I have just heard that the backdrop is supposed to end 07-2008 and you have to call and set up a date to retire and get it frozen in. If you don't fr

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I have just heard that the backdrop is supposed to end 07-2008 and you have to call and set up a date to retire and get it frozen in. If you don't freeze in your retirement date no later than 07-2008 then you would lose your backdrop. Tell me this isn't true!
This isn’t true. Elimination of the BackDROP provision would require a legislative change. The law regarding the BackDROP does not have an end date. We are not aware of any interest having been expressed by legislators or the administration in removing or changing the BackDROP option as it currently exists. Print Friendly and PDF

I understand that a person earns a COLA for the back drop years taken. If a person takes a drop back for 3 years and 10 months, will the additional C

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I understand that a person earns a COLA for the back drop years taken. If a person takes a drop back for 3 years and 10 months, will the additional COLA be lost for the 10 months because it was not a full year? Is the COLA only added for full year increments?
If you elect the BackDROP, you will earn a cost-of-living allowance (COLA) each year on the anniversary of your BackDROP date. For example, if the BackDROP date you elect is May 1, you will earn a COLA each year on May 1. The COLA is an annual benefit provision that begins during the BackDROP period and continues for as long as you are receiving a benefit payment from MOSERS.

The COLA for the 10 months is not lost; however, it will not be included in your BackDROP distribution. Since the COLA is an annual benefit adjustment, the lump sum BackDROP distribution you receive at retirement will be shy of the next annual COLA by two months. Print Friendly and PDF

Has anything been heard about the possibility of the state offering the 5 year insurance break for health insurance like they did 5 years ago?

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Has anything been heard about the possibility of the state offering the 5 year insurance break for health insurance like they did 5 years ago?
The 2008 legislative session begins January 9. Once the legislature convenes, you can track legislation at the Missouri General Assembly’s website. At this time, MOSERS is not aware of any proposed legislation that would provide a retirement incentive. The Missouri Consolidated Health Care Plan (MCHCP) administers the medical, dental, and vision coverage for eligible state employees. Any questions regarding legislation affecting medical benefits should be directed to MCHCP at (800) 487-0771. Print Friendly and PDF

I had 13 years of service with state when we moved to Michigan, I want to get an estimate of retirement benefits from MOSERS, but the web site appears

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I had 13 years of service with state when we moved to Michigan, I want to get an estimate of retirement benefits from MOSERS, but the web site appears to not allow such a request, please advise. I left service with state of Missouri on Nov 1, 1993. Thank you.
Personalized benefit estimates are available on our website to members who are:
- Actively employed in a MOSERS benefit eligible position
- Vested, but no longer working for the state (terminated-vested)
To produce a benefit estimate by using our website, you must have a password. The password allows you to gain secure access to your personal information.
To Request a Password:
1. Click on this
Request a Password link.
2. Provide the personal information as requested.
3. Click on “Submit.”
If your email address matches our records, your password will be emailed to you within 10 minutes of submitting your request.
If you do not provide an email address, or the email address you provide does not match our records, a password will be mailed directly to your home address within 3-5 business days.
To Produce a Benefit Estimate:1. Click on this
Member Login link.
2. Read the disclaimer and click on “Login” at the bottom of the page.
3. Enter your social security number or Member ID where indicated.
4. Enter your password where indicated.
5. Click on “Submit.”
6. Click on “Select a Date Estimate” from the menu and follow the instructions to produce an estimate.
Other ways to request a benefit estimate:- Complete an
Information Request form and send it to MOSERS.
- Contact a benefit counselor at (800) 827-1063.
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A lady, that’s retiring in March, told me that if you accept backdrop money, it will lower your monthly retirement amount $$$$$$$$. I’ve never heard t

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A lady, that’s retiring in March, told me that if you accept backdrop money, it will lower your monthly retirement amount $$$$$$$$. I’ve never heard this before. Is it accurate?
Yes – that is accurate. 
When you elect the BackDROP option, you are basically saying you want your retirement benefit to be computed as if you had retired at an earlier date (the BackDROP date) when you would have had less service credit than you actually have when you retire and when your final average salary would probably have been lower than if computed at the time of your actual retirement.
Your monthly benefit will be equal to what you would have been receiving if you had retired on the BackDROP date (which would include any cost of living adjustments paid since that date) and be based on the option you elect when you actually retire.
In exchange for taking the lower monthly benefit, you will, at retirement, receive a lump sum payment equal to 90% of the total monthly benefits you would have received between your BackDROP date and the date you actually retire (the BackDROP period) assuming you elected the life income annuity at the BackDROP date.
In order to qualify for the BackDROP you must continue in service for at least two years beyond the date you first become eligible for normal retirement. When you do retire you may elect a BackDROP period that is the lesser of (1) five years or (2) the period between when you actually retire and the date you first became eligible to retire. When you apply for retirement you will be notified of the various alternative BackDROP periods for which you qualify and the financial ramifications of each.
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It is my understanding that under MSEP 2000, a member is entitled to a temporary benefit multiplier of 0.8% per year of service until the age of 62.

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It is my understanding that under MSEP 2000, a member is entitled to a temporary benefit multiplier of 0.8% per year of service until the age of 62. If I retire at 63 years old and request 5 years of BackDROP, will the temporary benefit multiplier be used for the calculation of my BackDROP amount? If so, how will that be calculated?
To be eligible for the temporary benefit, you must be less than age 62 and retire in the MSEP 2000 under the “Rule of 80.” The formula for calculating the temporary benefit is:
Final Average Pay x .008 (.8%) x Credited Service = Temporary Benefit
If you elect the
BackDROP, your monthly retirement benefit will be calculated using your final average pay and creditable service as of your BackDROP date. Assuming you became eligible for retirement at age 58 (under the “Rule of 80”) and continued working 5 more years, the temporary benefit will be used in calculating that portion of your BackDROP amount up to age 62.
At age 62, the temporary benefit and any cost-of-living allowances (COLAs) earned on that amount stop. In other words, the BackDROP amount from age 62 to age 63 will not include the temporary benefit. When you actually retire (at age 63), your monthly benefit payments will not include the temporary benefit.

One of the great features of our website is the facility for members to get personalized benefit estimates. Log in using your MOSERS password, then click on “Select a Date Estimate.” This self-guided calculator provides pertinent first eligible dates, or your may select a different retirement date.
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A rumor is starting in THE DEPT.OF REVENUE, that state employees might be offered an early retirement. Some say 70 and out or 78 and out again, with i

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A rumor is starting in THE DEPT.OF REVENUE, that state employees might be offered an early retirement. Some say 70 and out or 78 and out again, with insurance being paid. Is there any truth to this rumor? THANKING YOU FOR YOUR TIME.
We are not aware of any legislative initiatives that would reduce the Rule of 80 to a different requirement, such as “70 & Out” or “78 & Out.” The MOSERS Rule of 80 retirement eligibility provision, which is sometimes referred to as “80 & Out,” qualifies members with combined age and years of service equaling 80 or more for normal retirement (if the member is at least age 48). A change in this provision would require a law change.
Rumors of this nature seem to circulate every year. If any changes 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.
For your convenience, you can sign up to receive Legislative Updates from MOSERS. To do so, you will need to log into our secure website.
1. Go to
www.mosers.org.
2. Click on “Member Login” and sign on using your MOSERS password.
3. Click on “Email Options” and select the type of updates you would like to receive via email.
The
Missouri Consolidated Health Care Plan (MCHCP) administers medical, dental, and vision coverage for eligible state employees. Any questions regarding legislation affecting medical benefits should be directed to MCHCP at (800) 487-0771. Print Friendly and PDF

I have taught in the school system in Missouri and worked for the state -- can the years be combine to calculate 80 and Out?

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I have taught in the school system in Missouri and worked for the state -- can the years be combine to calculate 80 and Out?
There are several provisions that govern the transfer or purchase of creditable service. If you have non-vested service with PSRS or PEERS (formerly NTRS), you may purchase up to 4 years of creditable service to be added to your MOSERS service credit. If you are already vested in PSRS or PEERS, there is a separate provision to handle the transfer or purchase of that credit. You can find more information in our Acquiring Service Credit brochure. Service credit that is purchased or transferred from another system does count toward eligibility for retirement under the Rule of 80.
REMINDER: The purchase or transfer of prior service credit must be completed before you apply for retirement. Print Friendly and PDF

Is there a date when Backdrop will no longer be an option? Someone said the bill that was signed for Backdrop had an end date. Is this true? How co

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Is there a date when Backdrop will no longer be an option? Someone said the bill that was signed for Backdrop had an end date. Is this true? How could I find a copy of this bill?
Elimination of the BackDROP provision would require a legislative change. The law regarding the BackDROP does not have an end date. We are not aware of any interest having been expressed by legislators or the administration in removing or changing the BackDROP option as it currently exists.The BackDROP provision is in Sections 104.625 and 104.1024.6 of the Revised Statutes of Missouri. These provisions were included in Senate Bill 371, which was signed into law on July 13, 2001. The BackDROP became effective January 1, 2002. Click here for a copy of the bill.
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Are there short and long-term disability benefits provided by the state. If I am out with open heart surgery for several weeks, will there be short te

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Are there short and long-term disability benefits provided by the state. If I am out with open heart surgery for several weeks, will there be short term benefits for me?
As an employee of the state, you may earn sick leave that can later be used when you are ill and cannot report to work (subject to the provision for sick leave usage established by the appointing authority for your agency). Sick leave for eligible state employees is accrued at the rate of 10 hours per month (15 days per year) and there is no limitation on the amount that may be accrued in total. This benefit provides you with income during periods of absence due to illness. There is no additional short term disability benefit.
Contact the Human Resources office for your department for more detailed information about your benefits during your absence. Print Friendly and PDF

I would like to retire in August of 2008. I was wondering when the retirement seminar schedule would be posted for the new year.

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I would like to retire in August of 2008. I was wondering when the retirement seminar schedule would be posted for the new year.
The 2008 seminar schedule will be posted on our website in January. It will also be available in the winter Pensions Plus newsletter, which you should receive in late December. By the end of December we will mail a PreRetirement Seminar brochure containing the 2008 schedule and registration form to all active members who are within 5 years of retirement eligibility.
All other active members will receive a Money Matters brochure in the mail. Print Friendly and PDF

I cannot remember my password, and am having no luck retrieving it, as my email address is a Yahoo account. I called the 800 number, and was informed

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I cannot remember my password, and am having no luck retrieving it, as my email address is a Yahoo account. I called the 800 number, and was informed that Yahoo treats your emails as spam and sometimes trash. I wish to make sure my life insurance benefits stay the same, but cannot wait the three to five days to receive my pin in the mail...Please advise.
It has come to our attention that Yahoo sometimes treats emails from MOSERS as spam. To correct this problem, simply add MOSERS’ email address (mosers@mosers.org) to your safe sender list. This will allow you to receive future emails from MOSERS.
The procedure for handling password requests was developed with your protection in mind. Passwords are computer generated - no record is kept. MOSERS staff has no way of looking up your password, which means passwords cannot be given over the phone.
If you have forgotten your password, log on to our website and request that your password be emailed. Within 10 minutes, your password will be sent to the email address on file.
To request a password for the first time, log on to
www.mosers.org and click on the Request a Password button in the lower left corner of our home page. A password will be mailed to you within 3-5 working days. Print Friendly and PDF

Are retirement benefits subject to cost of living raises each year?

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Are retirement benefits subject to cost of living raises each year?
Yes. MOSERS’ retirement benefits are subject to an annual cost-of-living allowance (COLA) for the retiree’s lifetime. For general state employees in the MSEP 2000, the annual COLA rate will be equal to 80% of the change in the Consumer Price Index (CPI). By law, the annual COLA rate cannot be greater than 5%, nor less than zero. Print Friendly and PDF

How do you decrease your optional life insurance?

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How do you decrease your optional life insurance?
If you wish to decrease the amount of your optional life insurance coverage, you must complete an Enrollment/Change – Optional Life Insurance form and submit it to your HR representative. The HR representative will finalize the form, adjust your payroll deduction for the premium, and submit the form to MOSERS.
The decrease in coverage will become effective the later of: 1) the first day of the next pay period following the date the form was signed (if received by MOSERS within 31 days), or 2) the effective date indicated on the form. Otherwise, the decrease in coverage will be effective on the first day of the pay period following receipt of your enrollment/change form by MOSERS. Print Friendly and PDF

I am eligible for both public service time and veterans time. I know if I purchase 4 years of public service time I have to purchase it all at one ti

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I am eligible for both public service time and veterans time. I know if I purchase 4 years of public service time I have to purchase it all at one time, but where I have both public service and veteran time can I purchase one this year and the other in another year or so. Thanks.
Yes. You may purchase your active-duty military service now and your prior public service later (or vice-versa). It’s important to remember that the purchase or transfer of service credit must be completed before you apply for retirement.
If you elect to purchase your active-duty military service, you must purchase all that you had up to 4 years. Using a copy of your DD214, we will verify your active-duty dates of service and that you were honorably discharged.
There are different provisions available for acquiring prior public service. In general, the service must have been full time, public service (i.e. city, county, school district), rendered in Missouri.
Forms and detailed information regarding the purchase or transfer of service credit may be found in our
Acquiring Service Credit brochure. The brochure is available on our website, through your HR representative, and by contacting MOSERS. Print Friendly and PDF

I was using the benefits calculator on the web page and found a discrepancy between how the backdrop is calculated for MSEP vs. MSEP 2000.

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I was using the benefits calculator on the web page and found a discrepancy between how the backdrop is calculated for MSEP vs. MSEP 2000. In planning to retire in 2009 or 2010 with 29 or 30 years of service, my backdrop date was 2006 (rule of 80). The backdrop calculation for MSEP 2000 seemed to include the temporary benefit (.008 multiplier) provided by MSEP 2000 for retirees under 62. This gave as much as a $60,000 difference between the backdrops for the two systems. Can this be right? All the literature I have from MOSERS says the backrop is calculated the same way under both programs.
If you elect the BackDROP, you will receive a lump sum payment equal to 90% of the Life Income Annuity amount you would have received during the BackDROP period. This is the same in the MSEP and MSEP 2000.
The difference, in the two plans, is the multiplier used in the formula for calculating your monthly base benefit (MSEP multiplier – 1.6%; MSEP 2000 multiplier – 1.7%). Also, the temporary benefit will increase your benefit amount in the MSEP 2000 (temporary benefit multiplier -0.8%) until age 62, for a total of 2.5% up to age 62. It is possible for the BackDROP amount in the MSEP 2000 to be significantly more than the BackDROP amount in the MSEP.
MSEP Formula:Final Average Pay x .016 x Credited Service = Monthly Base Benefit
MSEP 2000 Formula:Final Average Pay x .017 x Credited Service = Monthly Base Benefit
Temporary Benefit Formula (if eligible under the MSEP 2000 plan):Final Average Pay x .008 x Credited Service = Temporary Base Benefit

It is a good idea to contact a Benefit Counselor at (800) 827-1063 prior to your retirement. The Benefit Counselor can explain the benefit calculations, as well as provide you with other information you will need before making your final retirement elections. Print Friendly and PDF

I want to be able to figure out when I can be eligible to retire through the 80 & out formula.

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I want to be able to figure out when I can be eligible to retire through the 80 & out formula. What is the formula and how do I use it? I'm 52 (7-18-54) and have 20 years of service as of April 2008 (started April 1988). When would be the earliest I'm able to retire?
The easiest way to find out when you will be eligible to retire is to use the Member Login feature on our website. Under the Personal Information heading, click on Select a Date Estimate. We’ve already done the work for you and your first eligible retirement date will be listed there.
If you need additional assistance, please contact a MOSERS Benefit Counselor at (573) 632-6100 or (800) 827-1063.
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How much sick leave can a person apply to years of service towards retirement?

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How much sick leave can a person apply to years of service towards retirement?
At retirement, you can earn one additional month of service credit for every 168 hours of unused sick leave you have remaining. Sick leave accrual is limited to 10 hours per month. Consequently, the maximum sick leave accrual is the number of months of actual service rendered multiplied by 10. Bear in mind that unused sick leave does not affect your eligibility for retirement so it will not allow you to retire any sooner; it can only increase the amount of your benefit.
We have received quite a number of questions about unused sick leave and retirement credit. We recently changed the Rumor Central site and you can now search by topic to see if your question has been answered previously. You can find all questions and answers related to unused sick leave here.
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I have heard from co-workers there is a rule removing the penalty if a cash payment is taken when retiring upon reaching age 58.

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I have heard from co-workers there is a rule removing the penalty if a cash payment is taken when retiring upon reaching age 58. In reviewing Rumor Central, I did not find a Q/A relating to age 58. I'm 55 with 5 years BackDROP. If I take a cash payment, what percentage of state or federal tax penalty is applied at retirement age 55 up to age 59 1/2? Also, thanks for all the great work MOSERS staff does in providing valuable information toward the decision process of retirement.
That depends on your age when you separate from service. If you are at least age 55 when you separate from service you may take the BackDROP payment at any time without it being subject to the 10% early distribution penalty. However, if you are younger than age 55 when you separate from service, a BackDROP payment taken before age 59 ½ would be subject to the 10% early distribution penalty unless rolled over to an IRA or another tax qualified plan. The withholding rate for federal income tax on BackDROP payments that are not directly rolled over is 20% of the payment You will be responsible for any state income taxes that may be due. For more information, check out the BackDROP and Special Tax Notice brochures. Print Friendly and PDF

Is there any plan to have reciprocity between MOSERS and PSRS / NTRS retirement systems

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Is there any plan to have reciprocity between MOSERS and PSRS / NTRS retirement systems in the foreseeable future?
In the context in which we would guess you are asking, whereby service credit with one system could be directly transferred to the other, we are not aware of any plans that would allow for such. However, there are several provisions already in the law that govern the transfer or purchase of creditable service. If you have non-vested service with PSRS or PEERS (formerly NTRS), you may purchase up to four years of creditable service to be added to your MOSERS service credit. If you are already vested in PSRS or PEERS, there is a separate provision to handle the transfer or purchase of that credit. You can find more information in our Acquiring Service Credit brochure. Print Friendly and PDF

I was wondering how (or if) hours of sick leave affect our retirement date.

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I was wondering how (or if) hours of sick leave affect our retirement date. My normal retirement date was 07-01-07. My retirement date with a BackDROP is 07-01-09. My question is would my sick leave translate into months of service? Right now, I have 1235.15 hours of sick leave. I believe that translates in to 7.35 months of service. Am I correct? If that's the case, would that mean that I could actually retire 7 months before my normal retirement date?
No. Unused sick leave will not change your normal retirement date or your BackDROP eligibility date. It is used only when determining the amount of your benefit. In your example, 1,235 hours of unused sick leave would convert to 7 additional months of service in the formula used to calculate the amount of your retirement benefit.
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One State employee is saying she can take a percentage of her MOSERS retirement and still continue working full time

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One State employee is saying she can take a percentage of her MOSERS retirement and still continue working full time for the state. I thought we had 2 choices if we wanted to work after filing for MOSERS: 1) retire with MOSERS and work part-time temp with the state, or 2) retire with MOSERS and work full-time elsewhere that isn’t under MOSERS.
Your understanding is correct.
MOSERS retirees wishing to return to work should refer to the reemployment page in the Retiree portion of our website. Information listed there describes benefit eligible positions, non-benefit eligible positions, and reemployment covered by the MoDOT and Patrol Employees’ Retirement System and the University of Missouri Retirement System. Generally, if your acquaintance returned to work full time (a “benefit eligible position” covered by MOSERS) her monthly retirement benefit would stop. Be sure to discuss your situation with the human resources staff at the agency where you are considering employment. They will be able to tell you whether or not the position is eligible for benefits.
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In the late 70's and early 80's, I was employed by St. Louis County Missouri. At that time, you had to be working for at least 10 years to be vested.

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In the late 70's and early 80's, I was employed by St. Louis County Missouri. At that time, you had to be working for at least 10 years to be vested. I worked for 5 and one half years. Will the years that I worked for St. Louis County be added and counted towards my total years of service with the state when I retire?
Your service with St. Louis County would most likely qualify as “other public employment in the state of Missouri” but it would not be considered state service for benefit purposes. However, state law does permit MOSERS members to purchase up to four years of such service. You can find more information about this in our Acquiring Service Credit brochure.
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I am somewhat confused on this question and answer. If members already eligible for normal (unreduced) retirement from MOSERS are not in benefit elig

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I am somewhat confused on this question and answer. If members already eligible for normal (unreduced) retirement from MOSERS are not in benefit eligible positions for MOSERS LTD, why does the state pay the LTD premium for these employees?
Actually, it doesn’t. Because the SAM II payroll system, which is used by most state agencies, does not allow for the individual exclusion of ineligible members, MOSERS collects a lower overall percentage than the rate specified in the LTD contract to even things out. You can see how this works by checking out the Contribution Rates page on our website. The current contract rate for LTD insurance is $0.55 per $1,000 of payroll. However, to reflect the fact that members who are already eligible for retirement are not eligible for LTD, SAM II agencies contribute a lower rate of only $0.51 per $1,000 of payroll. MOSERS does not collect LTD premiums for ineligible members who are not on the SAM II system.
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Are you automatically covered for LTD through MOSERS if you are a state employee?

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Are you automatically covered for LTD through MOSERS if you are a state employee?
 Yes, if you are in a benefit eligible position, you are automatically enrolled for long-term disability (LTD) and covered on the first day you become a member of MOSERS, provided you meet the actively at work requirement.
The following groups are not in benefit eligible positions for MOSERS LTD:
  • Members already eligible for normal (unreduced) retirement from MOSERS
  • Employees of state colleges and universities (except Lincoln University and State Technical College of Missouri)
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When using the website's calculator, are the estimates based on the current year dollar value or are they projected to the year of retirement? In oth

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When using the website's calculator, are the estimates based on the current year dollar value or are they projected to the year of retirement? In other words, is it using projected COLA increases? Thank you and thanks for this site!
 If you are using the “Select a Date” estimate through the secure Member Login area of MOSERS website, your estimates are based on the most current information we have at the time. That means, if you are looking at a future date, we are calculating your final average pay as though you would continue to earn pay at the same rate you are currently earning. We do not make any assumptions regarding any possible salary increases you may receive.
There is a COLA feature that comes into play once your benefit estimate has been calculated. In order to see how your benefit payments might increase over time, you can select a COLA percentage and it will calculate your benefit payments over a period of years using the COLA percentage you selected.
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When I retired last year, I chose to take the BackDROP. How does this affect my reemployment by the state? Can I work a non-benefit job now, or mus

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When I retired last year, I chose to take the BackDROP. How does this affect my reemployment by the state? Can I work a non-benefit job now, or must I wait three years?
The fact that you took a BackDROP payment has no bearing on whether or not you can return to work for the state. Working for the state in a position that is not eligible for benefits does not have any impact on your retirement benefit. You may work in such a position and continue to receive a retirement benefit from MOSERS. Be sure to discuss your situation with the human resources staff at the agency where you are considering employment. They will be able to tell you whether or not the position is eligible for benefits.
If you retire and later return to work in a benefit eligible position covered by MOSERS, your retirement benefit will be stopped as long as you continue working. Once you retire again, your benefit will resume but again, it would have no bearing on the BackDROP payment you received at the time of your retirement.
Reemployed by HTEHPRS
If you become employed in a position covered by the Highway and Transportation Employees’ and Highway Patrol Retirement System (HTEHPRS), your MOSERS benefit will be stopped until you retire again.


  • MSEP retirees will not receive additional service credit or additional retirement benefits from MOSERS for the period of service while reemployed under HTEHPRS.

  • MSEP 2000 retirees will receive additional service credit and monthly retirement benefits from MOSERS for the period of service while reemployed under HTEHPRS.
University of Missouri Retirement System
You may receive a retirement benefit from MOSERS and work in a position covered by the University of Missouri Retirement System at the same time. Your monthly benefit from MOSERS will not stop while you are working for the university. Print Friendly and PDF

Will you only be mailing out our 1099-Rs for this year or can we print it out online? When would they be available?

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Will you only be mailing out our 1099-Rs for this year or can we print it out online?  When would they be available?
We are required to mail 1099-Rs to retirees by the end of the month each January.
We are reviewing the Internal Revenue Service’s requirements to determine if we can develop a process to allow members to reprint the 1099-R forms electronically. We will let members know if this process will be available next year. Print Friendly and PDF

Can the total amount of unused sick leave that I accumulated during my work career with the state be used to increase my retirement calculation,

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Can the total amount of unused sick leave that I accumulated during my work career with the state be used to increase my retirement calculation, even if a portion of it is earned during the last 5 years I apply to BackDROP? Can only whole months of unused sick leave (168 hours) be used to increase the retirement calculation, or can fractional months also be applied?
If you are electing the BackDROP at retirement, the amount of unused sick leave you have when you actually quit working is the number we use to increase your service credit and calculate your retirement benefit. We do not go back and try to determine what you might have had on your BackDROP date. That means you don’t lose any possible sick leave credit because of choosing the BackDROP.
Only whole months of unused sick leave (168 hour increments) can be used to increase the retirement calculation. Any remaining hours less than 168 will not be considered. Print Friendly and PDF

I am not familiar with the term "BackDROP". Please explain what is meant by the term BackDROP.

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I am not familiar with the term "BackDROP". Please explain what is meant by the term BackDROP.
BackDROP refers to the deferred retirement option which is available to general state employees who have worked at least two years beyond the date when they were first eligible for retirement. This option provides a way for you to receive a lump sum payment at retirement in addition to your ongoing monthly benefit. If you elect the BackDROP, the monthly benefit payable on your actual retirement date is based on the benefit you would have been receiving had you left employment and retired when you were first eligible to receive normal (unreduced) retirement benefits, referred to as the BackDROP date. In addition, you will receive a lump sum payment equal to 90% of the Life Income Annuity amount you would have received during the BackDROP period, which is from the date you became eligible for normal retirement until the date you actually retire.

ELIGIBILITY

To be eligible for the BackDROP, you must work in a MOSERS covered position at least two years beyond your normal retirement eligibility date.
Regardless of how long you work beyond your date of normal retirement eligibility, the maximum BackDROP period is five years. Furthermore, you may elect, in one year increments, to establish your BackDROP period at something less than the full amount for which you qualify. For more information, please check out the BackDROP brochure. Print Friendly and PDF

I am eligible for retirement August 1st of this year. I plan to work at least 2 years BackDROP.

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I am eligible for retirement August 1st of this year. I plan to work at least 2 years BackDROP. My question is if I am in my BackDROP and the state decides to do away with it ---- will I be out and just worked maybe for an example a year and 1/2 for nothing over. What if the governor changes the 80 and out for state employees and I am in my BackDROP would I have to stay for example to 85 and out instead of my 80 and out?
First of all, congratulations. Even though you’re planning on working longer, knowing that you’ve reached that milestone must feel good. Your “what if” question about BackDROP occurs on a regular basis. Elimination of the BackDROP would require a legislative change and we are not aware of any expressions of interest by legislators or the administration in removing or changing the BackDROP option as it currently exists. In 2004, MOSERS’ Executive Director wrote a letter to members addressing this issue, and his comments are still relevant today. A change to the “Rule of 80” would also require legislation, and again, we have not heard any expressions of interest in making such a change.
A direct answer to your question is that when you retire, you will be subject to the provisions in effect at the time of your termination, so theoretically it’s possible to imagine any number of scenarios. Please be aware that in the event that any major changes are proposed by the legislature, we would notify our membership both through newsletters and on our website. However, we see no reason for you to be concerned at this time about either of the situations you mentioned. Print Friendly and PDF

I retired early with an 80 and out, with BackDROP. When I am 62 and the State

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I retired early with an 80 and out, with BackDROP. When I am 62 and the State terminates my supplemental pension, will the State continue to subsidize my health insurance premium.
Also, has there been any further word from IRS on the subject of whether Public Safety Officer would include Juvenile Officers regarding reduction of federal taxable income?
Both of these questions fall outside of the areas for which MOSERS has administrative responsibility. For information regarding your health care plan, please send an email message to MCHCP or phone them at (800) 487-0771.

For information concerning the eligibility of juvenile officers for an income tax reduction under the federal Pension Protection Act, you need to contact the
IRS or your tax advisor. While we cannot provide tax advice, it is our understanding is that a person who was employed at the time of retirement in a position involved in juvenile delinquency control or reduction may be eligible for the health care premium tax exemption provided by federal tax law.
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Why is the Normal Retirement Date different from the Normal Retirement Date with BackDROP?

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Why is the Normal Retirement Date different from the Normal Retirement Date with BackDROP? Could I have retired on the Normal Retirement date and received full benefits?
Your normal retirement date is the date at which you can retire with a normal (unreduced) benefit whether or not you elect the BackDROP option. Once you reach your normal retirement date, you can retire any month and receive full benefits. However, in order to be eligible for the BackDROP, you must continue working at least two years beyond your normal retirement date. Print Friendly and PDF

I intend to provide 2 weeks notice to my agency when I retire. Since I must declare a retirement date to MOSERS at least thirty days in advance, will

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I intend to provide 2 weeks notice to my agency when I retire. Since I must declare a retirement date to MOSERS at least thirty days in advance, will MOSERS notify my agency of my intent to retire before I inform them?
 MOSERS does not routinely notify the agency when we receive an application for retirement. However, if we have not received a termination form when needed, we may contact the agency in order to ensure the timely processing of your retirement benefit. Generally that should not impact your intent to provide only 2 weeks notice. Print Friendly and PDF

I will have my 2 year BackDROP August 1st of this year but choose not to retire at this time.

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I will have my 2 year BackDROP August 1st of this year but choose not to retire at this time. What happens with my BackDROP if I choose to retire some other time of the year, say for instance on February 1st of next year? Is the BackDROP only done in full year increments or would I receive BackDROP for the 2 years plus additional monies for the extra months I work?
 The BackDROP payment option is flexible. If you are eligible for the BackDROP when you decide to retire, you will be able to choose a BackDROP period in either full-year increments or the total time worked beyond your initial retirement date (up to a maximum of five years). In the above scenario, you would be able to choose 1 year, 2 years, or the total 2 ½ years as your BackDROP period.
MOSERS will provide estimates for each of your options as part of the Retirement Election package that you will receive after you file your Application for Retirement. You can also generate your own estimates at any time through the ‘Select a Date Estimate’ option by going to the secure ‘Member Login’ area of MOSERS website.
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I do understand that no proposals are on the table at this time, but it could happen.

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I do understand that no proposals are on the table at this time, but it could happen. I just want to know what if the social security law changes and I can’t get early social security retirement at 62 would I keep getting the supplement check until I would be able to get the social security?
The short answer is “no.” If the age of eligibility for early social security benefits should increase, the temporary part of your MOSERS benefit would not continue beyond age 62 under the current law.
While we cannot predict the future, we see no indication that such a change in the social security law is contemplated. If the eligibility age for early social security benefits should increase, it’s possible that the Missouri legislature would consider an amendment to the statutes governing MOSERS that would extend the temporary MOSERS benefit beyond age 62 to the new social security age of eligibility. At that point, it would be possible to determine how much it would cost to continue the temporary benefit, which would certainly be a consideration in whether or not to extend the temporary benefit. It’s also worth noting that when the social security age for normal retirement benefits was increased (ultimately up to 67) the eligibility age for early retirement did not change – it remains at age 62 but the reduction for early retirement will be greater than was the case when age 65 was the eligibility age for full social security benefits.
One final note concerning when the MOSERS temporary benefit ends and when early social security benefits begin.

We recently became aware that there is a timing issue here that will affect most retirees. The MOSERS temporary benefit ends the month you turn age 62. According to the social security website, you must be age 62 for a full month before early social security benefits can begin. Also, the week of the month on which you receive your social security benefit depends on which day of the month you were born. (Several years ago, social security started staggering monthly payments throughout the month based on birthday rather than making all payments at the first of the month.) For these reasons, there can be a lag period between the time the MOSERS temporary benefit ends and the first social security payment is received. It’s important to be aware of this and have a plan in place to cover any shortfall that may occur during the transition.
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If you have more than enough years for retirement and you are fired, are you still eligible for your retirement?

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If you have more than enough years for retirement and you are fired, are you still eligible for your retirement?
Yes. If you have reached an age and service combination that makes you eligible for retirement, you can retire. Bear in mind that retirement is a two-step process and there are deadlines concerning when forms need to be received by MOSERS and other benefit providers. We recommend you check out the Coordination of the Retirement Process brochure for more information. Print Friendly and PDF

The following Q & A appeared recently in Rumor Central. What does the last sentence mean?

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The following Q & A appeared recently in Rumor Central. What does the last sentence mean? For example: If my creditable service is 30 years, I could apply a maximum of 3,600 hours of sick leave to the calculation of my normal retirement benefit (30 X 12 X 10). How does the 300 hours of sick leave I used during my career fit into the calculation?

Previous Rumor Central question posted 7/11/07:
Upon reaching retirement eligibility, which leave accumulation is allowed to be applied toward retirement, sick leave or annual leave? Is there a maximum # (i.e. 3000 hours) of qualifying leave accumulation that can be applied toward retirement?

Unused sick leave is applied to the calculation of your retirement benefit when you retire—168 hours equals one month. Sick leave accrual is limited to an accrual of 10 hours per month. Therefore, if you have 300 months of creditable service upon retirement, you are limited to credit for 3000 hours. If you have 400 months of service, you are limited to credit for 4000 hours of unused sick leave, and so on. That would be assuming you had not used any sick leave during your working career.

This is a great question and precisely the reason we added that last sentence to the earlier question. When you terminate employment and retire, we look at the amount of sick leave you have remaining (unused) at that time in order to determine if you are eligible for any additional credit. So using your example, assuming 30 years of service, your agency would report to us that you have a balance of 3,300 hours of sick leave (3,600 minus 300). While it is possible for someone to work their entire career without ever using any sick leave, it is a rare occurrence. Print Friendly and PDF

Upon reaching retirement eligibility and one has accumulated six months of sick leave.

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Upon reaching retirement eligibility and one has accumulated six months of sick leave. Would the sick leave be counted as part of the thirty-six months highest earnings period to determine what your pension will be?
No. Unused sick leave only gives you additional service once you have reached an age and service combination that makes you eligible to retire. It does not allow you to retire earlier or impact the calculation of your final average pay (thirty-six months highest earnings period). Print Friendly and PDF

Has there been any discussion of proposed legislation that would allow 2008 state employee retirees to pay the active employee rate for medical benefi

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Has there been any discussion of proposed legislation that would allow 2008 state employee retirees to pay the active employee rate for medical benefits?
Not that we are aware of. The 2007 legislative session ended in May and the 2008 session will not start until January. Print Friendly and PDF

The pharmacy department of our local state hospital has been informed that it is being privatized as of July 1, 2007.

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The pharmacy department of our local state hospital has been informed that it is being privatized as of July 1, 2007. We have been told that all the state hospitals will be privatized in 3-5 years. When this happens I will no longer be a ‘state employee’ and will be a year or so shy of my “80 and out”. I have months of accumulated sick leave time. Will this unused sick leave time still be frozen and used to calculate my retirement benefits when I do reach eligibility?
Yes, if you choose the Missouri State Employees Plan 2000 (MSEP 2000). To receive credit for your unused sick leave in the MSEP, you would need to qualify for early or normal retirement on the date of termination. Your unused sick leave, however, may not be used to help you reach retirement eligibility. Print Friendly and PDF

In reference to the question/response dated 05-10-07 regarding sick leave accumulation,

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In reference to the question/response dated 05-10-07 regarding sick leave accumulation, if an individual has a large sum of sick leave, i.e. 3000 - 4000 hours (17 + months), can creditable service of 17 + months be applied toward retirement?

Previous Rumor Central question posted 5/10/07:
I believe I understand that your sick leave is used toward your state time in the amount of your benefit when you retire, but how does it help if you are working on the BackDROP?

For every 168 hours of unused sick leave a member has at termination, the member receives a month of creditable service which will be used in the calculation of the member’s BackDROP and monthly benefit amounts. The sick leave credit does not count toward the member’s eligibility for retirement or the BackDROP.

Yes. But as stated in the 5/10/07 posting, unused sick leave is only used to determine the amount of your benefit. It does not count toward eligibility for benefits, so you would not be able to retire earlier. For example, if you will be eligible for normal retirement on 9/1/2008 and you have 17 months of unused sick leave, your retirement eligibility date will still be 9/1/2008, although the amount of your benefit will increase as the result of the additional credit for unused sick leave.
Individualized benefit information is accessible on the secure portion of our website at all times. You can see how your accumulated sick leave increases your benefit by choosing Select a Date Estimate under the Personal Information section and then entering the potential hours of sick leave. To view personal information, you may request a password on our homepage at www.mosers.org. You may also call a benefit counselor at (800) 827-1063. They will be happy to provide you with any information regarding future benefits from MOSERS. Print Friendly and PDF

If an individual retires under the 2000 Plan and takes the BackDROP, does the COLA calculation BackDROP as well?

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If an individual retires under the 2000 Plan and takes the BackDROP, does the COLA calculation BackDROP as well?
Yes, a COLA is applied to your benefit during the BackDROP period under either plan (MSEP 2000 or the MSEP). For example, if you were eligible and chose to take the BackDROP, we would determine your benefit as of the BackDROP date. The lump sum amount would be 90% of the benefits that would have been paid between that BackDROP date and your actual retirement date including COLAs that would have been earned during the period. You can find a more detailed example on page 23 of the General Employees’ Retirement Handbook. Print Friendly and PDF

If you elect BackDROP and the social security law changed so that you could not get early social security at age 62

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If you elect BackDROP and the social security law changed so that you could not get early social security at age 62 what would then happen to the supplement check that MOSERS was paying – would it continue until we get a social security check or would it stop at 62?
By the way I love Rumor Central – it was a good decision to have this.
The temporary portion of your benefit would stop at age 62. We are not aware of any proposals to change the current eligibility age (62) for reduced social security benefits.
We’re glad that you appreciate Rumor Central. We hope that the information is useful and that it might occasionally stop the spread of inaccurate or incomplete information. Print Friendly and PDF

Upon reaching retirement eligibility, which leave accumulation is allowed to be applied toward retirement, sick leave or annual leave?

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Upon reaching retirement eligibility, which leave accumulation is allowed to be applied toward retirement, sick leave or annual leave? Is there a maximum # (i.e. 3000 hours) of qualifying leave accumulation that can be applied toward retirement?
Unused sick leave is applied to the calculation of your retirement benefit when you retire—168 hours equals one month. Sick leave accrual is limited to an accrual of 10 hours per month. Therefore, if you have 300 months of creditable service upon retirement, you are limited to credit for 3000 hours. If you have 400 months of service, you are limited to credit for 4000 hours of unused sick leave, and so on. That would be assuming you had not used any sick leave during your working career. Print Friendly and PDF

I recently received my 2007 Personal Benefit Statement in the mail. Unlike previous benefit statements,

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I recently received my 2007 Personal Benefit Statement in the mail. Unlike previous benefit statements, it does not include deductions and net monthly benefits. The same is true of what is available on your website. I guess when I get the new benefit later this week, I can then go online and get this information then but I feel it should be part of the benefit statement.
Also, unlike most other websites, why can't we send an email directly from the website?
Our benefit statements were changed to remove specific deductions because there were a number of situations when deductions actually changed from the time the benefit statement was mailed to when your new benefit payment was distributed. To compensate for this, any time your benefit changes a special letter will be issued to reflect the new amount including deductions. We think you will find this strategy more accurate and timely.
As for sending emails, you can send MOSERS an email via Rumor Central, or by the “Contact” link at the top of each page, directly below our address and phone number. Our email address is mosers@mosers.org. Print Friendly and PDF

What changes will we be seeing due to the passage of Senate Bill 406?

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What changes will we be seeing due to the passage of Senate Bill 406?
The 2007 legislative session ended on May 18, 2007 and one major retirement related bill passed both houses. The bill is still pending the Governor’s signature, but if the bill is signed MOSERS will be affected in several ways by Conference Committee Substitute No. 2 for House Committee Substitute No. 2 for Senate Bill 406.
Deferred Compensation Oversight Transferred to MOSERS
Oversight of the deferred compensation program will transfer from the Deferred Compensation Commission to the MOSERS Board of Trustees. This legislation was originally filed by a member of the Deferred Compensation Commission, and is based on the belief that plan participants would benefit from the investment and benefit administration expertise of the MOSERS’ staff in monitoring the program and the performance of CitiStreet and ING. If the governor approves this legislation, it will be effective August 28, 2007. The MOSERS Board of Trustees would assume supervision of the program on September 1.
This change will be transparent to plan participants. CitiStreet and ING will continue to provide services and answer whatever questions you have concerning your accounts with them. Staff at the Office of Administration and MOSERS are working together to ensure an orderly transition.

MOSERS Clean-up
MOSERS periodically finds provisions in the law that need to be reworded to make the provision clearer or easier to understand and, in this case, those provisions were combined in one clean-up bill (the CCS #2 for HCS #2 for SB 406 as mentioned above). The clean-up portions of this bill are non-controversial, have no cost, and do not make substantive changes to your retirement benefit plan. Print Friendly and PDF

If I retire under Rule of 80, with two years of BackDROP, during the year I reach the age of 53,

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If I retire under Rule of 80, with two years of BackDROP, during the year I reach the age of 53, will I have to pay the 10% IRS penalty, if I take an immediate payout of the BackDROP in the year of retirement?
If I take a three year payout, will I owe the penalty on just the first and second year, when I'm 53 and 54, but not in the third year when I'm 55?
Can I escape the penalty on the entire BackDROP if I roll it into my deferred compensation account?
Are there any other options for dealing with the payout of a BackDROP before age 55?
Any member who separates from service before age 55 and takes a cash BackDROP payment will be subject to the 10% penalty. Therefore, if you retire at age 53 with two years of BackDROP you will have to pay the 10% IRS penalty on the cash distribution, regardless of whether you take it as one payment or over three years. If you choose to rollover the BackDROP payment, the money will not be considered taxable at that time and you will avoid the 10% penalty. However, depending upon when you start withdrawing your funds from the rollover account, you may be subject to the penalty in the future. Please check with your financial institution or a tax advisor for information on your tax liability when you begin withdrawing your funds. Print Friendly and PDF

Will the State match the retirement pension of Social Security at age 62?

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Will the State match the retirement pension of Social Security at age 62?
My question is relating to MOSERS' temporary benefit that ends at age 62. I don't think the state pension matches what I will get from social security at age 62. A co-worker, who has worked for the state and also social security, said that the state would match that of social security thru to age 62. I had never heard this before. If there is truth to this, do you have to request it? And of course does this lower your basic pension amount, after you are able to receive social security at 62?
It sounds like you have received some misleading information about your MOSERS benefit. Generally, MOSERS members are eligible for social security in addition to their MOSERS benefit, but the state does not “match” social security.
However, if you retire under the Missouri State Employees’ Plan 2000 (MSEP 2000) and also retire under the “Rule of 80” (you must be at least age 48 with the sum of your age and service equaling 80 or more) you will receive a temporary benefit until age 62. The temporary benefit is designed to provide you with supplemental income until you are eligible for reduced social security benefits (currently age 62). At age 62 the MOSERS temporary benefit does stop and you may choose to begin receiving your reduced social security benefit at that time or defer receipt of social security until a later date (which would increase the monthly benefit from social security).
For more specific individual information, please contact a benefit counselor at (800) 827-1063. Print Friendly and PDF

If a benefit eligible position is redefined by statute to require the performance of duties not less than 1,040 hours per year,

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If a benefit eligible position is redefined by statute to require the performance of duties not less than 1,040 hours per year, will that then permit a State retiree to work up to 1,040 hours per retirement year?
As we mentioned before in previous “returning to work” postings, returning to work in a POSITION that is considered benefit eligible (one that normally requires 1040 hours per year, assuming the current legislation is signed by the Governor) would require retired members’ benefits to cease while working. However, if one returns to work after retirement in a POSITION that normally requires less than 1040 hours per year, MOSERS retirement benefits would continue. Your agency determines whether or not the position is benefit eligible. Print Friendly and PDF

I've heard from someone who works at Dept. of Revenue that the BackDROP option may be going away in the near future. Is that true?

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I've heard from someone who works at Dept. of Revenue that the BackDROP option may be going away in the near future. Is that true?
Elimination of the BackDROP provision would require a legislative change, and the 2007 legislative session ended on May 18th. Legislation proposing any changes to the MOSERS law could not be submitted until the 2008 legislative session. Beyond that, we are not aware of any expressions of interest by legislators or the administration in removing or changing the BackDROP option as it currently exists.
Rumors about the BackDROP being eliminated have arisen nearly every year. In 2004 MOSERS’ Executive Director wrote a letter to the members addressing this issue, and his comments about the BackDROP issue are still relevant today. Read the letter here. Print Friendly and PDF

Several people who are approaching retirement have been debating this issue and would like an official answer.

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Several people who are approaching retirement have been debating this issue and would like an official answer. If someone is planning on retiring July 1, 2007 but does not notify MOSERS until June 15, 2007 is the first retirement benefit payment only delayed or do you actually miss one since the application had not been filed in a timely manner?
 State law requires all retirement applications be to submitted at least 30 but no earlier than 120 days prior to a member’s retirement date.
If you are planning on retiring July 1, 2007, the retirement application would need to be submitted to MOSERS by May 31. If the application is not submitted at least 30 days before the retirement date the member will need to postpone retirement until the following month.
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This is just out of curiosity, but have you heard what was behind this (deferred compensation) legislation.

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This is just out of curiosity, but have you heard what was behind this (deferred compensation) legislation. Was there a perception that the Deferred Compensation Commission was doing a bad job of overseeing the fund? Is this move supposed to lead to some expense savings? Thanks.
This legislation was originally filed by a member of the Deferred Compensation Commission, and is based on the thinking that plan participants would benefit from the investment expertise in place at MOSERS. This would ensure that a staff of full-time professionals is available to provide increased oversight regarding all aspects of the program. It is very common for boards of retirement systems to function in both capacities and the MOSERS board would be required to act as fiduciaries for both the MOSERS retirement plan and the deferred compensation program.
Also, the MOSERS board is larger and more diverse than the Deferred Compensation Commission and is in a better position to provide direction and oversight given the increasing complexity and sophistication of retirement investing.
This administrative change would appear seamless to the members of the deferred compensation program. The MOSERS board and staff would assume the monitoring function. CitiStreet would continue to handle the administration of individual accounts and the investment products available would continue to be handled by outside service providers.
It is also possible that the total cost to plan participants might be reduced as the result of MOSERS being able to capitalize on the negotiating power that comes with managing a larger asset base. However, the potential magnitude of such possible cost savings is unknowable at this time. Print Friendly and PDF

Is there any truth to rumor that the State of Missouri has too many employees and that to get the numbers down the Governor might offer a package for

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Is there any truth to rumor that the State of Missouri has too many employees and that to get the numbers down the Governor might offer a package for those employees that have 80 and out at the end of the year that would help pay medical insurance until age 65?
In order for MOSERS’ “Rule of 80” retirement provision to be changed, the Missouri legislature would have to introduce and pass a bill calling for such changes. The governor does not have the authority to make changes to state statutes which govern the retirement plan. As of this posting, the legislature has not introduced any legislation that would provide a retirement package such as the one mentioned in the above question. The 2007 legislative session ends on May 18th, leaving little time for the possibility of such a provision being considered this legislative session. Print Friendly and PDF

Is there any truth to rumor that the State of Missouri has too many employees and that to get the numbers down the Governor might offer a package for

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Is there any truth to rumor that the State of Missouri has too many employees and that to get the numbers down the Governor might offer a package for those employees that have 80 and out at the end of the year that would help pay medical insurance until age 65?
In order for MOSERS’ “Rule of 80” retirement provision to be changed, the Missouri legislature would have to introduce and pass a bill calling for such changes. The governor does not have the authority to make changes to state statutes which govern the retirement plan. As of this posting, the legislature has not introduced any legislation that would provide a retirement package such as the one mentioned in the above question. The 2007 legislative session ends on May 18th, leaving little time for the possibility of such a provision being considered this legislative session. Print Friendly and PDF

I have been told that we will only be paid for 20 days of accrued vacation upon retirement, but I can’t find the answer to this anywhere. Is this a s

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I have been told that we will only be paid for 20 days of accrued vacation upon retirement, but I can’t find the answer to this anywhere. Is this a state or institutional policy?
By law, your unused vacation pay is not considered in calculating your MOSERS retirement benefit and is paid by your employing department.
Under the regulations that govern annual leave, state employees may be paid for up to their maximum allowable accumulation of annual leave. Said another way, an employee may be paid for up to twice their annual accumulation. For most employees who work for the state until retirement this maximum is 336 hours. (7 hours per pay period x 24 pay periods a year x 2).
Please contact your agency’s Human Resources department for specific information regarding your unused vacation. Print Friendly and PDF

I believe I understand that your sick leave is used toward your state time in the amount of your benefit when you retire, but how does it help if you

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I believe I understand that your sick leave is used toward your state time in the amount of your benefit when you retire, but how does it help if you are working on the BackDROP?
For every 168 hours of unused sick leave a member has at termination, the member receives a month of creditable service which will be used in the calculation of the member’s BackDROP and monthly benefit amounts. The sick leave credit does not count toward the member’s eligibility for retirement or the BackDROP. Print Friendly and PDF

We have received inquiries regarding the proposed legislation that, if passed, will transfer the oversight of the Deferred Compensation Program to MOS

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We have received inquiries regarding the proposed legislation that, if passed, will transfer the oversight of the Deferred Compensation Program to MOSERS. For your convenience, we have compiled the following questions in hopes they will address your concerns.
Would CitiStreet still administer the deferred compensation program?

Yes. CitiStreet would continue to handle the administration of individual accounts. There would be no changes to the current contract with CitiStreet and no changes to the current investment options or funds available to deferred compensation participants. If the legislation passes, this change would appear to be seamless to participants of the deferred compensation plan.
What is MOSERS role?

The MOSERS Board of Trustees would replace the Deferred Compensation Commission and would monitor CitiStreet's performance. This change would allow the state to take advantage of the investment expertise already in place at MOSERS to provide investment oversight for the program.
There has been concern that MOSERS would commingle the funds with the MOSERS retirement trust fund. Is that true?

No. As stated previously, the MOSERS Board and staff would assume the monitoring function. The third party administration of individual accounts would continue to be handled by CitiStreet, the existing deferred compensation provider.

Could the MOSERS board properly administer both the retirement plan and the deferred compensation plan?

Yes – it is very common for boards of retirement systems to function in both capacities. In at least 20 other states, oversight responsibility for the deferred compensation programs for state employees has been assigned to the boards of trustees of the state employees retirement systems. The MOSERS board would be required to act as fiduciaries for your retirement system, as well as for the deferred compensation program.
What does it mean to be a fiduciary?

It means that MOSERS board members must manage each plan solely in the interest of that plan's participants.
When would this transfer occur?

The proposed legislation would transfer the oversight of administration of the Missouri State Employees' Deferred Compensation Program from the Commission to the MOSERS Board of Trustees on August 28, 2007 . This transfer would not result in a change of the current administrator, CitiStreet, nor would it change the current investment options or funds available to deferred compensation participants.
Would ING still provide a fixed annuity?

Yes. ING would continue to provide the fixed annuity. There would be no changes to the current contract with ING. If the legislation passes, this change would appear to be seamless to participants of the deferred compensation plan. The Attorney General is currently in litigation with Nationwide wherein the State seeks return of the $18.6 million retained by Nationwide as a Market Value Adjustment. If the legislation passes, it will have no impact on this litigation. Print Friendly and PDF

Can I request a benefit statement for a spouse who is a vested former state employee? If so, what information do you need to generate one?

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Can I request a benefit statement for a spouse who is a vested former state employee? If so, what information do you need to generate one?
Please note that for security reasons MOSERS will only release benefit statement information directly to the member. If your spouse wishes, s/he may complete an Authorization to Release Information form, which would allow you to receive the information on behalf of your spouse.

Terminated vested members receive an initial benefit statement from MOSERS within 45 days of terminating state employment. We then send a benefit statement by mail to each terminated vested member every 5 years thereafter. Individualized benefit information is also accessible on the secure portion of our website at all times. To view this personal information, members may request a password on our homepage at www.mosers.org. Members may also call a benefit counselor at (800) 827-1063. They will be happy to provide you with any information regarding future benefits from MOSERS. Print Friendly and PDF

If an individual, at the time of retirement, has accumulated unused vacation time, it is my understanding that that employee is reimbursed for that t

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If an individual, at the time of retirement, has accumulated unused vacation time, it is my understanding that that employee is reimbursed for that time. How, if at all, does the reimbursement for such time factor into the retirement benefits formula determination of the average of highest 36 months of pay? That is, for example, if the final month of pay included payment for two months of unused vacation time, would that be used in the averaging of the 36 months? In this scenario, Employee X could have 35 months of paychecks that were $1000 and a 36th month pay of $3000 (i.e., pay for the 36th month + pay for 2 months of unused vacation). If the unused vacation time payment in the last month were considered, the average pay over that period would be $1055 ($38,000 divided by 36) instead of $1000 ($36,000 divided by 36). Or is any pay for unused vacation time separate from this calculation? Thank you.
By law, your unused vacation pay is not considered in calculating your MOSERS retirement benefit. Print Friendly and PDF

If I would be switched to a new job within the current agency I worked for and I could not do the job would I lose my pension if I already worked 33

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If I would be switched to a new job within the current agency I worked for and I could not do the job would I lose my pension if I already worked 33 years?
No. If you are a vested member of MOSERS (meaning you worked at least 5 years for the state in a benefit eligible position), you will be eligible to receive retirement benefits. Please see page 12 of the General Employees' Retirement Handbook or contact a MOSERS benefit counselor to determine when you could first begin to receive retirement benefits. (For example, if your years of benefit eligible service and your years of age add up to at least 80, you satisfy the requirements for immediate retirement.) Print Friendly and PDF

If an employee retires with two years of BackDROP and within a year returns to work with the State in a benefit eligible position,

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If an employee retires with two years of BackDROP and within a year returns to work with the State in a benefit eligible position, I understand that your pension is frozen until you retire again. If you work for an additional two or three years, will you receive an additional two or three years of BackDROP?
If you return to work in a benefit eligible position after retiring from state service, your MOSERS benefit will stop for the duration of that employment. Once you again terminate, your retirement benefits will be recalculated to reflect the additional service and salary and your benefit payments would resume. However, you will not accrue any additional BackDROP payment in connection with the additional service. Print Friendly and PDF

How much, if any, of an increase in their pension can Missouri retirees expect in July?

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How much, if any, of an increase in their pension can Missouri retirees expect in July?
 MOSERS retirees receive their annual cost-of-living allowance (COLA) each year on the anniversary of their retirement date. Members who retired with a BackDROP will have their COLA paid on the anniversary of their BackDROP date and the retired MSEP members who converted to the MSEP 2000 in 2000 will have their COLAs paid in July. 
The 2007 COLA rate, based on 80% of the increase in the Consumer Price Index for 2006, is 2.581% effective January 1, 2007 . Therefore, members retiring under the MSEP 2000 will receive a 2.581% cost of living adjustment this year. Members retired under the MSEP who have not yet reached their COLA cap will receive a 4% COLA. For more information on retiree COLAs, see the COLA page under the Retired Member section of our website.
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Will the State provide any life insurance for me once I retire? Currently I have one times my base salary plus about 100K in optional coverage. Going

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Will the State provide any life insurance for me once I retire? Currently I have one times my base salary plus about 100K in optional coverage. Going from that to zilch would be quite a shock.
The state provides $5,000 of basic life insurance at no cost to retirees who go directly from active employment to retirement. MSEP retirees are then eligible to retain from $1,000 to $60,000 of optional life insurance (not to exceed what was held as an active employee). If you retire under the MSEP 2000 under the “Rule of 80,” you may retain all of your optional life insurance coverage up to age 62 at which point your coverage would be reduced to a maximum of $60,000. Print Friendly and PDF

I am a military retiree; does this mean I can't purchase military service time? Thanks!

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I am a military retiree; does this mean I can't purchase military service time? Thanks!
No, as a military retiree, you may still purchase up to 4 years of military time to add to your MOSERS service. If you choose to purchase service, you must complete all payments before applying for retirement under MOSERS . For details on purchasing military service, including a purchase application, see our Acquiring Service Credit brochure, or contact a benefit counselor at (800) 827-1063. Print Friendly and PDF

Someone in my office just stated that they didn’t think a person retiring from the state can receive MOSERS retirements benefits and their social sec

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Someone in my office just stated that they didn’t think a person retiring from the state can receive MOSERS retirements benefits and their social security retirement benefits. I don’t believe this is correct. Can you answer this?
You are correct. MOSERS’ retirees may receive retirement benefits simultaneously from both MOSERS and Social Security. In fact, in developing the MOSERS benefit provisions it was understood that the total retirement income package available from the state was to consist of the MOSERS benefit plus social security. For example, under the MSEP 2000 provisions, members who retire under Rule of 80 receive a benefit for life plus a temporary benefit payable to age 62 – that temporary benefit is intended to provide a financial bridge from the time the member retires until reaching eligibility for social security retirement benefits. Thus, beginning at age 62, when the temporary benefit drops off, the total retirement income from state employment is made up of the MOSERS life benefit plus social security. Print Friendly and PDF

I have prior state service and I once looked into how much it would cost to purchase.

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I have prior state service and I once looked into how much it would cost to purchase. If I did so, I see it could be done online. I do not remember what it would cost me but it is my understanding that it could be paid for with deferred comp. Is that correct? I believe it was at least 2 yrs of service. I now have the 80 and out and I’m working on the BackDROP.
If you had previous benefit eligible state service that is not reflected in your records please contact us. You are automatically entitled to credit for that service. If the state service you mentioned was in some other state you may not purchase that service. However, if you are referring to other eligible “public” service in Missouri, you are correct. Purchases of such prior public service may be made before applying for retirement and it may be paid for by a transfer of funds to MOSERS from your deferred compensation account.
At this point in time, purchasing service may not be completed online. We do, however, provide an online service purchase calculator that may assist you in determining an estimate of the cost of purchasing credit for other public service in Missouri. If you are looking for exact costs, please contact a benefit counselor at (800) 827-1063. They will provide you with written details including costs and forms necessary for completing the purchase. If you are vested in another public employee retirement plan in Missouri please check with us to see if you qualify for a transfer of that service to MOSERS.
For detailed information on payment methods and additional information on service credit transfers, please see our Acquiring Service Credit for Prior Public Employment brochure. Print Friendly and PDF

Can your BackDROP amount be placed in your pre-tax CitiStreet account?

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Can your BackDROP amount be placed in your pre-tax CitiStreet account?
Yes, MOSERS’ BackDROP lump sum payments may be rolled over into your deferred compensation (CitiStreet) account. It will not be taxed at the time of the roll over but rather will be taxable income to you as it is withdrawn from that account. Print Friendly and PDF

In the Governor's State of The State address he said he would propose legislation for "tax-free pensions"..

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In the Governor's State of The State address he said he would propose legislation for "tax-free pensions"...to allow retirees to keep all of their retirement benefit and not have to pay taxes for some.
Can you tell me anything about this? Is this a possibility? It would be a wonderful thing!
During this legislative session, the Joint Committee on Public Employee Retirement (jcper.org) tracking sheet lists 27 bills that address various types of pension tax deductions. Of these 27 bills, a House Committee Substitute for HB 444, 217, 225, 239, 243, 297, 402 & 172 was passed by the house and heard in the senate Ways and Means committee on March 12th.

It is our understanding that this legislation would exclude Social Security benefits from state taxable income and would also exclude from state taxable income retirement benefits received from a retirement system in lieu of Social Security, regardless of the income level. If passed, this provision would be effective for tax years beginning January 1, 2007. (Note that most MOSERS’ retirees receive social security in addition to the MOSERS retirement benefit. The substitute also authorizes an exclusion from state income of capital gains or taxable interest of $6,000 or less from any individual retirement plan.

For more information, please refer to "Bill Summaries for HB444" that can be accessed through the general assembly's joint bill tracking at www.moga.state.mo.us. Print Friendly and PDF

I am eligible to retire with a BackDROP in a year or so. I noticed in the retirement handbook that you need the spouse’s information

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I am eligible to retire with a BackDROP in a year or so. I noticed in the retirement handbook that you need the spouse’s information such as SSN, proof of age etc. Do you still need this info if she is gainfully employed and makes considerably more than myself and has her own retirement plan? Would my benefits still be reduced?
MOSERS asks for the spousal information you mentioned above in order to provide the most accurate benefit estimates at retirement that are intended to help you make informed decisions at that time. A member who is married at the time of retirement must elect a retirement annuity that will provide a survivor benefit to the spouse unless the spouse consents to a different form of payment for the member. Your spouse’s employment and retirement situation are not relevant for purposes of determining the amount of and your eligibility for MOSERS retirement benefits. Print Friendly and PDF

Are you eligible for COLA if you are vested but retire early?

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Are you eligible for COLA if you are vested but retire early?
Yes. All retired members of MOSERS are eligible to receive an annual cost of living adjustment (COLA).
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My normal retirement date was 3-1-07. I plan to continue working several more years. When do I actually make an election regarding my retirement bene

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My normal retirement date was 3-1-07. I plan to continue working several more years. When do I actually make an election regarding my retirement benefits?
When you decide to retire, you must fill out your retirement paperwork 30-90 days prior to your retirement date. Once we receive and process your paperwork, you will receive an Election Form, which allows you to elect your options regarding your retirement benefit. Your election form is due back to MOSERS no later than the day before your retirement date. The retirement date is always the first day of the month and the first benefit payment will be made the end of that month. Print Friendly and PDF

Why can't my wife receive my Social Security if I die because she was a school teacher covered by Missouri teacher's pension system?

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Why can't my wife receive my Social Security if I die because she was a school teacher covered by Missouri teacher's pension system?
State teacher retirement system members in 13 states, including Missouri, do not participate in Social Security. However, Public School Retirement System (PSRS) members may still be eligible for Social Security benefits, either because they have had other Social Security-covered employment or because they are eligible for Social Security benefits through their spouse. Two Social Security laws can cause a reduction of those Social Security benefits - the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
The GPO affects spouses and widows or widowers of Social Security pensioners who qualify for spousal Social Security benefits. Social Security spouses' benefits are intended for women and men who are financially dependent on their spouses who have Social Security-covered employment. Retirees receiving a PSRS benefit are not considered financially dependent on their spouses, therefore, spousal Social Security benefits are offset (reduced) through this provision. In most cases, the reduction is equal to two-thirds of the PSRS benefit and can cause the complete elimination of the spousal Social Security Benefit. (For further information, please see the following information on the GPO, which is posted on PSRS' website.
According to the Social Security Administration (SSA),
"The law has always required that a person’s benefit as a spouse, widow, or widower be offset dollar for dollar by the amount of his or her own retirement benefit.” If a teacher’s work “had instead been subject to Social Security taxes, any Social Security benefit payable as a spouse, widow or widower would have been reduced by the person’s own Social Security retirement benefit. In enacting the Government Pension Offset provision, Congress intended to ensure that when determining the amount of spousal benefit, government employees who do not pay Social Security taxes would be treated in a similar manner to those who…do pay Social Security taxes.”
You can find a more detailed explanation and an example on the SSA's website:
http://www.ssa.gov/pubs/10007.html.
Please note that these two offset provisions apply only to members receiving retirement benefits from PSRS or another similar governmental retirement system that is not covered by Social Security.
If you have additional questions please contact your local Social Security Administration office. Print Friendly and PDF