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