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Sep 11, 2018, 12:03 PM By MOSERS
Does my employer contribute to my social security while I am a state employee?
Yes. As a state employee, you and your employer both pay into Social Security while you are working. For questions about deductions from your paycheck, contact your employer’s human resources department. For questions about Social Security benefits, visit the Social Security Administration’s website at www.ssa.gov or call them toll-free at (800) 772-1213.
Apr 17, 2018, 9:01 AM By MOSERS
If a past employee opts to withdraw MOSERS funds all at once upon early retirement age, will that effect their monthly social security amount down the road, after reaching eligible age for such?
MOSERS does not offer a lump-sum withdrawal option of your monthly retirement/pension benefit if you take early retirement.
As far as Social Security retirement benefits are concerned, your MOSERS benefit is a “public” pension and, therefore, is not considered a salary or wage so it does not count towards the annual earnings limit for Social Security. Earnings while in a MOSERS-covered position were also covered by Social Security, so there is no reduction in your Social Security benefit due to your MOSERS benefit. (See the information from Social Security on the “Windfall Elimination Provision” at https://www.ssa.gov/pubs/EN-05-10045.pdf for more information.) We encourage you speak to a tax professional or financial advisor for advice specific to your situation. For more information about Social Security, the Social Security Administration website iswww.ssa.govor call them toll-free at (800) 772-1213.
Apr 10, 2018, 1:52 PM By MOSERS
Social Security says your benefit may be reduced if you get a pension from work not covered by Social Security. Is Mosers retirement covered or not covered?
Your employment that counted toward your MOSERS pension was covered by Social Security. Additionally, your MOSERS benefit is a “public” pension and, therefore, is not considered a salary or wage. It does not count towards the annual earnings limit for Social Security. (See the information from Social Security on the “Windfall Elimination Provision” at https://www.ssa.gov/pubs/EN-05-10045.pdf for more information.)
We also suggest you speak to a tax professional or financial advisor for advice specific to your situation. For more information about Social Security, the Social Security Administration website is www.ssa.gov or call them toll-free at (800) 772-1213.
Apr 3, 2018, 3:29 PM By MOSERS
I turned 62 on Feb 1, 2018. While I was aware that I would be SS eligible at 62, it was my understanding that my retirement supplemental benefit would remain in affect until I elected to take Social Security. Now I see from Mosers correspondence, buried on member website, that my benefit dropped $1130/month on March 30. I was not informed of this until March 26.
Why wasn't I informed sooner so that I could make some decisions on how I was going to cover this difference.
This is a disservice to members. I am sure others have been shocked and inconvenienced as well.
For the sake of others reaching this 62 year old threshold, this procedure needs to change.
We apologize that you were surprised that the Temporary Benefit ends at age 62. The MOSERS Temporary Benefit* was designed to serve as a bridge between your MOSERS retirement and your eligibility for early Social Security benefits but the two are not directly linked. The MOSERS Temporary Benefit ends at age 62 regardless of your decision to apply for early Social Security retirement benefits or not. Taking early/reduced Social Security benefits, as opposed to waiting until you are eligible for full Social Security benefits, is a personal decision with pros and cons on both sides. We encourage you to talk with a financial advisor or staff at the Social Security Administration to help you decide which is best for you individually.
In addition to sending the letter you mentioned, we discuss in PreRetirement Seminars and note in the General Employees’ Retirement Handbook (MSEP/MSEP 2000), on benefit estimates, and in Annual Benefit Statements that the Temporary Benefit ends at age 62. In order for the Temporary Benefit to be payable beyond age 62, current law would have to be changed.
*The Temporary Benefit is a provision of the MSEP 2000 or MSEP 2011. It is not available in the MSEP. The Temporary Benefit applies only if you retire under MSEP 2000 or MSEP 2011and are younger than age 62 when you retire.
Mar 21, 2018, 8:34 AM By MOSERS
In looking over my Social Security application, I see that they want to know what my earnings will be in 2018. I plan to roll over my MOSERS backdrop--will the amount of my backdrop be considered earnings by the Social Security Administration? Or do I only submit my projected salary earnings for 2018?
Your MOSERS benefit is a public pension and, therefore, is not considered a salary or wage. It does not count towards the annual earnings limit for social security. Your BackDROP payment, however, is considered taxable income for the year in which you receive the payment unless you roll it over to a traditional IRA or another eligible employer plan, such as MO Deferred Comp. Depending upon your age, there could also be an additional 10% IRS penalty if you choose the cash payment.
When you retire with MOSERS, you will be asked if you want to elect BackDROP* (if eligible), and, if so, how you want to receive that distribution: cash option, rollover option, or combination cash and rollover option. State employees eligible to receive a lump-sum BackDROP payment get this payment in addition to a lifetime monthly benefit payment and can choose to roll the lump sum into the MO Deferred Comp Plan at retirement. This option is available to all state of Missouri employees, even if they have never participated in the deferred compensation plan. A popular reason to roll the lump-sum payment into the deferred compensation plan is that it allows employees to defer taxes on the payment until those assets are distributed in retirement. There is a helpful publication on MO Deferred Comp’s website called Thinking About the BackDROP?
We suggest you speak to a tax professional or financial advisor for advice specific to your situation and to discuss all of your options at retirement. For more information about Social Security, the Social Security Administration website is www.ssa.gov or call them toll-free at (800) 772-1213.
*BackDROP is available only to general state employees who are members of MSEP & MSEP 2000 and who work at least two years beyond normal retirement eligibility.
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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.