Does Cafeteria Plan Affect Monthly Benefit Amount?

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An employee returned from an MCHCP Open Enrollment meeting on 10-9-08. From this meeting, the employee understood that if you plan to retire within the next 3 years, you should drop out of the Missouri State Cafeteria Plan. Because the W-2 (block 1) would show total wages, tips, and other compensation less the premiums or flex amounts, the salary would not be as high for MOSERS to use in calculating retirement benefits. Is this correct?
For purposes of calculating your MOSERS retirement benefit, that is not correct. When we calculate your retirement benefit, we use the average of your highest 36 consecutive months of gross compensation. Gross compensation is your pay before taxes or any other payroll deductions.
Your MOSERS retirement benefit is not affected by the cafeteria plan, but Social Security wages are. For more information on how your Social Security benefit may be affected by the cafeteria plan as you are nearing retirement, please contact ASIFlex, the cafeteria plan administrator, at 800-659-3035 or Print Friendly and PDF

CARO and Retirement

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If an employee is active with CARO for an on-the-job injury and is pursuing retirement is CARO still liable for treatment and services pertaining to the injury?
 We are not familiar with the workers’ compensation policies and benefits through the Central Accident Reporting Office (CARO). Therefore, CARO provided the following response to your question:
“Yes. CARO is responsible for providing medical care and benefits for a compensable work related injury until the worker is released from care, even into retirement if necessary.” Print Friendly and PDF

Amount of Service Reported to MCHCP at Retirement

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I understand that for every 168 hours of unused sick leave at retirement will be used in calculating the amount of the retirement benefit. My question is: if I have 25 years of State Service with at least 1680 hours of unused sick leave at retirement and I work 2 months past my first eligible retirement date will my credible years of State Service reported to MCHCP be 25 or 26 years?
It will be based on 26 years. Print Friendly and PDF

Deferred Compensation Incentive Plan (State Match)

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The Pensions Plus newsletter for Fall 2008 had an article on page 8 that refers to a ‘State of Missouri Deferred Compensation plan account’, which the state of Missouri matches. What is that, and am I enrolled in it? I wasn’t aware of the state matching anything.
We apologize for the confusion. The state budget provides for funding of fringe benefits, such as the deferred compensation plan incentive (often called the state match), for the executive departments. The colleges, universities, and various boards and commissions budgets are separate from the executive department budget in regard to fringe benefits. These organizations may offer the deferred compensation incentive if the funds are available in their own budgets.
We have made a note to include a disclaimer in future newsletter articles regarding the state incentive. Check with your human resources representative to see what type of savings options are available where you work.
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Vested Member Leaving State Employment

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I attended the Seminar in KC and forgot to ask: What happens to your benefits if a vested employee gets fired or terminated from his/her position?
Regardless of the reason, if you leave state employment with five or more years of credited service, you will be vested and eligible for future retirement benefits. In general, your benefits will be based on the laws in effect on the day you leave state employment. Print Friendly and PDF

Using BackDROP to Purchase Military Time

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If you are eligible to retire under the rule 80 and out, can you purchase your 4 years of military time with your backdrop earnings. I currently don’t have the cash on hand to purchase the military time. If I understand correctly, I could use all of my state matched retirement funds (PEBSCO money / Citistreet). I was hoping it would be one big transaction - getting the military time with the backdrop and transferring the remainder of the backdrop into my retirement account.
Your military service time can be purchased with your deferred compensation account funds; however, by law the purchase must be completed before applying for retirement. Since the BackDROP distribution is paid when you receive your first monthly retirement benefit payment, you cannot use the BackDROP to purchase your military service time. Print Friendly and PDF