Vesting 101

Mar 1, 2023, 15:38 PM

Whether you are new to the game or have been working for the state for a while, you have probably heard the word, “vested,” a few times around your workplace.

What does it mean?

Becoming “vested” means that you are eligible for a future retirement benefit once you meet the age and service requirements for retirement eligibility. This is a major milestone! Members reach this goal after working for the state for 5 years.

Once vested, you don't need to do anything except to just keep working! It is important to note that since your benefit is based on a formula, the longer you work for the state, the higher your future benefit will be.

Why is vesting important for your future financial security?

Your MOSERS defined benefit pension is a valuable part of your future financial security. Once vested, you are eligible to receive a guaranteed lifetime payment.  As long as you continue working for the state, your benefit will continue to grow.

Even if you leave state employment, the benefits you have earned to that point will be waiting for you when you reach retirement age (as long as you don’t elect a refund of your employee contributions, if applicable).

If you are a general state employee, married, vested in MOSERS, and die before you retire with MOSERS, your eligible surviving spouse will receive survivor benefits. Otherwise, during the retirement process, you will make elections to determine if any potential survivor benefits will be paid to anyone after your death.

If you are actively employed in a MOSERS benefit-eligible position, we will send you an Annual Benefit Statement every spring. We will include your service credit and vesting information.

To wrap things up, if you are vested, congrats! If you still have a few years to go, hang in there, it will be worth it.

Please don’t hesitate to reach out to us with any questions. We are here for your benefit! 

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