rumor-central-header

Hearing Rumors? Not sure your co-worker has it right?

Rumor Central has the answers! Submit your question or just browse our blog to separate facts from fiction.


  • Re-employment with the State

    Feb 19, 2021, 4:50 PM By MOSERS
    Regarding the new severed employment rule, is the University of Missouri or State Technical College considered part of "the State of Missouri". When can someone who left a position under MOSERS begin interviewing for positions with the University of Missouri or State Tech? Thank you.

    As you consider reemployment after leaving your current position, please review the list of MOSERS-covered employers.

    The University of Missouri is not a MOSERS-covered employer, so you could begin interviewing with them at any time.

    State Technical College of Missouri is a MOSERS-covered employer so you must have a “bona fide termination” with your current employer before reemployment with State Tech or any other MOSERS-covered employer.

    For purposes of MOSERS Board Rules, a "bona fide termination" occurs when:

    • You have completely severed employment;
    • You have not entered into a prearranged agreement (written or oral), prior to retirement, with the State of Missouri or any MOSERS-covered employer for subsequent employment on any basis (full-time, part-time, or other); and
    • You are not subsequently employed with the State of Missouri or any MOSERS-covered employer on any basis (full-time, part-time, or other) within 30 days after your employment with your prior employer has ended.

    Practically speaking that means you must wait until after your retirement date (the first day of the month in which you begin receiving retirement benefits) to interview with any MOSERS-covered employer. However, you could not be rehired prior to the expiration of the 30-day separation-of-service period.

    Example: Let’s say you plan to retire in May. Your last day at work is April 23rd but you take annual leave for the rest of the month until April 30.

    • Your “termination date” would be April 30.
    • Your “retirement date” would be May 1.
    • Assuming you meet the deadlines and complete all the steps for retirement, we would issue your first monthly pension payment on May 31.

    In this scenario, you may begin interviewing with other MOSERS-covered employers on or after May 1. You may begin reemployment with a MOSERS-covered employer on or after May 31. Please note, if your reemployment is in a MOSERS benefit-eligible position, your monthly pension payments from MOSERS will stop.

    For additional information, please see: Ready to Retire and Working After Retirement on our website or contact us to speak with a MOSERS benefit counselor about your particular situation.

    Print Friendly and PDF
  • Returning to Work - Separation of Service

    Dec 22, 2020, 11:50 AM By MOSERS
    I have a question regarding returning to a temporary, non-benefit position after retiring on 2/1/21 from my FT, benefit position here in my office. Is there any restriction that MOSERS has against this? I was told I had to wait 30 days after my retirement, but do not understand since this would not, in any way, affect my state retirement. I am under the MSEP 2000 plan and was never required to contribute the 4% that employees have to do now. Why can't I transfer to that position on 2/1/21?

    The IRS has specific rules around when a member of a qualified governmental pension plan may receive a retirement benefit. Specifically, the IRS requires an employee to have a bona fide termination with the employer before receiving a retirement benefit. MOSERS has conferred with its outside tax counsel and confirmed that without a separation from service, there can be federal tax penalties for both the member and MOSERS. At their November 19, 2020 meeting, the MOSERS Board of Trustees adopted new Board Rules on the termination of employment and reemployment of MOSERS retirees by any employers covered by MOSERS. The new Board Rules are designed to follow the IRS guidelines for separation of service and prevent such tax penalties from being levied against our retirees and the System.

    Before receiving a benefit payment from MOSERS, an employee must have a bona fide termination. For purposes of the MOSERS’ board rules, a "bona fide termination" occurs when:

    1. You have completely severed employment;
    2. You have not entered into a prearranged agreement, prior to retirement, with any employer for subsequent employment on any basis (full-time, part-time, or other); and
    3. You are not subsequently employed by any employer on any basis (full-time, part-time, or other) within 30 days after your employment with your prior employer has ended.

    For purposes of these rules “employer” means the State of Missouri or any other MOSERS-covered employer. See FAQs on Separation of Service for more information.

    While the IRS rules are currently in effect, MOSERS will administer its Board Rules prospectively (on a going-forward basis only) for retirees who submit a retirement application on or after January 1, 2021. MOSERS will not apply the rule retroactively.

    Upon meeting the separation-of-service rules, you may return to work and continue receiving your monthly pension payment, as long as your new position is not a MOSERS or MoDOT and Patrol Employees’ Retirement System (MPERS) benefit-eligible position. 

    Print Friendly and PDF
  • Separation of Service

    Nov 24, 2020, 3:52 PM By MOSERS
    If a person retires from the state, part time work is offered to meet a state agency's needs, how many days/hours/months must a person be separated from full time state employment to accept a part-time position?

    At their November 19, 2020 meeting, the MOSERS Board of Trustees adopted:

    • Board Rule 9-2, "Termination of Employment and Reemployment of MSEP/MSEP2000/MSEP 2011 Retiree"
    • Board Rule 4-9, "Termination of Employment and Reemployment of ALJLAP Retiree"
    • Board Rule 4-10, "Termination of Employment and Reemployment of Judicial Plan or Judicial Plan 2011 Retiree"
    • Revisions to various other MOSERS Board Rules.

     

    The purpose of Board Rules 9-2, 4-9, and 4-10 is to set forth procedures relative to compliance with the Internal Revenue Code and Treasury Regulations regarding retiree re-employment and in-service distributions.

    Before receiving a benefit payment from MOSERS, IRS rules require a “bona fide termination” of the member’s employment. For purposes of these new rules, a "bona fide termination" occurs when:

    1. a member has completely severed the member’s employment;
    2. the member has not entered into a prearranged agreement, prior to retirement, with any employer for subsequent employment on any basis (full-time, part-time, or other); and
    3. the member is not subsequently employed by any employer on any basis (full-time, part-time, or other) within 30 days after the member’s employment with the member’s prior employer has ended.

    For purposes of these rules “employer” means the State of Missouri or any other employer covered by MOSERS.

    All board rule changes will take effect on December 21, 2020.  

    Print Friendly and PDF
  • BackDROP & Reemployment With the State

    Sep 19, 2018, 11:01 AM By MOSERS

    If I retire with Backdrop, how long do I have to wait if I want to start back working in a state-paid position?

    If you retire and return to work in a benefit-eligible* position, your monthly retirement payment will stop as soon as we are notified that you are re-employed. Once you have worked for at least 12 continuous months in your new benefit-eligible position, you will begin accruing a separate retirement benefit.

    Once you re-retire, your previous benefit will restart and your new benefit (based on your new service and salary) will be calculated and your benefit payments (old benefit plus new benefit) will resume. You are not allowed to elect BackDROP after you have first retired. In other words, you will not be eligible for BackDROP if you return to state employment after having already retired from the state.

    If you retire and return to work in any position not covered by MOSERS or MPERS (including work for the state in a non-benefit-eligible position), you may continue receiving your MOSERS pension benefits and earn as much as you wish. Such employment will have no effect on your MOSERS benefit.

    *A benefit-eligible position is one that normally require at least 1,040 hours of work per year, is permanent in nature, and is covered by MOSERS or the MoDOT and Patrol Employees’ Retirement System (MPERS). Your employer, not MOSERS, determines if you are working in a benefit-eligible position.

    Print Friendly and PDF
  • University of Missouri

    Sep 19, 2018, 10:54 AM By MOSERS

    With MU in discussions to buy St. Mary's Hospital, will benefited employees (Part-time and full-time) who are retired from the state of Missouri and receiving their retirement benefit have to stop that benefit when they become MU employees and fall under that plan? 

    No. MOSERS and the University of Missouri are separate retirement systems. A MOSERS retiree could take a part-time or full-time position with an MU employer and continue receiving their benefits since such employment would not be in a MOSERS or MPERS benefit-eligible position.

    Print Friendly and PDF
  • BackDROP & Returning to Work

    Aug 28, 2018, 1:13 PM By MOSERS

    What would happen if I retire and draw backdrop and later decide to return to work for the State in a benefit eligible position? I know my retirement benefit would stop but what would happen with the backdrop?

    If you retire and return to work in a benefit-eligible* position, your monthly retirement payment will stop as soon as we are notified that you are re-employed. However, any BackDROP money you received is yours to keep – there is nothing that requires you to return any of it to MOSERS if you return to work. Once you have worked for at least 12 continuous months in your new benefit-eligible position, you will begin accruing a separate retirement benefit. Once you re-retire, your previous benefit will restart and your new benefit (based on your new service and salary) will be calculated and your benefit payments (old benefit plus new benefit) will resume. You are not allowed to elect BackDROP after you have first retired. In other words, you will not be eligible for BackDROP if you return to state employment after having already retired from the state.

    If you retire and return to work in any position not covered by MOSERS or MPERS (including work for the state in a non-benefit-eligible position), you may continue receiving your MOSERS pension benefits and earn as much as you wish. Such employment will have no effect on your MOSERS benefit.

    *A benefit-eligible position is one that normally require at least 1,040 hours of work per year, is permanent in nature, and is covered by MOSERS or the MoDOT and Patrol Employees’ Retirement System (MPERS). Your employer, not MOSERS, determines if you are working in a benefit-eligible position.

    Print Friendly and PDF
  • Break in Service

    Aug 1, 2018, 1:21 PM By MOSERS

    If I want to take a break from working right after retirement and not do the backdrop at that moment, how long can that break be before I decide to go back to work in a MOSERS-covered position? Or can that be done? And will that be considered backdrop then?

    Per MOSERS board rule, a break in service is being off payroll for an entire calendar month. It looks like you have three options.

    1. If you retire and return to work in a benefit-eligible* position, your monthly retirement payment will stop as soon as we are notified that you are re-employed. Once you have worked for at least 12 continuous months in your new benefit-eligible position, you will begin accruing additional retirement benefits. Once you re-retire, your benefits will be recalculated and your benefit payments will resume. You are not allowed to elect BackDROP after you have first retired. In other words, you will not be eligible for BackDROP if you return to state employment after having already retired from the state.
    2. If you retire and return to work in any position not covered by MOSERS or MPERS (including work for the state in a non-benefit-eligible position), you may continue receiving your MOSERS pension benefits and earn as much as you wish. Such employment will have no effect on your MOSERS benefit.
    3. If you leave state employment but don’t retire and then, after a break in service, return to state employment in a benefit-eligible position, you may become eligible for and elect BackDROP.

    Visit our website for a list MOSERS covered employers. Be sure to discuss your situation with the human resources staff at the agency where you are considering employment. They will be able to tell you whether or not the position is eligible for benefits.

    You may contact a MOSERS benefit counselor to get more information about your individual situation and options.

    *A benefit-eligible position is one that normally require at least 1,040 hours of work per year, is permanent in nature, and is covered by MOSERS or the MoDOT and Patrol Employees’ Retirement System (MPERS). Your employer, not MOSERS, determines if you are working in a benefit-eligible position.

    Print Friendly and PDF

Topics

Archive

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.