Tips for Purchasing and Transferring Service Credit
Have you ever considered the possibility of purchasing or transferring any prior service credit to MOSERS? Since your future pension benefit with MOSERS is based on your years of service, it may be to your advantage to purchase or transfer any qualifying prior service. It may increase your benefit, allow you to retire sooner, or both!
Please note that this is a brief overview. It is not an in-depth guide. For more detailed information regarding your specific service credit, please reach out to a MOSERS benefit counselor.
Determining which plan you are in will help you to see if you may be eligible to purchase or transfer service credit.
Please view the Purchasing and Transferring Service Guide for your plan below:
- Purchasing and Transferring Service Guide for MSEP 2011 Members
- Purchasing and Transferring Service Guide for MSEP 2000 Members
- Purchasing and Transferring Service Guide for MSEP (Closed Plan) Members
You may be eligible to purchase and/or transfer vested service from other plans if you are vested with MOSERS. Because every situation differs, we strongly encourage you to review the guide for your plan and contact a MOSERS benefit counselor with questions. They can assist you in making informed decisions about your prior service credit and its potential impact on your retirement benefits. Estimates are available without obligation. An estimate will tell you:
- if prior service credit is available for purchase or transfer
- how much it will cost (if available for purchase) and your payment options
- if the extra service will make you eligible for retirement sooner
- how much it will increase your future benefits
In some situations, purchasing service is advantageous and, in some situations, you may find it to be cost prohibitive, but you won’t know unless you ask. Because interest can be a factor in the cost to purchase service, it may be to your advantage to purchase it earlier in your career rather than later. You must complete any purchase or transfer of service before you apply for retirement.
You must have been employed by the state immediately before active-duty military service and return within USERRA requirements to receive automatic service credit for it.
If you are a member of MSEP or MSEP 2000, you may be eligible to purchase up to four years of prior active-duty military service. To be eligible, you must be vested in MOSERS, and you must provide a valid DD-214 or NGB-23 covering the period of service.
Leaving a MOSERS-Covered Employer
If you move to an employer not covered by MOSERS, you may be able to transfer service credit from MOSERS.
For example, the Missouri Department of Transportation is covered under MPERS, not MOSERS. If you go to work for a Missouri public school, it may be covered by PSRS/PEERS. This is an important question to get answered before you decide to transfer or not.
There are other options for transferring or purchasing prior service credit. Just remember that other than military service, it must be full-time, nonfederal, public (government) employment rendered in Missouri. See the Purchasing and Service Guide for your plan (listed above) for more information.