Existence of BackDROP after 2010

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There is a rumor circulating that Backdrop will no longer exist after 2010. Is this true or not. I know several are planning to retire in 2012 or later and are counting on their backdrop.
This is not 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

Is there any proposed legislation in this current legislative session (FY'09) that would affect State Employees (MOSERS) that have already retired?

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Is there any proposed legislation in this current legislative session (FY'09) that would affect State Employees (MOSERS) that have already retired?
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.
You can track legislation at the Missouri General Assembly’s website. Should a bill pass, our practice is to contact those affected by the legislation (by mail) as soon as possible. Print Friendly and PDF

My retirement date is 08 01 08. I work for revenue so I have to do 15 mins on my last day. My last day for my 15 mins will be 07 31 08 or 08 01 08?

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My retirement date is 08 01 08. I work for revenue so I have to do 15 mins on my last day. My last day for my 15 mins will be 07 31 08 or 08 01 08? How far in advance do I have to let Mosers know & also my personal office at revenue?
The application process for retirement consists of two steps. Submitting your Application for Retirement is Step 1. If you leave state employment on July 31, 2008 and retire August 1, 2008, your application must be received at MOSERS no later than June 30, 2008. We recommend that you apply for retirement 45-90 days prior to your date of retirement. For your convenience, you may apply for retirement online or request a Retirement Packet.
Once MOSERS receives your Application for Retirement, we will prepare and send you a personalized Retirement Election Form, which is Step 2. If you plan to retire August 1, 2008, your election form must be received at MOSERS no later than July 31, 2008.

Please contact your personnel office to determine when they wish to receive notice of your retirement. Print Friendly and PDF

Is MOSERS a public or private pension plan?

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Is MOSERS a public or private pension plan?

MOSERS is a single-employer, public employee retirement plan administered in accordance with Chapter 104 of the Revised Statutes of Missouri.
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There was a newspaper article from Washington Co. that says that the House of Representatives has proposed an across-the-board pay increase for state

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There was a newspaper article from Washington Co. that says that the House of Representatives has proposed an across-the-board pay increase for state employees of $1056 for 2008. Can you tell me if this is accurate and the Bill # so it may be tracked? Also, there is a rumor that merit raises may be awarded again. Is this true and can you tell me when this will go into effect?
MOSERS does not play a role in decisions regarding state pay raises so we have limited information on this issue. Pay plan recommendations are initiated in the Governor’s budget message presented to the legislature in connection with the State of the State address in mid-January each year. This year the Governor proposed a 3% pay increase for state employees. During the legislative session (January – May), the legislature considers all appropriations bills, including those pertaining to salary.
It is our understanding that the House changed the Governor’s pay plan recommendation to a $1,056 annual increase. The bills now move on to the State Senate for consideration. After both houses agree on the appropriations bills, the Governor must then sign or veto them. We are not aware of any appropriations proposals for merit pay increases.

You can track legislation at the Missouri General Assembly’s website. This year, appropriations bills for the departments and elected officials are contained in HB2002 through HB2012 and the pay plan amount is included in the personal service category in each department’s bill. However, the pay plan is not an isolated line item, so you will find total personal service for the departments in those bills but not the details of the pay plan. Print Friendly and PDF

The latest rumor is the state will cut retirement from 75% to 62%. Is this true?

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The latest rumor is the state will cut retirement from 75% to 62%. Is this true?
We’re not sure we understand the question since retirement benefits are not determined as a set percentage. Your retirement benefit is calculated using a formula that is set by law. The formula consists of three components: 1) your credited service, 2) your final average pay (the average pay earned during your highest 36 consecutive months of state service), and 3) a multiplier. With that said, we are not aware of any legislation that has been filed to change this formula. Print Friendly and PDF

I have heard that a bill is currently making its way through the legislature that will allow for two years of military time to be added to years of se

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I have heard that a bill is currently making its way through the legislature that will allow for two years of military time to be added to years of service without charge. If this passes how will this effect one who has already purchased 4 years. Is the limit on purchasing military time still 4 years?
As presently drafted, the proposed House Bill 1669 would allow eligible members (including members who have already purchased up to four years of retirement credit based on past military service) to receive an additional two years of creditable service free of charge, subject to the provisions in the bill. Refunds would not be given to members who have already purchased service.
There has been no change regarding the maximum amount of military service you may purchase. If you elect to purchase your active duty military service, you must purchase all that your served (total months and days) up to a maximum of four years. Print Friendly and PDF

Do you have to pay federal taxes on a BackDROP distribution before you roll it into an IRA?

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Do you have to pay federal taxes on a BackDROP distribution before you roll it into an IRA?
If you elect the direct rollover option to receive your BackDROP distribution, your payment will not be taxed in the year of the rollover and no income tax will be withheld. By electing the direct rollover option, the distribution is paid directly from MOSERS to a traditional IRA or an eligible employer plan that will accept rollovers.
The taxable portion of your payment will be taxed when you take it out of the traditional IRA or eligible employer plan. For a detailed explanation of the payment methods and tax consequences, please review our Special Tax Notice brochure, which is available on our website or by contacting MOSERS. Print Friendly and PDF

How does the new change in the law affect how our retirement is taxed by the State of Missouri?

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How does the new change in the law affect how our retirement is taxed by the State of Missouri?If a retiree elects BackDROP, how is BackDROP shown on the 1099 you issue?Does the tax exemption apply to Deferred Compensation distributions?
Missouri Tax Changes:
One of the 2007 changes for Missouri income tax filers is the
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 each year until 2012 when it will become 100%. The total public pension exemption is limited to the maximum social security benefit of each spouse. Those that exceed the Missouri adjusted income limits may qualify for a partial exemption.
Information regarding the public pension exemption may be found on the
Missouri Department of Revenue’s website, by contacting one of their tax assistance centers, or by contacting a tax professional.
BackDROP and 1099-R:How the BackDROP amount appears on your 1099-R depends on how you elect to receive the BackDROP distribution from MOSERS. If you elect to roll your BackDROP distribution over to a traditional IRA or eligible employer plan, you will receive two separate 1099-Rs – one for the BackDROP amount and one for your monthly retirement benefit.
If you elect the cash option to receive your distribution, the BackDROP amount will be included on the same 1099-R as your monthly retirement benefit as long as you have reached age 59 1/2 in the year you receive the distribution. If you receive the distribution in a year before you reach age 59 1/2, you will receive a separate 1099-R with a distribution code of 1 which indicates an early distribution subject to the 10% additional federal income tax or a distribution code of 2 which indicates an exception to the 10% additional federal tax for those who are at least age 55 in the year they terminate employment and receive their distribution (age 50 for those that are qualified public safety employees). Whether you elect to receive the cash distribution in one lump sum or three installments, your 1099-R will reflect the taxable amount you receive during that tax year. The taxable portion of your payment will be taxed in the year of distribution unless you roll it over. Under certain circumstances, you may be able to use special tax rules that could reduce the tax you owe. For a detailed explanation of the payment methods and tax consequences, please review our
Special Tax Notice brochure, which is available on our website or by contacting MOSERS.
Deferred Compensation:

Any questions regarding the withdrawal of funds and issuance of 1099s from the State of Missouri Deferred Compensation Plan should be directed to CitiStreet at (800) 392-0925 or (573) 893-1053. Print Friendly and PDF