Effects of "Brexit" on Retirement Benefits?

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With Britain's withdrawal from the EU, how is that going to effect our backdrop and retirement. Will be retiring soon and this development has me very concerned.
 Britain’s withdrawal from the EU will not affect your BackDROP amount or monthly retirement benefit.  Furthermore, your MOSERS pension benefit will not be impaired by any short-term market event because it is based on a formula set by law:  Final Average Pay x Credited Service x Multiplier = Monthly Base Benefit.  (Learn more about MOSERS PreRetirement Seminars, the formula, and the retirement process here.)

MOSERS is a pre-funded plan, which means your employer (as an agency of the State of Missouri) makes ongoing financial contributions which are combined with investment earnings and, as of 2011, contributions from new state employees, to pay all current and future benefits. The state makes contributions to your benefit throughout your career. Those contributions have been, and will continue to be, invested in a long-term investing plan that does not react to short-term political events.

To reiterate, your benefit is secure. Money comes into the MOSERS fund in two ways:
1) Contributions - from employers and from employees in the MSEP 2011 or the Judicial Plan 2011, and 2) Investment earnings. MOSERS’ investment earnings on the amounts that have been contributed have significantly increased the assets available to pay your retirement benefit.

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Out-of-State Retiree

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If you retire with 80 and out in Missouri, would you be able to work in another state full-time and still draw your pension from Missouri?
Yes. Working in another state would have no effect on your MOSERS benefit. Your MOSERS retirement benefit would be stopped only if you retire and later return to work in a MOSERS or MPERS* benefit-eligible position. A benefit-eligible position is one that normally requires at least 1,040 hours of work per year and is permanent in nature.

*MoDOT & Patrol Employees’ Retirement System

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80 & Out?

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I understand that the 80 and out rule no longer exists. Is it called the 90 and out rule now?
It depends on your retirement plan. General state employees who are in the MSEP or MSEP 2000 are eligible for normal retirement once their age and service equals the Rule of 80 (“80 and Out”). The minimum age requirement for employees first employed in a MOSERS benefit-eligible position prior to 01/01/2011 is age 48.

It is the Rule of 90 (“90 and Out”) for general state employees who are members of MSEP 2011- those first-employed in a MOSERS benefit-eligible position on or after 01/01/2011. The minimum age requirement for the Rule of 90 is age 55.

Keep in mind any of the following may affect your retirement eligibility: your retirement plan (MSEP, MSEP 2000, MSEP 2011, etc.), age, service, and if you retire directly from active employment versus leaving state government and waiting to retire. Contact a MOSERS benefit counselor to discuss your specific situation.

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Social Security Retirement Benefits

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I retired with 80 and out. I will be 62 in October do I need to sign up for social security now?

 If we understand your question correctly, you are asking about timing your social security benefits with the end of your MOSERS temporary benefit* under the MSEP 2000. Your last temporary benefit from MOSERS will be paid at the end of the month in which you turn 62. MOSERS benefits are not automatically coordinated with social security, so you should contact the Social Security Administration to find out when you should apply and when you will get your first social security benefit payment so that you know and are prepared if there is a gap between payments.

We have a news article on our website that may also be helpful to you.

*The Temporary Benefit is a provision of the MSEP 2000 or MSEP 2011. It is not available in the MSEP and would not apply if you retire under MSEP 2000 or MSEP 2011 and are older than age 62 when you retire.

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Final Average Pay

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Is our retirement benefit based on the 3 highest years of wages?
or the 3 highest years of wages before you hit 80 and out?
I keep hearing both, so not sure which is right.
The answer depends on if you elect BackDROP (if eligible); not when you hit “80 & Out”. 

If you are a general state employee, your retirement benefit is calculated using a three-part formula:

Final Average Pay (FAP)        x            credited service         x             a multiplier

FAP is determined using your highest 36 full consecutive months of pay when looking at your entire work history covered under MOSERS. Practically speaking, for most, that is their last three years, but not always.

The exception to this would occur under the BackDROP (if eligible). If you become eligible for and elect the BackDROP upon retirement, your highest 36 consecutive months would be determined from your MOSERS-covered work history prior to your BackDROP date. (Some people find BackDROP easier to understand if they think of the BackDROP period as being “cashed in” because salary and service during that period don’t count in the calculation of your monthly benefit amount.)

So, to reiterate, if you don’t elect BackDROP, your monthly benefit will be based on your highest 36 full consecutive months of pay, regardless of whether that is before or after you might hit “80 & Out”.  See page 20 of the MSEP/MSEP 2000 General Employees Retirement Handbook for an example and more detailed information. Also, keep in mind that “80 & Out” is not the only way to become eligible for retirement. For example, as a general state employee in MSEP 2000, you might become eligible for normal retirement at age 62 with 5 years of service before you would become eligible for “80 & Out”.  See Which plan am I in? with a list of plan provisions including criteria for normal retirement eligibility in each plan. 

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Health Care Proposal?

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I recently heard there is a proposal being considered that would give retirees the opportunity to receive their full health care benefits through MCHCP at the same monthly premium they paid while working full time...true?
There was a healthcare retirement incentive (HB 1134) that was introduced in the 2016 legislative session, but it didn’t pass. The 2016 session ended on May 13th.  It would have to be reintroduced in the next legislative session which begins in January 2017 to be considered again.

Specific questions regarding health care benefits should be directed to your health care provider, which, for most state employees, is Missouri Consolidated Health Care Plan (MCHCP).

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