Showing posts with label Vesting. Show all posts
Showing posts with label Vesting. Show all posts

Contribution Refunds

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I’m considering accepting a job that participates in Moser. There is a substantial payroll contribution for the pension and that it takes five years to be vested. My question is if I do not work the full five years in order to be vested will my payroll contributions be available to me for withdrawal or transfer?
Anyone who is first employed in a MOSERS or MPERS benefit-eligible position on or after January 1, 2011 must contribute 4% of pay to the retirement system. Your 4% contribution is used to help pay the cost of your future defined benefit retirement plan and could potentially pay you back far more than you contribute. See a simplified example in The Value of Your Retirement Benefit. When you retire, you will receive a benefit payment every month for as long as you live. This means you can never outlive your MOSERS retirement benefit.

If you leave state employment prior to becoming eligible for normal retirement, you may request a refund of your contributions plus credited interest. By taking a refund, your forfeit all your credited service. Or, you may leave your contributions with the system if you think you might return to work for the state at some point in the future and would like for those years of service to count toward an eventual retirement benefit. See our Member Contributions brochure for more information. 

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Leaving Employment Before Retirement Date

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My retirement plan is MOSERS 2011. If I leave state employment AFTER I am vested but BEFORE my retirement age/date, how do I figure my monthly benefit amount?
If you are vested with MOSERS (you have at least 5 years of service) and then leave state employment, you will be eligible* for a lifetime monthly benefit, which will begin once you meet the age requirement (and all other legal requirements) and retire under a MOSERS defined benefit pension plan. In general, your benefits will be based on the laws in effect on the day you leave state employment.

For general state employees, we calculate retirement benefits using this three-part formula:

Final Average Pay (FAP)        x            Credited Service         x             Multiplier       =               Monthly Base Benefit  

(The multiplier is determined by your plan; 1.6% for MSEP; 1.7% for MSEP 2000/MSEP 2011.)

Example

FAP $3,000 (per month)         x          7.5 years of Credited Service             x          0.017 Multiplier 
for MSEP 2011 = $382.50 Monthly Base Benefit

Keep in mind that additional service will increase your benefit:

FAP $3,000 (per month)         x          23 years of Credited Service              x          0.017 Multiplier for MSEP 2011= $1,173 Monthly Base Benefit

As a member of MSEP 2011, you will become eligible for normal retirement when you have at least 5 years of service and reach age 67 OR under the “Rule of 90” which is when you are at least age 55 and your age plus service equals 90 prior to you leaving state employment.

As a member of MSEP 2011, you pay contributions to help fund the system. Upon termination of employment, you may request a refund of your contributions or you may leave your contributions with MOSERS. It you take a refund of your contributions, you will forfeit all your credited service and any future rights to receive benefits from the system, but you get a check equal to the amount of contributions you made plus any interest. See our Member Contributions brochure for more information.

For more information, see the MSEP 2011 Retirement Plan video or the MSEP 2011 Handbook. You can also request a benefit estimate by calling a benefit counselor.

*An exception is if you were fired because you were convicted of a specified felony committed in connection with your job as a state employee on or after August 28, 2014. See Missouri Revised Statute §105.669

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MSEP 2011 Vesting

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I was hired on June 30th 2014 and I was told I was vested at 10 years of service. Due to this change am I now vested at 5 years instead of 10?
Yes, if you continue working until you have five years of service, you will be vested. At the time you were hired in 2014, vesting for members of the MSEP 2011 (those first employed in a MOSERS benefit-eligible position on or after January 1, 2011) was ten years. Last year, the Governor signed legislation which changed the vesting requirement to five years, effective January 1, 2018. MSEP 2011 members must be actively employed on or after 1/1/2018 to be covered by this change. The changes were summarized on our legislative page and in this article about the vesting change on our website. Keep in mind, the longer you work, the more credited service you will have and the higher your pension benefit will be.
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Going Back to Work to Become Vested

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I had 4 years and 7 months in the MOSERS retirement system before changing employment and as I'm now approaching retirement age, would like to go back and pick up one more year of MOSERS eligibility to become vested.

Can you provide me with a list of Employers near Springfield Missouri that have MOSERS retirement?

How would I go about estimating what my potential benefit would be after working 12 consecutive months to become vested to see if it's even worth it.

You are correct in your understanding of the requirement to become vested. Since you left state employment with less than 5 years of service, you forfeited your accrued service credit and all rights to benefits from the MOSERS. If you return to work in a MOSERS-covered position, your forfeited service will be restored and combined with your new service after you have completed 12 continuous months of employment. You can find a list on our website of state agencies who employee workers in MOSERS-benefit eligible positions.

The amount of your potential MOSERS benefit will be determined by this formula: Final Average Pay x Credited Service x Multiplier = Monthly Base Benefit
Let’s assume:
•    Your final average pay is $3,250 per month (an approximate average of state employees)
•    You end up with 6 years of credited service
•    You are in the MSEP 2000 and the multiplier is 1.7%

The formula would be $3,250 x 6 x 0.17 = $331.50 per month. This would be a lifetime monthly benefit for you.

Keep in mind that your benefit will be based on your actual data and could be higher or lower.  Working longer would increase your benefit. You can request an individualized benefit estimate from a MOSERS benefit counselor, and in most circumstances by logging in to your MOSERS Member Homepage through our website.


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