We appreciate all the work that you do for your employees and know that your time is valuable! We want to remind you how important it is to submit termination forms on time. We are unable to properly calculate a member’s Final Average Pay (FAP), which is used in calculating retirement benefits, without an accurate termination date. Submitting the termination form late stalls the retirement process for your employees and can delay retirement benefits. Additionally, we need the accurate and timely submission of termination forms to relay time-sensitive information to members regarding their MOSERS benefits. Submitting these forms late also impacts members in the following ways:

• Terminated members have 60 days to purchase portable group life insurance or convert their life insurance coverage to an individual policy if they wish to retain it. The termination form prompts us to notify members of their option to do so. Submitting the termination form late could deny the member the opportunity to continue this coverage.
• Members with life insurance coverage through MOSERS’ group policy who are eligible to retire may retain coverage as a retiree if they retire within 60 days of termination. Delayed submission of the termination form may complicate a member’s ability to retain coverage as a retiree.
• MSEP 2011 members may request a refund of employee retirement contributions. These contributions can only be paid 90 days after the date of termination, or 90 days after the member’s request is received, whichever is later. MOSERS notifies members of their eligibility to request this refund after we receive the termination form. Submitting the termination form late delays this notice and can delay payment of refunds to members.

Thank you for your continued support in making these processes smooth and efficient for you and your employees.

Among the many items covered at Benefits U last September was the importance of submitting termination forms timely, particularly for employees retiring directly from active employment. To calculate pension benefits accurately and pay them on time, we rely on you to submit termination forms for new retirees no later than the first week of the month in which the employee is retiring. We are happy to report that our tracking reports have reduced in size by 50% since Benefits U. Thank you for your continued assistance with this effort!

Please note that a transfer form should be submitted to report the internal transfer of an employee. An internal transfer is when an employee moves from one organization or section to another within the same agency or department, this includes moving from one facility or work location to another within the same agency or department.

The transfer form alerts MOSERS of a change in pay location for the employee and their service records are updated accordingly. Submitting the transfer form is important to help MOSERS maintain accurate service records and ensure the salary received for an employee aligns with their service.

Follow the link below to find the Employer Forms Webinar recording from April 21, 2021.

Employer Forms Webinar - RECORDING

To register to watch the recording, enter your name and email address. To move through the recording use the progress bar at the bottom: 

00 – 13 min: Intro to MOSERS Forms

13 – 33 min: Leave of Absence Form, including Back to Work

33 – 40 min: Transfer of Employment Form

40 – 60 min Termination of Employment Form

1:00 – 1:27 min: Q & A; overview of Employer webpage

The content was presented by Juanita Mummert, Assistant Benefits Officer-Education; Jamie Mullen, Employer Services Manager; Juanita Libbert, Receivables Analyst; and Shelley Lehmann, Contribution Analyst.

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Download Webinar handouts:

• Employer Forms Webinar – Slides
• Employer Forms – Quick Reference
• Employer Forms – FAQ
• Leave of Absence Resources [Impact on Benefits; Flow Chart; Military Leave]

In the June 2020 HR Update, we discussed the impact of a layoff of an employee (position eliminated due to shortage of funds, etc.) on MOSERS benefits. We have recently received several questions concerning the impact of furlough days on an employee’s retirement.

 – Furlough days are treated as an approved leave that is not illness-related. Pension benefits may be impacted as described below.

A Furlough of One FULL Pay Period or MORE

 – If a furlough period lasts one or more full pay periods, an employer should submit a Leave of Absence/Back to Work form indicating the approved leave to MOSERS. Upon an employee’s return to work, an employer should submit a new Leave of Absence/Back to Work form to MOSERS.

Impact:

• An employee does not earn service or salary credit during a furlough period that is one FULL pay period or longer.
• This could result in lower credited service towards retirement.
• It could also delay when the employee becomes eligible for retirement.
• During the furlough period, the employee is responsible for paying any premiums due for life insurance and/or long-term disability coverage directly to MOSERS to continue coverage. MOSERS will work with the employee to arrange the direct bill process. Upon an employee’s return to work, premiums will revert to being paid via payroll.

A Furlough of LESS than One Pay Period

 – If a furlough period lasts less than one pay period, an employer should not submit a leave of absence form to MOSERS.

Impact:

• An employee does earn service credit and salary credit during a furlough period that lasts less than one pay period.
• An employee does earn salary credit during a furlough period, but the salary credit is based on actual pay during the period. As a result, if the employee receives a reduced salary, this could result in a lower final average pay (FAP) if the leave occurs during the employee’s highest 36 consecutive months of pay.
• A lower FAP will reduce the employee’s retirement benefit.

Please inform your employees of the difference in these scenarios if you are providing options concerning furlough days.

If you have further questions, please contact Juanita Libbert juanita@mosers.org, Cindy Barbarick cindyb@mosers.org, or Shelley Lehmann shelleyl@mosers.org.