Cost of Medical Insurance

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I have had several employees tell me recently that, as a cost saving measure, the State is no longer going to pay a portion of the insurance cost for active employees OR that they are not going to offer insurance at all OR that the insurance costs will be so high that employees won’t be able to afford insurance. I have been telling them that none of these are true, but I keep hearing the comments.
Medical insurance benefits, for most state employees, are administered by the Missouri Consolidated Health Care Plan (MCHCP). We asked them to respond to your question. Their response follows:
"MCHCP will continue to offer comprehensive health insurance coverage for eligible state employees, retirees and their dependents. Plan options for the upcoming open enrollment period will even be expanded to include a high deductible health plan with a health savings account. Although appropriations to the trust fund have been reduced, through the use of MCHCP reserves, the state will continue to pay a very significant portion of these costs. Consequently, the rates to the members will remain very affordable and competitive." Print Friendly and PDF

Will electing BackDROP decrease my monthly benefit?

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Once again, I’ve heard that if an employee accepts Backdrop Money, it will lower their monthly retirement amount. Is this true?
P.S. I’ve also heard that the only way it could possibly lower it, is that, Moser’s calculation, using your three highest earning years, stops when Backdrop begins.
 Yes – that is true. When you elect the BackDROP option, you are basically saying you want your retirement benefit to be computed as if you had retired at an earlier date (the BackDROP date). On the BackDROP date, you would have had less service credit than you actually have when you retire, and your final average salary would probably have been lower than if computed at the time of your actual retirement. Your monthly benefit will be equal to what you would have been receiving if you had retired on the BackDROP date (which would include any cost of living adjustments added since that date) and be based on the option you elect when you actually retire.
In exchange for taking the lower monthly benefit, you will, at retirement, receive a lump sum payment equal to 90% of the total monthly benefits you would have received between your BackDROP date and the date you actually retire (the BackDROP period).
More information on the BackDROP is available on our website.
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Is BackDROP changing or ending?

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I have heard that the Backdrop program will be changing. The change will be changing the maximum of 5 years to 3 years. Is there any truth to this and if so can you give me the details.
Is the "BackDROP" program coming to an end, in September? Or any time in the near future?
There is no truth to either of these rumors. Changes to the BackDROP provision would require legislation. We are not aware of any interest having been expressed by any legislators or the administration in altering the BackDROP provisions in any way. Print Friendly and PDF

What is the history of the COLA in MSEP 2000 and when does it take effect?

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I have been thinking of retiring sometime in the next few years. I would like to know what has been the cola for the 2000 plan for the last two years.
The next question is when does the new COLA take effect. In July? January? or when?
The annual cost-of-living allowance (COLA) rate applied during a calendar year is based on 80% of the percentage increase in the average consumer price index for the previous year. For example, the COLA rate for benefit adjustments made during calendar year 2008 was determined by comparing the average Consumer Price Index (CPI) for 2007 with the average CPI for 2006, determining what the percentage increase was from 2006 to 2007, and then taking 80% of that amount.
In general, COLAs are payable on the anniversary of your retirement date. However, if you are eligible for and elect the BackDROP at retirement, your COLA will be payable on the anniversary of your BackDROP date.


COLA Rates for MSEP 2000

COLA Year / MSEP 2000 COLA Rate
2008------------2.278%
2007------------2.581%
2006------------2.710%

2005------------2.130%
2004------------1.823%
2003------------1.265%
2002------------2.277%
2001------------2.689%
2000------------1.767%
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Is the Missouri State Patrol trying to get into Department of Corrections' retirement fund?

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I've been hearing for several months that the Mo State Patrol is trying to get into our (Corrections) retirement fund to fund their retirement. Is this true or not? If they get this done will their benefits decrease to match ours, 80 and out, retirement figured at our lower level.
This is not true. A change of this nature would require legislation and we are not aware of any interest in this type of venture.
Retirement benefits for Missouri State Patrol employees are administered by the MoDOT and Patrol Employees’ Retirement System (MPERS). Retirement benefits for the Department of Corrections are administered by MOSERS. By law, these retirement systems are two separate entities with separate funding. Print Friendly and PDF