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  • Refund of Employee Contributions

    Jul 21, 2021, 8:27 AM By MOSERS
    An employee in our circuit is leaving employment without being vested. Will her contributions automatically be returned to her or does she need to submit the Member Request for Refund of Employee Contributions?

    Refunds of employee contributions are NOT automatic. A former state employee who wishes to request a refund, will need to complete the Member Request for Refund of Employee Contributions form. They must get it notarized and submit it to MOSERS.

    Members of MSEP 2011 or the Judicial Plan 2011 who leave state employment may choose to either request a refund (if they don’t anticipate returning to state employment) or leave their contributions with MOSERS (if they do anticipate returning to state employment).

    There is a 90-day waiting period from the date of termination or the request (whichever is later) before MOSERS can issue a refund. To learn more, please visit our Refund of Employee Contributions page. 

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  • Accessing Funds Prior to Retirement

    Jun 15, 2021, 2:29 PM By MOSERS
    Are we able to redeem any of our MOSERS investments and (somehow), pay it back into the system?
    You are not able to access your MOSERS defined benefit pension until retirement. However, if you no longer work in a MOSERS benefit-eligible position, and you are a member of MSEP 2011, you may be eligible to request a refund of your employee contributions. Please see our Employee Contributions brochure for more information. 

    If you are still employed with the state, you are not able to access your MO Deferred Comp 457 retirement savings except for emergency withdrawals. MO Deferred Comp permits in-service withdrawals from your account under the following circumstances: you experience a qualifying, unforeseeable emergency that causes extreme financial hardship or if your account balance is $5,000 or less, you may elect a one-time, in-service distribution provided you have not made a contribution during the prior two-year period. Once you leave state employment, you can withdraw your 457 savings penalty-free. Visit www.modeferredcomp.org or call (800) 392-0925 for more information. 
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  • Final Average Pay with a Second Job Appointment

    May 14, 2021, 8:22 AM By MOSERS
    Some 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%. 

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  • Refund of Employee Contributions

    May 14, 2021, 8:22 AM By MOSERS
    I have worked part time for a few years and will be soon leaving. Do I get the money I’ve put into mosers back?

    If you leave state employment prior to becoming eligible for normal retirement, you may request a refund of your employee contributions plus any credited interest. By law, there is a 90-day waiting period before we can issue a refund. By taking a refund, your forfeit all your credited service. Or, you may leave your contributions with the System if you think you might return to work for the state at some point in the future and would like for those years of service to count toward an eventual retirement benefit. See our Employee Contributions brochure for more information.

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  • Accessing Funds Prior to Retirement

    May 11, 2021, 8:13 AM By MOSERS
    if needed could I pull funds out for down payment assistance?

    You are not able to access your MOSERS defined benefit pension until retirement. However, if you no longer work in a MOSERS benefit-eligible position, and you are a member of MSEP 2011, you may be eligible to request a refund of your employee contributions. By taking a refund, you will lose all your credited service and future rights to receive pension and LTD benefits from MOSERS. By law, there is a 90-day waiting period before we can issue a refund.

    The MO Deferred Comp 457 retirement savings plan permits in-service withdrawals from your account under the following circumstances; you experience a qualifying, unforeseeable emergency that causes extreme financial hardship, or if your account balance is $5,000 or less – you may elect a one-time, in-service distribution, provided you have not made a contribution during the prior two-year period. Please visit www.modeferredcomp.org for more information or if you have any questions please call (800) 392-0925. 

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  • Refund of Contributions for Beneficiaries

    Jul 21, 2020, 3:39 PM By MOSERS
    I’m a member of the MSEP 2011 retirement plan. As required, I have paid in 4% for almost nine years of service to the state totaling in excess of $10,000. I am currently a retiree as of 2020 and I’m receiving a pension. If I die before I’ve received at least $10,000 of my 4% contributions through the pension plan are my beneficiaries eligible for a refund?
    Thank you.

    Yes. You or your beneficiary or a survivor will receive, at minimum, benefit payments or a refund in an amount equal to what you contributed and any interest credited thereon, less any benefits received. 

    For example, let’s assume the following (numbers rounded for simplicity):

    • Your member contributions plus interest (earned on your contributions while you were actively employed) equaled $10,000.
    • You retired and you receive a monthly benefit of $800 per month.
    • During the 10th month, unfortunately, you pass away.
    • We will pay your final benefit payment at the end of the month in which you die to the person or entity you designated to receive your final benefit payment. At this point, MOSERS would have paid $8,000 in benefits.
    • If you elected a benefit payment option on your Election Form resulting in a spouse or someone else becoming eligible to receive a benefit based on your service, MOSERS would begin payments to that person, according to the election you made.
    • If you elected the Life Income Annuity, which has no ongoing survivor benefits, then the person or entity you designated to receive a refund of your member contributions would receive the balance of $2,000.
    • If you died without designating a beneficiary, we would pay the refund in the following order to your:
      • Surviving spouse (to whom you were married at the time of death)
      • Surviving children (divided equally)
      • Surviving parents (divided equally)
      • Surviving brothers and sisters (divided equally)

    If there are no eligible family members, your final benefit payment will be paid as otherwise permitted by law.

    You can log in to myMOSERS to check and/or update your Final Payment Beneficiary and/or Contribution Beneficiaries under Forms from your Member Homepage. Feel free to contact MOSERS with any questions for additional assistance. 

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  • HB 1467

    Jul 17, 2020, 3:48 PM By MOSERS
    What impact, if any, does HB 1467 have on employees that are still on the old plan and do not have to contribute to their retirement fund. Thank you.

    HB 1467 has NO impact on employee contributions to MOSERS.

    As it relates to employee contributions, this bill affects members of the Missouri Local Government Employees’ Retirement System (LAGERS), NOT state employees.

    (House Bill 1467, which the Governor signed on July 13, extends LAGERS employers' options for the employee contribution election from the current 0% or 4% employee contribution to a 0%, 2%, 4%, or 6% employee contribution election.)

    Currently, members of MSEP 2011 and the Judicial Plan 2011 contribute 4% of their pay toward their future retirement benefit with MOSERS. We are not aware of any proposals to require other state employees (members of MSEP and MSEP 2000) to contribute.

    See our Legislation page for more information and to follow any bills affecting MOSERS.

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  • Employee Contributions

    Jul 16, 2020, 10:31 AM By MOSERS

    Is there a bill pending that could require all eligible state employees to contribute to the state retirement fund?

    No. Currently, members of MSEP 2011 and the Judicial Plan 2011 contribute 4% of their pay toward their future retirement benefit. We are not aware of any proposed legislation to require other state employees (members of MSEP and MSEP 2000) to contribute. See our Legislation page for more information and to follow any bills affecting MOSERS. 

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  • Budget Restriction Information

    Jul 8, 2020, 1:36 PM By MOSERS
    What impact does the July 1, 2020 budget expenditure restriction in the amount of $754,952 have?

    The budget restriction has no impact on MOSERS or on member benefits. We were able to reduce employer premiums for the long-term disability program administered by MOSERS, which resulted in a savings of $754,952 for the state.

    The Missouri legislature has historically appropriated the full amount needed from MOSERS-covered employers for pension benefits. Each year, the MOSERS Board certifies this employer contribution rate. Our external actuary calculates the rate based on various economic and demographic assumptions. All the calculations go into our annual actuarial valuation. The actuary also conducts an experience study at least once every five years, which compares current assumptions with the most recent actual data. You can read our Employer Contribution Rate infographic for more information.

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  • Accessing Benefits Prior to Retirement

    Jun 25, 2020, 10:05 AM By MOSERS

    can you borrow money from your account prior to retirement and if so, how do you do this?

    Thank you for your question. You are not able to access your MOSERS defined benefit pension until retirement. However, if you no longer work in a MOSERS benefit-eligible position, and you are a member of MSEP 2011, you may be eligible to request a refund of your employee contributions. By taking a refund, you will lose all your credited service and future rights to receive pension and LTD benefits from MOSERS.

    The MO Deferred Comp 457 retirement savings plan permits in-service withdrawals from your account under the following circumstances; you experience a qualifying, unforeseeable emergency that causes extreme financial hardship, or if your account balance is $5,000 or less – you may elect a one-time, in-service distribution provided you have not made a contribution during the prior two-year period. Please visit www.modeferredcomp.org for more information or if you have any questions please call 800-392-0925. 

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Disclaimer

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.