At the present time our unused sick leave can be applied at a certain formula towards years of service in figuring our benefit.

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At the present time our unused sick leave can be applied at a certain formula towards years of service in figuring our benefit. How would an employee pursue enactment of the following option: in lieu of applying unused sick leave towards a monthly benefit, the unused sick leave would be figured in dollars at the current salary and placed in an account to be applied towards the difference the retiree pays for medical insurance as a retired member vs. an active member. Would this require a legislative change or could the MOSERS Board enact such a change?
Your proposal would require a change in the law. The MOSERS Board has no authority to make such a change in plan provisions. Print Friendly and PDF

If a person wants to retire and is going to be 55 in the next calendar year (example 55 in June 2007), can they

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If a person wants to retire and is going to be 55 in the next calendar year (example 55 in June 2007), can they retire in 12/31/06 or do the have to wait until 1/31/07 to avoid the 10% IRS penalty? Is it the calendar year or a year from your birthday that matters? Could they have retired on July 1st 2006 because they are less than a year from 55 years old?
A person must separate from service during or after the calendar year in which they turn 55 to avoid the 10% tax penalty on a BackDROP payment. Therefore, if the member were to turn 55 in June 2007, separation from service would have to occur sometime after January 1, 2007 to avoid the penalty. Print Friendly and PDF

If you quit your state job before being eligible for “80 and Out,” when will you be able to retire?

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If you quit your state job before being eligible for “80 and Out,” when will you be able to retire? Also lets say your years of service are 29 years and you are 51, do you also get the temporary benefit until you are 62 or do you just get your base or are you even eligible for “80 and Out” at that age since you are not a state employee after you quit.
If you terminate employment after becoming vested but before becoming eligible for the “Rule of 80” (sometimes called “80 & Out”), your normal retirement date will be determined by the total amount of service you have. Members of MSEP may retire at age 60 with 15 years of service, or age 65 with 5 years of service. Terminated-vested members of MSEP may become eligible for the “Rule of 80” eligibility once their age and service equals 80. For example, if a MSEP member terminated with 25 years of service but before reaching age 55, they would be eligible for the “Rule of 80” at age 55. Then if that member elects to receive benefits under MSEP 2000, they would receive the temporary annuity until age 62.
Members hired on or after July 1, 2000 and who are covered by MSEP 2000 only must retire directly from active employment in order to qualify for the “Rule of 80” provision. Print Friendly and PDF

I heard that 80 and Out has now been reduced to 78 and Out. Is that correct?

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I heard that 80 and Out has now been reduced to 78 and Out. Is that correct?
No. The MOSERS Rule of 80 retirement eligibility provision, which you referred to as “80 & Out,” qualifies members with combined age and years of service equaling 80 or more for normal retirement (if they are at least age 48.) A change in this provision would require legislative approval. The 2007 legislative session will begin in January, at which time legislators may introduce retirement related bills. However, MOSERS is not aware of any legislative initiatives that would reduce the Rule of 80 to a different requirement, such as “78 & Out.” Print Friendly and PDF

When I retire, I plan to take a BackDROP. Is there a COLA when a retiree takes a BackDROP?

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When I retire, I plan to take a BackDROP. Is there a COLA when a retiree takes a BackDROP?
Yes. Members who elect the BackDROP at retirement will receive annual COLAs on their monthly retirement benefit (as well as COLAs applicable to the BackDROP lump sum payment). Print Friendly and PDF

Does an employee have to physically report to work on the day before retirement is to begin or may they take vacation that day?

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Does an employee have to physically report to work on the day before retirement is to begin or may they take vacation that day?
Each employing agency must determine their rules regarding physically reporting to work prior to retiring. Please contact your agency’s Human Resources department for further information. Print Friendly and PDF

Would you please explain: If an employee has worked for the state for 15-30 years and was an active employee

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Would you please explain: If an employee has worked for the state for 15-30 years and was an active employee under MOSERS benefits and he/she had an accidental death while being a current state employee that the spouse would start receiving retirement benefits within 30-60 days even though the member was not retired. At what point does the spouse start getting benefits? Vested at 5 years? Also what amount does the spouse receive--50%?
If you die as an active member with at least five years of credited service (vesting requirement), a survivor benefit will be paid to your eligible spouse or child(ren). Although survivor benefit payments begin the first of the month following the date of the member’s death, they are not automatic. Each eligible benefit recipient must submit an Application for Survivor Benefits with the required documentation. Once MOSERS receives and processes the application, the monthly benefits would begin (including possible retroactive payments to make the account current).
To be eligible, your surviving spouse must be married to you on your date of death. The monthly benefit for your spouse will be based on the benefit you have accrued as of your date of death and calculated according to the Joint & 100% Survivor Option. The survivor benefit will be payable for the remainder of your spouse’s life.
If there is no eligible spouse (or the spouse’s benefit is no longer payable), a total of 80% of your monthly base benefit will be paid to your natural or legally adopted child(ren) under the age of 21. If there is more than one eligible child, the benefit will be divided equally among them. The survivor benefit for each child will stop when they become age 21 (unless a child is totally disabled) with their portion then divided among any remaining eligible children.
If the member’s death is determined to be duty-related, there is no minimum service requirement. The benefit is calculated in the same way as described above, but the benefit amount will not be less than 50% of the member’s average monthly compensation. Print Friendly and PDF

Just wondering why state retiree's can't get their retirement checks on the last working day of the month like the regular State Employee's do, wheth

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Just wondering why state retiree's can't get their retirement checks on the last working day of the month like the regular State Employee's do, whether it is direct deposit or not?
Monthly benefit payments for retirees are made on the last working day of each month. Therefore, if retired members participate in direct deposit program, their benefit will be deposited into their account on the last working day of each month. If a retiree receives paper checks, checks are mailed from MOSERS on the last working day of each month. Please allow time for mail service to deliver checks to your home.
For several years, active state employees have been required to receive their paychecks through direct deposit only. In June 2006 the state implemented a system change that requires active state employees to also receive expense payments through direct deposit only. MOSERS encourages all retirees to consider the advantages of receiving your benefit payment through direct deposit. Direct deposit is secure and convenient, and you receive your benefit payment automatically on the last working day of each month. Find more information in our Direct Deposit brochure.
The following is the 2007 Benefit Payment Schedule:
January 31
May 31
September 28
February 28
June 29
October 31
March 30
July 31
November 30
April 30
August 31
December 31
Retirees on direct deposit will have their benefit payments deposited to their accounts on those dates. Pay stubs are available to retirees on the secure area of our web site. Over 90% of our benefit recipients receive their payments by direct deposit thus eliminating problems that may result from mail delays or theft. If you are not on direct deposit please consider signing up for that service. Print Friendly and PDF

As I understand it Senate Bill 1065 was submitted last year to allow MOSERS members that are at least 48 years old

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As I understand it Senate Bill 1065 was submitted last year to allow MOSERS members that are at least 48 years old and will be eligible for "80 and out" in two years, the opportunity to buy their last two years of service with the state and retire. I understand it did not get voted on last year. Will it be brought up again and will MOSERS support the bill?
The 2007 legislative session will begin in January. Legislators can file bills any time after December 1 and MOSERS’ staff will begin reviewing all legislation at that time. We have no way of predicting whether or not a similar proposal will be offered for consideration again in 2007. MOSERS’ staff would, as required by law and the constitution, provide cost information to the legislature for their use in evaluating the proposal if it is filed in the next legislative session. Very few legislative proposals requiring additional appropriations have passed in recent years. Print Friendly and PDF

There has been some downsizing in state government in recent years and I've seen some senior staff,

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There has been some downsizing in state government in recent years and I've seen some senior staff, within 3 or 4 years of 80 and out retirement eligibility, being let go. Would MOSERS consider allowing employees in these situations to retire early or buy their last few years of service?
A change such as the one you have requested that MOSERS consider would require a change in the law and, therefore, cannot be authorized by MOSERS’ board and/or staff. Print Friendly and PDF

How does MOSERS establish COLA dates for retirees? Is there a difference (for example) if I were to retire May first as compared with July first of t

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How does MOSERS establish COLA dates for retirees? Is there a difference (for example) if I were to retire May first as compared with July first of the same year, under the MSEP2000 plan?
 Annual COLA’s (cost of living allowances) under the MSEP 2000 (and the MSEP) occur on the anniversary of your retirement. In other words if you retired in October, your COLA will occur each year during that month. If you elected the BackDROP option, your COLA will occur on the anniversary of your BackDROP date each year. You will be notified during that month with a Retiree Statement indicating just how much your increase will be. The rate is set each year in January and is the same for the entire calendar year regardless of the month in which you retire. 
For more information on MOSERS’ COLAs, please visit the COLA page on the Retired Member section of our website. Print Friendly and PDF

I am of poor health and have been able to 80 and out for a couple of years, is it possible to go on disability and also draw my retirement?

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I am of poor health and have been able to 80 and out for a couple of years, is it possible to go on disability and also draw my retirement?
 No, MOSERS members cannot receive disability and retirement benefits at the same time. Members who are already eligible for normal retirement are no longer eligible to apply for disability benefits. Members who apply and are approved for long-term disability under MOSERS are only eligible for those benefits until they reach normal retirement age. At the time members on disability reach eligibility for normal retirement their disability benefits end. MOSERS notifies members who are receiving disability benefits when they are nearing their normal retirement and helps them with the transition from disability to regular retirement.
If you have further questions about either MOSERS long-term disability or retirement benefits, please visit the corresponding pages on our website (link provided), or contact a benefit counselor at (800) 827-1063.
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Is the state getting another pay increase this year?

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Is the state getting another pay increase this year?
MOSERS does not play a role in decisions regarding state pay raises.
Historically, pay plan recommendations have been initiated in the Governor’s budget message presented to the legislature in connection with the State of the State address by the Governor in mid-January each year. During the legislative session (January – May) the legislature considers all appropriations bills, including those pertaining to salary, and may approve, revise or remove the Governor’s recommendations from the budget approved by the legislature. The Governor must then sign or veto the appropriations bills. Print Friendly and PDF

I have heard a rumor regarding the merger of MODOT Employees’ Retirement System into MOSERS. Is this being considered? Would this be good or bad for

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I have heard a rumor regarding the merger of MODOT Employees’ Retirement System into MOSERS. Is this being considered? Would this be good or bad for MOSERS?
Legislation was filed during the 2006 legislative session regarding a possible merger of the MoDOT and Patrol Employees Retirement System (MPERS) and MOSERS. The legislation did not pass. Several proposals were considered but the one introduced would have required the MOSERS board of trustees to take over the administration of MPERS. Under that proposal, the cost and services to MOSERS members would have remained fairly close to what they are currently (although MOSERS administrative expenses would have increased slightly) and MPERS employees would have benefited from the range of services that MOSERS provides such as mid-career planning, pre-retirement planning, publications, automated systems, etc. The sponsor of the legislation indicated that the bill was introduced to avoid duplication of effort and minimize costs to the taxpayers. The MPERS board opposed this bill. The MOSERS board did not take a position on the consolidation proposal offered last year.
We do not know if consolidation will be proposed again this year. The MOSERS board and staff will review any such proposal to determine whether the proposal would have a positive, negative or neutral effect on MOSERS members. We can’t determine whether a proposal is “good or bad for MOSERS” until we see how the bill is drafted. Print Friendly and PDF

I’m looking at some information that MOSERS sent out under Payment Options.

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I’m looking at some information that MOSERS sent out under Payment Options. It said if you receive a payment before you reach age 59 1/2 and you do not roll it over, you may have to pay an extra 10% of the taxable portion of the payment in addition to regular income tax. It also said the additional: 10% tax does not apply to your payment if it is paid to you because you separate from service after age 55. So does this mean you do not pay the 10% penalty, or does it just mean you don’t hold it out of the payment?
A member who both separates from service and elects the BackDROP cash option during or after the year they turn 55 would not be subject to the 10% penalty. However, MOSERS is not responsible for withholding the extra 10% in cases where it is applicable. Print Friendly and PDF

The following questions pertain to returning to work after retiring under MOSERS.

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The following questions pertain to returning to work after retiring under MOSERS.1. How are the 1,000 hour limits calculated for retired state workers returning for part-time employment?2. Is it calculated on a calendar year, fiscal year, or employee anniversary year?3. What triggers an employee to lose retirement benefits in regards to exceeding the 1,000 hr limit?4. What is the statute number, business rules, or MOSERS policies that pertain to this?
It’s somewhat of an over simplification to simply refer to this as a “1,000 hour limit.” Under sections 104.380 RSMo and 104.1039 RSMo, if a retiree becomes an “employee” once again, the benefit they are receiving is frozen and they earn additional service credit as long as they continue being an “employee.” It’s important to understand that an “employee” is defined in Sections 104.010.1(20) and 104.1003(13) of the Revised Statutes of Missouri as:
“Any person who is employed by a department and is paid a salary or wage by a department in a position normally requiring the performance of duties of not less than 1,000 hours per year…”
Therefore, the 1,000 hour limits are based on the position under which a retiree returns to work. If the position normally requires duties taking at least 1,000 hours per year, then it is deemed to be what we commonly refer to as a “benefit eligible position.” This is determined by each employing agency.
If the position is deemed benefit eligible by the employing agency, then a retiree’s benefits would stop while so reemployed. If the position is deemed non-benefit eligible, then a retiree’s benefits would continue while reemployed.
MOSERS relies on employing agencies to report whether or not reemployed retirees are in benefit eligible positions. The method by which employing agencies make that determination may involve a number of factors but ultimately the 1,000 hours limit is the most important factor that agencies must consider. Any retiree who wants to return to work in a non-benefit eligible position should make sure the agency has made that determination before accepting employment in that particular position.
MOSERS retirees wishing to return to work should refer to the reemployment page on the Retiree portion of our website. Information listed there describes benefit eligible positions, non-benefit eligible positions, and reemployment covered by the Highway and Transportation Employees’ and Highway Patrol Retirement System and the University of Missouri Retirement System. Print Friendly and PDF

Is there a % penalty for individuals retiring after age 59½?

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Is there a % penalty for individuals retiring after age 59½?
There is no tax penalty that applies to members who begin receiving monthly retirement annuity payments from MOSERS at any age. However, if you receive a lump sum cash payment such as the BackDROP payment before you reach age 59 ½ and you do not roll it over to a traditional IRA or another eligible employer plan, you may have to pay a penalty equal to 10% of the taxable portion of the payment in addition to the regular income tax. Print Friendly and PDF

I guess I missed something. What does the "Select a Date" issue concern?

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I guess I missed something. What does the "Select a Date" issue concern? I am a recent retiree, and I understood that COLA's would be received by retirees also. What about the 4% raise?
Not to worry. The 4% raise mentioned in our previous “Select a Date Estimate” question (posted on 8/21/06) affected active state employees only, and addressed the salary increase active employees received in July 2006. The annual COLA paid to retirees is totally separate from and unaffected by the pay raises received by active employees.
Our “Select a Date Estimate” featured on the secure portion of our website allows active members to select a future date at which they may wish to retire, and then view personal benefit estimates based on that selected date. Print Friendly and PDF

How will the new pension law passed by Congress and signed by the President affect retirees?

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How will the new pension law passed by Congress and signed by the President affect retirees? One provision that I have read says that the new law will allow retirees from public service to pay for their healthcare premiums with pre-tax dollars from their pension checks up to $3,000 so long as the money is paid directly to the insurer. Will MOSERS retirees be able to take advantage of this provision? Thank you.
 The pension law will allow eligible members of MOSERS who are retired public safety officers to elect to exclude from gross income certain distributions made from an eligible retirement plan to pay qualified health insurance premiums. The exclusion is limited to the aggregate amount of actual annual premiums paid, up to $3,000. To be eligible, the premiums must be paid directly by the retirement plan to the insurance provider. Premiums paid directly to the retiree would not be eligible.
We are presently reviewing the new federal law to determine which positions may be included in the definition of public safety and how the system will implement this new provision. This may involve seeking clarification from the IRS.
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Are juvenile officers and deputy juvenile officers eligble for BackDROP?

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Are juvenile officers and deputy juvenile officers eligble for BackDROP?
Juvenile court employees (including juvenile officers and deputy juvenile officers) who are employed in positions covered by MOSERS are eligible for BackDROP if they meet the statutory eligibility requirements.
Please contact a MOSERS Benefit Counselor at (800) 827-1063 to determine whether or not you are eligible for the BackDROP and, if not, how long you would need to continue in service in order to be eligible. Print Friendly and PDF

If a person chooses four years of BackDROP and has one year of sick leave, how is the BackDROP figured?

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If a person chooses four years of BackDROP and has one year of sick leave, how is the BackDROP figured? Will the year using sick leave be based on the first year of BackDROP or last year? Will a COLA amount be added to the BackDROP year accrued due to sick leave days for future benefits?
The amount of your sick leave has no bearing whatsoever on your BackDROP date or the length of your BackDROP period. Sick leave simply adds service for use in calculating the monthly benefit payment but has no bearing on your eligibility date. In essence, it will increase your monthly benefit and your lump sum BackDROP payment but will not change anything related to eligibility.
A MOSERS Benefit Counselor can assist you by providing benefit estimates and individualized information about the BackDROP. Please contact a Benefit Counselor at (800) 827-1063 for more information. Print Friendly and PDF

RUMOR CENTRAL'S MAIN FOCUS

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RUMOR CENTRAL'S MAIN FOCUS: Retirement, Life Insurance and LTD benefits
When we initiated Rumor Central last year we were not sure what to expect. By almost any measure, your reaction to the availability of such a service has been both rewarding and a little overwhelming. Rewarding in the sense that we sincerely appreciate being recognized as a source of prompt, accurate, and reliable information; and a little overwhelming in the sense that we have been receiving an increasing number of questions that are unrelated to the retirement, life insurance and long-term disability programs we administer. With regard to the latter issue, we do our best to forward such questions to the responsible agencies but we cannot respond on their behalf.
In order to help us be as responsive as possible to your Rumor Central submissions, we would appreciate it if you could restrict your questions and comments to issues that are related to our areas of responsibility. We are fully committed to continuing to provide you with a means of promptly securing factual information about your MOSERS administered retirement, life insurance and long-term disability programs.
We appreciate your continuing interest and understanding.
Contact information that may be helpful to you with the types of inquiries we have been receiving that are not related to MOSERS administered benefits follows:
Deferred Compensation (CitiStreet):
CitiStreet's website
Phone: (800) 392-0925
Missouri Consolidated Health Care Plan (MCHCP):
MCHCP's website
Phone: (800) 487-0771
If you do not have MCHCP health coverage, please contact the Human Resources representative for your department for questions regarding your health care coverage.
For pay issues (salary information, overtime policies, etc.), please contact the Human Resources representative for your department.
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Like many other baby boomers, the biggest deterrent to retirement is the need for continued health insurance to get us up to being Medicare eligible.

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Like many other baby boomers, the biggest deterrent to retirement is the need for continued health insurance to get us up to being Medicare eligible.
I heard there has been talk (or a suggestion or a proposal . . .) something whereby State Employees can retire at aged 62 and receive some consideration for retaining their State health care benefits at the same (?) co-pay which we pay as a regular State employee. Any truth to this? What exactly is offered for a person who retires at age 62?
MOSERS does not administer health care benefits, so we asked the Missouri Consolidated Health Care Plan (MCHCP) if they are aware of any such legislative proposals. At this point, no such proposals have been discussed with MCHCP.
Health care coverage and premiums for retirees at age 62 varies, depending on the health care plan. Please contact your health care plan directly for that information:
  • MCHCP – (800) 487-0771
  • Dept. of Conservation – (573) 522-4115
  • Dept. of Transportation (MoDOT) medical – (800) 270-1271
  • Mo. State Highway Patrol (MSHP) medical – (573) 751-3313
  • Colleges and universities medical – contact your Human Resources office.
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If I qualify for and elect the BackDROP option at retirement, how much do you take off the top before I get it?

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If I qualify for and elect the BackDROP option at retirement, how much do you take off the top before I get it?
Depending upon how you choose to have your BackDROP payment distributed, up to 20% of the total may be withheld for Federal income taxes. For a detailed description of the BackDROP payment distribution options, including information on federal tax withholding and whether or not an early distribution penalty will apply, please review the BackDROP payment options on this website. Print Friendly and PDF

Does FASB have any implications for MOSERS? Do you have any sense that Missouri or other governmental agencies

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Does FASB have any implications for MOSERS? Do you have any sense that Missouri or other governmental agencies may be moving away from defined benefits plans towards defined contributions plans? If so, are there any rules that would apply to protect older workers? Thank you.
The Financial Accounting Standards Board (FASB) establishes standards of financial accounting and reporting for private sector organizations. The FASB standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants. The Governmental Accounting Standards Board (GASB) establishes standards of financial accounting and reporting for state and local government entities. MOSERS follows GASB guidelines in preparing the financial statements included in the system’s comprehensive annual financial report.
There is a movement in the private sector to terminate defined benefit plans in favor of defined contribution plans or, in some instances, cash balance plans, as means of cutting benefit costs and shifting the risks associated with maintaining a retirement plan from employers to the employees. As a result of this activity, combined with recent media coverage surrounding the funding problems of a few public sector defined benefit plans, some legislatures are considering plan design changes to their defined benefit structure.
The MOSERS retirement plan remains well funded and, to our knowledge, no consideration is being given to moving away from the state's defined benefit plan. There are provisions in state law that protect benefits that have already been accrued by employees (Section 104.540.1, RSMo); however, the state, as an employer, can modify the existing retirement plan through the legislative process -- such changes could apply only to future service accrued by state employees. Print Friendly and PDF

Now that Congress has passed legislation designed to address the financial viability of pension systems, what is the impact of that legislation on MO

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Now that Congress has passed legislation designed to address the financial viability of pension systems, what is the impact of that legislation on MOSERS?
The pension bill signed last week by President Bush primarily affects plans administered by the private sector so there is no direct affect on MOSERS. The new pension law tightens rules governing how companies fund their pension plans. As it relates to defined contribution plans, it will allow for automatic enrollment in a company-sponsored 401(k) plan, and will make it easier for sponsors to offer investment advice to plan participants. It also makes permanent the "saver's credit" which had been set to expire at the end of the year which gives qualifying taxpayers a credit for contributions made to a retirement savings plan. Print Friendly and PDF

I heard that there is 70 and out retirement. Is this true?

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I heard that there is 70 and out retirement. Is this true?
No. The current “Rule of 80” retirement provision, sometimes called “80 & Out,” allows vested members (who are at least 48 years old) to retire when their age and years of service equals 80. The “Rule of 80” provision has not been changed to a “Rule of 70.” Print Friendly and PDF

I have heard a rumor that the "80 and Out" rule for retirement is going to be done away with.

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I have heard a rumor that the "80 and Out" rule for retirement is going to be done away with. Is this true, and if so, at what age or years of service would a person retire from the state?
MOSERS is unaware of any plans to eliminate the “Rule of 80” retirement provision. Such a change would require action by the state legislature. The 2006 legislative session concluded in May, and legislation for the 2007 session cannot be pre-filed until December of 2006.
This rumor circulates several times every year. If any change were to occur to the current “Rule of 80” provision, MOSERS would notify members who would be affected by the change. Once the legislature convenes in January, you can track legislation at the Missouri General Assembly's website.
You can also sign up for Legislative Updates from MOSERS. To do so you will need to log into our secure website. (You will need to request a password, if you have not already received one.) Once you log in you can click on Email Options (under the Update Personal Info section) and select various items you would like to receive by email, including Legislative Updates. Print Friendly and PDF

How many hours of sick leave do you consider to equal one month of service?

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How many hours of sick leave do you consider to equal one month of service?
168 hours of unused sick leave equals 1 month of creditable service for use in computing the amount of your MOSERS benefits. (Please note that this service may not be used in establishing your eligibility for benefits.) Print Friendly and PDF

If you work until you have "82 and six months" and you elect to receive a two year BackDROP, are your benefits

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If you work until you have "82 and six months" and you elect to receive a two year BackDROP, are your benefits calculated using the date when you had "80 and six months," or is it calculated to when you had your "80?" In writing this, I think I have answered my own question and that benefits would be calculated for "80 and six months" or whatever month until you reach another year when you then have the option of electing an additional year's BackDROP. Right?
Assuming you would become first eligible under the “Rule of 80” as implied in your question, you would not actually be eligible for the BackDROP with a combination of service and age that equals 82 and six months. To qualify for BackDROP you must work at least two years past normal retirement. If normal retirement is under the “Rule of 80” and you work two more years you would have a total of 84—because you worked two years and aged two years.
Once you meet the 2 year requirement, you may elect BackDROP in full year increments (1, 2, 3, etc) or the maximum, which could be a number of years and months (not necessarily a full number of years, such as 2 years 6 months). For a detailed explanation of the BackDROP date and all BackDROP provisions please visit the BackDROP page on this website. Print Friendly and PDF

After I retire from the state of Missouri under MOSERS will I be able to substitute teach in the Kansas City School District? What about the Charter

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After I retire from the state of Missouri under MOSERS will I be able to substitute teach in the Kansas City School District? What about the Charter Schools in the Kansas City area?
Yes, you may work for any employer other than the state and receive a retirement benefit from MOSERS at the same time. Since the Kansas City School District is not a state agency and has its own separate retirement system, your MOSERS retirement benefit would not be affected. For more information on how reemployment affects your benefit payment, please see our General Employees' Retirement Handbook, page 27. Print Friendly and PDF

Having read the newsletter, questions are on my mind. I was delighted to learn about Rumor Central and hope you will be able to explain more to me ab

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Having read the newsletter, questions are on my mind. I was delighted to learn about Rumor Central and hope you will be able to explain more to me about my benefits.
1) RE Survivor Options - Have I read the newsletter correctly? In order for my spouse to receive benefits after my death, then I must choose 60, 120 or 180 months? In other words, I would not receive benefits until my death if it were to exceed this period of time?
2) If I were to take a job outside of Missouri State Government before retirement, then would I still be eligible for benefits from the state when I do retire? I understand that the actual benefit is determined by my years of service. (I am already vested.)
Thanks for your time, and, for clarifying these confusing issues!
1) To answer your first question regarding survivor options, you have several options to choose from other than the guaranteed payments in order to provide your spouse with a survivor benefit. You cited our article entitled “Guaranteed Payment Options” from the Summer 2006 PensionsPlus. In the article we talk about the Guaranteed Payment Options, regarding which many members are not familiar. These options are most often used by members who are not married, but who wish to provide a survivor benefit for a person or organization upon their own death.
Most married members wanting a survivor benefit for their spouse choose one of the Joint & Survivor Benefit Options, the Joint & 50% or the Joint & 100% Survivor Options, which provide a lifetime benefit of 50% or 100% of a member’s benefit to their spouse, respectively. For more information, see the survivor options section of your General Employees' Retirement Handbook.
Regardless of the survivor option you select at retirement, be assured that you will receive your monthly retirement benefit each month for your entire lifetime. However, the Joint & Survivor options and the Guaranteed Payments options do result in a cost to the member. Your retirement benefit will be reduced in order to provide these survivor benefits after your death. For more information on this, view page 24 of the General Employees' Retirement Handbook, or contact a benefit counselor at (800) 827-1063.
2) As for your second question, vesting is the only requirement for MOSERS benefits. As long as you are vested, you may terminate employment with the State of Missouri in a MOSERS covered position, obtain a job elsewhere, and still be eligible for MOSERS retirement benefits once you reach the appropriate age and service eligibility requirements. The actual retirement benefit is based on the years of service and the salary earned during those years.

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When will the 'select a date' estimates be adjusted to reflect the 4% raise employees just received? The

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When will the 'select a date' estimates be adjusted to reflect the 4% raise employees just received? The increased pay will increase the FAP used in the calculation for retirement.
MOSERS loaded the July 2006 SAMII payrolls on 8/10/06, so any increases effective in July 2006 will now be reflected in our "Select a Date Estimates" under your personal information on our website. Print Friendly and PDF

Is there any legislation pending to help pay costs of LTC insurance for retired MO state employees? Thank you.

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Is there any legislation pending to help pay costs of LTC insurance for retired MO state employees? Thank you.
The 2006 legislative session concluded in May, and bills for the 2007 session cannot be pre-filed until December of 2006. No long term care insurance legislation (for active or retired state employees) was filed in the last session.
Since many of the benefit programs for employees are administered by the Office of Administration, we asked the OA Division of Accounting if they knew of recent activity in this area. There has been no legislative activity regarding this benefit in the past few years. One obstacle has been difficulty in finding thorough coverage at a reasonable price, particularly for retired members. Print Friendly and PDF

I understand the Deferred Compensation Plan has switched to CitiStreet as the plan administrator and that

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I understand the Deferred Compensation Plan has switched to CitiStreet as the plan administrator and that employees are now being charged a fee that is higher than what PEBSCO used to charge.
The deferred compensation plan is administered by the Office of Administration, Division of Accounting, so we asked them to respond to your question. Their response follows:
"It is important to understand that in the business of Deferred Compensation, all third-party administrators charge a fee. The only difference is how the fee is charged and communicated to the participants. The Commission was concerned that PEBSCO’s fee was not clearly communicated, and they wanted the new third-party administrator to give participants a clear picture of exactly what was being charged.
PEBSCO’s (Nationwide) fees were generated based on the difference between what the annuity investment earned and what was credited to each individual. In other words, if the fixed annuity increased in value by 10%, PEBSCO would only credit the value of your account 8%. The difference, sometimes called the spread, was retained by PEBSCO.
PEBSCO also received additional revenue from the mutual funds in the form of reimbursements for services that funds include in their expense ratio. Most mutual funds agree to provide a reimbursement to the third-party administrator, so the participant will not be double charged for services like sending out statements and educating participants about features of the mutual fund.
As you can see, PEBSCO was compensated for their efforts even though it may not have been visible to participants. One of the primary reasons for bidding the contract was to provide a fixed investment which fully disclosed the vendor’s fees.
CitiStreet will be charging a flat fee to administer the Plan. The CitiStreet contract sets a maximum fee of $56 per participant. However, this amount will be offset each year by reimbursements received by CitiStreet from the mutual fund companies. The result is that this year, each participant will be charged 3 dollars per month. This fee covers the cost of the local customer service office, mailings, booklets, recordkeeping etc. To put that number in perspective; the fee equates to approximately 1 ½ months of the state match. Your participant statement will now clearly show the fee that has been charged. The Commission is convinced that participants will have a substantial cost savings as a result of the CitiStreet and ING contracts.
It is important to understand that the fee paid to CitiStreet is a fixed amount. As Plan assets grow it is expected that reimbursements from mutual funds will increase, therefore reducing participant administrative fees. This fee replaces the 17 hundredths of 1% fee that was previously announced." Print Friendly and PDF

Do officials such as the CLERK of the CIRCUIT COURT who are in a position to dock an employee's pay receive any form of compensation

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Do officials such as the CLERK of the CIRCUIT COURT who are in a position to dock an employee's pay receive any form of compensation or kickback at any time for such action? Are Deputy Clerk's supposed to receive over time pay?
Please contact your agency personnel office for information regarding these questions. MOSERS is not involved in personnel or payroll issues so we are not able to give you specific information on these subjects. The contact person for the courts on these issues is Tammy Giesing and you can contact her at (573) 526-8809 or at Tammy.Giesing@courts.mo.gov Print Friendly and PDF

At the local University where my husband is employed, they have now started having all new faculty contribute to TIAA CREF

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At the local University where my husband is employed, they have now started having all new faculty contribute to TIAA CREF and the new folks are not covered under MOSERS. My question is, if a faculty member who is covered under MOSERS retires, would it affect his retirement if he were to be rehired as "new" faculty and went under the TIAA CREF retirement plan?
The plan you referenced is the College and University Retirement Plan (CURP). It is currently administered by TIAA CREF. To qualify for the CURP a person must have never been employed in a position covered by MOSERS. Consequently, if a MOSERS covered employee retires and is then reemployed in a benefit eligible position with a participating university, they would again be an active member of MOSERS and not be a participant in the CURP. If a MOSERS retiree returns to work in a MOSERS benefit eligible position, retirement benefits are suspended for the duration of the reemployment. When the person again retires, payment of the initial benefit is resumed and an incremental benefit is paid based on the salary and service during the period of reemployment. Print Friendly and PDF

MOSERS has received several questions regarding a Missourinet report which

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MOSERS has received several questions regarding a Missourinet report which cites unfunded retirement plans in Missouri. The article is referring to retiree healthcare costs, which are unrelated to MOSERS.
We have addressed your concerns in a new website feature found on our homepage, and also by answering the questions listed below.
Question 1: I have heard recently on the news that Missouri's retirement system may be as much as 1.32 billion short in funds for the near term. First of all, is this true? And secondly, if so, how will this shortfall affect my retirement benefits?
Question 2:A recent article from the local radio station states that "our government retirement plan for tens of thousands of former government workers in MO face a financial crunch within months. State and local governments have only a few months to determine how much it will cost to pay for the benefits promised to their employees who have retired... or who will retire... in the next several decades. Budget officials say the state's unfunded liability is about 1.3 billion dollars. New federal rules will require the legislature to put about 40 million dollars a year into its budget for at least 20 years to make sure promised benefits are met." What does this mean to state employees and is this true?
Question 3:Several of my co-workers stated that they heard a news blurb on the local radio station on July 6, 2006 (KTJJ, Farmington, MO) about changes to the state retirement fund. Some of their statements really scare me. Can you help by repeating the information given in the news release as I have been unable to find it.
Question 4:There is an article on the Missourinet, by Bob Priddy with the title: "Unfunded Government Retirement Plans Could Be Billions Short." Would you please address that article in relation to the funding for MOSERS? Is MOSERS in trouble and to what extent?
MOSERS' Response:
The radio report you mentioned was referring to retiree health care costs, and is not in any way related to MOSERS’ funding. The MOSERS trust fund is stable and your future retirement benefits are secure. This issue, commonly referred to as Other Post Employment Benefits (OPEB), is a result of new accounting rules for government employers and is difficult to reduce to a short, easy-to-understand summary. Much of the publicity about this topic tends to confuse – and in this case concern – our members, as well as employees of other public agencies.
While MOSERS does not administer any of the state health care plans, we do understand that this is an important issue for public employers and for our members. We have posted a feature on our web site that provides more details about this issue. While this does not affect the funding of MOSERS in any way, it is a serious issue for the state and other governmental entities. The Office of Administration is working with the Missouri Consolidated Health Care Plan (MCHCP) and other agency health care plans to address these new accounting rules.
The article that prompted these questions may be accessed by clicking on the link below. Given some of the statements that were made, the false interpretation by some of our members is understandable. Once again, this story is totally unrelated to MOSERS and has nothing to do with the security of your retirement benefits.
Link to Missourinet Article
We hope the feature article on our website will provide you with a general understanding of OPEB. As noted in the article, we will provide additional information on this important issue through our website and in future newsletters as further information becomes available. Print Friendly and PDF

Is it true that once you have retired from one Missouri retirement system, such as the Public School Retirement System,

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Is it true that once you have retired from one Missouri retirement system, such as the Public School Retirement System, you cannot work for another Missouri department, such as Conservation, without losing your retirement benefits? Are all these systems the same?
All Missouri retirement systems are NOT the same. If you retire under MOSERS and return to work in a MOSERS covered position, your benefits will be stopped while you are employed.
If you retire under a state system (MOSERS or MPERS) and return to work under any other Missouri retirement system, your MOSERS benefit would be unaffected. If you retire from the Public School Retirement System (PSRS), as you noted above, you can then go to work for the Department of Conservation without losing your retirement benefit from PSRS.
Be sure to contact a benefit counselor at your retirement system prior to your retirement and discuss any plans that you have regarding re-employment. Print Friendly and PDF

One way to help with the high cost of health insurance for the retiree would be for MOSERS, the CAFETERIA PLAN and MCHCP to work together

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One way to help with the high cost of health insurance for the retiree would be for MOSERS, the CAFETERIA PLAN and MCHCP to work together so that the retirees’ health insurance premium could be deducted as pretax dollars. Just imagine how much in taxes a retiree would save on each month's benefit check if that were possible. Cafeteria Plan savings run about 20% to 25%. On a $500 dollar a month health insurance premium this would save the retiree approximately $100 to $125 each month.
Active state employees have this option now, and their rates are no where near as high as those that retirees pay. This could be a great savings for retirees, but not affect what MCHCP would receive to cover the premium. Only tax dollars would be affected.
Please give this careful consideration.
The Cafeteria Plan that you refer to is governed by federal law (Section 125 of the Internal Revenue Code), and therefore cannot be modified by state law. Federal law specifically limits these provisions to active employees only. Your comment that “only tax dollars would be affected” is at the heart of this issue, since your proposal would reduce federal revenue. We are not aware of any recent proposals to change federal law by expanding these provisions to include retirees. Print Friendly and PDF

On the back cover of the Spring 2006 PensionsPlus magazine there is a short article entitled

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On the back cover of the Spring 2006 PensionsPlus magazine there is a short article entitled "In more ways than one...It pays to be Healthy." This article goes on to say that although unused sick leave cannot be used to reach your drop back eligibility date, if a person is 2 years past there 80 and out date, unused sick leave will be used to determine both your monthly retirement benefit and your drop back benefit.
The article then gives the example of someone with 1600 hours of unused sick leave. The article shows that after dividing the 1600 hours by 168 the resulting 9 months would be added to both your longevity and to the time used to determine your drop back. My understanding of this article is if, for example, a person had worked 2 years past their 80 and out date and had 2 years of drop back and 29 years of longevity and they had enough hours to have 12 months of unused sick leave, the result would be a monthly benefit based on 31 years of longevity and a BackDROP payment based on 3 years of BackDROP .
Is this correct? Does unused sick leave count towards your BackDROP payment? If not, what was the article in the Pensions Plus magazine saying about unused sick leave and BackDROP?
Unused sick leave is only used in calculating the amount of your benefit, not in determining your eligibility for benefits. In your example, you would still have only two years of BackDROP, but the amount of your lump sum and monthly benefit would be slightly higher as a result of your unused sick leave. Print Friendly and PDF

Is some State body going to stand good to make up for the fiasco that the Deferred Comp committee perpetrated

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Is some State body going to stand good to make up for the fiasco that the Deferred Comp committee perpetrated on the state employees? Due to the change in third party administrators, the people with deferred compensation accounts may lose 3.7% of account value for a market valuation adjustment. It seems that the "MVA" (Market Value Adjustment) was clearly written as a part of the Nationwide contract. Nationwide's return of the MVA to the account holders may not occur. Is seems to me that the Deferred Comp commission is culpable. There is even talk about kickbacks to the commission for the change. What actions will be taken to replace the account holders’ money withheld as MVA?
The deferred compensation plan is administered by the Office of Administration, Division of Accounting, so we asked them to respond to your question. Their response follows:
The changes in third party administrator to CitiStreet and of the fixed annuity to ING were both part of an open procurement process administered by OA Division of Purchasing. To suggest that anyone acted other than in accordance with their fiduciary responsibility is irresponsible.
Whether Nationwide is entitled to a MVA and in what amount is a legal matter being pursued by the Attorney General’s Office.
Regarding participant fixed annuity accounts, ING has assured us that they will be able to maintain the book value of participants’ accounts while we pursue our legal remedies against Nationwide to recover the money.
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Is the Health Care Incentive Bill or a variation of it likely to be reintroduced and if it is, when? While I am eligible to retire now,

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Is the Health Care Incentive Bill or a variation of it likely to be reintroduced and if it is, when? While I am eligible to retire now, I would like to have that incentive before I do because many of our former retirees say that the cost of health care takes too much of their already meager checks.
The 2007 session does not begin until January of next year, and legislation can be pre-filed in December. At that time, new bills may be introduced in either the House or Senate, possibly including a healthcare or retirement incentive. However, MOSERS has received no indication that such a bill will be introduced next year. While we understand members’ interest in legislation that may be introduced next year, there is no way for MOSERS or anyone else to know at this time what bills may be filed. Print Friendly and PDF

Is retirement income based upon the 3 highest salary years or the final 3 years, assuming 80 and out, as to amount of monthly draw? Thank you.

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Is retirement income based upon the 3 highest salary years or the final 3 years, assuming 80 and out, as to amount of monthly draw? Thank you.
MOSERS members’ retirement benefit is based on the average of the highest consecutive 36 months of salary, wherever it may fall during your MOSERS covered service. If a member is eligible for and elects the BackDROP option, it will be based on the average of the highest consecutive 36 months of salary prior to the BackDROP date. Print Friendly and PDF

If a person is looking at early retirement, under the old plan (hired prior to 1997), I understand that the person would take a loss

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If a person is looking at early retirement, under the old plan (hired prior to 1997), I understand that the person would take a loss in original benefit of .5% for each month prior to normal retirement date. However, would that person get the 4% raises each year beginning a year after retirement, the same as the normal retirement folks do under the old plan?
Also, could you explain the 65% cap - how that dollar amount is figured for an individual retiree? Is that 65% of your average compensation while you were working?
You are correct in your assumption that a member who is eligible for early retirement (reduced benefits) will have their base benefit reduced by 0.5% (0.005) for each month their age at retirement is younger than their normal retirement age. All MSEP retirees who were hired prior to 8/27/97 are guaranteed a minimum 4% COLA regardless of whether they retired with a normal or early retirement benefit. The guaranteed minimum COLA will continue until the accrued COLAs reach 65% of their initial benefit. For example, if a member's original benefit was $1,000, they could continue receiving annual COLAs of 4% until the COLAs equaled $650.00 (65% of $1000 = $650.00) for a total of $1,650. Assuming a 4% COLA rate, this will happen in approximately 13 years. Once the COLA "cap" is reached, the annual COLA will be based on 80% of the increase the Consumer Price Index (CPI). In any case, the maximum COLA is 5%. See page 26 of the retirement handbook for further details on the COLA.
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What date is used for determining early retirement reductions to MSEP? Early reductions do not seem to be related

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What date is used for determining early retirement reductions to MSEP? Early reductions do not seem to be related to the date one is first eligible for full retirement benefits or "normal retirement" under MSEP. Which retirement date, MSEP or MSEP2000 or other retirement date, is used for termination of long term disability?
Early retirement reductions are based on the date first eligible for normal retirement based on the member's service at termination. For example, if an MSEP member terminated with 15 years of service, they would be eligible for normal retirement at age 60 under the MSEP. If they choose to begin receiving their benefit before age 60, it would be reduced by 0.5% for each month between their actual date of retirement and age 60. For example, if this person elected to begin receiving benefits at age 59 there would be a 6% reduction in the benefit. (12 months at 0.5% per month = 6%.) Please see the
Retirement Handbook for more detail.
If a member is currently a member of the MSEP, their first normal retirement date in the MSEP will be used to determine the termination of LTD coverage. If they are a member of the MSEP 2000, then their first normal retirement date in the MSEP 2000 will be used. Print Friendly and PDF

Hello, I have 29 months of BackDROP and I am just wondering, should the BackDROP ever be discontinued while I am still employed,

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Hello, I have 29 months of BackDROP and I am just wondering, should the BackDROP ever be discontinued while I am still employed, will I still receive the money or will the time be converted into or added to service time? Thanks.
We have no way to predict whether the BackDROP provisions will remain in law or be changed by future legislation. However, we are not aware of any proposals to change or eliminate the BackDROP as a retirement option for MOSERS members.
If any such legislation were to be introduced in a future session of the General Assembly, MOSERS would notify those members who would be affected. Any such legislation would need to stipulate whether or not the proposal was for the BackDROP to be eliminated prospectively only or completely. In the absence of legislative language, we can’t offer any guidance as to how you might be affected.
Rumors about the potential for the BackDROP provision being eliminated have resurfaced every year since it became law. Gary Findlay, MOSERS’ executive director, addressed the BackDROP elimination rumor and one other rumor in a letter to members in February 2004. The information in that letter is still relevant today. You can review the original letter here. Print Friendly and PDF

How long do you receive a state retirement pension once you retire?

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How long do you receive a state retirement pension once you retire?
Once a MOSERS member begins receiving benefits, he or she will receive a monthly benefit for the remainder of his or her life. (The only exception would be in a case were the retiree returns to work in a MOSERS covered position. In that case, the benefit would be suspended until the person was no longer actively employed in a MOSERS covered position, at which point payment of the original benefit would resume and an incremental benefit would be paid for the amount accrued during reemployment.) Print Friendly and PDF

After I retire, do I still have $5,000 life insurance at no cost?

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After I retire, do I still have $5,000 life insurance at no cost?
While actively employed you have life insurance coverage equal to one times your annual pay (which is tripled in the case of a duty related death.) Current MOSERS members who retire within 60 days of leaving state employment will have $5,000 of basic life insurance coverage while retired with the premium for that coverage paid by the state. If you have optional coverage on yourself while actively employed, you will also want to become familiar with the provisions applicable to continuing optional coverage once you retire. Print Friendly and PDF

The 2006 legislative session came to an end on Friday, May 12 at 6 pm.

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At the session’s close, no bills passed affecting MOSERS retirement benefits nor did the proposed health care related retirement incentive pass.
Thank you for your continued interest in Rumor Central. MOSERS has a vested interest in answering your retirement related questions and it has been our pleasure keeping you informed during this legislative session. We will continue to provide Rumor Central to you while the legislature is out of session. If you have “I heard” or “Is that true?” questions, feel free to submit them to Rumor Central. If you have specific questions regarding your individual benefits, please contact a benefit counselor at (800) 827-1063. Print Friendly and PDF

On my benefit statement, I see two categories, MSEP and MSEP 2000. What is the difference and what are the qualifications for MSEP 2000?

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On my benefit statement, I see two categories, MSEP and MSEP 2000. What is the difference and what are the qualifications for MSEP 2000?
The Missouri State Employees’ Plan (MSEP) and the Missouri State Employees’ Plan 2000 (MSEP 2000) are the two retirement pans available to MOSERS members hired prior to July 1, 2000. At time of retirement these members will elect the plan under which they wish to retire. Those members who were hired in a MOSERS covered position on or after July 1, 2000 are automatically members of the MSEP 2000 and will retire under the provisions of that plan. For further information on the differences between the two plans, please read the Comparison of MSEP & MSEP 2000 Benefit Provisions, or contact a benefit counselor at (800) 827-1063. Print Friendly and PDF

I am currently eligible for 3 ½ years BackDROP. I understand if I retire before age 55, the BackDROP I am eligible for will be reduced by 10%. Is thi

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I am currently eligible for 3 ½ years BackDROP. I understand if I retire before age 55, the BackDROP I am eligible for will be reduced by 10%. Is this correct?
The manner in which your BackDROP distribution is calculated is completely independent of your age at retirement. However, if you do retire before age 55 and take a BackDROP distribution and do not roll it over to an IRA or other tax favored plan, it will be subject to a 10% premature distribution penalty imposed by federal tax law. Print Friendly and PDF

Will state workers receive pay raises July 1, 2006?

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Will state workers receive pay raises July 1, 2006?
Will state employees have to pay more for insurance?
Will Registered Nurses who are state employees receive pay raises July 1, 2006?
Please contact your agency personnel office for information regarding these questions. MOSERS is not involved in pay or healthcare issues so we are not able to give you specific information on these subjects. However, we do know that the Governor’s Office is in the process of reviewing all state appropriations bills, as well as all other legislation. Potential pay raises are included in those bills and must be signed by the Governor before any salary increases can be announced. Generally, the Governor’s office and/or the Office of Administration will notify agencies about state employee pay raises after the Governor signs the appropriations bills. Print Friendly and PDF

Are retirement benefits changing & how are they changing?

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Are retirement benefits changing & how are they changing?
The 2006 legislative session closed on Friday May 12, and no retirement-related bills were passed. Consequently, there are no changes to report. Print Friendly and PDF

Is there a “75 & Out” going to be offered?

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Is there a “75 & Out” going to be offered?
We have not heard of any plans to change the current “80 & Out” benefit provision. Print Friendly and PDF

I have already worked two years beyond retirement eligibility so I could retire now and would qualify for the BackDROP.

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I have already worked two years beyond retirement eligibility so I could retire now and would qualify for the BackDROP. I plan to work three more years so that when I retire I will qualify for the maximum BackDROP payment. If I die before retiring will my surviving spouse be able to receive the BackDROP payment I would have been entitled to receive if I had retired on my date of death?
If a member who is eligible to elect to receive the BackDROP dies prior to retirement, the member's surviving spouse will not be eligible to receive the BackDROP. However, the law automatically provides a Joint & 100% Survivor option to a qualified surviving spouse of a member who dies prior to retirement. In order to take advantage of any other payment option, including BackDROP, a member must retire and elect the specific option desired. Print Friendly and PDF

I was told that if you choose to take the BackDROP (a lump sum) when you retire that you give up the right to a 4% COLA

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I was told that if you choose to take the BackDROP (a lump sum) when you retire that you give up the right to a 4% COLA thru the rest of your retirement. Someone said you only got a 2% Cost of Living Adjustment and someone said you did not get any. Is this correct? Thanks!
 Choosing the BackDROP as an option at retirement will not affect your COLA. The COLA you will receive depends on the plan you choose at retirement, either the Missouri State Employees’ Plan (MSEP) or the Missouri State Employees’ Plan 2000 (MSEP 2000).
You will receive a 4% COLA if you:
  • Retire under the MSEP
  • Have not met your 65% COLA cap under the MSEP
You will receive a COLA based on 80% of the change in the Consumer Price Index if you:
  • Either retired under the MSEP 2000 or were hired on or after August 27, 1997 and retire under the MSEP
  • Have reached your 65% COLA cap under the MSEP
For more detailed information about your choices, please contact a MOSERS benefit counselor at (800) 827-1063.
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At what point and under what provisions should I request that my vested service with the University of Missouri be transferred?

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At what point and under what provisions should I request that my vested service with the University of Missouri be transferred? Will I need to “buy” this service time from MOSERS? Is it treated the same as time in service in a state agency for the purpose of qualifying for the Rule of 80?
Vested service from the University of Missouri Retirement, Disability & Death Benefit Plan is transferable to your MOSERS service at no cost to you under certain circumstances. The general requirement is that you must have at least 10 years of MOSERS covered employment and retire under the MSEP 2000 plan. For further information, download a copy of our Acquiring Service Credit brochure, or contact a benefit counselor at (800) 827-1063. Print Friendly and PDF

What are the requirements to rollover prior service with LAGERS to MOSERS? Is this possible under certain circumstances without purchasing the time?

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What are the requirements to rollover prior service with LAGERS to MOSERS? Is this possible under certain circumstances without purchasing the time?
If you are vested in LAGERS:
If you are vested in LAGERS, you must also be vested with MOSERS in order to transfer your LAGERS service. In this case, the transfer will be of no cost to you under section 105.691, RSMo. However, the amount of service that will be transferred for free will be less than the total amount of your LAGERS service because the amount of your LAGERS service that is credited in MOSERS is based on the actuarial cost of that service in MOSERS (it won’t be a day for day transfer). You may then elect to purchase any remaining service from LAGERS that was not credited in MOSERS after the transfer for an additional cost, which may be significant.
In addition, there is another provision in the MSEP 2000 under section 104.1090, RMSo, that would permit a member who retires under that plan to transfer all of the member’s service in another public plan to MOSERS if the member has at least 10 years of service in the MSEP 2000 and the other retirement system (in this case LAGERS) is willing to transfer the pension benefit obligation associated with the member’s service in the other plan to MOSERS. However at this time, the board of trustees at LAGERS has elected not to make such transfers so this option is not currently available to you.
If you are not vested in LAGERS:
If you are not vested in LAGERS, you may elect to purchase up to four years of your LAGERS service to be added to your MOSERS service at a reduced cost under section 104.344, RSMo. In order to do so, you must be actively employed and vested with MOSERS. Any additional service beyond the first four years purchased at a reduced rate may be purchased at an additional cost under section 105.691, which may be significant.
For purchase/transfer applications and additional information, download a copy of our Acquiring Service Credit brochure or contact a benefit counselor at (800) 827-1063. Print Friendly and PDF

In the event we do receive the 4% cost of living raise this year, how long will it be before the retirement calculations

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In the event we do receive the 4% cost of living raise this year, how long will it be before the retirement calculations will be updated using the new amount of pay. I am interested in seeing what the change would mean a year down the road as far as retirement benefit and BackDROP.
The July payrolls won't be reported to MOSERS until around August 10th. At that point, any retirement estimates for future dates will include increased July salary projected forward to the date of retirement. However if you elect the BackDROP, the monthly benefit payable on your actual retirement date is based on your final average pay at the time you became eligible for normal retirement. If you became eligible for normal retirement prior to July 1, any increase in salary after that date would not be considered when calculating your final average pay under the BackDROP program. For further information regarding your specific situation, please contact a benefit counselor at (800) 827-1063. Print Friendly and PDF

Does leave without pay count as service for vesting in MOSERS?

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Does leave without pay count as service for vesting in MOSERS?
No. Only valid leaves such as a leave due to illness or military leave would count toward vesting. It’s a good idea to review your leave with a human resource representative or a MOSERS benefit counselor to be certain about your specific situation.
For further information on how a leave would affect your MOSERS benefits, read our Summer 2005 PensionsPlus article entitled “MOSERS Benefits and Changes to Your Job Status”, or contact a benefit counselor at (800) 827-1063. Print Friendly and PDF

Section 2 of the perfected SB 748 (retirement incentive) mentions receiving credit for unused sick leave to count as time served,

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Section 2 of the perfected SB 748 (retirement incentive) mentions receiving credit for unused sick leave to count as time served, in order to achieve ones’ 80 and out. Does the unused sick leave only count to acquire the 80 total, or can it increase the total, giving one more than 80 years in age and time served? Thanks.
We apply unused sick leave to increase the amount of a member’s service credit in all cases which in turn increases the amount of the member’s monthly benefit. However under SB 748, unused sick leave could also be used to help a member qualify for 80 & out retirement eligibility (normally, unused sick leave cannot be used to qualify for retirement eligibility). Print Friendly and PDF

In your response to a question about SB1065 (a service credit purchase provision) you stated there would be a substantial cost

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In your response to a question about SB1065 (a service credit purchase provision) you stated there would be a substantial cost to the state if this bill was passed. That got me to wondering what the cost to the state is for BackDROP?
The BackDROP was designed to be a cost-neutral payment option allowing retirees to receive a lump sum payment at retirement in exchange for a reduced ongoing monthly benefit. Retirees electing the BackDROP receive a lump sum payment equal to 90% of the life income annuity the retiree would have received had he or she retired on the BackDROP date. Factors offsetting the cost of the lump sum payment include the 10% that stays with the system and the fact that the system has been earning investment income on 100% of the benefit which was not being paid out while the employee was still working.
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We have heard a rumor that we are going to receive a 4% raise for the following school year. Is this correct or not? State school #12.

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We have heard a rumor that we are going to receive a 4% raise for the following school year. Is this correct or not? State school #12.
Unfortunately, we can’t give you a “yes or no” answer at this point. It was recently reported in news outlets that on April 12, 2006, the Senate appropriations committee approved its version of the state budget for the next fiscal year. It is our understanding that both the House and Senate appropriations committees have accepted the Governor's recommendation on the pay plan, which was a 4% increase for most state employees. However, appropriations bills are not final yet and the legislature has until the evening of May 5 to approve all appropriations bills. After that, the bills go to the Governor. Generally, the Governor will approve or veto appropriations bills some time in June. Print Friendly and PDF

I understand a retiree member receives $5,000 life insurance. How much is the cost for an additional $10,000?

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I understand a retiree member receives $5,000 life insurance. How much is the cost for an additional $10,000?
The cost depends upon the age of the retiree and is based on the same rate schedule that applies to active members. In order to continue $10,000 of optional life, the member must have at least that much while he or she was actively employed and must retire immediately upon leaving employment. You can check optional life rates on our website and use the Optional Life Insurance Calculator to calculate premiums on other amounts of coverage. The rate schedule for $10,000 of coverage follows:
Ages Semi-Monthly Monthly Annual
50-54 $ 2.40 $ 4.80 $ 57.60
55-59 $ 4.20 $ 8.40 $ 100.80
60-64 $ 6.60 $ 13.20 $ 158.40
65-69 $ 11.00 $ 22.00 $ 264.00
70 & Over $ 19.40 $ 38.80 $ 465.60
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Under SB748, if you elect to retire under that incentive, you are prohibited from working for the State in a full and/or part time capacity.

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Under SB748, if you elect to retire under that incentive, you are prohibited from working for the State in a full and/or part time capacity. What about an hourly and intermittent position (H & I)? Is this considered part-time work and also prohibited if you elect to retire under SB748? Thanks – this is a great forum for answers to questions we have!
If passed and signed into law, the provisions of SB748 would prohibit “any employment with any department” and that would apply to any level of employment. In other words, hourly and intermittent employment would also be prohibited. Print Friendly and PDF

Senate Bill 748, which is currently under consideration by the General Assembly, states that if an employee retires

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Senate Bill 748, which is currently under consideration by the General Assembly, states that if an employee retires under the provision of the bill, they are precluded from working for the state for three years from the date of retirement. Would this stipulation apply if the retiree could provide consulting services to a state agency and therefore be paid from expense and equipment (E & E) funds rather that personal service funds?
If passed and signed into law, the provisions of SB748 would prohibit “any employment with any department” and that would apply to any level of employment. In other words, consulting employment paid through E & E would also be prohibited. The source of the funds is not relevant. Print Friendly and PDF