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Nov 17, 2021, 9:09 AM By MOSERSI am trying to find out how to change how much is with held out of my paycheck for retirement but cannot figure out how to do so.
There are two deductions from your paycheck for retirement purposes.
MOSERS members who are in MSEP 2011 or the Judicial Plan 2011 are required to contribute 4% of their pay, which is maintained in an account with interest credited annually. This is an automatic withdrawal and cannot be changed. These mandatory contributions help fund your defined benefit pension from MOSERS. While it cannot be changed, you will get your contributions back in some way; whether it be through a guaranteed lifetime monthly income in retirement or through a refund, if you leave state employment.
Or, you may be referring to MO Deferred Comp. The MO Deferred Comp Plan is a voluntary retirement savings plan designed to help
Oct 13, 2021, 1:16 PM By MOSERSCould you give an example of the impact this change has? .... Following an in-depth presentation from our independent external actuary, the MOSERS Board certified the MSEP employer contribution rate for FY23 at 26.33% of payroll beginning July 1, 2022. The employer contribution rate is the percent of pay that a MOSERS-covered employer contributes every pay period to properly fund the retirement plan. The funded ratio of the plan was calculated at 59%. You may ask, "Why is the funded ratio 59%"?
Any change in the employer contribution rate does not impact retiree benefits. As compared to last year, the employer contribution rate certified this year by the MOSERS Board of Trustees represents a higher contribution for one year of service for active members and one year of payment on the plan’s unfunded actuarial accrued liability.
System funding comes from three sources:
- investment income,
- employer contributions, and
- employee contributions (from those first employed on or after January 1, 2011).
For more information on MOSERS’ Employer Contribution Rate, please see the Employer Contribution Rate infographic or feel free to contact us if you have further questions.
Jul 21, 2021, 8:27 AM By MOSERSAn 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.
Jun 15, 2021, 2:29 PM By MOSERSAre 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.
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%.
May 14, 2021, 8:22 AM By MOSERSI 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.
May 11, 2021, 8:13 AM By MOSERSif 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.
Jul 21, 2020, 3:39 PM By MOSERSI’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.
Jul 17, 2020, 3:48 PM By MOSERSWhat 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.
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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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.