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