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

Posted on
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

Posted on
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.
Print Friendly and PDF

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.

Posted on
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?

Posted on
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
Print Friendly and PDF

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.

Posted on
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

Posted on
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

I know that the cost of living adjustments are based on the computation allowable by statute. My question that I hope you can shed light on is

Posted on
I know that the cost of living adjustments are based on the computation allowable by statute. My question that I hope you can shed light on is, what is the philosophical thinking that allows only 80% of the CPI? I am trying to imagine a scenario of living for 25 years beyond retirement and an average 4% CPI for each year. This scenario would evidence the actual cost to live increasing by 100% yet the retiree only getting 80% of that increased cost to exist. As most retirees are living on reduced incomes anyway, why was it necessary to effectively “reduce” their retirement check each year? Lastly, would it be theoretically possible for retirees and soon-to-be-retirees to pressure the legislators to change the statutes or is this an accepted “national” trend? Thanks for offering this Q & A service.
 We don’t have historical information available that tells why the legislature at that time decided to set the COLA at 80% of the CPI. However, one consideration could be that COLAs for active employees are not always provided each year, and those increases have not always kept pace with inflation. The current law provides for an annual COLA for retirees so, unlike raises for active employees, the amount of the retirees’ COLAs is not determined through the appropriations process. An additional factor is the cost associated with increasing the COLA. An increase in the COLA is a benefit increase for all retirees. The general assembly in recent years has not been inclined to increase the liabilities of the retirement system, in part because that causes an increase the amount of contributions that the state must pay into the system to fund the benefit increase. In these times of tight budgets, legislators would have to take that into consideration. Finally, more and more comparisons are being made between private sector and public sector employees – the common condition in the private sector is for retirement benefits to have no COLA at all. Given a 4% CPI, at the end of 25 years a one dollar benefit with no COLA would be worth 37 cents whereas with the MOSERS’ COLA it would be worth 82 cents.
Print Friendly and PDF