Judicial Plan

There are two plans available for judges. Your plan membership is dependent upon your date of employment as a judge in a MOSERS benefit-eligible position relative to January 1, 2011.

  • Judicial Plan – You are a member of the Judicial Plan if you were first employed as a judge in a MOSERS benefit-eligible position prior to January 1, 2011.
  • Judicial Plan 2011 – You are a member of the Judicial Plan 2011 if you were first employed as a judge in a MOSERS benefit-eligible position on or after January 1, 2011.

Judicial Buyout - Frequently Asked Questions

An active judge may elect a one-time lump-sum payment of their vested MSEP benefit while retaining their Judicial Plan/Judicial Plan 2011 benefit. Taking the lump-sum MSEP payment will forfeit all credible service and future rights to receive retirement annuity and long-term disability benefits relative to that MSEP service.

MSEP benefits are for vested prior service as a general state employee, legislator, or elected state official in Missouri, if applicable.

For additional information, contact MOSERS.

What is the Judicial Buyout?
Legislation established a voluntary pension buyout for active judges in the Judicial Plan to make an election to receive a one-time lump-sum payment of their vested deferred retirement annuity under the MSEP, MSEP 2000, or MSEP 2011 (collectively referred to as MSEP hereafter) administered by MOSERS. This onetime lump-sum payment is in lieu of receiving a retirement annuity relative to the vested MSEP benefit. House Bill 1467 was signed into law on July 13, 2020. Active members of the Judicial Plan may elect to receive a one-time lump-sum payment equal to sixty percent of the present value of the member’s deferred MSEP annuity.
Who is eligible for the Judicial Buyout?
To be eligible for the Judicial Buyout, you must be employed as an active judge in a position covered by MOSERS and eligible for normal retirement relative to the vested MSEP benefit or at least 59½ years of age. Additionally, you must not be disqualified for any of the reasons listed in the response to question 4 (What are the conditions that would disqualify me for the Judicial Buyout?). Currently, active Judicial Plan members who have a vested MSEP benefit are unable to draw the MSEP benefit while serving in a position covered by the Judicial Plan. This law does not change that but, rather, provides an active judge a onetime lump-sum alternative.
What would disqualify me for the Judicial Buyout?

You will be disqualified for the Judicial Buyout if:

  • You leave employment as an active judge in a position covered by MOSERS before completing the application or prior to MOSERS issuing your payment.
  • You have received a retirement annuity payment from MOSERS relative to the MSEP, MSEP 2000, or MSEP 2011 service that you wish to buy out. (If payment has not yet begun, you may rescind your application for MSEP annuity payments in order to elect the buyout.)
  • You are subject to a Division of Benefit Order (DBO) issued by a court under sections 104.312 or 104.1051, RSMo, during a divorce proceeding, relative to the service you wish to buy out.
  • During the verification process, MOSERS determines you are not eligible based on Board Rule 2-21 or 3-19 or state statutes.
How will MOSERS calculate the lump-sum amount?

The one-time lump-sum buyout amount will be 60% of the present value of your future MSEP normal retirement annuity. The present value is the amount required, as of the date of the estimate, to fund your future normal retirement monthly benefit payments.

Factors include your credited service, final average pay, and various plan provisions that apply to you.

Assumptions include cost-of-living adjustments, life expectancy (using unisex mortality tables), and MOSERS’ expected rate of return on investments (currently assumed to be 6.95% annually).

When is the application deadline?

MOSERS must receive your completed application (including notarized signature by spouse, and signed rollover agreement from your financial institution other than with MO Deferred Comp, if either/both are applicable) within 30 days from the date of the estimate.

If MOSERS does not receive the completed application within 30 days, you may request a new estimate and application. If your application is incomplete or if it has been determined that you are not eligible for the buyout, we will notify you.

We will send you a confirmation letter once we have received your completed application.

If I lose my application, can I get a new one?
Yes. Call us at (800) 239-5150 or (573) 644-1200 or email buyout@mosers.org to request a replacement copy.
Why is spousal consent required?
Your MOSERS retirement benefit is “marital property.” If you elect the buyout, your spouse must sign your application indicating that they are waiving/giving up their potential survivor benefit and that they agree with your decision.
What are the taxes on the buyout?

You may take the lump-sum buyout payment as a cash payment, as a rollover to a qualified retirement plan, or as a combination cash and rollover distribution.

  • Any distribution not directly rolled over to a qualified retirement plan will be reported as taxable income in the year of payment. MOSERS is required to withhold 20% of the taxable portion of a cash distribution for federal income tax.
  • We will not withhold state taxes but you may have to pay state or local taxes if you take the buyout as a cash payment.
  • If you are younger than age 59½, an additional 10% early distribution federal tax penalty may apply.

We encourage you to read the Special Tax Notice on our website and speak to a tax professional before making a decision.

How do I roll over my payment?
You may roll over your lump-sum payment to your MO Deferred Comp account if you have one. If not, you may set one up. If you are unsure if you have an account, contact MO Deferred Comp at (800) 392-0925. You may roll over your payment to either an IRA or eligible employer plan (a 401(a), 401(k), 403(a), 403(b), or 457(b) that will accept the rollover).
Can money be taken from my buyout payment for child support?
Yes, if you owe past-due child support, up to 50% (or more, if penalties apply) of your lump-sum buyout payment may subject to a lien for past-due child support.
Who do I contact with questions about child support?
Please direct any questions regarding child support to the Department of Social Services, Family Support Division, Child Support Program. The contact for this matter is Steven Kissinger, Child Support Liaison, (573) 751-3427.
What can I do if I apply for the buyout but then change my mind?
You may cancel your application and election to participate in the Judicial Buyout if you do so in writing and MOSERS receives the cancellation before your payment has been issued. Once MOSERS has issued payment, your decision is irrevocable.
When will I get my payment?
Once we have received your completed application, we will issue payment within the next 30 days.
If I take the buyout, can I return to regular state employment?

Yes. However, if you elect the Judicial Buyout and receive the buyout payment, the following apply with respect to the MSEP service covered by the buyout payment:

  • You will forfeit your future MSEP Benefit retirement annuity, your MSEP service with MOSERS (including eligibility to transfer service between MOSERS and the MoDOT & Patrol Retirement System (MPERS), and all future rights to receive MSEP retirement annuity benefits from MOSERS.
  • You will not be eligible to receive any long-term disability benefits from MOSERS.
  • Your spouse and dependents, if any, will not be eligible for any potential MSEP survivor benefits from MOSERS.
  • If you subsequently become an employee in a position covered by MOSERS* and do not have other MSEP or MSEP 2000 service, you will be considered a new employee under the Missouri State Employee Plan 2011 (MSEP 2011) with no prior service and you will not have the option to purchase the prior service that you forfeited in obtaining the buyout payment. You will be required to contribute 4% of pay toward your future MSEP 2011 pension benefits. You will have to meet the vesting requirements under MSEP 2011 in order to qualify for a new pension benefit.

*For example, by becoming a general state employee, or by being elected to the General Assembly or as a statewide elected official, i.e., State Auditor, Secretary of State, State Treasurer, Attorney General, Lt. Governor, Governor

When can I begin taking my MSEP benefit if I don’t take the buyout?
If you do not elect the Judicial Buyout, you may apply for your MSEP benefit upon eligibility and when you are no longer actively employed as a judge. At that time, MOSERS will provide you with information on how to complete the retirement process so that your monthly annuity payments can begin.

Guide to Rollovers for Your Judicial Buyout Distribution

When you roll over your pre-tax dollars to another qualified retirement plan (IRA, 457, 401, 403), you are able to defer the payment of income taxes until you withdraw the money from the other account. This allows the full amount of your buyout distribution to grow into retirement. In addition, a rollover will not be subject to the 10% early withdrawal penalty which will apply if you are under the age of 59½ at the time of payment (and do not meet one of the exceptions to the penalty). There are several ways to initiate a rollover:

  • Direct Rollover to the State of Missouri Deferred Compensation Plan (MO Deferred Comp) - If you already have an account with MO Deferred Comp, you can roll your buyout payment directly into a 401(a) account. If you are not a participant in the plan, and are no longer employed with the State of Missouri, you will be unable to open a new account.
  • Direct Rollover to a Traditional IRA or Other Eligible Employer Plan - By choosing a direct rollover to an IRA or new plan that accepts rollovers, you can avoid paying income taxes on your money until you begin withdrawals from the new plan (does not apply to rollovers into a Roth account). MOSERS will transfer your buyout payment directly to the other plan or financial institution for you. Another option is to directly roll over a portion of your payment and receive the remainder in a payment to you. The Rollover Agreement on the Buyout Program Application must be completed by the receiving institution.
  • Rollovers into a Roth Account - You can roll your buyout payment into a Roth IRA or the MO Deferred Comp Roth 457 plan (if you are a current participant in the plan), but because Roth accounts are funded with after-tax dollars, you’ll be required to pay income tax on your distribution in the year paid. When money is eventually withdrawn from the Roth, it is tax-free – including any future earnings (as long as you meet the plan requirements), but you should consider the amount of taxes you’ll have to pay now and the length of time you’ll have the funds in the account (currently a 5-year minimum requirement).
  • 60-day Rollover Option - Even if you choose to have your payment made to you, there’s still a 60-day window where you can roll the money into a qualified plan. However, the mandatory 20% tax withholding on payments made directly to you will not be refunded. If you would like to roll over the full amount of the payment, you will be responsible for supplying the amount withheld for taxes. The withholding will be applied to your tax account and used when filing your tax return.

Limitations on Rollovers

Retirement plans, including qualified employer plans, are not required to accept rollovers, so check with the plan administrator at the financial institution for details and limitations on your plan. If your financial institution does not accept direct rollovers, you can choose to roll your money into an IRA. See the section, Basic Information About IRAs, for links to additional information about IRAs and where you can set them up.

10% Early Withdrawal Penalty

If you do not roll over your buyout payment, you will pay regular income taxes plus a 10% early withdrawal penalty unless you meet one of the IRS exceptions to the penalty. The penalty will not apply if you are at least age 59½ on the date of the payment. If you are younger than age 59½ but terminated employment during or after the year you reached age 55, the penalty will also not apply. When you roll the money to a new account, different exceptions to this penalty may apply. See the IRS website for more information: www.irs.gov/retirement-plans/ plan-participant-employee/retirement-topics-taxon-early-distributions.

Required Minimum Distributions (RMD)

If you are age 73 or older, you are required to take a percentage of the distribution amount in cash, which is taxable. You cannot roll over the portion of your payment that is considered a required minimum distribution. MOSERS can help you determine this amount.

Additional Information

See our Special Tax Notice for more information concerning your payment options and tax consequences.