Whether you are a new state employee or mid-career, you may have heard the word "vested" a few times around your workplace and wonder what it means.

What is vesting?

To be vested means you are eligible for a future pension benefit even if you leave state employment. For general state employees, the vesting requirement is five years.

This is a major milestone! Once you are vested, you don't need to do anything except keep working. Since your benefit is based on a formula, the longer you work for the state, the higher your future benefit will be.

MOSERS will send you an Annual Benefit Statement every spring that includes your service credit and vesting information. You can view your statement online by logging in to myMOSERS.

Exceptions apply: You (and your beneficiary) will forfeit all rights to a future pension benefit if you take a refund of your employee contributions (MSEP 2011 or Judicial Plan 2011), if you elected the Cashout Program or a Buyout, or if you are convicted of a felony in connection with your duties as a state employee on or after August 28, 2014.

Why is vesting important?

Your MOSERS defined benefit pension is a valuable part of your future financial security. Once vested, you are eligible to receive a future guaranteed, lifetime monthly payment. As long as you continue working for the state, your pension benefit will continue to grow. You may begin drawing your benefit once you complete the retirement process and meet the age requirement.

Even if you decide to leave state employment, you will still be eligible for a future pension benefit when you reach retirement age (provided you don’t take a refund of your employee contributions if you’re an MSEP 2011 or Judicial Plan 2011 member).

If you are vested with MOSERS, married, and pass away before you are eligible to retire, a lifetime survivor benefit will be paid to your eligible spouse.

You can view our Lifetime Benefits flyer to see how much money you would need to save on your own to replace your MOSERS pension benefit.

If you are already vested, congrats! If you still have a few years to go, hang in there. Your future pension benefit is worth the wait.