HR Update is a way for MOSERS to communicate benefit news and updates with human resource and payroll representatives. Check back often and sign up to receive our emails. 

  • Important Reminders About Terminations

    Mar 14, 2024, 8:00 AM By MOSERS

    When submitting a Termination of Employment form for one of your employees, please consider the following:

    • For employees retiring directly from active employment, use the last calendar day of the month as the termination date.
    • For employees not retiring directly from active employment, use the last day actively employed or on a leave of absence (not including regular days off) as the termination date.
    • Delete the member’s work email (please keep the member’s personal email address on record).
    • Use the comments section sparingly! The comments section should be used in unique situations when you want to convey something not already captured on the termination form.

  • Termination and Reemployment Rules and Potential Corrective Action

    Jan 18, 2024, 8:24 AM By MOSERS

    Please remind employees that before receiving a benefit payment from MOSERS, IRS rules require a “bona fide termination” of the member’s employment. For purposes of MOSERS Board Rules, a "bona fide termination" occurs when:

    • The member has completely severed employment;
    • The member has not entered into a prearranged agreement (written or oral), prior to retirement, with the State of Missouri or any MOSERS-covered employer for subsequent employment on any basis (full-time, part-time, or other); and
    • The member is not subsequently employed with the State of Missouri or any MOSERS-covered employer on any basis (full-time, part-time, or other) within 30 days after their employment with their prior employer has ended.

    If a member receives retirement benefits without a bona fide termination, then all further benefit payments will end and the member will be required to repay the System all retirement benefits received, plus applicable interest, based on the assumed rate of return on the date of the member's retirement. Any amounts (including interest) not repaid by the member to the System will be subject to collection from the member's future retirement benefits. In addition, any payment considered to be an in-service distribution may be subject to a 10% early distribution penalty by the IRS.

    The member's retirement will be considered null and void. The member can apply for retirement benefits at any time during the member's continued employment but must have a bona fide termination of service and observe the 30-day separation-of-service period to receive retirement benefits.

    For more information, see our FAQs on Termination and Reemployment Rules and our Termination and Reemployment Rules flyer.

  • Termination Forms for Retirees

    Dec 19, 2023, 11:42 AM By MOSERS

    Another point of emphasis at Benefits U last month was submitting status change forms, such as leaves of absence, transfers, and terminations to MOSERS as quickly as possible. This is particularly important for employees who are retiring. To accurately calculate an upcoming retiree’s pension, we need the employee’s termination form no later than the first week of the month the employee is retiring. You can access status change forms through the secure Employer Login. Thank you for your continued assistance in reporting status changes for your employees to MOSERS.


  • Remember the Termination and Reemployment Rules

    Aug 15, 2023, 9:00 AM By MOSERS

    Before receiving a benefit payment from MOSERS, IRS rules require a “bona fide termination” of the member’s employment. For purposes of MOSERS Board Rules, a "bona fide termination" occurs when:

    • The member has completely severed employment;
    • The member has not entered into a prearranged agreement (written or oral), prior to retirement, with the State of Missouri or any MOSERS-covered employer for subsequent employment on any basis (full-time, part-time, or other); and
    • The member is not subsequently employed with the State of Missouri or any MOSERS-covered employer on any basis (full-time, part-time, or other) within 30 days after their employment with their prior employer has ended.

    See FAQs on Termination and Reemployment Rules and a flyer on Termination and Reemployment Rules for more information.


  • Timely Comp Time Payouts Increase Accuracy

    Aug 15, 2023, 8:58 AM By MOSERS

    Payments of unused compensatory leave time, or comp time payouts, to benefit-eligible employees made before or after an employee’s termination, are included in retirement-eligible pay and are eligible for salary credit provided contributions are remitted to MOSERS for the payment.

    Comp time payouts may impact the calculation of an employee’s pension benefit. This is why paying out unused comp time before or with an employee’s final paycheck is beneficial. A delayed comp time payout could result in an incorrect benefit estimate or pension check and could require MOSERS to recalculate a retiree’s pension.


  • Submit Termination Forms ASAP

    Nov 15, 2022, 8:58 AM By MOSERS

    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.

     


  • Submit Terminations ASAP

    May 16, 2022, 3:13 PM By MOSERS

    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 need accurate and timely submissions to pay refunds of contributions to members. Additionally, we are unable to properly calculate a member’s Final Average Pay (FAP) without an accurate termination date. If submissions are not made on time, it can delay the retirement process for your employees and will create errors on your error reports. Thank you for your continued support in making these processes smooth and efficient for you and your employees.


  • Termination and Reemployment Rules

    Apr 12, 2022, 10:05 AM By MOSERS

    This month, active employees who are within one year of normal retirement eligibility or already eligible to retire will receive a letter reminding them of the termination and reemployment rules. Additionally, we have programmed for an automatic reminder letter to be sent to active employees when they reach the following milestones: one year before early retirement eligibility, two years before normal retirement eligibility, and one year before normal retirement eligibility.

    We hope these reminder letters will assist your employees in complying with the termination and reemployment rules, which state that before receiving a benefit payment from MOSERS, IRS rules require a “bona fide termination” of a member’s employment. For purposes of MOSERS Board Rules, a "bona fide termination" occurs when:

    • They have completely severed employment;
    • They have not entered into a prearranged agreement (written or oral), prior to retirement, with the State of Missouri or any MOSERS-covered employer for subsequent employment on any basis (full-time, part-time, or other); and
    • They are not subsequently employed with the State of Missouri or any MOSERS-covered employer on any basis (full-time, part-time, or other) within 30 days after their employment with their prior employer has ended.

    For more information, please see our FAQs on Termination and Reemployment Rules and our Termination and Reemployment Rules flyer

    Please note that if they do not have a bona fide separation of service, their retirement will be null and void, meaning they will not receive their pension payments.


  • Submit Terminations ASAP

    Feb 16, 2022, 10:17 AM By MOSERS

    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 dates on time. We need accurate and timely submissions to pay refunds of contributions to members. Additionally, we are unable to properly calculate a member’s Final Average Pay (FAP) without an accurate termination date. If submissions are not made on time, it can delay the retirement process for your employees and will create errors on your error reports. Thank you for your continued support in making these processes smooth and efficient for you and your employees.



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