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