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. 

  • 2020 Annual Life Insurance Review

    Sep 16, 2020, 12:56 PM By MOSERS

    For members who ALREADY have optional life insurance through MOSERS: It’s that time of year again—the month of October is your employees’ window of opportunity to evaluate their optional life insurance coverage and decide if they would like to increase it (within the established guidelines) without proving insurability. Please note this review period does not apply to spouse and child(ren) coverage (see FAQs). If your employees wish to maintain their current level of coverage, no action is required.

    Updating Their Beneficiaries

    Included on your employees’ Annual Benefit Statement is their primary life insurance beneficiary designation. If their beneficiaries have had a life change that may affect this information, such as a marriage, divorce, or death, please encourage them to update their beneficiary designations as soon as possible. For your employees’ convenience, they may quickly and easily update their beneficiary designations online by following these steps:

    • Log in to myMOSERS
    • Click on Forms then Life Insurance Beneficiaries in the top menu.
    • Follow the instructions for completing and submitting the online form.

    The new designation form will become effective upon receipt at MOSERS.

    Remind Employees to Check Their Email

    In late September, MOSERS sends instructions via email to eligible members explaining how to increase coverage. They may view their notification in their Document Express folder. Please encourage them to read it carefully. If there is no valid email address on file for them, MOSERS will send a letter to them in the mail.

    Note: All MOSERS members have access to Document Express. They may use ESS and go to MOSERS. Or log in to myMOSERS and follow the prompts. To create their MOSERS Online ID & password they must have a valid email address on file with MOSERS. If they cannot enroll online, please have them contact a benefit counselor at (800) 827-1063 for assistance.

    Eligibility

    To be eligible for the Annual Term Life Insurance Review, your employees must:

    • Be actively employed in a MOSERS benefit-eligible position.
    • Be currently insured with less than the maximum amount of optional life insurance coverage (the lesser of six times your annual salary or $800,000).

    Online Election Method

    If your employee wishes to increase their optional life insurance coverage amount, have them go to their MOSERS Member Homepage through ESS or log in to myMOSERS  between October 1 and October 31, 2020 (midnight). On their MOSERS Member Homepage, they will need to simply click on the Update Now button and follow the steps to increase their coverage.

    Confirmation of Their Election

    If they increase their coverage, their confirmation letter will be posted to their Document Express, which they can access by logging in to myMOSERS. They will receive an email notification alerting them when it is posted and ready to be viewed; they may then save it to their computer, or print it. If they opted out of electronic delivery, they will receive a confirmation letter in the mail reflecting any changes to their coverage.

    Important Details

    • To aid in their decision, they will be provided with their current 2019 coverage amount and monthly premiums, as well as what their new 2020 premiums will be if they opt for the increase.
    • Any new elections in October will go into effect on January 1, 2021, as long as they meet the “Actively-at-Work” requirement. More information is available in the Life Insurance Handbook.
    • Term life insurance proceeds are paid to their beneficiary(ies) when they die. It has no cash or loan value.
    • They can use the Optional Life Insurance Calculator to determine the premiums for themselves.

    MOSERS’ life insurance is not available to employees of the Department of Conservation or state regional colleges/universities (except State Technical College of Missouri & Lincoln University), because those employers provide their own life insurance benefits. 

    Optional Term Life Insurance FAQs

    Q: Can they decrease or terminate their optional life insurance coverage? 
    A: Yes. They must complete an Enrollment/Change - Optional Life Insurance form and submit it to MOSERS. The form can be completed and submitted electronically by logging in to myMOSERS. This can be done at any time throughout the year. Remember, to be eligible for future annual review periods, they must maintain at least $10,000 of optional life insurance coverage.

    Q: Can they continue their optional life insurance into retirement? 
    A: Yes. If they retire within 60 days of leaving state employment, the state will continue to provide $5,000 in basic life insurance coverage at no cost to them. You may retain up to $60,000 in optional life insurance, provided they had at least that amount while actively employed. They may retain all their coverage until age 62 if they retire under the “Rule of 80” in the MSEP 2000 or under the “Rule of 90” in the MSEP 2011. At age 62, the coverage amount will automatically reduce to $60,000. They may reduce or terminate their optional life coverage amount after they retire, but they may not increase it. 

    Q: Can they purchase (or increase) coverage for their spouse or dependent child during the annual review? 
    A: They may increase coverage on a spouse at any time, but will need to prove insurability. To do so, they must complete and submit the following forms by logging in to  myMOSERS:

    • Standard Medical History Statement
    • Enrollment/Change - Optional Life Insurance 

    Dependent changes for eligible children can be requested at any time without proof of insurability, not just during October. The coverage amount will remain $10,000 per child with a premium of $2 per month, regardless of the number of insured children. For coverage purposes only, a child is defined as your child from live birth to age 26. This includes dependent stepchildren and grandchildren, adopted children, and children for whom you are the court-appointed legal guardian provided they are living with you. Full-time members of the armed forces of any country, regardless of age, are not included in the definition of an eligible child.

    Disabled children older than age 26, who are continuously incapable of self-sustaining employment because of developmental, intellectual, or physical handicap and are dependent on the member for support, are also eligible for dependent coverage. However, the member must provide proof that their child is handicapped and be approved by Standard Insurance Company for continued coverage. (They may request a Continued Dependent Life Insurance for a Disabled Child form from a MOSERS benefit counselor.)

    Q: Can they enroll in the Optional Life Insurance Plan if they currently not enrolled? 

    A: If they have a family status change (includes marriage, divorce or legal separation; birth of a child; adoption of a child; or death of a spouse or child), they may be eligible to apply for up to $30,000 of optional life insurance coverage, in $10,000 increments, for themselves without proving insurability. Those previously denied coverage or already carrying the maximum coverage are not eligible. They must complete an Enrollment/Change - Optional Life Insurance form within 31 days of the event and submit proof of family status change. Otherwise, to enroll in the Optional Life Insurance Plan, they will need to submit the online Medical History Statement along with the Enrollment/Change - Optional Life Insurance form and be approved by Standard Insurance Company.

    Q: Can they increase their optional life insurance coverage by MORE than $20,000 if they don’t have a family status change as described above

    A: As a MOSERS member, they may increase coverage on themselves at any time, but they must prove insurability. To do so, they must complete and submit the following forms by logging in to myMOSERS :

    • Standard Medical History Statement
    • Enrollment/Change - Optional Life Insurance 

  • Employees Terminating On Their Retirement Date

    Sep 16, 2020, 12:50 PM By MOSERS

    Please note that MOSERS retirement benefits are only payable as monthly installments. A member may not be counted as an employee AND receive a retirement benefit within the same month. Employees who are retiring typically terminate their employment at the end of a month, so that they may be classified as a retiree at the start of the next month. Occasionally, an employee may confuse this scenario and work on the first day of the month that is their intended retirement date. When this happens, the employee may NOT retire until the following month.

    For Example: If an employee plans to retire on October 1 but is still an employee for ANY time in October, they will NOT be permitted to retire until at least November 1.

    To ensure smooth transitions for your outgoing staff, please pay special attention to your employees who are eligible for retirement and plan to leave employment on the first day of any month. It may be helpful to explain that their last day of employment and first day of retirement will always be two separate dates.

    You may contact MOSERS to confirm if an employee has applied for retirement. If you discover an employee who plans to work on the same date their retirement becomes effective, please advise them of the conflict or direct them to contact  MOSERS for more information.


  • Benefits U Conference

    Sep 16, 2020, 12:43 PM By MOSERS

    As a reminder, the Benefits U Conference for state HR representatives and payroll clerks, is only being held in odd years. The next conference is scheduled for the fall of 2021. It is undetermined if that conference will be held in-person, virtual, or both. We will update you as plans develop for next year. If you have questions about the MCHCP health insurance plans for 2021, please contact them directly. Thank you! 


  • From the Education Desk

    Sep 16, 2020, 12:03 PM By MOSERS
    University Ready to Retire Webinars – MSEP & MSEP 2000

    The University Ready to Retire (Pre-Retirement) seminars for FALL 2020 have transitioned into online webinars due to the ongoing COVID-19 situation. These part-day sessions are designed for higher education institution employees who are within 5 years of retirement eligibility and are either MSEP or MSEP 2000 members. University faculty and staff can enroll by logging in to their myMOSERS.

    Ready to Retire Webinars – MSEP 2011

    We have two 2011 Ready to Retire (PreRetirement) sessions left on the schedule this year. These sessions are designed for general state employees who are within 5 years of retirement eligibility and are MSEP 2011 members. The September 29 webinar will continue as scheduled and the October 20 in-person seminar will be transitioned to a webinar due to the ongoing COVID-19 situation. Please advise your employees that both webinars are open for registration at https://attendee.gotowebinar.com/rt/8209038878405080065.

    NOTE: Members of MSEP 2011 include those employed in a benefit-eligible position for the first time on or after January 1, 2011, or who elected a buyout and returned to state employment.

    NEW Ready to Retire (PreRetirement) Webinars – MSEP & MSEP 2000

    We have added three NEW Ready to Retire (PreRetirement) webinars to our 2020 schedule. These full-day sessions are for general state employees who are within 5 years of retirement eligibility are either MSEP or MSEP 2000 members. If you or your employees haven’t had a chance to attend one of the sessions, this is a great opportunity and registration is now open!

    Dates:

    • October 16
    • November 13 (closed captioning)
    • December 18

    Time/Agenda:

    • 8:30 – 12:00 – MOSERS (includes breaks)
    • 12:00 – 12:30 – Lunch Break
    • 12:30 – 1:20 – MO Deferred Comp (MODC)
    • 1:30 – 2:20 – Missouri Consolidated Health Care Plan (MCHCP)
    • 2:30 – 3:20 – Social Security Administration (SSA)
    • 3:20 – 3:30 – Final Wrap-up

    Register:

    1. Sign up at Go To Webinar – Ready to Retire Webinars.
    2. Select the date (from the dropdown) you wish to attend. 
    3. Complete the information requested. Once registered, you will receive a confirmation email with the opportunity to add the date to your calendar along with reminder emails closer to the date of the session.

    Packets:

    • If they register 15 days prior to the webinar date, attendees will receive a packet in the mail containing handouts for the session along with an individualized benefit estimate.
    • If they register within 15 days of the webinar date, attendees will be able to download the handouts during the webinar and are encouraged to generate a benefit estimate online.

  • MOSERS’ DROP-BOX

    Sep 16, 2020, 12:01 PM By MOSERS

    Have you heard about our new Drop-Box?

    This is a great alternative option for members who live locally and would prefer to deliver their forms and documents, rather than mailing them. The secure drop-box is located at the front of our building and is checked daily by staff. Please advise your employees that this is NOT a drive-up box. They will need to park and walk up to it. For more information please see our website.


  • Recently Updated Resources

    Sep 16, 2020, 11:02 AM By MOSERS

    The Standard – Benefits at a Glance for MOSERS Members – September 2020

    Total Compensation  Calculator –  August 2020 (now enter bi-monthly pay instead of monthly pay)

    New  Employee Orientation – Life Insurance & Long-term Disability Benefits video – July 2020

    New  Employee Orientation – Welcome to MOSERS video –  May 2020

    Travel Assistance Flyer – July 2020

    Travel Assistance  Overview –  July 2020

    BackDROP  for General State Employees (MSEP & MSEP 2000)  – June 2020

    Examples  of Impact of Reduced Salary on Benefits – June 2020

    Impact of a Layoff on MOSERS Benefits – June 2020

    Employee   Contributions (MSEP 2011 & Judicial Plan 2011) – June 2020

    For more information please visit MOSERS' Online Library: https://www.mosers.org/library


  • Important Salary Verification Report Information

    Aug 13, 2020, 1:55 PM By MOSERS

    If you are responsible for working the Annual Salary Verification Report, please note the report is now available online in the secure portion of MOSERS' employer website. Please click on the Employer Login section of the site and use your Social Security number and password to log in.

    Once you are logged in, click the Error Reports heading, and then the Salary Verification Report heading. Names of individuals responsible for working the Salary Verification Report will appear. You may view any or all portions of the report by clicking on the appropriate name or department. You will then be able to submit your responses to MOSERS electronically.

    The Salary Verification Report is used to update the member's life insurance coverage amounts and optional life insurance premiums for January of each calendar year. MOSERS has used SAM II base salary plus shift differential information from July payroll to update basic and optional life insurance amounts for most state employees. Manual salary verification is still needed for hourly and intermittent employees, employees on leave, those with multiple state positions, and anyone who is not in SAM II. Do not include second appointment salaries for employees in multiple state positions.

    Please provide the requested information by September 6th. It is critical that we promptly receive this information to provide correct information for employees this fall. If you have any questions, please contact Thania at (573) 644-1290 or email: thaniaf@mosers.org. You can also watch a video tutorial on how to work the Salary Verification Report.


  • Invalid Address Report

    Aug 13, 2020, 1:54 PM By MOSERS

    Preparing MOSERS Annual Life Insurance Review

    MOSERS is making final preparations for our Annual Optional Term Life Insurance Review, which will occur during the month of October. MOSERS does not send mail to members who have an invalid address on file in our system. It is important that we have correct mailing addresses on file for all benefit-eligible employees. Please sign in to the secure portion of the MOSERS employer website and select the MOSERS Invalid Address report. Submit any necessary changes as soon as possible so that eligible employees will receive their review forms at the proper mailing address.


  • Furlough & Unpaid Leave

    Aug 13, 2020, 1:53 PM By MOSERS

    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.


  • Virtual Counseling Sessions Now Available

    Aug 13, 2020, 1:44 PM By MOSERS

    Please inform your employees that although our office remains closed to the public, MOSERS is now offering Virtual Benefit Counseling. This virtual counseling option, delivered through the GoToMeeting app, will make it easier to connect one-on-one with a benefit counselor to obtain benefit estimates and information about all of their MOSERS benefits. Not to mention, it’s all done from the privacy of their home.

    Please inform employees to contact us to speak with a benefit counselor by phone or to make a virtual counseling appointment. They will receive an email confirmation of their scheduled appointment followed by another email closer to the date, with instructions on how to attend the virtual meeting.


  • From the Education Desk

    Aug 13, 2020, 1:44 PM By MOSERS

    Mid-Career Webinars

    We have two Mid-Career Webinars left for this year. Webinars include speakers from both MOSERS and MO Deferred Comp and provide information on pension plans, how career and life events may affect pension benefits, and personal retirement savings plan options. They are designed for employees who are vested and are ten or more years from retirement eligibility, but all state employees and human resource representatives are welcome to attend. Please encourage your staff to attend and to register at https://register.gotowebinar.com/rt/2533457713669314818.

    Special Request Webinars

    Many agencies and departments are becoming more comfortable with the online environment and we are too! If you would like for MOSERS to present to your employees online, please contact us at Education@mosers.org. We would be happy to set up a date and time for a special online webinar for your employees on any of these topics:

    • New Employee Orientation (NEO-XP) – designed for employees who have approximately six months of service but less than 5 years (not yet vested) – length 45 min to 1 hour.
    • MOSERS & You (Overview of Plans) – designed for all general state employees who wish to learn more about the pension plans and which plan they are in – length 45 min to 1 hour.
    • MOSERS & You (Nearing Retirement) – designed for general state employees who are starting to think about retirement and wondering what type of decisions they will need to make – length 45 min to 1 hour.

    If you have another topic in mind, please let us know!

    COMING SOON - OPEN Ready to Retire (PreRetirement) Webinars

    MOSERS will be adding three new Ready to Retire (PreRetirement) Webinars this fall and they will be OPEN for anyone to register. We will be sending email invites to those employees who are within two years of retirement eligibility but anyone is welcome to attend. Watch for more information coming soon! 


  • Word on the Street – Resume Waived Benefits

    Aug 13, 2020, 1:44 PM By MOSERS

    True or False: If an employee takes early retirement and then goes back to work in a benefit-eligible position, they are able to stop their pension benefit payment and resume it when they reach their normal retirement.

    True! A retired member may waive receipt of their benefits. Once the benefit is waived, it can be resumed at any time, however, the calculation of the benefit will not change. Any reductions (such as a reduction due to early retirement) will remain in force once the benefit resumes. If a member retires and returns to work in a benefit-eligible position, their monthly retirement payment will stop as soon as we are notified that they are re-employed. Once they have worked for at least 12 continuous months in their new benefit-eligible position, they will begin accruing a separate retirement benefit. Once they re-retire, their previous benefit will restart and their new benefit (based on their new service and salary) will be calculated and their benefit payments (old benefit plus new benefit) will resume. 

    Please encourage your employees to contact one of our benefit counselors to fully explore the circumstances applicable to stopping and restarting their retirement benefits.


  • Recently Updated Resources

    Aug 13, 2020, 1:44 PM By MOSERS

  • Furlough & Unpaid Leave

    Aug 4, 2020, 2:03 PM By MOSERS

    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.


  • Travel Assistance Mobile App

    Jul 15, 2020, 11:11 AM By MOSERS

    The Standard has created an easy-to-use mobile app for Travel Assistance. This app lets members access a wide range of global emergency assistance services. This is replacing the previous Wallet Card.

    Mobile App Features:

    • Tap for Help. Use one-touch calling to reach Assist America's 24/7 Operations Center.
    • Voice over Internet Protocols (VoIP). Avoid international phone charges by calling Assist America for free using a Wi-Fi connection.
    • Pre-Trip Information. Access detailed country-specific information to prepare for your trip.
    • Travel Alerts. Receive alerts on urgent global situations that may impact travel.
    • Travel Status Indicator. Use the GPS feature to know when you're eligible for services.
    • Embassy & U.S. Pharmacy Locator. Locate the nearest embassy/consulate of 23 countries and pharmacies near you (U.S. pharmacies only).
    • Mobile ID Card. Your Assist America ID card is conveniently stored within the app.
    • Available in Seven Languages. The app is available in English, Spanish, Arabic, Mandarin, Thai, Bahasa, and French.

    Please encourage your employees to download the app following the simple steps below.

    1) Visiting Google Play or the App Store

    2) Find the Assist America Mobile App

    3) Enter reference number 01-AA-STD-5201 and member name

    To learn more, see the Travel Assistance Flyer and Service Overview located in our online Library.


  • Unused Sick and Annual leave

    Jul 15, 2020, 11:10 AM By MOSERS

    We understand that there is often confusion regarding unused leave upon retirement. This is a common concern so we have provided a quick overview below that you can reference when asked by employees.

    Unused Annual Leave:

    Did you know?

    • The amount of your unused annual leave/vacation has no impact on your MOSERS pension benefits.
    • Your employer should pay you for at least some of your unused annual leave. The amount of annual leave that you may get paid for is determined by your agency or university, not by MOSERS.
    • Your agency or university may have a limit on how much they will pay out. Limits may vary from one agency or university to another. Check your employee policies for details well in advance of your retirement date.

    Unused Sick Leave:

    Did you know?

    • Your monthly pension benefit from MOSERS will be based on your final average pay and your credited service. This can include unused sick leave.
    • Each block of 168 hours of unused sick leave is converted into one month of service credit to be used in your pension benefit calculation. (There is no partial credit; any amount less than 168 hours will be equal to zero additional months of credited service.)
    • Unused sick leave does not count as service in determining retirement eligibility but it can increase your benefit amount once you have become eligible for retirement.
    • If you use sick leave near your retirement date, it may affect previous benefit estimates you have received.
    • If you are eligible for BackDROP and elect to take it, you will receive credit for unused sick leave accrued during your BackDROP period.

  • PreRetirement Seminars Go Online for the Remainder of 2020

    Jul 15, 2020, 11:10 AM By MOSERS

    We are transitioning MOSERS PreRetirement Seminars into online webinars for the rest of this year. This is due to the ongoing COVID-19 situation. Starting in August, we will consolidate the number of webinars offered in order to add open webinars this fall (more to come).

    If an employee registered to attend an in-person seminar, they will receive an email invitation with instructions to join an online webinar. The webinar will occur during the same week they were originally scheduled to attend an in-person seminar. We will also send a packet to them in the mail containing several resources. This will include a benefit estimate based on the information they provided when they first registered.

    The general breakdown for the daytime webinars will be:  

    8:30 – 12:00 – MOSERS (includes breaks) 

    12:00 – 12:30 – LUNCH BREAK

    12:30 – 1:20 – MO Deferred Comp (MODC)

    1:30 – 2:20 – Missouri Consolidated Health Care Plan (MCHCP)

    2:30 – 3:20 – Social Security Administration (SSA).

    Evening sessions with MOSERS information only will be available on August 12 and September 10. A closed-captioning session will be available on September 15.

    Thank you for your patience and understanding while we navigate this situation. 


  • Reminder: Benefit-Eligible Positions

    Jul 15, 2020, 11:10 AM By MOSERS
    We get questions about benefits eligibility, especially related to the reemployment of retirees. See the Benefit Eligibility page on our website for information but remember, the decision about whether or not a position is benefit-eligible should be based on an analysis of the position, not based on who will fill the position.

  • Recently Updated Resources

    Jul 15, 2020, 11:10 AM By MOSERS

  • Questions Regarding Furloughs and Layoffs

    Jun 17, 2020, 2:54 PM By MOSERS

    Due to the COVID-19 pandemic, we have received questions from members about the possibility of state employee layoffs and furloughs and how it could affect their benefits. 

    We encourage you to remind your employees that the impact of a salary reduction or furlough/layoff without pay on retirement benefits depends on the employee’s individual pay history and their service credit relative to retirement eligibility.

    FAP refers to final average pay and it is one part of the 3-part formula used in calculating retirement benefits:

    FAP x Multiplier x Credited Service = Monthly pension benefit payment

    FAP is calculated from the employee’s highest 36-consecutive months of pay, not necessarily their last 36 months of pay. See some FAP calculation examples that illustrate the impact of a salary reduction or a furlough/layoff without pay on FAP and monthly pension benefits. A furlough/layoff without pay may also delay eligibility for retirement since the employee would not be earning service credit.

    Departments and benefit providers may use different terms. However, for MOSERS' purposes, a "layoff" occurs when a department lays off an employee by reason of a shortage of work or funds, the abolition of the position, or other material change in the duties or the organization, or for other related reasons, which are outside the employee's control.

    • This definition is intended to include any instance where the employer eliminates a position due to the above reasons, regardless of the term (i.e. layoff, furlough, reduction in workforce, etc., which are all considered a leave of absence).
    • Employers should submit a leave of absence form to MOSERS indicating layoff status.
    • An employee does not earn service or salary credit during a layoff period. However, an employee in their BackDROP period can continue to work toward BackDROP eligibility while on an approved leave of absence.
    • After twelve months on layoff status, the employee is automatically terminated and MOSERS group life and long-term disability insurance coverage ends.

     As always, please encourage employees to contact a MOSERS benefit counselor to discuss their individual situation and options and to see our PDF on the Impact of a Layoff on Your MOSERS Benefit for more information.