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