There has been a rumor floating around at my work place that there is a bill going to be introduced surrounding 70 and out instead of 80 and out. Any

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There has been a rumor floating around at my work place that there is a bill going to be introduced surrounding 70 and out instead of 80 and out. Any truth to this rumor? Thanks in advance for any information on this subject.
We are not aware of any legislative initiatives that would change the Rule of 80 to a different requirement, such as “70 & Out.” Under the Rule of 80, which is sometimes referred to as “80 & Out,” you are eligible for normal retirement when the sum of your age and years of service equals 80 or more (if you are at least age 48). Any revision to the Rule of 80 would require a change in the law.
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. You can track legislation at the Missouri General Assembly’s website. Print Friendly and PDF

I am not sure how LTD works. Could you explain, please?

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I am not sure how LTD works. Could you explain, please?
MOSERS’ Long-Term Disability (LTD) Plan protects your earning ability by providing partial income replacement in the event you become disabled if you meet the eligibility requirements for the benefit. This helps bridge the gap from your date of disability to your recovery or retirement, whichever occurs first.
Basically, if you are disabled and have completed the 90 day benefit waiting period, your monthly disability benefit will equal 60% of: (1) your monthly salary on your last full day of active work, or (2) the average monthly salary for your highest consecutive 36 months of employment (whichever amount is greater). Once approved, the LTD benefit begins on the last day of the month: (1) at the end of the 90-day benefit waiting period, or (2) when your sick leave has been exhausted (whichever is later).
In replacing the percentage of lost wages, the insurance company takes into account certain other sources of income you may be eligible to receive, such as social security, as a result of your disability. These other sources of income are called “deductible income,” because they are deducted from your LTD benefit.
The goal of the LTD plan is to provide partial income replacement during your disability until, ideally, you can return to work. The insurance contract defines disability in two ways – “Own Occupation Disability,” and “Any Occupation Disability.” During the benefit waiting period and the 24 months following that period, you must be unable to perform the duties of your own occupation due to your disability. After the benefit waiting period and the 24 months following that period, you may continue to receive disability benefits only if you are unable to perform the material duties of any occupation. The insurance company may help you find other employment opportunities if it is determined that you can perform the duties of another occupation.

This was a very brief overview of the LTD plan. However, the plan has specific provisions that might affect your benefits. For more information regarding the LTD plan or your particular situation, please refer to MOSERS’ Long-Term Disability Handbook or contact a benefit counselor. Print Friendly and PDF

If we have to log in – then how is this confidential? You have our name and where we work!

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If we have to log in – then how is this confidential? You have our name and where we work!
For security reasons, we require members to log in anytime they wish to access their personal information. This ensures that unauthorized persons cannot view or make changes to your information. Internally, access to login information is extremely restricted. In addition, there are extensive security measures in place to ensure that those individuals can't access the information unchecked.
MOSERS has a confidentiality of records policy that is strictly enforced by staff. You may review the policy in Section 1-3 of our Board Rules. Print Friendly and PDF

I am changing my beneficiaries on my life insurance to my husband, daughter and son equally. Before I submit it, there is a statement that says if on

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I am changing my beneficiaries on my life insurance to my husband, daughter and son equally. Before I submit it, there is a statement that says if one of the beneficiaries dies the same day or 15 days after you, he will be considered to have died before you. Does that mean that if my husband and I were both killed on the same day, that my son and daughter would split the total life insurance equally.
Yes, that is correct. If you are updating your beneficiary designations online, the electronic form provides a convenient “equally divide” box for such a designation. By checking the box, the proceeds will be divided equally among the surviving beneficiaries listed.
If you are submitting a paper Designation of Life Insurance Beneficiaries form, please refer to the examples in the booklet that accompany the form. Print Friendly and PDF

I am approaching 3 years until my retirement date. When should I plan to attend a meeting concerning my retirement? Do paid overtime hours count towar

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I am approaching 3 years until my retirement date. When should I plan to attend a meeting concerning my retirement? Do paid overtime hours count towards the high 36 months?
We recommend our PreRetirement Planning seminar for members who are within 5 years of retirement. The 2008 brochure and schedule were recently mailed to all members who are within 5 years of normal retirement eligibility.
This full-day seminar is loaded with valuable information that will help you through the retirement process. Representatives from MOSERS, the Missouri Consolidated Health Care Plan, Social Security, and CitiStreet will make presentations and answer your questions.

Regarding your specific question about overtime, compensation consists of all salary and wages payable out of any state, federal, trust, or other funds to an employee for personal services performed for a department (provided retirement contributions were received by us). This excludes any nonrecurring single sum payments or amounts paid after the employee’s termination of employment. Overtime pay will be considered when calculating your highest 36 consecutive months of pay. Print Friendly and PDF

I understand that there is legislation that raises the COLA calculation from 80% of CPI to 100% of CPI. If this should pass, when is it effective? I

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I understand that there is legislation that raises the COLA calculation from 80% of CPI to 100% of CPI. If this should pass, when is it effective? If you have already retired, do you get the 100% CPI COLA?
House Bill 1545 has been introduced which, if enacted, would increase the formula for calculating future cost-of-living adjustments for eligible retirees, survivors and beneficiaries from 80% to 100% of the Consumer Price Index (CPI). If the legislation does become law as it is currently written, it would become effective August 28, 2008 and would apply to COLAs paid on or after September 1, 2008. Print Friendly and PDF

I noticed that HB1669 introduced by Representative Jones would give 2 years credit for various types of military service. Although it is not yet sche

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I noticed that HB1669 introduced by Representative Jones would give 2 years credit for various types of military service. Although it is not yet scheduled on the calendar, I would like to know how this would impact those of us who have already purchased our credible military service? Thank you very much for your attention to this matter.
As presently drafted, the proposal would allow eligible members (including members who have already purchased up to four years of retirement credit based on past military service) to receive two years of creditable service free of charge subject to the provisions in this bill. Refunds would not be given to members who have already purchased service. Print Friendly and PDF

Will my accrued sick leave count towards my years of service and backdrop?

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Will my accrued sick leave count towards my years of service and backdrop?
For every 168 hours of unused sick leave you have at retirement you will receive a month of creditable service. Sick leave credit does not count in determining your eligibility for retirement or the BackDROP. However, once you are otherwise eligible for retirement, your sick leave credit would be considered in computing the amount of your retirement benefit and, if you are otherwise eligible for the BackDROP, it would also be used in determining the amount of your BackDROP payment. Print Friendly and PDF

I plan to elect the cash option for receiving my BackDROP distribution. Is it true that the 20% withholding is a fee that is actually split between MO

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I plan to elect the cash option for receiving my BackDROP distribution. Is it true that the 20% withholding is a fee that is actually split between MOSERS and CitiStreet?
No, this is not true. Any portion of your BackDROP distribution that you elect to have paid directly to you will be subject to 20% withholding for federal income tax. Amounts withheld are sent to the Internal Revenue Service (IRS). Applicable state taxes may also apply. Print Friendly and PDF

I heard that if you elect a BackDROP rollover to your Deferred Compensation Account, there was a large fee assessed by CitiStreet. Is that true?

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I heard that if you elect a BackDROP rollover to your Deferred Compensation Account, there was a large fee assessed by CitiStreet. Is that true?
No. There are no fees other than the administrative fee of $3.00 per month that participating members are all currently charged. Print Friendly and PDF

The following is an excerpt from January 27, 2008 CBS 60 Minutes "House of Cards" segment. As you can see, 60 Minutes did not reveal which state's re

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The following is an excerpt from January 27, 2008 CBS 60 Minutes "House of Cards" segment. As you can see, 60 Minutes did not reveal which state's retirement funds were involved. Is Missouri's state pension fund invested in these high-yield mortgage backed securities? Also, where can I locate information regarding the solidity of Missouri's fund?

EXCERPTS FROM 60 MINUTES JAN 27, 2008
"That’s the fascinating part of this whole debacle we’re in. Mortgages are sold in mortgage backed securities, so they’re pooled. I’ve seen everything from some of the largest financial institutions in the country, and you see 'Deutsche Bank' in a series and a series of numbers and letters to a mortgage pool," he says.
 
EXCERPTS FROM 60 MINUTES JAN 27, 2008 
"That’s the fascinating part of this whole debacle we’re in. Mortgages are sold in mortgage backed securities, so they’re pooled. I’ve seen everything from some of the largest financial institutions in the country, and you see 'Deutsche Bank' in a series and a series of numbers and letters to a mortgage pool," he says. 
The pools are part and parcel of those high-yield mortgage backed securities everyone gobbled up a few years ago, and are now stuck in the windpipe of the world's financial system. No one wants to buy them, so no one can sell them. 
"Bonds marked triple-A are now quoted at 50 cents to the dollar, 40 cents on the dollar. Some of them, much less," Grant says. 
"How much on the dollar, do ya think?" Kroft asks. 
"Some of them are worth nothing on the dollar. Nothing on the dollar. This is the worst thing that has happened to Wall Street in a long time," Grant says. 
Asked how many of these securities are out there, Grant says, "A trillion with a T-plus." 
Asked who bought them and owns them, Grant says, "You know, state pension funds, the hedge funds bought them. Foreign central banks own some of these things, if you please. So the ownership is very widely dispersed, which accounts for the general anxiety, and the persistence of anxiety." 
It’s that anxiety that spooked the world’s stock markets last week, that and the knowledge that things are likely to get worse, at least for a while.”


When financial issues of this type are in the news, we generally try to feature factual information on the home page of our website. For example, on December 18, MOSERS’ Chief Investment Officer (CIO) addressed the sub-prime mortgage issue. The problem is not from any exposure we have to sub-prime debt but, as an investor, we cannot be completely insulated from the overall impact of this event on the financial markets in general. It is important for you to know that your retirement system remains well funded and that promised benefits are secure. Our CIO sums it up by saying, “the big picture story is that MOSERS’ investments are very well diversified and, as a result, the portfolio is positioned to withstand turbulent market environments like the one being encountered as a result of the sub-prime mortgage debacle.”

To help put this in perspective, for calendar year 2007 the MOSERS portfolio generated a return of 13.2% which compares very favorably to an investment in the S&P 500 which generated a return of 3.5% over the same period of time.

Information regarding MOSERS’ investments is readily available on our website and in our Comprehensive Annual Financial Report. An abbreviated version of the Comprehensive Annual Financial Report called the Summary Annual Report is mailed to members in their winter Pensions Plus or Retiree News newsletter each year – the Summary Annual Report also includes information regarding MOSERS’ investments. Print Friendly and PDF

If passed, HB1669 requires that certain veterans who have been state employees for a specified period of time and who meet certain eligibility require

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If passed, HB1669 requires that certain veterans who have been state employees for a specified period of time and who meet certain eligibility requirements are given two years of creditable service in MOSERS….
MY QUESTION: Given a veteran was qualified for the credit, would MOSERS refund the purchase, up to two years to the veterans who have purchased their military time?I know normally MOSERS does not comment on proposed legislation, but as there is still time to influence legislation, amendments etc., so I would hope you would make an exception this time, as would be nice to know what MOSERS interpretation of HB1669 would be.

As presently drafted, the proposal would allow eligible members who have already purchased up to four years of military service to also receive two additional years of creditable service free of charge. Therefore, refunds would not be given to members who have already purchased service.
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How many years after you meet 5 years of your BackDROP can you stay before it’s terminated?

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How many years after you meet 5 years of your BackDROP can you stay before it’s terminated?
Under current law, the BackDROP provision does not terminate under any circumstances. However, the BackDROP period is limited to five years. For example, if you work 8 years beyond the date when you were first eligible for normal retirement, your BackDROP period could start five years before you actually retire. Print Friendly and PDF

Is it true that Missouri state taxes will no longer be withheld from retirement benefit payments? If so, when will this be effective?

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Is it true that Missouri state taxes will no longer be withheld from retirement benefit payments? If so, when will this be effective?
Missouri State income taxes are only withheld from your MOSERS benefits if you request that we do so.
However, you might be thinking about the new public pension exemption that was passed during the 2007 legislative session. A list of the
2007 tax year changes is provided on the Missouri Department of Revenue’s website.
The following text was taken directly from the Department of Revenue’s website:

New Public Pension Exemption
Married 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.
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In a 12/27/07 posting regarding backdrop and COLA, I am hoping for some additional clarification. If I take a planned 2-year Backdrop benefit, I under

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In a 12/27/07 posting regarding backdrop and COLA, I am hoping for some additional clarification. If I take a planned 2-year Backdrop benefit, I understand it will reduce my calculated monthly benefit by those 2 years taken. When a Benefit Estimate is calculated, does the monthly benefit include a COLA adjustment for those 2 years or is that calculated in the cash settlement of the Backdrop? For example: If a person has 20 years credible service and is eligible to take 2 years backdrop, will the COLA be calculated based on 20 years or 18?
If you retire and elect a 2-year BackDROP, your retirement benefit will be calculated using your service and final average pay as of your BackDROP date. In your example, your benefit will be calculated using 18 years of service.
You will earn a cost-of-living allowance (COLA) each year on the anniversary of your BackDROP date. The lump sum BackDROP payment will be computed considering the annual COLAs you would have received had you retired on the BackDROP date. Simply stated, the BackDROP payment and your ongoing monthly benefit payments will reflect an annual COLA for the 2 years. (Keep in mind that the BackDROP payment is equal to 90% of the benefits you would have received between your BackDROP date and your actual retirement date if you had retired on your BackDROP date.)
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Since I am retiring March1 this year, will the COLA be figured into my back drop payment and why is my backdrop amount smaller after Jan 1 than it was

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Since I am retiring March1 this year, will the COLA be figured into my back drop payment and why is my backdrop amount smaller after Jan 1 than it was on Dec. 31.
Yes, the BackDROP payment will include any COLAs earned during the BackDROP period you elect at retirement.

One reason your BackDROP amount on January 1 is less than the BackDROP amount on December 31 might be the COLAs. Each January, the COLA rate for that year is determined based on 80% of the change in the Consumer Price Index (CPI). When a member requests an estimate using a future date, the system calculates the benefit based on the current COLA amount. For calendar year 2007, the COLA rate was 2.581%. Therefore, the December 31 estimate would have used a COLA rate of 2.581% for 2007 and 2008.Once the COLA for the new year is determined (mid-January), the system is updated and the new COLA rate is used in benefit estimates. The COLA rate for 2008 is 2.278%. In other words, the January 1 estimate would have used a COLA rate of 2.581% for 2007 and 2.278% for 2008. Since the COLA rate for 2008 is slightly lower than the COLA rate for 2007, your January 1 estimate is less than your December 31 estimate. Having said that, there could also be other factors impacting the BackDROP such as work beyond age 62 if you were eligible for Rule of 80 (and the temporary benefit) before age 62. If you will contact a benefit counselor at MOSERS, we will be able to analyze your situation in detail and give you a complete answer. Print Friendly and PDF

I was told that the state of MO will pay members insurance after they retire if they have at least 20 years of service with the state of MO if legisla

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I was told that the state of MO will pay members insurance after they retire if they have at least 20 years of service with the state of MO if legislation passes? If so, when will that be approved? Will this be put forth for the voters registered in MO to vote on? Any information you can provide me about this subject would very much be appreciated.
We are not aware of any proposed legislation such as you described. You can track legislation at the Missouri General Assembly’s website. Through the General Assembly’s website, the Joint Committee on Public Employee Retirement provides a handy 2008 Retirement Legislation Status Report to help you track retirement related legislation.
The state presently provides a subsidy for health care coverage for eligible retirees and the amount of the subsidy is predicated on the length of service the retiree had with the state. The Missouri Consolidated Health Care Plan (MCHCP) administers the medical, dental, and vision coverage for eligible state employees. Specific questions regarding legislation affecting medical benefits should be directed to MCHCP at (800) 487-0771. Print Friendly and PDF

Why is the Deferred Compensation website still so user-unfriendly? The login is confusing and doesn't deliver one to one's account information immedia

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Why is the Deferred Compensation website still so user-unfriendly? The login is confusing and doesn't deliver one to one's account information immediately. This needs substantial improvements since it has been in this state since CitiStreet became the administrator. I have heard numerous complaints about the site, but it doesn't seem to be registering with anyone who has the will or interest to make it user friendly.
CitiStreet recently updated their website in hopes of making it more user-friendly. From their home page, you can take a brief tour of the site to become more familiar with it. In addition to several functionality changes, CitiStreet added a site map and a search option to help participants find items of interest.
CitiStreet offers six free informational seminars. One of the seminars focuses on Website Navigation to help participants develop a comfort level when using the website. The
seminar schedule can be found on their website under What’s New.
Effective September 1, 2007, oversight of the deferred compensation program was transferred from the Deferred Compensation Commission to the MOSERS Board of Trustees. We are currently working with CitiStreet to identify potential areas of improvement to the deferred compensation plan. One of the areas we are examining is their website. Your feedback is very helpful in this endeavor. Print Friendly and PDF

Is there a mandatory retirement age for State Employees? If so, what is the age?

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Is there a mandatory retirement age for State Employees? If so, what is the age?
No, there is not a mandatory retirement age for general state employees.
However, members of the Judicial Plan (administered by MOSERS) are required by law to retire on or before their 70th birthday. If they fail to retire by age 70, they will forfeit all rights to a retirement benefit, annual compensation, or salary.

The other state employees subject to a mandatory retirement age are uniformed members of the highway patrol. Their retirement plan is administered by the MoDOT and Patrol Employees Retirement System (MPERS) and their mandatory retirement age is 60. Print Friendly and PDF

When I attempted to purchase my two years of Army time, I was allowed to purchase 1 year, 11 months and 19 days. With monthly credited service for unu

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When I attempted to purchase my two years of Army time, I was allowed to purchase 1 year, 11 months and 19 days. With monthly credited service for unused sick leave at 21 days per credited month, will additional days after the incremented 21 be added to the 19 bought to give a month or did I waste the cost of buying the 19 days?
By law, anyone purchasing active-duty military service must purchase all that they served (total years, months, and days), up to a maximum of 4 years.
When calculating your retirement benefit, we will combine your actual service (years, months, and days) with your purchased service (years, months and days) to arrive at what we call vesting service. Your unused sick leave will be reviewed separately to determine how much additional credit you will receive with one month of service added for each 168 hours of unused sick leave (with no credit for fractional months). Print Friendly and PDF

Is there any lobbying effort by MOSERS or any other group to convince the legislators to increase the deferred compensation? It was legally increased

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Is there any lobbying effort by MOSERS or any other group to convince the legislators to increase the deferred compensation? It was legally increased to a possibility of $75 match, but not funded. Any hope? This would be an excellent tax-free raise, as we have not really had a true raise since Gov. Carnahan was in office. COLA increases are just that...cost of living, which should be automatic. Missouri state employees are actually far behind COLA, as we did go 3 years with no COLA. I wish the legislators would at least catch us up.
There has not been a lobbying effort that we are aware of at this time. As you noted, the Deferred Compensation Plan law (Section 105.927 of the Revised Statutes of Missouri) does allow the state to contribute an amount not to exceed $75 per month to all qualified employees. Since 1994 (with funding beginning in 1995) the amount of the state incentive has been $25 per month. To increase the state incentive, the expenditure must be appropriated by the General Assembly. In recent years, the top compensation related priorities have been funding the pay plan and funding the state subsidy for employee and retiree medical coverage.
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Are there any rumors floating about concerning incentives for retiring early? Insurance coverage after retirement?

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Are there any rumors floating about concerning incentives for retiring early? Insurance coverage after retirement?
No. At this time, MOSERS is not aware of any proposed legislation that would provide an early retirement incentive.
The 2008 legislative session began January 9. You can track legislation at the Missouri General Assembly’s website. Through the General Assembly’s website, the Joint Committee on Public Employee Retirement provides a handy 2008 Retirement Legislation Status Report to help you track retirement related legislation. Print Friendly and PDF