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.