proposed legislation and the bill would have to pass both the House and the Senate, and then be signed into law by the Governor. MOSERS hasn't received questions or comments from the Governor's Office or from legislators concerning potential legislation to eliminate the Rule of 80 provision. Print Friendly and PDF

How is backdrop affected by leave without pay?

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How is backdrop affected by leave without pay?
A break in service after reaching the first date you were eligible for normal retirement precludes eligibility for the BackDROP. However, an approved leave of absence during this period will not. For example, if you work long enough past your normal retirement date to qualify for the BackDROP and have an approved leave for a few weeks and become re-employed, your eligibility for BackDROP will not be compromised. On the other hand, if you terminate employment and two months later return you would no longer be eligible for the BackDROP. Print Friendly and PDF

I have 3 years left until I qualify for 80 and out. If I should leave state government

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I have 3 years left until I qualify for 80 and out. If I should leave state government now for another job....can I come back later and finish my 80 and out...is there a time limit on being out of state government and coming back?
There is no time limit on the "Rule of 80." As long as you are vested, you may leave state employment at any time, and return later if you choose. The sum of your age (minimum age 48) and your years of service must equal 80 or more. If you leave state employment, your age will increase, but your service will not. Therefore, it will take you longer to reach the "Rule of 80" than if you were actively employed and increasing both your state service and age at the same time. Those individuals first employed on or after 7/01/2000 must retire directly from active employment to qualify for the "Rule of 80." Print Friendly and PDF

I am a vested employee with 7 years of service. If my job is lost through Base

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I am a vested employee with 7 years of service. If my job is lost through Base Realignment and Closure (BRAC) and I leave state employment, what becomes of my accumulated sick leave? I have over 400 hours. Thank you.
If your state job is eliminated through the BRAC process (or any other state layoff process), your unused sick leave may be reinstated if you return to state service within 5 years. MOSERS asked the Office of Administration, Division of Personnel to summarize the current Personnel Advisory Board regulations governing leave. Those regulations [1 CSR 20-5.020(2)(H)] provide that accumulated and unused sick leave is credited to employees who return to state employment within five years of leaving the state service. A returning employee should be prepared to provide a written statement from the former employing agency specifying the basis on which sick leave was earned, the period of service involved and the total unused leave accumulated. With SAM II, this latter provision is less of an issue than when each agency maintained their own leave records, but you may want to keep a copy of your leave record in case it is needed in the future. Your best source of information on potential reinstatement of sick leave credit is your agency personnel office, so be sure to contact them for more specific information.
For retirement purposes under the Missouri State Employees' Plan 2000 (MSEP 2000), if you are vested when you leave state employment, you will receive one month of service credit for every 168 hours of unused sick leave. For example, if you have 400 hours of unused sick leave, you would receive 2 months of service credit upon leaving your position. Your unused sick leave must be reported to MOSERS by your employer in order to receive credit. Unused sick leave will be used in calculating the amount of your retirement benefit. Under the MSEP plan, to receive credit for your unused sick leave, you must be eligible for normal or early retirement when you leave state employment. Print Friendly and PDF

This bill has some language in it about treating persons on LTD the same as active employees on insurance and retirement. What is meant by that?

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This bill has some language in it about treating persons on LTD the same as active employees on insurance and retirement. What is meant by that?
This bill did not pass. However, the provision you mentioned above would have clarified the language regarding our LTD contract with The Standard Insurance Company. For all intents and purposes, this would have reinforced that we treat LTD claimants essentially as active employees for purposes of our benefits.
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I retired in 1995 under the rules that the COLA would be a minimum of 4% or a max of 5%...what is the COLA for the coming year? 4% or 5% and why is it

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I retired in 1995 under the rules that the COLA would be a minimum of 4% or a max of 5%...what is the COLA for the coming year? 4% or 5% and why is it not more widely publicized?
Members who retired under the MSEP, who were employed before August 28, 1997 are guaranteed at least a 4% cost of living allowance (COLA) each year until their benefit reaches 165% of the initial amount. All other retired members (those retired under the MSEP 2000, or those under the MSEP who were initially employed with the state after August 28, 1997) will received a COLA based on 80% of the change in the Consumer Price Index. This number is calculated each year by our Benefit Auditor. For 2005, the calculated COLA is 2.13%. Since this number is not greater than 4%, the 2005 COLA for MSEP members hired before August 28, 1997 is 4%.
MOSERS posts this COLA information on our website and in our General Employees' Retirement Handbook. For more information on how COLAs are calculated, see our COLA page under retired members. We also send retirees an annual statement that specifies the amount of the COLA. This statement is received during the month the COLA is applied to your benefit.
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I have heard that Gov. Blunt might call a special session in September.

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I have heard that Gov. Blunt might call a special session in September. I have heard that there may be a slim chance that the retirement incentive might again be discussed at this session. Both me and my wife are state workers who are eligible for retirement and would like to leave as soon as possible. What would happen if she went ahead and retired and I continued working long enough to see if the incentive might pass in the special session? Would I be able to pick her up on my insurance? Also if I do this what would happen If I passed away before she did? Would she then be able to pick her insurance back up again?
Various media have reported that the Governor may call a special session, probably around the time of the veto session in September, to deal with an issue unrelated to the retirement incentive. As of today, there is no notice of a special session on the Governor's website. We have no information from the Governor's office indicating that the retirement incentive will be included in the special session call. The legislature can only address items that are included in the special session announcement, which are generally limited to one or two key issues.
Unfortunately, we cannot answer your specific questions about the health care coverage because the answers would depend first upon the issue being included in any call for a special session and, if such a session is called, the answers would futher depend upon language included in any relaated proposed legislation. Print Friendly and PDF

Will there be pay or cost of living raise for State employees this year? If so how much?

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Will there be pay or cost of living raise for State employees this year? If so how much?
MOSERS does not determine annual pay raises for state employees. However, we checked with state budget and personnel staff and they indicated that the final budget did not include funding for pay increases for state employees. For more details, contact your agency personnel office.
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The 2005 legislative session came to an end on Friday, May 13 at 6 pm.

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While several bills were pending at the day’s close, only one passed that will, if signed, have an effect on certain MOSERS members. Neither SB 466 nor HB 334 passed, ruling out any possible retirement incentive or medical subsidy for MOSERS members this year. SB 375, relating to additional credited service for certain MSEP 2000 members’ military service also did not pass.
HB 119 did pass, allowing members on active duty military leave to retain their life insurance for a period longer than 12 months.
Thank you for taking an interest in MOSERS’ Rumor Central, allowing us to provide you with accurate information regarding legislative proposals and other retirement related issues, thus minimizing the amount of misinformation that would otherwise be circulating.
With the close of the legislative session, it is expected that the volume of questions submitted to Rumor Central will drop off. However, Rumor Central will remain a fixture on MOSERS’ website. The link will be moved from the feature section to our blue navigation bar on the left side of our homepage. While we are always happy to respond to any question you may have, for purposes of Rumor Central we are particularly interested in questions that begin with “I heard” and conclude with “Is that true?”. If you have specific questions regarding your individual benefits, please contact a Benefit Counselor at (573) 632-6100 or (800) 827-1063. It has been our pleasure keeping you as well informed as possible during this busy legislative session! Print Friendly and PDF

Can a person be eligible for a BackDROP as well as an incentive plan prior to retirement? I have heard it's either one or the other? Is that the case?

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Can a person be eligible for a BackDROP as well as an incentive plan prior to retirement? I have heard it's either one or the other? Is that the case?
A member who is eligible for normal retirement, who has also worked at least two years beyond their normal retirement date (making them eligible for the BackDROP), could also be eligible for a proposed incentive. The incentive and the BackDROP are not related, meaning that one is not affected by the other. Therefore, members eligible for both may choose to elect both. Print Friendly and PDF

If the Governor vetoes SB466, can it still be passed into law? What actions do the House & the Senate have to take to overturn the veto?

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If the Governor vetoes SB466, can it still be passed into law? What actions do the House & the Senate have to take to overturn the veto?
As a general rule the answer is that a bill can still become law if vetoed by the Governor but in this particular case it would appear to be academic. If the Governor vetoes a bill, it is sent back to the house in which it originated, along with a list of the Governor's objections. To overturn a veto, both the House and Senate need to vote on the bill again with a two-thirds majority in favor of the bill's passing in each body. If that occurs, the bill becomes law. Since veto session does not begin until September 14, the window period stipulated in the bill would have already closed, thus resulting in there being no incentive period. Print Friendly and PDF

If both the House & Senate approve and pass SB 466 by the close of session, but the Governor doesn't sign it - when does the bill become effective?

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The 2005 legislative session ends Friday, May 13. Any bills passed on the last day are sent to Governor Blunt, who then has until July 14 to sign or veto these bills. Bills that are not signed or vetoed will automatically become law. Any bills containing an emergency clause (as this one does) would take effect on July 15th; otherwise they would take effect on August 28th.
NOTE: A version of SB 466 was added to HB 334 this week. SB 466 is not on the calendar in either house, so it is more likely that HB 334, with the Senate Substitute containing the retirement incentive provisions, is the bill that would be debated by the general assembly. Senate Substitute for House Committee Substitute for HB 334 was sent to the House this week. Yesterday the House asked the Senate to recede from its position or grant a conference. This means the House did not accept the Senate changes as is, and therefore would like to discuss them in a conference committee. As of this morning, the Senate has not yet responded to the House on this matter. Print Friendly and PDF

My 80 and out date is November 1, 2005, but I also have 21 months of military service that I plan on purchasing to add to my service credit for retire

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My 80 and out date is November 1, 2005, but I also have 21 months of military service that I plan on purchasing to add to my service credit for retirement. Am I able to take 4 months of my 21 months of military service to become eligible for the September 1, 2005 retirement date to take advantage of the benefits of SB 466, thus retaining 17 months of additional service credit from my military service or will all 21 months be applied towards my eligibility date? I have been told by a number of staff that in applying your military towards your retirement eligibility date, it is all or nothing, so my question. Thanks for your response.
If you have military service you wish to purchase to add to your MOSERS service, you must purchase all of it, up to four years. There is a four year limit on military purchases. Since you have 21 months (1 year 9 months) of military service, you would be required to purchase all of it, not just the four months you mentioned above. Completing this purchase of all 21 months prior to your intended retirement date would in fact make you eligible for the potential incentive. It is up to you to decide whether the military purchase would be cost effective in return for the potential medical subsidy offered by the incentive on HB 334. For purchase estimates, contact a benefit counselor at (800) 827-1063 or view our service purchase calculator here on our website. Print Friendly and PDF

If it passes, will SB 375 allow credit for military service if the member is currently drawing a military pension?

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If it passes, will SB 375 allow credit for military service if the member is currently drawing a military pension?
Yes, members who are currently drawing a military pension would be eligible for the free credit if SB 375, assuming that they met all other eligibility criteria. Only members who were first employed in a MOSERS covered position on or after July 1, 2000 would be eligible. Print Friendly and PDF

If the new early retirement incentive plan passes will MOSERS send a letter to all potential employees that will qualify to explain the terms of this

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If the new early retirement incentive plan passes will MOSERS send a letter to all potential employees that will qualify to explain the terms of this new option?
In the event that any legislation affecting MOSERS members passes, MOSERS will inform those affected in writing, explaining their options and the time frame within which they must act. Print Friendly and PDF

I am a state worker with DYS and eligible to retire now. There may be an opportunity to teach at a state university part time.

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I am a state worker with DYS and eligible to retire now. There may be an opportunity to teach at a state university part time. If I retire under the proposed legislation, would the re-employment clause eliminate me from accepting a part-time teacher position?
If you elect to take the medical incentive, you would be precluded from working for any department, including a state university, during the three years following your election to take the incentive. Print Friendly and PDF

HB 334 Update – Health care retirement incentive providing a five-year medical incentive and allowing unused sick leave to be included in determining

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HB 334 Update – Health care retirement incentive providing a five-year medical incentive and allowing unused sick leave to be included in determining eligibility for normal retirement added to “clean-up” legislation.
The Senate Substitute for House Committee Substitute for House Bill 334 (SS for HCS for HB 334) was third read and passed by the Senate on May 10, 2005. The Senate Substitute contains provisions relating to a temporary health care retirement incentive (that was originally addressed in the SCS for SB 466).
HB 334 was introduced as “clean-up” legislation for the retirement system, which means it contains minor administrative modifications to and clarifications of the retirement plans that MOSERS administers (including the Missouri State Employees’ Plan, the Missouri State Employees’ Plan 2000, the Administrative Law Judges and Legal Advisors’ Plan, and the Judicial Plan). These administrative changes are general in nature and carry no fiscal impact to the system.
The SS for HCS for HB 334, however, contains provisions that would, if enacted, allow eligible employees to retire under a temporary health care retirement incentive and further provides that unused sick leave may be used for establishing retirement eligibility. As proposed, the legislation would allow employees who are otherwise eligible to retire (including those who become eligible by virtue of sick leave credits) and who do retire on or after the effective date of the act but no later than September 1, 2005, to continue medical coverage for the member and eligible dependents at the active employee rate for a maximum of five years or until becoming eligible for Medicare, whichever occurs first, at which time the rate reverts to the applicable retiree rate in place at that time.
The legislation would further limit the number of employees departments may hire to replace those employees who retired during the window to no more than 25% of the positions vacated. Exceptions to the 25% restriction could be made for critical or seasonal positions or any positions impacting federal fund matches. The 25% restriction would not apply to Truman University, Lincoln University, or the educational institutions described in Chapter 174, RSMo. Lastly, the proposal would prohibit employees who retire under the incentive from any reemployment with any department for a period of three years.
As it relates to the temporary health care retirement incentive, the boards that govern Truman University, Lincoln University, the colleges and universities, and the commissions that govern MoDOT and the highway patrol and the Department of Conservation could elect to offer the same medical retirement incentive to eligible employees.
Since these provisions would have a financial impact for the state, MOSERS has submitted a fiscal note for review. MOSERS will continue to monitor action related to this proposal and post updated information as it becomes available. Print Friendly and PDF

I am currently eligible to retire either under MSEP or MSEP 2000. I have qualified for the BackDROP with MSEP but not MSEP 2000.

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I am currently eligible to retire either under MSEP or MSEP 2000. I have qualified for the BackDROP with MSEP but not MSEP 2000. I have service time which I could purchase. If I did, I would then qualify for BackDROP under MSEP 2000. Would purchasing my military time so I could take advantage of the additional benefits under MSEP 2000 have an adverse affect on the benefit of SB466 should it pass?
If you purchased additional public or military service to add to your MOSERS benefit, your purchased service would count as credited service toward your BackDROP. This purchase would not have adverse affects on the potential incentive provided by SB 466. If you submit your application for retirement within the normal time parameters (May 31 for a July 1 retirement date, June 30 for an August 1 retirement date, or July 31 for a September 1 retirement date) and completed your purchase before your retirement date, you would qualify for the incentive (provided that SB 466 does pass and become law). For more information on purchasing service credit, see our Acquiring Service Credit brochure, or contact a benefit counselor for purchase estimates at (800) 827-1063. Print Friendly and PDF

If this bill is passed and I retire during the window period will I have the option of (1) taking the incentive or (2) retiring without taking the inc

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If this bill is passed and I retire during the window period will I have the option of (1) taking the incentive or (2) retiring without taking the incentive and being able to work up to 1000 hours per year?
Yes. Members eligible to retire during the potential incentive window will have the option of electing or declining the incentive. If members decline the incentive, the employment limitation would not apply, meaning those members could return to work for the state after retirement in a part-time position (a position normally requiring less than 1000 hours). We consulted with MCHCP, the medical insurance provider for most state employees, for their input. They agree with our interpretation of the bill as presently drafted. If the legislation passes, members eligible for the incentive will receive instructions from MCHCP as to how to apply for the medical subsidy.

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I have purchased my military time to go toward retirement. If for some reason my position is lost

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I have purchased my military time to go toward retirement. If for some reason my position is lost because the military base closes due to the base realignment (BRAC) would I be reimbursed for the money spent buying my military time?
Current law does not give MOSERS authority to allow members to withdraw previously purchased service and receive a refund. Several members have asked whether they can receive refunds of previously purchased military service credit in order to utilize the provisions of SB375. If your question is in regard to the proposed provisions of SB 375, please note that as a member of the MSEP, you are not eligible to receive credit for your military time through SB 375. As the bill is currently written, only those who are members of the MSEP 2000 (those who started in a MOSERS covered position after July 1, 2000) are eligible for the potential military credit after working in such positions at least ten years.
If you are a vested MOSERS member, your purchased military service will add to your state service when calculating your monthly benefit amount which you will receive upon retirement. If your employment with the state ends in the future, you would stop accumulating any additional service credit. However, that which you have already accumulated (including your purchased military service) will determine your retirement benefit. Your purchased service will add to your MOSERS retirement regardless of the outcome of your current job situation. Print Friendly and PDF

Are there any plans to propose credit transfer from MU like SB 375 transfers military credit without cost?

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Are there any plans to propose credit transfer from MU like SB 375 transfers military credit without cost?
MOSERS is not aware of any newly proposed legislation dealing with service credit transfers from the University of Missouri to MOSERS. There is already a statute in the MSEP 2000 under which an employee can transfer service credit from the University of Missouri to MOSERS. The statute, 104.1090 RSMo, allows employees who have at least 10 years of service under the MSEP 2000 to transfer service from another retirement system if the other system (in this case, University of Missouri) agrees to transfer to MOSERS an amount equal to the employee’s pension benefit obligation under a defined benefit plan (or the employee's account balance under a defined contribution plan). The University of Missouri has agreed to allow such transfers (please contact us for further details about your eligibility under that agreement if you are interested in transferring University of Missouri service). MSEP members electing the MSEP 2000 at retirement are also eligible for a transfer of service under these provisions. Print Friendly and PDF

If the current version of the incentive bill is signed by the Governor, and I choose to retire effective Sept. 1, 2005 (last day worked would be Augus

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If the current version of the incentive bill is signed by the Governor, and I choose to retire effective Sept. 1, 2005 (last day worked would be August 31, 2005) then I would be eligible for the retirement incentive? Is this correct?
If you are eligible for normal (unreduced) retirement on September 1, 2005, then, yes, you would be eligible for the medical incentive offered by the potential passing of SB 466.
Normal retirement eligibility requirements for those members who are not eligible for Medicare are listed below. (Please note that the medical premium subsidy in SB 466 stops at the earlier of three years from retirement or when members are eligible for Medicare, which currently is at age 65. Because of that limitation in the bill, the normal retirement eligibility provisions applicable to those age 65 or older are not listed below.)
MSEP:
  • Age 60 with 15 years of service
  • "Rule of 80"
MSEP 2000:
  • Age 62 or older with at least 5 years of service
  • "Rule of 80"
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Is there any chance after floor hearings on this bill it could be changed again by the Senate or House to reinstate the rule of 78?

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Is there any chance after floor hearings on this bill it could be changed again by the Senate or House to reinstate the rule of 78? Or is the bill unchangeable at this point and must be debated and voted on as is?
Technically speaking, it is possible for SB 466 to be changed again, either in the Senate or later by the House. However, the session ends May 13, so time is very limited. Realistically speaking, it is doubtful that the "Rule of 78" will be put back in as an incentive. In its original form, SB 466 was opposed by some legislators based on its financial implications. In order to attract more proponents for the bill, Senator Vogel agreed to remove some of the provisions which would have been the more costly for the state. As you know, one of the removed provisions was the temporary "Rule of 78." Now that the bill has moved forward, it seems unlikely that the "Rule of 78" will be reinstated, as it would increase the cost of the incentive. Print Friendly and PDF

I will have two years backdrop on Sept. 1, 2005, if I go ahead and retire on Sept. 1, will I be able to keep my BackDROP?

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I will have two years backdrop on Sept. 1, 2005, if I go ahead and retire on Sept. 1, will I be able to keep my BackDROP?
If you are eligible to retire on September 1 with a two year BackDROP, and are interested in taking advantage of the potential incentive offered by SB 466, you would be able to take advantage of both. The incentive would not have any effect on the BackDROP you earned by working two years beyond your normal retirement date. Print Friendly and PDF

SB 466 continues to generate the most questions among our members. This week MOSERS received a copy of the Senate Committee Substitute for Senate Bill

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SB 466 continues to generate the most questions among our members. This week MOSERS received a copy of the Senate Committee Substitute for Senate Bill No. 466 (SCS for SB 466). Here is an update on the substitute bill as currently proposed.

SCS for SB 466 allows certain eligible employees to retire under a temporary health care retirement incentive. As proposed, employees who are eligible for normal unreduced retirement and whose retirement effective date is on or after June 1 (with July 1 being a more likely first retirement effective date to which it would applicable) but no later than September 1, 2005, would be eligible for the incentive. Such retirees would be able to continue medical coverage for themselves and eligible dependents as if they were active employees for a maximum of three years or until becoming eligible for Medicare, whichever occurs first. The rate would then revert to the applicable retiree rate that is in place at that time. Any employee retiring under these provisions would be prohibited from any employment with any department of state government for a period of three years.

As the sponsor noted in the committee hearing, the substitute includes several changes from the original version in order to make the it more cost-effective and to garner support for the proposal. The medical insurance subsidy was reduced from 5 years to 3 years; the temporary "Rule of 78" has been eliminated; the section that would have allowed unused sick leave to be considered for retirement eligibility has been eliminated; the window period has been changed as described above; and the annual leave payment provisions have been eliminated. One other change is the increase in the prohibition against returning to work for the state from 2 years to 3 years for anyone retiring under these provisions.

The legislation still contains the limit on the number of employees departments may hire to replace those employees who retired during the window. Also, as in the original version of the bill, the boards that govern colleges and universities and the commissions that govern MoDOT and highway patrol benefits and the Department of Conservation may elect to offer the same medical retirement incentive to eligible employees.

The bill has been voted “Do Pass” out of committee, which means that the next step in the process would be for the bill to be placed on the calendar for a third reading (and floor debate). MOSERS will continue to monitor action related to this proposal and post updated information as it becomes available. Print Friendly and PDF

I started with the state when I graduated from High school at the young age of 17. I am 46 years old now and won't be 47 until this September; I have

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I started with the state when I graduated from High school at the young age of 17. I am 46 years old now and won't be 47 until this September; I have 29 years in with the State as of April 1st.

My problem is that with my age and years of service I have to work over 31 years to 80 and out and for back drop I would have to work over 36 years to get 5 years of back drop when most other people would only have to work 30 and 35 years respectably for full retirement.
Does anyone else have this problem? I feel that is reverse age discrimination and a terrible way to treat a dedicated career employee.
As you know, eligibility for retiring under the Rule of 80 is based on a combination of age and service, and not on service alone. Current statistics on new MOSERS retirees shows that the average age at which those members started work with the state was 31.6 years of age. The average retirement age of new retirees is 57.7 years of age and the average amount of service is just under 22.4 years. Since you started work at such a young age, you may be working longer than some other members because of the minimum age requirement of 48, but you will still retire at a younger age and with substantially more service (which is part of the formula that determines your benefit amount) than the average member.

It's important to remember that younger members are more likely to receive benefits over a longer period of time than those members retiring at later ages. Lowering the eligibility age for retirement results in higher costs to the plan, which are paid solely by the employer (the state) and the taxpayers. Print Friendly and PDF

You have answered a question stating that the "Rule of 78" will not change backdrop and employees will not acquire two years of backdrop service. Why

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You have answered a question stating that the "Rule of 78" will not change backdrop and employees will not acquire two years of backdrop service. Why do you say 2 years when "78 and Out" vs. "80 and Out" is only one year of service?

You are correct in your interpretation of "80 and Out." Each year of age must be matched by a year of service, therefore, only one year of service would be applicable in that instance. However, the BackDROP would not be affected by the potential passing of SB 466. Our response to the initial question included language of "2 years" simply because the question addressed it that way. We apologize for any confusion this may have caused. Print Friendly and PDF

My husband worked for the state as a Public Defender. Upon his death I started receiving his pension. If I go back to work for the state will I be abl

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My husband worked for the state as a Public Defender. Upon his death I started receiving his pension. If I go back to work for the state will I be able continue to receive his pension?

Your survivor benefit payments resulting from your husband's death are in no way connected with your ability to work for the state of Missouri and receive a survivor benefit. If you work in a MOSERS covered position in the future, your survivor payments would continue uninterrupted. Print Friendly and PDF

I'm not sure I understood your explanation of SB 375.

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I'm not sure I understood your explanation of SB 375. I have 20 years with the state and will reach 80 and out on 7-1-05. I also have a little over 3 years of active military service that I have not purchased. If SB 375 passes will I be credited for my service? If not, why not? Thank You.

As a member of the MSEP, you are not eligible to receive credit for your military time through SB 375. As the bill is currently written, only those who are members of the MSEP 2000 (those who started in a MOSERS covered position after July 1, 2000) are eligible for the potential military credit after working in such positions at least ten years. In the fiscal information that we provided to the legislature we noted that, as written, this service credit would not apply to members covered by the MSEP (closed plan) which would include those MSEP members who elect to receive retirement benefits under the MSEP 2000 at the time of retirement. Print Friendly and PDF

It appears HB334 would end the .8% temporary benefit when the retiree turns 62 even if Social Security is changed to have reduced retirement at an age

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It appears HB334 would end the .8% temporary benefit when the retiree turns 62 even if Social Security is changed to have reduced retirement at an age greater than 62. Is this correct?

Yes, that is correct. At this time, MOSERS is not aware of any specific proposals offered by Congress that would increase the age at which early Social Security benefits become available. That being said, it is a fiscally prudent move to remove the link between MOSERS temporary benefit and early Social Security benefits so that the state is not locked into a situation over which it has no control. If, in fact, the age for receiving early Social Security benefits should increase at some future date, state legislators would then be able to assess the situation at that time and determine whether or not the age for ending the temporary benefit should also increase. Print Friendly and PDF

I initially submitted my application for retirement to be effective as of May 1, 2005. I also submitted the

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I initially submitted my application for retirement to be effective as of May 1, 2005. I also submitted the additional paperwork for direct deposit, insurance and withholdings. When I realized that the budget would not even be signed before May 6th I requested in writing to change my retirement date. Will I have to submit a new application for retirement or will the one I submitted carry over? Also, I changed the date to June 1st. If I decide to wait yet another month would that require a new application?

As long as you keep MOSERS informed in writing, of your intended retirement date, your initial application and direct deposit, insurance and tax withholdings forms will suffice.
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I am eligible for 80 and out on July 1, 2005. If the bill is passed, the window is from May 1 to Sept. 1, 2005. Would I qualify

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I am eligible for 80 and out on July 1, 2005. If the bill is passed, the window is from May 1 to Sept. 1, 2005. Would I qualify for the incentive-medical insurance if I go ahead with my July 1st date? If this would pass, does it go into effect as of the May 1st date? I am a little confused by your answer to the person who wants to retire June 1, 2005.

As it is currently drafted, SB 466 includes an emergency clause, meaning that it would take effect the day the governor signs it into law. If the bill were to pass, and become law before July 1, you would be eligible for the medical incentive with a July 1 retirement date. If the bill were passed but not signed by the governor until after July 1, you would need to move your retirement to August 1 or September 1 in order to receive the medical incentive. Print Friendly and PDF

I am a vested employee planning to leave employment after 6 years of service. However, I am not old enough to retire.

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I am a vested employee planning to leave employment after 6 years of service. However, I am not old enough to retire. I am age 55. As a vested employee how old must I be before I am able to draw any benefits?

You could retire under the MSEP with a normal annuity at age 65 or under the MSEP 2000 plan with an early (reduced) retirement annuity at age 57 or normal retirement annuity at age 62. Print Friendly and PDF

One of your previous responses on a question about SB375 stated,

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One of your previous responses on a question about SB375 stated, if passed, MSEP 2000 member with at least 10 years of credit service would receive additional credit for qualifying military service. The last line stated: "this bill does not authorize a refund for previously purchased service." Could a current employee who has 10 years of service AND who had already purchased their military time, withdraw their purchase, so to speak, get a refund, and then qualify for SB375? I ask this because is does not seem right that just because an employee purchased time military time, at great financial hardship I might add, that others could follow and receive the credit without purchasing it. What is the current policy with MOSERS on someone who had purchased military time, but now wants out of that option?

Current law does not give MOSERS authority to allow members to withdraw previously purchased service and receive a refund. The law would have to be changed to include this authorization in order for us to refund your previously purchased service. The cost of the refunds for such previously purchased service would then be included in the fiscal information provided to legislators considering the cost of that proposal. At this point, SB 375 is still in the Pensions, Veterans' Affairs and General Laws committee. It was heard in committee on March 8, but has had no movement since then. Print Friendly and PDF

Is the fact that much of the Department of Mental Health's retirement costs are reimbursed by the federal government

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Is the fact that much of the Department of Mental Health's retirement costs are reimbursed by the federal government via interim payments and cost report settlements factored in when determining the net costs of proposed incentives?

No. MOSERS must report any cost increases, without regard to whether the funds are paid from federal funds, grants, special fees or any other source. However, the fiscal information prepared by the Committee on Legislative Research, Oversight Division, does separate the costs into the following categories (1) Estimated Net Effect on General Revenue funds; (2) Estimated Net Effect on Other State funds; and (3) Estimated Net Effect on Federal Funds. In this way the legislature does see the impact on general revenue by itself, as well as the impact on any other funds. Print Friendly and PDF

New Clarification - Do MOSERS initial pension benefits still increase

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New Clarification
Do MOSER'S initial pension benefits still increase by 4% per year for each year an employee continues to work full-time after his 65th birthday?

There is a special Cost of Living Allowance (COLA) for MSEP members who continue to work beyond age 65. (This provision is not applicable in the MSEP 2000.) Upon retirement, your monthly benefit will increase by the annual COLA rate between your 65th birthday and your termination date. For members who were hired prior to August 28, 1997, your annual increase is based on 80% of the change in the Consumer Price Index subject to a minimum of 4% and a maximum of 5%. Otherwise if you were hired on or after August 28, 1997, your annual increase is based on 80% of the change in the Consumer Price Index subject to a maximum of 5%. To qualify, you must meet the following requirements:
  • You must be fully vested at age 65 (at least 5 years of service with the state of Missouri)
  • You must be actively employed by the state of Missouri on your 65th birthday
  • You must retire under the MSEP
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New Clarification - If SB 375 and SB 466 pass,

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New Clarification
If SB 375 & SB 466 pass—would military time be used to compute “78 and out” or “80 and out"? I have 38 months of military time I am thinking about purchasing—if neither bill passes—would it qualify me for “80 and out” if the purchased time took me past the mark? I’m about 24 months shy if the bills don’t pass, and I can’t take an early out.

If SB 375 becomes law, the military service provided under that bill could not be used toward the incentive. However, members wishing to retire under the SB 466 incentive using the "Rule of 80" or the proposed "Rule of 78" could purchase military service under MSEP and use it as creditable service to help them meet MOSERS' retirement eligibility requirements. Given the complexity of your question, one of our Benefit Counselors will contact you personally to discuss the particular details of your situation to make sure we give you the best possible advice on how the acquisition of your military service may affect your retirement. Print Friendly and PDF

We have received numerous requests for updated information regarding SB 466 and the senate committee hearing on April 19, 2005. Rather than providing

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We have received numerous requests for updated information regarding SB 466 and the senate committee hearing on April 19, 2005. Rather than providing duplicate responses to similar questions, we are summarizing what took place at that hearing.
On Tuesday, April 19th, SB 466 was heard in the Senate Pensions, Veterans' Affairs and General Laws Committee. MOSERS’ staff attended the hearing to be available to provide technical comments or clarification, if needed. Senator Vogel presented the bill and stated that he planned to offer several amendments to the proposal in order to make the bill more cost-effective and to garner support for the proposal.

MOSERS has not received copies of a substitute or any of the amendments yet, but the key provisions that were discussed were (1) reducing the medical insurance subsidy from a maximum of 5 years to a maximum of 3 years; (2) eliminating the temporary Rule of 78 eligibility proposal; (3) eliminating the section that would have allowed unused sick leave to be considered for retirement eligibility during the window period; (4) changing the window period to include retirements with effective dates of June 1 through September 1; and (5) eliminating the annual leave payment provisions.

The Commissioner of Administration testified that the administration viewed the amendments as being positive but could not commit to support the legislation without additional financial information regarding the potential impact. He noted that this is not a pure savings to general revenue only. Many of the staff would be from federal or other funds and it cannot always be assumed that, by eliminating these staff, the state saves general revenue. In connection with the retirement incentive in 2003, the state had more staff by the end of the year than they had originally started out with before eligible employees retired. In a circumstance like this, the legislation would cost the state more money.

The committee did not take any action on the legislation so the bill is still in committee. In order for the legislation to move forward, the bill would have to be voted Do Pass out of committee, and placed on calendar for third reading (meaning a floor debate of the bill). In addition, the language could be added to another retirement related bill being considered by the full Senate. MOSERS has no way of knowing what the outcome will be; however, we will continue to monitor action related to this proposal and post updated information as it becomes available. Print Friendly and PDF

The summary of the bill SB 466 has a paragraph for the incentive for 80 and out and another paragraph for 78 and out.

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The summary of the bill SB 466 has a paragraph for the incentive for 80 and out and another paragraph for 78 and out. Each paragraph indicates a different incentive amount for health insurance. The 80 and out would be the cost as an active employee whereas 78 and out would be a 70% incentive.

SB 466 would, if enacted, allow employees who are otherwise eligible to retire and who do retire on or after the effective date of the act but no later than September 1, 2005, to continue medical coverage for the member and eligible dependents at the active employee rate for a maximum of five years or until becoming eligible for Medicare, whichever occurs first, at which time the rate reverts to the applicable retiree rate in place at that time.

The proposal also would allow employees, who would not otherwise be eligible, to retire under a Rule of 78 and further provides that unused sick leave may be used for retirement eligibility. As proposed, members retiring under the Rule of 78 may continue medical coverage for themselves and eligible dependents at 70% of the active employee rate for a maximum of five years or upon becoming eligible for Medicare, whichever occurs first, at which time the rate reverts to the applicable retiree rate in place at that time. This provision would apply only to qualifying employees who retire on or after May 1, 2005 but no later than September 1, 2005.

As stated in the summary above, Senator Vogel has indicated that he intends to amend the legislation to eliminate the 78 and out provisions in order to make it more cost-effective and garner support for the bill. Print Friendly and PDF

The prohibition of employment for two years is in the 78 and out paragraph. Does this mean a person taking the 80 and out health incentive can be re-e

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The prohibition of employment for two years is in the 78 and out paragraph. Does this mean a person taking the 80 and out health incentive can be re-employed part time?

SB 466 prohibits any employee making an election to retire under the incentive from being reemployed, including part-time employment, with any department for a period of two years (including employees of the colleges and universities). Print Friendly and PDF

One of the changes is the time frame for the incentive plan from June 1 to Sep 1 (rather than May 1 to September 1).

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One of the changes is the time frame for the incentive plan from June 1 to Sep 1 (rather than May 1 to September 1). I am eligible to retire on 10-1-05. Can I use annual or sick accrual leave to qualify for a month early retirement so I fit into the incentive plan window of time frame?

No. As stated in the summary above, Senator Vogel has indicated that he intends to amend the legislation to eliminate the provisions that would have allowed unused sick leave to be considered for retirement eligibility during the window period. Annual leave cannot be used for eligibility purposes. Print Friendly and PDF

I have heard that SB 466 has had several changes made to it recently. Where can you go on-line to see what SB 466 now looks like since all the changes

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I have heard that SB 466 has had several changes made to it recently. Where can you go on-line to see what SB 466 now looks like since all the changes
The changes to SB 466 were discussed in committee; however, we have not yet received any additional language. As always, you can follow the legislation under the joint bill tracking device available on the general assembly website at www.moga.mo.gov. Print Friendly and PDF

We have received several questions regarding the fiscal information filed on SB 466

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We have received several questions regarding the fiscal information filed on SB 466 and any potential cost savings that could be realized as a result of the incentive. Rather than providing duplicate responses to similar questions, the following summary provides information on how retirement incentives are evaluated.

The most reliable source of fiscal information and cost savings on SB 466 can be found at www.moga.mo.gov by clicking on the LR Fiscal Note Number in the upper right hand corner of the bill summary.

Generally, it is very difficult to speculate on cost savings realized as a result of retirement incentives since savings are largely dependent on permanent reductions in the workforce. Experience in other states indicates that most, if not all, of the positions that are vacated as a result of retirement incentives are eventually refilled resulting in higher retirement costs over the long term with minimal payroll savings.

However, given the current state fiscal constraints, the retirement incentive has been proposed as a means to further reduce payroll costs by encouraging those presently eligible for retirement or those nearing retirement to leave state employment. They must evaluate the likelihood of these positions being permanently removed from departmental budgets against the costs associated with the incentive. In addition, it is also important to remember that the state is still paying for 3 years of retiree medical subsidies related to the previous retirement incentive enacted in 2003. Print Friendly and PDF

I have been reading “Rumor Central”—Are SB 375 and SB 466 separate bills? Do they have an equal chance?

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I have been reading “Rumor Central”—Are SB 375 and SB 466 separate bills? Do they have an equal chance?
SB 375 and SB 466 are, in fact, separate bills. You can find bill summaries and copies of the bills at www.house.mo.gov/jointsearch/. Both bills have been assigned to the Senate Pensions, Veterans' Affairs and General Laws Committee. SB 375 was heard in the committee on March 8th and SB 466 was heard in the committee today, April 19th. Unfortunately, MOSERS staff has no way to determine whether a bill will pass or not. We encourage you to check the website above periodically to see if further action has been reported on either bill. Print Friendly and PDF

Would uncertified positions with school districts or community colleges be considered State employment?

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Would uncertified positions with school districts or community colleges be considered State employment?
The service you reference would most likely qualify as public employment, not state employment. It also may be service that was covered by a non-teacher's retirement system such as the Public School & the Non-Teacher School Employees’ Retirement System of Missouri. In either case, you may be able to purchase or transfer some or all of such public service to obtain additional service credit in MOSERS. You can find more information regarding this matter and an Application to Purchase Public Service Credit brochure here on our website. Please contact a Benefits Counselor at (800) 827-1063 to obtain more information about your particular other public employment. Print Friendly and PDF

I heard a rumor that SB 466 is going to die in committee and that the State has opted to just layoff employees instead of offering the early retiremen

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I heard a rumor that SB 466 is going to die in committee and that the State has opted to just layoff employees instead of offering the early retirement.

At this time, SB 466 is still in the Senate Pensions, Veterans' Affairs and General Laws committee. The bill was heard in committee on Tuesday, 4/19. The statement above is not attributed to any particular person, so we cannot verify it. We are not aware of anyone in the legislature or the administration who has announced that the bill will die in committee. Print Friendly and PDF

I'm still not clear on the BackDROP issue concerning SB 466.

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I'm still not clear on the BackDROP issue concerning SB 466. If a member is now eligible for 3yrs of BackDROP and retires during the "78 and out" provision, will another two years be added to the BackDROP, making the maximum of five years? Otherwise, the incentive seems to be to get members to retire two years earlier than the present "80 and out" with two years less benefits.

In order to currently be eligible for 3 years of BackDROP, a member would have to have been eligible to retire with a normal annuity 3 years ago. In that case, the member would not be eligible to retire under 78 & out since the member is already eligible for normal retirement. However, the member would still be able to participate in the incentive by virtue of being eligible for normal retirement. The incentive is designed to encourage members who are currently eligible to retire (or who would be eligible under 78 & out) to terminate employment and retire by providing them a significantly lower retiree medical insurance rate than would otherwise be available. The incentive would not provide any additional BackDROP service and also would not change the law that created the BackDROP in any manner. (For clarification of the impact of a “Rule of 78,” please note that it would only make members eligible one year earlier, not two years.) Print Friendly and PDF

I am able to retire Oct. 31 under the 80 and out rule. Should I send in my paperwork now in case

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I am able to retire Oct. 31 under the 80 and out rule. Should I send in my paperwork now in case the 78 and out rule becomes effective? Will I be eligible to retire under it if I already have my paperwork in?

Members who wish to take advantage of the possible retirement incentive must follow MOSERS' current application process. If SB 466 passes, members may retire under the incentive after the bill is signed into law until September 1, 2005. Members must be actively employed when the bill becomes law in order to qualify for the incentive. If enacted, the probable window period would include July, August, and September. Members wishing to retire in July must have their application to MOSERS by May 31. Those wishing to retire in August must have their application in by June 30, and September retirees must have their applications in by July 31. MOSERS can accept an application from a member who is not eligible for retirement as long as the member is eligible to retire by the first of the month in which the payment of the retirement benefit would commence. For instance, in the event you anticipated retiring under 78 and out effective July 1, you could file your application to retire now and use July 1 as your retirement date. If SB 466 becomes law in its current form, you could retire under the 78 and out provision effective in July. If SB 466 does not become law (or becomes law but does not contain the 78 and out provision), you would not be eligible to retire on July 1 and your application would not be processed. In that event, you would need to reapply for an October 1 retirement date (assuming you are eligible to retire on that date under 80 and out) by filing another application with the system by August 31. Print Friendly and PDF

Assuming that I retire effective June 1, 2005 and the bill is signed in the middle of June, since that window is April 1 till Sept. 1, will my insuran

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Assuming that I retire effective June 1, 2005 and the bill is signed in the middle of June, since that window is April 1 till Sept. 1, will my insurance go back to what it would have been?

The current language of the bill has an “emergency clause” which would make it effective the day the governor signs it into law. The incentive window would only be open from that date until September 1. Therefore, if SB 466 passes as currently drafted, and a member retires before the Governor signs the bill, that member is not eligible for the incentive. They would either have to postpone their retirement date until after the bill is signed, or they could retire June 1, and would not be eligible for the incentive, assuming the bill received gubernatorial approval the middle of June.

For further details on this subject, please refer to the posting on 4/7. Print Friendly and PDF

My question concerns SB375. I ask about the current understanding of what this bill really means.

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My question concerns SB375. I ask about the current understanding of what this bill really means. I spoke to a MOSERS representative who said that the bill was addressing only those military personnel who recently were called to active duty. However, the bill language states will be credited for all the years that person served in the military. The other language in the bill said that the service member must have been honorably discharged. As the call up to active duty a group of citizen solders who have not served long enough to be discharged. In its present state the bill seems to focus on a very small group. Will you clarify what this bill is about and the target group?

As the bill stands today, it only applies to MSEP 2000 members, meaning those employed after June 30, 2000. As for the specific intent of the bill, MOSERS can only speculate at this point, but we did give notice to the sponsor in the fiscal information we provided that the bill, as drafted, would not apply to members covered by the MSEP. However, if SB 375 were to pass, members who have military service that meets the same guidelines applied to our current military service acquisitions (transfers and purchases) would be eligible to receive credit for that service (includes all active service performed in the United States Army, Air Force, Navy, Marine Corps, Coast Guard, and members of the United States Public Health Service or any women's auxiliary thereof; and service in the Army national guard and Air national guard when engaged in active duty for training, inactive duty training or full-time national guard duty, and service by any other category of persons designated by the President in time of war or emergency). It also requires that members be honorably discharged. Short duration active-duty military service such as two-week summer camps in reserve forces may qualify. Print Friendly and PDF

I have insurance for my husband and myself. When you choose your insurance coverage the system sets it up for a year's coverage

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I have insurance for my husband and myself. When you choose your insurance coverage the system sets it up for a year's coverage (January through December). When you reach 65 (like if it is in April, which is my husband's situation) does the insurance amount change at that point or are you obligated for the entire year at the amount/coverage you selected?
Also when you turn 65 does the insurance amount change so that you pay only the supplement?

We received the following information for members who have health insurance through the Missouri Consolidated Health Care Plan (MCHCP):

The insurance plan a subscriber has when (s)he retires is the one the subsriber keeps for the remainder of the calendar year. The subscriber can continue their spouse's coverage when (s)he retires. When either the subscriber or the spouse become 65 the premium rate will change to reflect Medicare coverage (please refer to the next paragraph). The subscriber can terminate coverage on either himself or herself or on their spouse (the spouse cannot be covered unless the subscriber is) at any time. However, after retirement, if (s)he terminates coverage on herself and/or her husband (s)he can never re-enroll.

At 65 a retired member's MCHCP plan becomes secondary to Medicare and premium rates are adjusted accordingly. The MCHCP plans are coordinated with Medicare so the member needs to sign up for Medicare Part B prior to her/his 65th birthday. The member can refer to the MCHCP Enrollment Guide which shows rates with and without Medicare.

If you have other questions about MCHCP benefits, please contact them at (800) 487-0771 or mchcp@mchcp.org.

Note: If you have health insurance through the Dept. of Conservation or through any of the regional colleges and universities, contact your Human Resource department for further information on this question. Each of those plans may have different rules and regulations regarding this issue. Print Friendly and PDF

I understood the original bill stated that a retired employee could not return for 24 months after retirement if the bill passed. Is this still part o

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I understood the original bill stated that a retired employee could not return for 24 months after retirement if the bill passed. Is this still part of the bill?

SB 466, in its original form, would have prohibited employees who take advantage of the proposed incentive from working for the state in any capacity for twoyears following their retirement date. The substitute for SB 466 contains the same provision. Print Friendly and PDF

It is difficult for me to understand what the cost of SB 466 would be by reading the fiscal note.

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It is difficult for me to understand what the cost of SB 466 would be by reading the fiscal note. What would the cost to MOSERS or the state be to make the change from Rule of 80 to Rule of 78 over that three-month period?

If the 78-and-out provision put an individual into BackDROP status, would the BackDROP be available?

Cost of 78 and out: As written, there would be approximately 6,400 employees eligible to retire under the proposed legislation. Of those employees, 1,200 would not qualify under rule of 80 but would qualify under the 78 and out provision.

It is difficult to estimate how many employees will actually retire during this window. If 30% of those eligible retire, and 50% of those positions are filled, the estimated cost would be approximately $13,630,000 per annum. This would translate into an increase in the present contribution rate of 12.59% of payroll to 13.67% of payroll (an increase of 1.08% of payroll).

BackDROP: An employee retiring under the 78 and out provision would not be eligible for the BackDROP. To qualify for retirement under the 78 and out provision, the employee would first become eligible for normal retirement, and have to actually retire, during the temporary window.

To qualify for the BackDROP, an employee must work at least two years beyond the date first eligible for normal retirement. Since the employee would first become eligible and retire during the temporary window, the employee would not be eligible for the BackDROP. Print Friendly and PDF

Is MOSERS aware of any plans being proposed to change or eliminate the BackDROP? If so, what and when?

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Is MOSERS aware of any plans being proposed to change or eliminate the BackDROP? If so, what and when?
No, we are not aware of any such plans. To our knowledge, no legislation has been drafted proposing elimination of the BackDROP. Print Friendly and PDF