Vesting & MSEP 2011

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I was hired November 1st 2015. I was wondering how long I have to work for the state in order to draw retirement when I am the age I can retire. Like if its 5 years, Say I work 5 years and quit the state job because I have a baby and need to be a stay at home, when I am 55 can I draw retirement, or do I lose retirement because I quit?
You have to work long enough to be vested in order to receive a future retirement benefit. Once you are vested with MOSERS, even if you leave state employment, you will be eligible for a lifetime monthly benefit once you meet the age and all other legal requirements and retire under a MOSERS defined benefit pension plan. The good news is the legislature passed a bill this year to change the vesting requirement for members who were first employed on or after January 1, 2011 (members of MSEP 2011) from 10 years to 5 years. The 5-year vesting for MSEP 2011 members will go into effect on January 1, 2018. MSEP 2011 members must be actively employed on or after January 1, 2018 to be covered by this change.

Vesting is one part of retirement eligibility. The other part is age.  As a member of MSEP 2011, you will become eligible for normal retirement when you are age 67 and have 5 years of service OR under the “Rule of 90” which is when you are at least age 55 and your age and service equals 90 by the time you leave state employment.

For example, let’s say you are employed by the state for 7 years, leave state employment for five years, then return to work and work for another 23 years for a total of 30 years of service. If you were age 60 with 30 years of service and still employed, you would be eligible to retire under the Rule of 90. On the other hand, if you became vested but never returned to state employment, then you could begin receiving your MOSERS retirement benefit at age 67. The formula for calculating your benefit is Final Average Pay  x  Multiplier (0.017)  x  Service Credit = Monthly Benefit so, the longer you work, the more your benefit will be.

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Rumor Central Posts

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 How often is Rumor Central updated? Maybe it should be updated at least once a week to keep us all posted about the latest concerns and/or talk about our retirement program.
We update Rumor Central when we receive a question about retirement, life insurance or long-term disability benefits administered by MOSERS. When we post a new question, everyone who is signed up to receive the notifications will get an email on Friday of that week so they will know a new question has been posted. If no new questions are submitted, we don’t post any updates, because the content is generated by our members and what they would like to know about.

In addition, if we receive a question we have recently addressed on the blog, we may not post it again and instead just respond individually to the sender (if contact information is provided.) We encourage members to review the Categories section before submitting a question to see if a similar question has already been answered before submitting a new question. For example, the number (181) posted next to BackDROP means we’ve answered 181 questions about BackDROP on the blog. If there is something you’d like to know about related to MOSERS benefits, and it’s not listed under the Categories page, please send us a question!

We also encourage our retirees to attend a Coffee Break educational seminar in their local area. The 2018 schedule will be posted on our website in January and included in the Fall/Winter issue of RetireeNews in December. These seminars are an excellent opportunity to hear the latest MOSERS news and network with other retirees!

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I keep hearing rumors that Peers and Mosers are joining forces. Just wondering if this is a possibility or not. 
No, we are not aware of any efforts to merge MOSERS and the Public School & Education Employee Retirement Systems (PSRS-PEERS). Print Friendly and PDF

Income Replacement in Retirement

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I was told that if you work for the state for 40 years that your retirement will be roughly the same as your salary. This doesn't make sense to me but need to check it out.
With forty years of service, your retirement benefit from MOSERS would not be the same as your salary; however, your MOSERS benefit plus your Social Security benefit would be closer to replacing most of your pre-retirement salary. Here is more information:

The retirement plan through MOSERS is a defined-benefit pension. That means the benefit is defined by law and based on a formula as shown here:

Final Average Pay (FAP) x Credited Service x Multiplier (1.6% for MSEP; 1.7% for MSEP 2000/MSEP 2011) = Monthly Base Benefit  

Example: Let’s assume that when you retire, your annual salary is $40,000; you have 40 years of service; and you elect MSEP with a  multiplier of 1.6% (0.016)

FAP ($40,000/12 = $3,333.33 monthly) x Credited Service (40 years) x Multiplier (0.016) = Monthly Base Benefit

$3,333.33 x 40 x 0.016 = $2,133.33

With 40 years of service, your monthly base benefit is equal to 64% of your salary at retirement. This does not include the impact of such provisions as the Temporary Benefit which may apply, if eligible, or COLAs in retirement.

As noted in our publication, Key Facts, generally speaking, combined pension and social security benefits should replace approximately 75% of a 30-year employee’s final average pay. Additional personal savings through programs such as MO Deferred Comp can make up the difference. You can get a pension benefit estimate at any time by logging in to your Member Homepage. Click on Estimates, then on Estimate Your Retirement Benefit. You may wish to print several versions based on different dates or other factors. Or, contact a MOSERS benefit counselor to request estimates or to make an appointment for a face-to-face meeting. We encourage you to explore the section of our website called “What Plan Am I In?” to read more about the specific provisions in each plan. Once you meet the age and service requirements and retire under a MOSERS defined benefit plan, you are guaranteed a lifetime pension benefit. When you are Ready to Retire, we are here to help.

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