A recent change in state law requires MOSERS to automatically refund employee contributions to MSEP 2011 members who leave state employment before vesting and who have a total contribution balance of $1,000 or less. MOSERS will process these refunds automatically, so these former employees should not submit a refund application.

Former employees who are vested or have a balance of over $1,000 are not affected. They can still request a refund or leave their contributions with MOSERS, as before.

After they separate, impacted former employees will get a letter from MOSERS showing their contribution balance, their payment date, and two payment options:

• Refund check: If they do nothing, MOSERS will mail them a check soon after the 90-day waiting period ends. Because the contributions were made pre-tax, the refund is taxable. MOSERS must withhold 20% for federal taxes unless the balance is less than $200.
• Rollover: They can roll over the refund into a qualified retirement plan. To do this, they must return the Rollover Election for Refund of Employee Contributions form included with the letter by the deadline shown in the letter. MO Deferred Comp can accept a rollover only if the former employee already has a balance there and keeps a balance of more than $1,000.

• When the refund is issued, the former employee forfeits all credited service and any right to receive MOSERS pension or long-term disability (LTD) benefits. Former employees who have applied for MOSERS LTD benefits, or plan to apply, should contact MOSERS right away. MOSERS will not issue a refund while an LTD application is under review.
• If the former employee returns to a benefit-eligible position under MOSERS or MPERS before the refund is paid, the refund will be canceled.
• A former employee who receives a refund and later returns to state employment can buy back the refunded service after one continuous year of employment by paying the refund amount plus interest. This restores their previously forfeited credited service.

• Refer separating employees to MOSERS for refund information instead of giving them a refund application. MOSERS will contact impacted former employees directly with everything they need.
• Remind separating employees to keep their address up to date with MOSERS. The letter they receive explains their payment options and deadlines.
• Report terminations and returns to work accurately and on time. This helps MOSERS determine refund eligibility correctly.

Employees with questions can contact MOSERS at (573) 632-6100 or mosers@mosers.org