It sure seems like the retirees took a big hit with this increase in health insurance premium beginning in '08. Is there anything coming up, or any r

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It sure seems like the retirees took a big hit with this increase in health insurance premium beginning in '08. Is there anything coming up, or any rumors, of any kind, of a break for us? Like, perhaps, a tax deduction for the premium amount? The Medicaid recipients get a refund if they do not use benefits equal to what they have paid in. Could that be done for retirees?
Since MOSERS doesn’t handle your medical benefits, questions regarding health care legislation should be addressed to the Missouri Consolidated Health Care Plan (MCHCP). For your convenience, their phone number is (800) 487-0771.
However, legislation was enacted in 2007 that should have a positive impact on Missouri income tax filers. A list of the
2007 tax year changes are listed on the Missouri Department of Revenue’s website.
One of the changes is the new public pension exemption. The following text is taken directly from the Department of Revenue’s website:
New Public Pension ExemptionMarried couples with Missouri adjusted gross income less than $100,000 and single individuals with Missouri adjusted gross income less than $85,000, may deduct the greater of $6,000 or 20% of their public retirement benefits, to the extent the amounts are included in their federal adjusted gross income. The deductible percentage of their public retirement benefits will increase until 2012. A breakdown of the yearly percentage is as follows:










The total public pension exemption is limited to the maximum social security benefit of each spouse.


Married couples with Missouri adjusted gross income greater than $100,000 and single individuals with Missouri adjusted gross income greater than $85,000, may qualify for a partial exemption. The website links to a public
pension exemption eligibility chart to determine if you are eligible. Print Friendly and PDF

Please give an update on the lawsuit against Nationwide. It has been over a year now, so surely some progress has been made. Thank you.

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Please give an update on the lawsuit against Nationwide. It has been over a year now, so surely some progress has been made. Thank you.
The lawsuit is being handled by the Office of Administration, so we asked them to respond to your question. Their response follows:
“The State is continuing to pursue this litigation. This is a complex lawsuit, and the parties are engaging in extensive discovery. We will continue to update you as developments occur via a posting on the Deferred Compensation website.” Print Friendly and PDF

Is it possible to have state taxes withheld when requesting a portion of your backdrop but electing to rollover the remaining amount to Deferred Comp?

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Is it possible to have state taxes withheld when requesting a portion of your backdrop but electing to rollover the remaining amount to Deferred Comp?
Yes, starting in February retirees that elect to receive their BackDROP as cash or in combination cash/rollover may request a portion of their cash distribution be withheld for Missouri state income tax purposes. Print Friendly and PDF

In September 2008 I will reach my 5 year backdrop but since I will only be 54 I plan to work until January 1, 2009 in order to retire in the calendar

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In September 2008 I will reach my 5 year backdrop but since I will only be 54 I plan to work until January 1, 2009 in order to retire in the calendar year in which I turn 55. If I retired September 1, 2008 could I roll the backdrop over into my deferred compensation account and wait until January 1, 2009 to withdraw the money without having to pay the 10% IRS penalty? In order to avoid the 10% IRS penalty do you have to retire during the calendar year in which you turn 55 or do you only have to wait until the calendar year in which you turn 55 to withdraw the money?
In order to avoid the additional 10% tax penalty, you must both separate from service and receive the BackDROP distribution (from MOSERS) during or after the year you reach age 55 (age 50 for qualified public safety employees). As long as you will be at least age 55 in the calendar year in which you separate from service you will not be subject to the 10% tax penalty, even if you are only 54 at the time of your separation from service. However, if you are 54 or younger at the end of the year in which you separate from service you will be subject to the 10% penalty if you take the distribution any time before the year in which you reach age 59 ½. For that reason, many people who will not be at least age 55 by the end of the year they separate from service will roll their BackDROP distribution to an IRA and delay receipt until the year in which they are going to be age 59 ½.
General information regarding the tax consequences associated with receiving a BackDROP distribution may be found in our Special Tax Notice brochure. For answers to more specific questions, we recommend you contact a professional tax advisor. A CitiStreet participant service representative can answer your questions regarding the tax consequences of withdrawing funds from your deferred compensation account. CitiStreet’s phone number is (800) 392-0925. Print Friendly and PDF

Since MOSERS promotes "Paperless" info, is there any possibility that members could download their W2's from the website so we can access this informa

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Since MOSERS promotes "Paperless" info, is there any possibility that members could download their W2's from the website so we can access this information quickly.
W2s report earnings for active employees and must come from your employer.
Pension earnings for retirees and survivors are reported on 1099-Rs and are mailed directly to you by MOSERS. Our plan is to make them available online by the end of this year.

When this feature is available online, we will send an email to those who signed up to receive New Website Features and Updates. This is just one of the notifications you may elect to receive electronically. Once you log in to MOSERS’ website using your password, go to Email Options and select the items you would like to receive by email. Print Friendly and PDF

What is the COLA going to be for 2008?

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What is the COLA going to be for 2008?
 The annual cost-of-living allowance (COLA) rate is calculated in January of each year. It is based on 80% of the change in the Consumer Price Index (CPI) for the previous year. Our benefit auditor makes the final calculations when he receives complete CPI data for the previous year (near the middle of January).
The average CPI for 2007 was 2.848% higher than the average for 2006 – 80% of that change in the CPI is 2.278%. We post the rate for 2008 on the COLAs page of our website, under the Retired Members section. Print Friendly and PDF