Showing posts with label vested. Show all posts
Showing posts with label vested. Show all posts

Death of Member Before Retirement

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My age is 58 and i have worked for the state 20 years. My question is if i died before i retired well my spouse receive my pension? My normal retirement is 1/1/2020.
Yes, if you are an active general state employee, married, vested in MOSERS, and die before you retire with MOSERS, your eligible surviving spouse will receive survivor benefits. If you have no surviving spouse, we will pay survivor benefits to your natural or legally adopted child(ren) younger than age 21. If you die without any eligible beneficiaries, no survivor benefits will be paid. These benefits would be payable in the month following your death.

The monthly benefit for your spouse will be based on the benefit you have accrued as of your date of death. We will calculate it according to the Joint & 100% Survivor Option. We will pay monthly survivor benefits for the remainder of your spouse's lifetime. You can find information regarding the death of a member on our website. Survivors should contact a MOSERS benefit counselor for guidance through the process.

An exception to this: The “immediate” survivor benefit provision is not available for terminated-vested members of MSEP 2011  employed on or after January 1, 2018. This change was in SB62 during the 2017 legislative session. It is a cost offset for the reduction in the vesting requirement from 10 years to 5 years for members of MSEP 2011. Eligible survivors of such members will begin receiving benefits when the deceased member would have attained normal retirement age.

Members often have similar questions about death AFTER retirement. A key feature of your MOSERS defined benefit (DB) pension plan is that it can provide financial security for your eligible survivor(s) as well. During the retirement process, you will make elections to determine if any potential survivor benefits will be paid to anyone after your death or not – to a spouse if you are married, or, potentially, to another beneficiary.

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Survivor Benefit for Vested Employee

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Employee is vested and dies before retirement, will their spouse receive any retirement benefit.
Yes, if you are a general state employee, married, vested in MOSERS, and die before you retire with MOSERS, your eligible surviving spouse will receive survivor benefits. Survivor benefit payments can begin as early as the month following your death provided that MOSERS receives and processes the survivor application and all necessary documentation, such as a death certificate*. The monthly benefit for your spouse will be based on the benefit you have accrued as of your date of death and calculated according to the Joint & 100% Survivor Option. The survivor benefit will be paid monthly for the remainder of your spouse's lifetime. You can find information regarding the death of a member on our website. Survivors should contact a MOSERS benefit counselor for guidance through the process.

Otherwise, during the retirement process, you will make elections to determine if any potential survivor benefits will be paid to anyone after your death or not.

*Exception: The “immediate” survivor benefit provision is not available for terminated-vested members of MSEP 2011 who were first employed on or after January 1, 2018. This was a change made in SB62 during the 2017 legislative session as a cost offset for the reduction in the vesting requirement from 10 years to 5 years for members of MSEP 2011. Eligible survivors of such members will begin receiving benefits when the deceased member would have attained normal retirement age. 

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Increasing Contributions?

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Is it possible to contribute more to your pension, to lower your retirement date and still receive a full pension.
No. The only potential way to move your retirement eligibility date closer is to purchase or transfer qualifying prior public service that you may have and combine it with your MOSERS pension. See our MSEP 2011 Acquiring Service Credit brochure for more information or contact a MOSERS benefit counselor to see if you qualify and if it would be beneficial for you to do so.

In order for any prior public service to qualify, it must have been full-time, nonfederal, public (government) employment that you performed in Missouri. Examples include prior employment with a public school, city, or county in Missouri, or employment covered by the MoDOT & Patrol Employees Retirement System (MPERS). This could potentially make you eligible for retirement sooner if the extra service resulted in you hitting the Rule of 90 prior to age 67. (The Rule of 90 is available only to those still actively employed by the state.)

You may also want to keep in mind that you are not required to keep working for the state until retirement age in order to get your pension. Once you are vested with MOSERS, even if you leave state employment, you will be eligible for a lifetime monthly benefit once you also meet the age and all other legal requirements and retire under a MOSERS defined benefit pension plan. Your benefit is calculated using the formula:
Final Average Pay x Credited Service x Multiplier = Monthly Base Benefit. 
Remember, it is this formula, NOT employee contributions (made by those first employed on or after 1/1/2011), that determines your monthly retirement benefit. The longer you work, the more your benefit will be.

You certainly can contribute more to MO Deferred Comp to increase your supplemental savings for retirement but it won’t make you eligible for retirement any sooner.

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MSEP 2011 Legislative Changes from 2017

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Correction Officers have been hearing that the State of Missiouri Retirement System is bringing back the "80 and out" rule or 80/80 and the Employee is vested after 5 years of service?
For members of MSEP 2011 who are actively employed on or after 1/1/2018, yes, the vesting requirement did change to 5 years, effective 1/1/2018. This change was part of Senate Bill 62, which was passed during the 2017 legislative session. The changes were summarized on our legislative page. You can read more about the vesting change in our news article from 2017, The Change from 10 to 5-Year Vesting for MSEP 2011 Members.

However, requirements for retirement eligibility were not changed. Members of MSEP 2011 reach normal retirement eligibility when they have at least 5 years of service and are age 67 or under the “Rule of 90”. Under the “Rule of 90”, they must be at least age 55 and their age plus years of service equal 90 or more. For example, if someone is age 60 and has 30 years of service, they would meet the Rule of 90.

Not sure if you are in MSEP, MSEP 2000, or MSEP 2011? See Which Plan Am I In?

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Becoming Vested

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When do you become vested? Is the 5 years calculated by your date of hire (to the exact date?) or the end of month in which you were hired? 
Vesting occurs 5 full years from your date of hire in a benefit-eligible position. Therefore, barring any non-creditable leave periods, a member who began employment on February 21, 2018 would become vested on February 21, 2023. Once you are vested with MOSERS, even if you leave state employment, you will be eligible for lifetime monthly benefit payments once you also meet the age requirement (and any other legal requirements) and retire under a MOSERS defined benefit pension plan.

The 5-year vesting for MSEP 2011 members went into effect on 1/1/2018 and MSEP 2011 members must be actively employed on or after 1/1/2018 to be covered by this change.

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Termination & Retirement Benefits

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If you are fired from state government, with or without just cause, do you lose your retirement benefits?
No. 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.

See the Which Plan am I In page on our website, which has information about how to determine your plan membership and links to member handbooks and summary of benefits charts for each plan. Contact a MOSERS benefit counselor to discuss your specific situation. You may also contact a MOSERS benefit counselor to request benefit estimates for various scenarios (including a scenario of leaving employment prior to retirement eligibility).

*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 Retirement Eligibility

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Vesting is changed to 5 years, so why is the monthly benefit not payable until 10 years? If I were to retire after 8 years, would I receive a lump sum payout of my contributions plus any amount vested by the plan, or would the benefit be deferred until after 10 years?
Vesting is one part of retirement eligibility. The other part is age. Both vesting and age requirements must be met in order to retire under a MOSERS defined benefit plan. 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.

Once you are vested with MOSERS, even if you leave state employment, you will be eligible for lifetime monthly benefit payments once you also meet the age requirement (and any other legal requirements) and retire under a MOSERS defined benefit pension plan. The 5-year vesting for MSEP 2011 members went into effect on 1/1/2018 and MSEP 2011 members must be actively employed on or after 1/1/2018 to be covered by this change.

Your contributions go toward helping pay for your future lifetime monthly benefit payments. You will receive a lump-sum payment only if you request a refund of your member contributions. By taking a refund, your forfeit all your credited service. If you are vested and take a refund, you give up your future lifetime monthly benefit payments.

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Is the MSEP 2011 Still a Contributory Plan?

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I have an employee who was hired June 2011. He has a question about the 5 year vesting. Since 5 year vesting is back he would like to know if Moser's will start contributing to retirement or if he will still have to make those contributions through his payroll.
MSEP 2011 members will still have to contribute 4% of pay to their future retirement benefit. Other than the vesting period changing from 10 years to 5 years for MSEP 2011 members employed on or after January 1, 2018, the provisions of SB 62 have NO impact on members of MSEP 2011 who work in a MOSERS benefit-eligible position until they reach normal retirement eligibility.

Money to pay current and future MOSERS pension benefits comes from:

  1. Contributions from employees who are members of the MSEP 2011 or Judicial Plan 2011 (4% of pay for MOSERS members; typically 5-10% nationally*),
  2. Earnings on investments of money in the MOSERS trust fund (61% of assets in the MOSERS trust fund have come from investment earnings), and
  3. Contributions from employers (state agencies) as a percent of active employee payroll.

Below is a simplified example of what future retirement benefit might look like over time. The benefit would be even more with compounding cost-of-living adjustments (COLAs), which are included in MSEP 2011, but not shown here for simplicity. The benefit formula is:

Final Average Pay x Credit Service x Multiplier = Monthly Base Benefit



























*Understanding Public Pensions, April 2017, Center for State & Local Government Excellence, AARP




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MSEP 2011 Survivor Benefits

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I am a MSEP 2011 Employee and had a question regarding the new retirement benefit plan. I understand you can now become vested at 5 years instead of 10, but my question is, if my spouse and I are both deceased before the retirement age, who will receive my benefits? The previous handbook states if there is no eligible spouse, a total of 80% of your monthly base benefits will be paid to your natural or legally adopted children who are younger than age 21. Who will have children at the retirement age of 67 under the age of 21? A vast majority of employees will not have dependent children at retirement age, so where will the retirement benefits go then? Will there be a new MSEP2011 general employee handbook sent out soon? 
It is accurate that, if you are an active general state employee, married, vested in MOSERS, and die before you retire with MOSERS, your eligible surviving spouse will receive survivor benefits, and also that if there is no surviving spouse, a survivor benefit is payable to your natural or legally adopted child(ren) younger than age 21. If you die without any eligible beneficiaries, no survivor benefits are paid.

If you made employee contributions to MOSERS and die without any eligible survivors, a refund of your contributions plus interest will be made to the beneficiary(ies) you have listed on your Contribution Beneficiary(ies) form or as otherwise permitted by law.

All of the above information applies if you die while actively employed and BEFORE you begin receiving your MOSERS pension benefit. Members often have similar questions about death AFTER retirement. A key feature of your MOSERS defined benefit (DB) pension plan is that it can provide financial security for your eligible survivor(s) as well. During the retirement process, you will make elections to determine if any potential survivor benefits will be paid to anyone after your death or not – to a spouse if you are married, or, potentially, to another beneficiary. 

If you terminate employment, then die before retirement, other stipulations apply. Effective January 1, 2018 for MSEP 2011 terminated-vested members: If you die after leaving state employment but prior to normal retirement eligibility age, monthly pension benefits will be payable to your eligible survivor(s) when you would have reached normal retirement eligibility. Please see the updated MSEP 2011 Handbook on our website for more information.

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MSEP 2011 Retirement Eligibility

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I know that the 10 years vested has been reversed back to 5 years, however I'm inquiring where the process is with going back to 80 & out vs. 90 & out. Is this still on the table?
We are not aware of any plans to change retirement eligibility requirements.

The 5-year vesting for MSEP 2011 members went into effect on 1/1/2018, and MSEP 2011 members must be actively employed on or after 1/1/2018 to be covered by this change.

Members of MSEP 2011* will become eligible for normal retirement when they reach age 67 and have at least 5 years of service OR under the “Rule of 90,” which is when they are at least age 55 and their age and service equals 90 prior to leaving state employment.

The 2018 legislative session began January 3 and will end on May 18th. We do not know what might happen with individual bills during the legislative session, but we will monitor all legislation impacting MOSERS and inform our members of any changes that become law.

*Members of MSEP 2011 are those who were first employed in a MOSERS benefit-eligible position on or after January 1, 2011. 

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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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Change to Rule of 90?

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I have heard from several people including some in a supervisor position that with the change from 10 year vesting to a 5 year vesting period that we will also be returning to 80 and out as opposed to 90 and out, is this true?
No. Other than the vesting period changing from 10 years to 5 years, the provisions of SB 62 have NO impact on members of MSEP 2011 who work in a MOSERS benefit-eligible position until they reach normal retirement eligibility.

Members of MSEP 2011 will become eligible for normal retirement when they are age 67 and have 5 years of service OR under the “Rule of 90” (“90 & Out”) which is when they are at least age 55 and their age and service equal 90 when they terminate/leave state employment.

It is important to note that the 5-year vesting for MSEP 2011 members will go into effect on 1/1/2018. MSEP 2011 members must be actively employed on or after 1/1/2018 to be covered by this change. For more information on vesting, see The Change from 10 to 5-Year Vesting for MSEP 2011 Members.



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Changes to Rule of 90?

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 I WOULD LIKE TO KNOW IF THE "90 & OUT RULE" STILL APPLIES OR DID THE CHANGES GO BACK TO "80 & OUT"?
There are no changes to the Rule of 90/“90 & Out” for members of the MSEP 2011.

Members of MSEP 2011 will become eligible for normal retirement when they are age 67 and have 5 years of service OR under the “Rule of 90” which is when they are at least age 55 and their age and service equal 90 when they terminate/leave state employment.

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Lump-Sum Payout?

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I have heard rumors of letters going out in September offering current retires a lump sum pay out on their retirement. Is this true?
No. Members who are already retired are not eligible for the Buyout Program. The Buyout Program is voluntary and allows vested former state employees (who meet all eligibility requirements) to elect to cash out their future monthly retirement benefit in exchange for a lump-sum payment now. We will mail a letter and application to eligible members during the month of September.

You are NOT eligible to participate in the Buyout Program if:

You have been employed by the State of Missouri at any time after June 30, 2017 in any position covered by MOSERS or MPERS.
You would have reached normal retirement age and are eligible to receive a normal retirement annuity from MOSERS before December 1, 2017 (this includes all current retirees).
You have applied for or you are receiving early retirement benefits from MOSERS.
You are a member of the Missouri State Employee Plan 2011 and are eligible for a refund of your employee contributions under section 104.1091, RSMo, and the amount of the refund would be greater than the amount of the buyout payment otherwise payable under the Buyout Program.
You left state employment between October 1, 1984 and September 1, 2002 and are eligible for a cash out of your future retirement annuity under section 104.335.6, RSMo.
You are subject to a Division of Benefit Order ("DBO") issued by a court under sections 104.312 or 104.1051, RSMo, during a divorce proceeding.

The Buyout Program was authorized under Senate Bill 62, which was enacted in 2017.

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SB 62 & Changes to MSEP 2011

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I was wondering if we are going to be switching back to 80 and out as well as back drop? I started about 3 years ago and do not have these benefits but was told we are to receive them again.
Other than to reduce the vesting period from 10 years to 5 years, the provisions of SB 62 have NO impact on members of MSEP 2011 who work in a MOSERS benefit-eligible position until they reach normal retirement eligibility.

Members of MSEP 2011 will become eligible for normal retirement when they are age 67 and have 5 years of service OR under the “Rule of 90” which is when they are at least age 55 and their age and service equal 90 when they terminate/leave state employment.

BackDROP is available only to general state employees who are members of MSEP & MSEP 2000 and who work at least two years beyond normal retirement eligibility.

For more information on vesting, see The Change from 10 to 5-Year Vesting for MSEP 2011 Members.

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MSEP 2011 Members and SB 62

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I was hired July 2013, I will now be vested in 5 years instead of 10. My question is will I still have to contribute 4 percent to my retirement and will I still be 90 and out. thank you.
Yes, you will still have to contribute 4% of pay to your future retirement benefit. It is important to note that the 5-year vesting for MSEP 2011 members will go into effect on 1/1/2018. MSEP 2011 members must be actively employed on or after 1/1/2018 to be covered by this change.

Members of MSEP 2011 will become eligible for normal retirement when they are age 67 and have 5 years of service OR under the “Rule of 90” which is when they are at least age 55 and their age and service equal 90 when they terminate/leave state employment.

For more information on vesting, see The Change from 10 to 5-Year Vesting for MSEP 2011 Members.

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Is SB 62 Retroactive?

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It is my understanding that Governor Greitens signed SB62. Is this bill retroactive or does it start Jan 1, 2018 and go forward? Also, does this bill make all DOC employees 80 and out?
Effective January 1, 2018, the vesting requirement for current and future active members of MSEP 2011 (those member first employed in a MOSERS or MPERS benefit-eligible position on or after January 1, 2011) will be 5 years. It is not retroactive.

Vesting is one part of retirement eligibility. The other part is age. Normal retirement eligibility age requirements are:


MSEP                                                 MSEP 2000                           MSEP 2011
Age 65 with 5 yrs. of service
Age 60 with 15 yrs. of service
“Rule of 80” - at least age 48 with age and service equaling 80 or more

Age 62 with 5 yrs. of service
“Rule of 80” - at least age 48 with age and service equaling 80 or more

Age 67 with 5 yrs. of service (effective 1/1/18)
“Rule of 90” - at least age 55 with age and service equaling 90 or more at time of termination


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Vesting Change?

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Heard the pension will be changing back to being vested at 5 years instead of 10 years. Is this true?
Yes, if approved by the Governor, vesting for actively employed general state employees in the MSEP 2011 will be 5 years, effective January 1, 2018.

The Governor has until July 14 to take action on the bill (sign it, veto it, or allow it to become law without his signature).

For more information, please see our Legislative Update and our response to Rumor Central questions on vesting.

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Legislation & MSEP 2000 Members

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How does SB 62 affect MSEP 2000 employees?
If approved by the Governor, SB 62 will only affect members of the MSEP 2000 who are or who become terminated-vested* within the window decided upon by the board.

Below is a summary:

•       The legislation gives the MOSERS Board the authority to establish and offer a buyout program to terminated vested members in lieu of retirement annuity benefits otherwise payable – but it does NOT require the board to do so.
•       Members who make an election to accept such a buyout will forfeit their credited service and, if they return to state employment, will be considered a new employee.
•       The authority for the board to establish such a program ends 5/31/2018.

The vesting requirements for members of MSEP 2000 or MSEP will not be changed.

MOSERS will provide more information via our website and social media when the Governor acts on this legislation. Please ensure that both your email and mailing address are up to date with MOSERS so that you will receive important information from us if you are affected by any new legislation.

*A terminated-vested member is someone who has left state employment but has enough service to qualify for a pension benefit in the future once they also reach the age requirement for retirement.

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SB 62 Provisions

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Will this below effect those that have been working for 4 yrs now under the 10 yr vested .. and were hired in with these benefits or will we get to keep these or is this for everyone straight across the board. see below :
  • They are not eligible to receive service credit for any unused sick leave.
  • If they die prior to normal retirement eligibility, benefits will not be payable to their survivor until the member would have become eligible for normal retirement.
  • They will not receive a cost-of-living adjustment until the 2nd anniversary of their retirement.
The 3 offsets you listed that are contained in SB 62 affect only MSEP 2011 members who leave state employment after becoming vested (but prior to attaining retirement eligibility). If you continue in active employment in a benefit-eligible position until you meet the age and service requirements for retirement under the MSEP 2011, these provisions will still apply to you.  

Eligibility for benefits for any MSEP 2011 member who has already or who will terminate employment before the effective date of the bill (January 1, 2018) is based on the laws in effect on that person’s termination date*

The Governor has until July 14 to approve or veto legislation. MOSERS will provide more information via our website and social media when the Governor acts on this legislation. Please ensure that both your email and mailing address are up to date with MOSERS so that you will receive important information from us if you are affected by any new legislation.

*Termination date is your last day of work in a MOSERS (or MPERS) benefit-eligible position, as reported by your employer.

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