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  • Purchasing Service Credit

    Jul 21, 2022, 9:05 AM By MOSERS
    Are you able to purchase years of public service with another public organization to add to your MOSERS pension to qualify for the rule of 90? Thanks, 

    Service credit may be available for purchase or transfer, depending on your situation. Purchasing service may increase your retirement benefit, allow you to retire sooner, or both. Waiting to purchase service may cost you more money, due to interest, in addition to the purchase price. You can view the Purchasing and Transferring Service Guide for MSEP 2011 members on our website to see if you are eligible to purchase or transfer prior service. We strongly encourage you to contact a MOSERS benefit counselor to discuss your individual situation as there are many factors that will determine your eligibility. 

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  • Returning to Work

    Jun 22, 2022, 8:59 AM By MOSERS

    Hello. Quick question. I am a current state retiree, and am starting to work part time with a state agency. I know that I'm limited to 1,000 hours in a calendar year. However, is there a weekly or monthly maximum of hours? I have never heard that there was, but I may be working quite a few hours for short periods of time, and I wanted to make sure there would be no issues. Thanks!

    Before receiving a benefit payment from MOSERS, IRS rules require a “bona fide termination” of your employment. Upon meeting the termination and reemployment rules, you may return to work and continue receiving your monthly pension payment, as long as your position is not a MOSERS or MoDOT and Patrol Employees’ Retirement System (MPERS) benefit-eligible position.

    Generally speaking, an employee must work in a position normally requiring at least 1,040 hours per year to qualify for MOSERS benefits. It is the responsibility of the employer, not MOSERS, to determine if a position is eligible for MOSERS benefits. Therefore, your new employer would make the decision regarding your question about a maximum amount of weekly or monthly hours. Once your employer has notified you if it is a benefit-eligible position or not, we encourage you to contact a MOSERS benefit counselor to discuss your specific situation.

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  • Separation of Service and Reemployment

    Mar 11, 2022, 12:02 PM By MOSERS

    Is it true that state workers that retire in 2023 will not be able to come back to work for state government on a temporary basis and why is this?

     

    No, that is not true. A retired member may return to work with a MOSERS-covered employer as long they follow the termination and reemployment rules.

    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.

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

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  • Reemployment and Your Pension

    Mar 4, 2022, 3:22 PM By MOSERS
    Hello. I do have a question about working part time in state government after retirement. I know that a job with a state agency is limited to less than 1000 hours annually, and I did that for awhile right after retirement. I have been offered a part time job with a private consulting firm that is contracted with a state agency. Since my employer would be a private firm, not state government, these hours would not count towards a 1000 hour limit, correct? Thanks!

    You are correct. Upon meeting the termination and reemployment rules, you may return to work and continue receiving your monthly pension payment, as long as your position is not a MOSERS or MoDOT and Patrol Employees’ Retirement System (MPERS) benefit-eligible position (i.e. a position normally requiring at least 1,040 hours a year).

    Contracted employees working directly under a private firm are not typically classified as state employees. Such employment should not interfere with your ability to receive your MOSERS benefit, however, we recommend that you contact the employer to confirm that anyone employed as such would not be considered a state employee.

    If you return to work for the state of Missouri in a MOSERS or MPERS benefit-eligible position:

    • Your monthly pension payment will stop.
    • Depending on various factors (your plan, how long you work, etc.), you may or may not earn additional credited service during reemployment.
    • When you retire again, your monthly pension payment will equal the amount you were receiving when you returned to work plus any additional benefit you may have earned during reemployment.
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  • Transferring between state agencies

    Sep 24, 2021, 2:24 PM By MOSERS

    Hello. If I change employment from one state agency to another does my retirement stay the same?

    It depends on where you transfer to. If you are transferring from a benefit-eligible position with one MOSERS-covered employer to a benefit-eligible position with another MOSERS-covered employer, then yes, your retirement date would stay the same, as long as you don’t have a break in service. This is a nice advantage of working for the state since it gives you so many options.

    If you move to an employer not covered by MOSERS, then you still may be able to transfer service credit but you would need to ask that employer and/or retirement system to determine if your retirement eligibility date will change. For example, the Missouri Department of Transportation is covered under MPERS not MOSERS. If you went to work for a public school system, it may be covered by PSRS/PEERS. This is an important question to get answered before you make your decision to transfer or not. 

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  • MOSERS Covered Employers

    May 14, 2021, 8:21 AM By MOSERS

    I was wondering what other occupations may qualify towards my retirement? 

    You can review the full list of MOSERS covered employers to see what state agencies receive our benefits. Generally speaking, an employee must work in a position normally requiring at least 1,040 hours per year to qualify for MOSERS benefits. It is important to note that it is the responsibility of the employer, not MOSERS, to determine if a position is eligible for MOSERS benefits. If you were to go to work for any other MOSERS covered employer in a benefit-eligible position, it would add to your existing state service.

    Depending upon your plan membership (MSEP, MSEP 2000, or MSEP 2011), you may be able to purchase or transfer service from one retirement system to another, including the following types of service

    • Service with MODOT or the Missouri Highway Patrol
    • Service with a city, county, or public school in Missouri
    • Prior military service

    Purchasing or transferring service may increase your pension benefit and may make you eligible for retirement sooner. For more information contact a MOSERS benefit counselor and see

    Purchasing and Transferring Service Guide for MSEP (Closed Plan) Members

    Purchasing and Transferring Service Guide for MSEP 2000 Members

    Purchasing and Transferring Service Guide for MSEP 2011 Members

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  • 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.

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  • 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. 

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  • 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.  

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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.