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May 14, 2021, 8:22 AM By MOSERSSome of our employees are working a second job direct care appointment with our facility in addition to their regular direct care appointment. As this is different from earning overtime that becomes comp time, their earnings are shown on their normal payroll as income earned. How will this benefit our employees working these second job appointments on their Final Average Pay (FAP) to calculate their pension benefits?
Pension benefits are calculated using a formula, which is: Final Average Pay (FAP) x a Multiplier* x Credited Service = Monthly Base Benefit
The additional earnings for working in a second job may increase their final average pay. Statutorily required employer and employee contributions must be paid to the System on any such compensation. See MOSERS Board Rule 2-8 for details.
However, state law says an employee can earn only one day of service credit for each day worked so it would not increase their credited service in terms of retirement eligibility or for calculating their benefit amount.
Below is a simplified example showing how working in an additional position could potentially impact an employee’s benefit. Employees should contact a MOSERS benefit counselor to get an estimate for their particular situation:
Working in one full-time position making $28,307 per year and retiring in MSEP 2000 with 25 years of service:
$28,307/12 months = $2,358.92 as monthly final average pay
FAP ($2,358.92) x Multiplier (0.017) x Credited Service (25) = $1,002.54 monthly base benefit in retirement
Working in one full-time position making $28,307 per year and retiring in MSEP 2000 with 25 years of service plus working in a part-time position at the same rate of pay (an extra 1,000 hours at $13.61 per hour per = $13,610 per year for 3 years):
$41,917/12 months = $3,493.08 as monthly final average pay
FAP ($3,493.08) x Multiplier (0.017) x Credited Service (25) = $1,484.56 monthly base benefit in retirement
*The multiplier for MSEP is 1.6%; the multiplier for MSEP 2000 and MSEP 2011 is 1.7%.
Jul 25, 2018, 10:09 AM By MOSERS
Do Board Members receive any compensation for there time?
No, they do not receive compensation for serving on the board, but are reimbursed “for necessary expenses incurred in the performance of their duties for the system” per chapter 104.470 (3) of the Revised Statutes of Missouri.
As a reminder, there is an election this year for 2 new MOSERS board members to represent active members and one member to represent retired members. These members will serve 4-year terms beginning in January 2019. We have posted the candidate statements on our website and Election America will send ballots to eligible members in August to notify them about voting by mail, phone or online.
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We strive to provide the most accurate information possible in our answers to Rumor Central questions. However, occasionally, laws, policies or provisions change and individual circumstances may vary. Please contact a MOSERS benefit counselor or see the handbooks in our website Library for more detailed information. If there is any difference between the information provided in this blog or on the MOSERS website and the law or policies that govern MOSERS, the law and policies will prevail. See our Privacy, Security & Legal Notices for more information.