Legislation and plan changes

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Rumor has it that the existing defined benefit plan is in danger of being closed to create a new defined contribution plan or some other plan. Is there any truth to this and how would it affect current state employees or retirees?
Several pieces of legislation have been introduced this session that may affect retirement plan provisions administered by MOSERS. Primarily we are talking about three bills:
  • SB 896 – establishes a defined contribution plan for individuals first employed on or after January 1, 2011.
  • SB 1048 – establishes a new tier of benefits for the Missouri State Employees’ Plan 2000 (MSEP 2000) for those individuals first employed on or after January 1, 2011. This bill modifies vesting, age for eligibility, and requires member contributions of 4%. It would also require a 4% contribution for existing members earning $100,000 or more. No other current members would be affected by this bill.
  • SB 1049 – establishes a new tier of benefits for the Missouri State Employees’ Plan 2000 (MSEP 2000) for those individuals first employed on or after January 1, 2011. This bill modifies the age for eligibility requirements and requires member contributions of 5%. This bill does not affect existing members whatsoever.
With the exception of those individuals earning $100,000 or more (under SB 1048) these bills do not affect existing members (active or retired) whatsoever. If legislation that affects existing members gains momentum or is passed by the legislature, rest assured MOSERS will keep members informed. If you are interested in the specific provisions included in each bill, you may view bill text or track their progress at the general assembly’s joint bill tracking website.

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