Benefit Payment Options by Plan

The election of a benefit payment option determines whether or not a benefit will potentially be paid to anyone after your death. Regardless of the payment option you elect, you will receive a monthly benefit payment for your lifetime.

Steps for Electing a Benefit Payment Option

  1. Identify your retirement plan.
  2. Review the benefit payment options available to you.
  3. Determine which benefit payment option best meets your needs.
  4. Make your election during the retirement process.

1. What’s my plan?

Your plan is automatic, depending primarily upon your dates of employment and vested status. If uncertain, contact MOSERS.

MSEP, MSEP 2000, and MSEP 2011 include general state employees (including college & university employees), legislators, and statewide elected officials.

MSEP

First employed in a MOSERS benefit-eligible position prior to July 1, 2000 and vested in MSEP.

MSEP 2000

First employed in a MOSERS benefit-eligible position on or after July 1, 2000, but prior to January 1, 2011, OR first employed prior to July 1, 2000, but left prior to becoming vested then returned to employment after July 1, 2000.

MSEP 2011

First employed in a MOSERS benefit-eligible position on or after January 1, 2011, OR elected a buyout and returned to state employment.

Judicial Plan

First employed as a judge in a MOSERS benefit-eligible position prior to January 1, 2011.

Judicial Plan 2011

First employed as a judge in a MOSERS benefit-eligible position on or after January 1, 2011.

2. What benefit payment options are available to me?

Except for the Judicial Plan, which is automatic, you will elect one of these benefit payment options at retirement.

MSEP

  • Life Income Annuity
  • Unreduced Joint & 50% Survivor
  • Joint & 100% Survivor
  • Life Income with 60 Guaranteed Payments
  • Life Income with 120 Guaranteed Payments

MSEP 2000

  • Life Income Annuity
  • Joint & 50% Survivor
  • Joint & 100% Survivor
  • Life Income with 120 Guaranteed Payments
  • Life Income with 180 Guaranteed Payments

MSEP 2011

  • Life Income Annuity
  • Joint & 50% Survivor
  • Joint & 100% Survivor
  • Life Income with 120 Guaranteed Payments
  • Life Income with 180 Guaranteed Payments

Judicial Plan

  • Life Income Annuity (if unmarried)
  • Automatic Unreduced Joint & 50% Survivor

Judicial Plan 2011

  • Life Income Annuity
  • Joint & 50% Survivor
  • Joint & 100% Survivor
  • Life Income with 120 Guaranteed Payments
  • Life Income with 180 Guaranteed Payments

3. What are the differences between the benefit payment options?

You will need to choose one, based on your individual situation.

  • Your pension benefit WILL NOT BE REDUCED for the purpose of providing a survivor benefit.
  • No ongoing monthly survivor benefits will be paid to anyone after your death.
  • If married, your spouse must give consent by signing your Retirement Election form.
  • If you are a member of MSEP 2011 or the Judicial Plan 2011, and you pass away before receiving retirement benefits equal to the amount contributed during your active employment, your beneficiary on file will receive the remaining amount.
  • Your pension benefit WILL NOT BE REDUCED for the purpose of providing a lifetime survivor benefit for your spouse.
  • Your eligible spouse will receive 50% of the benefit amount you were receiving at the time of your death.
  • For MSEP retirees, survivor benefits will be paid to your spouse, as named on your Retirement Application (or Designation of New Spouse as Beneficiary for Retirement Benefits form), regardless of your marital status at the time of your death.*
  • For Judicial Plan retirees, your spouse must have been married to you for a minimum of two consecutive years immediately prior to the date of your death.
  • Your pension benefit WILL BE REDUCED for the purpose of providing a lifetime survivor benefit for your spouse.
    • The reduction is based on your age at retirement, the full years of difference between you and your spouse, and whether your spouse is younger or older than you.
  • Your eligible spouse will receive 50% of the benefit amount you were receiving at the time of your death (excluding any temporary benefit).
  • Survivor benefits will be paid to your spouse, as named on your Retirement Application (or Designation of New Spouse as Beneficiary for Retirement Benefits form), regardless of your marital status at the time of your death. *

MSEP

  • Your pension benefit WILL BE REDUCED for the purpose of providing a lifetime survivor benefit for your spouse.
    • The reduction is 7% plus or minus 0.3% for each full year your spouse is older or younger than you (minimum 4%).
    • The reduction is based on your age at retirement, the full years of difference between you and your spouse, and whether your spouse is younger or older than you.
  • Your eligible spouse will receive 100% of the benefit amount you were receiving at the time of your death.
  • Survivor benefits will be paid to your spouse, as named on your Retirement Application (or Designation of New Spouse as Beneficiary for Retirement Benefits form), regardless of your marital status at the time of your death. *

MSEP 2000, MSEP 2011, Judicial Plan 2011

  • Your pension benefit WILL BE REDUCED to provide a lifetime survivor benefit for your spouse.
  • Your eligible spouse will receive 100% of the benefit amount you are receiving at the time of your death (excluding any temporary benefit).
  • Survivor benefits will be paid to your spouse, as named on your Retirement Application (or Designation of New Spouse as Beneficiary for Retirement Benefits form), regardless of your marital status at the time of your death. *

A certain number of payments are guaranteed from your retirement date. The guarantee starts on your retirement date (not date of death) and extends for the term you elect.

MSEP

  • You will receive a benefit payment each month for life.
  • Your pension benefit WILL BE REDUCED 
    • Life Income with 60 Guaranteed Payments – 3% reduction
    • Life Income with 120 Guaranteed Payments – 9% reduction
  • You must name a beneficiary or beneficiaries (person, trust, corporation, organization, charity, or your estate) to receive your final benefit payment from MOSERS and any remaining guaranteed payments.
  • No survivor payments will be paid if you have received all payments in the guaranteed period (other than the final payment).

MSEP 2000, MSEP 2011, Judicial Plan 2011

  • You will receive a benefit payment each month for life.
  • Your pension benefit WILL BE REDUCED
    • Life Income with 120 Guaranteed Payments – 5% reduction
    • Life Income with 180 Guaranteed Payments – 10% reduction
  • You must name a beneficiary or beneficiaries (person, trust, corporation, organization, charity, or your estate) to receive your final benefit payment from MOSERS and any remaining guaranteed payments.
  • No survivor payments will be paid if you have received all payments in the guaranteed period (other than the final payment).

* Unless you utilize the joint & survivor divorce pop-up option (Not available to members of the Judicial Plan or the Judicial Plan 2011).

 

 

4. Make your election during the retirement process.

To start the retirement process, you will complete a Retirement Application with MOSERS. Then, we will provide you with a customized Retirement Election Form+. The election form will be specific to your plan and contain only the benefit payment options available to you.

+Benefit payment options for Judicial Plan members are automatic so no election form is required for Judicial Plan members. All other members, including members of the Judicial Plan 2011, must elect a benefit payment option.