Refund of Employee Contributions
If you leave state employment, carefully consider what to do with the employee contributions you have accumulated in the MOSERS trust fund.
Contributory Plan Members - MSEP 2011 and Judicial Plan 2011
Even if you were employed for just a few years, the service credit you accumulated with MOSERS is a valuable asset. Unlike other investment vehicles, a MOSERS pension is guaranteed for life once you are vested, does not lose value, and includes a cost-of-living adjustment (COLA) of 0-5%. The decision you make can affect your future financial security.
You are not required to withdraw your employee contributions if you leave the state, but you may do so if you wish. A refund will include your contributions and any interest. Your 4% contributions help pay the cost of your future pension
benefit and could potentially pay you back far more than you contributed. See an example in the New Employee Orientation brochure.
Important Information About Refunds
- If you are unsure or think you may return to state employment, you may leave your contributions with MOSERS. If you are vested, they will earn interest.
- If you decide to request a refund, there is a 90-day waiting period. Missouri law requires MOSERS to pay your refund within an administratively reasonable period but no sooner than 90 days from the date of your state employment ended.
- Before making a final decision, review all your refund options in the Employee Contributions (2011 Plan Members) brochure, read the Special Tax Notice brochure (BackDROP and Refunds), and see "What happens to my taxes..." below.
You are not eligible for a refund if:
- You are receiving long-term disability (LTD) benefits.
- Your pension benefit is subject to a division of benefit order (DBO) due to a divorce.
- You are eligible for normal retirement.
NOTE: A refund of contributions applies only to MSEP 2011 and Judicial Plan 2011 members. If you are a member of any other plan, you do not pay contributions toward your future pension benefit. So, you are not eligible for a refund.
If I leave contributions with MOSERS?
If you are vested, MOSERS will pay interest each year until you either withdraw the funds or reach normal retirement eligibility.
If you are not vested, you will not get interest on your contributions.
If I request a refund of contributions?
Your refund will include all contributions you paid to MOSERS plus any interest less taxes.
You cannot get a loan or take a partial withdrawal of your employee contributions.
If I leave contributions with MOSERS?
If you are vested, even if you leave state employment, you will be eligible for a monthly pension benefit payment for life once you become eligible for retirement and complete the retirement process.
If I request a refund of contributions?
If you take a refund, you forfeit your future rights to receive a pension from MOSERS. Log in to myMOSERS to view the amount of your employee contributions and interest.
If I leave contributions with MOSERS?
If you are vested and return to work in a MOSERS- or MPERS-covered position, we will restore your prior service.
If you are not vested and return to work in a MOSERS- or MPERS-covered position, we will combine your prior service with your new service once you have completed 12 continuous months of employment.
If I request a refund of contributions?
If you take a refund and later return to state employment, you may purchase your prior service at full actuarial cost plus interest.
The cost to buy back the service will be much more than the amount of your refund!
If I leave contributions with MOSERS?
Any MOSERS-paid interest on your contributions is tax-deferred.
If I request a refund of contributions?
If you take a cash refund, certain taxes and penalties may apply.
IRS rules require us to withhold 20% for federal taxes unless the amount is less than $200. You may also owe state taxes.
If you are younger than age 59½, the IRS may levy a 10% early withdrawal penalty.
Talk with a tax professional and consult the Special Tax Notice before making any decisions.
If I leave contributions with MOSERS?
If you have enough service to be vested and you complete the MOSERS retirement process, you will receive a COLA of 0-5% each year in retirement.
If I request a refund of contributions?
If you take a cash refund, certain taxes and penalties may apply.
By taking a refund, you forfeit all your future rights to receive benefits from MOSERS including retiree COLAs.
If I leave contributions with MOSERS?
If you die before retirement, your spouse or other designated beneficiary should contact us. We will issue a refund of your contributions plus any interest unless your spouse is eligible for survivor benefits. Be sure to keep your contribution beneficiary designation updated.
If I request a refund of contributions?
If you take a cash refund, certain taxes and penalties may apply.
By taking a refund, you forfeit all your future rights to receive benefits from MOSERS.
If I leave contributions with MOSERS?
Your future pension benefit is based on a formula, not on our investment returns.
MOSERS manages and invests all contributions and assumes the investment risk.
If I request a refund of contributions?
If you take a cash refund, certain taxes and penalties may apply.
If you take a cash refund or roll your contributions over to another qualified retirement plan, you assume the investment risk.
If I leave contributions with MOSERS?
Benefits are part of your total compensation package. They help provide financial security for you and your family. Use the Total Compensation Calculator, read Highlights of Your Total Compensation Package, and your Annual Benefit Statement to learn the total value of your state benefits.
If you leave state employment and have a MO Deferred Comp account, even though you can't continue to contribute, you may leave your money in your account. Read more in the Distribution Options Guide.
If I request a refund of contributions?
If you take a cash refund, certain taxes and penalties may apply.
By taking a refund, you forfeit your credited service and your future rights to receive pension benefits, long-term disability benefits, and life insurance through MOSERS.
Contact the Missouri Consolidated Health Care Plan (MCHCP) or your employer about medical, dental, and vision insurance and employee assistance benefits. MOSERS does NOT administer health care benefits.
Your Decision
If you leave state employment but decide to leave your contributions with MOSERS:
- Contact us or go to myMOSERS and update your information if your name, marital status, phone number, email or mailing address changes. See Former State Employee for more information.
- Keep your contribution beneficiary designation up to date.
- If you are vested, we will notify you 120 days prior to your eligibility date for early (reduced) retirement.
- If you are not eligible for or do not elect early retirement, we will notify you 120 days prior to your eligibility date for normal retirement.
If you decide to request a refund, complete the Member Request for Refund of Employee Contributions form. You must get it notarized and submit it to MOSERS.
There is a 90-day waiting period. Missouri law requires MOSERS to pay your refund within an administratively reasonable period but no sooner than 90 days from the date of your state employment ended.