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Will MOSERS be offering another buyout option in the future, like in 5-10 years? What's the projection for that, if so. I had not been vested long and I didn't feel comfortable considering that option given in 2017 but it did make me curious as to how often that option occurs. Please advise.
We are not aware of any efforts to offer another buyout option. The Missouri Legislature authorized the MOSERS Board of Trustees to offer the recent Buyout Program under SB 62 with that authorization expiring May 31, 2018. This was a one-time program. If MOSERS were to offer another buyout program in the future, it would require legislative approval.
For the members who did not elect the buyout option, we will contact you when you are within 120 days of early (reduced) retirement eligibility with information on the retirement application process. If you don’t elect early retirement, we will contact you again 120 days prior to when you are first eligible for normal (unreduced) retirement benefits from MOSERS.
Missouri Merit SystemFeb 9, 2018, 2:45 PM By MOSERS
I have heard that the merit system might be in jeopardy. For the merit system was ended, would that impact employee's retirement that are eligible for retirement but have not yet retired?
Until we know if or how the merit system may be changed, MOSERS cannot say how your retirement benefits may be affected, if at all.
Any changes to any retirement provisions must go through the legislative process and be signed into law by the Governor. We will monitor all legislation affecting MOSERS and inform our members of any changes that become law. The 2018 legislative session ends on May 18th. You can follow our Legislation page for more information.
Taxes & Retiree Pension BenefitsFeb 5, 2018, 4:12 PM By MOSERS
Tax reform, how does this impact a retiree benefit? Have you changed the calculators to match the appropriate tax brackets as they will be now?
The tax reform bill that was recently passed appears to change some federal income tax brackets (the rates/percentage), including the income level ranges that fall within the brackets. Pensions continue to be considered taxable income at the federal level (unless contributions were made after-tax), so we suggest you discuss whether the federal tax changes will affect you with your tax professional.
Changes (if any) to the amount of your MOSERS benefit payment will be implemented beginning with your February payment (issued on February 28, 2018).
To the best of our knowledge, state taxation of Missouri public pensions won’t be affected by this bill. As a reminder, we included an article in our winter issue of RetireeNews about the Missouri public pension exemption.
You should have received your 1099-R tax form with information you will need to file your tax returns for 2017. If you prefer an electronic copy of your 1099-R or if you find you need a replacement copy of it simply log in to your myMOSERS and you will find it listed under Personal Information.
Yes – we have updated the Federal Tax Calculator on the Taxes page of our website. If you decide you want to change either your state or federal tax deductions from your monthly pension benefit, you may do so at any time. Simply submit a new Substitute W-4P form available on the Library page of our website for you to print and mail in, or log in to myMOSERS and submit this form electronically.
5-Year BackDROPJan 30, 2018, 2:53 PM By MOSERS
A co-worker said they had read that if you stay past your 5 year backdrop period that your backdrop is negatively affected. Is this true?
The amount of a BackDROP lump sum could decrease if you were eligible to retire before age 62 but worked beyond age 62 and retired under MSEP 2000. This is due to a provision in MSEP 2000 called the Temporary Benefit. The Temporary Benefit is an amount paid to you in addition to your Base Benefit but the Temporary Benefit ends at age 62.
Since your BackDROP lump-sum amount is 90% of what you would have received if you had been retired during the BackDROP period, it maxes out at age 62 and can decrease (under the above scenario) if you work beyond age 62 under MSEP 2000.
Since there is no Temporary Benefit in MSEP, if you retire under MSEP and elect BackDROP, the amount of your lump sum will not decrease if you work past age 62.
We have a helpful Comparison Calculator on our website where you can compare the long-term impact of electing MSEP versus MSEP 2000, different BackDROP periods under the different plans, and various other options. Or, you can ask a MOSERS benefit counselor to provide you with various benefit estimates and Comparison Calculator results.
You are not required to take BackDROP, regardless of how long you work beyond normal retirement eligibility, and you don’t have to notify MOSERS of any decisions about BackDROP until you retire.
The BackDROP is simply a benefit payment option that is available to eligible members. Members who are or may become eligible for BackDROP are encouraged to attend a Ready to Retire/PreRetirement Planning Seminar and/or contact a MOSERS benefit counselor to make an appointment for further explanation in person or over the phone
*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
Is the MSEP 2011 Still a Contributory Plan?Jan 18, 2018, 10:54 AM By MOSERS
I have an employee who was hired June 2011. He has a question about the 5 year vesting. Since 5 year vesting is back he would like to know if Moser's will start contributing to retirement or if he will still have to make those contributions through his payroll.
MSEP 2011 members will still have to contribute 4% of pay to their future retirement benefit. Other than the vesting period changing from 10 years to 5 years for MSEP 2011 members employed on or after January 1, 2018, the provisions of SB 62 have NO impact on members of MSEP 2011 who work in a MOSERS benefit-eligible position until they reach normal retirement eligibility.
Money to pay current and future MOSERS pension benefits comes from:
- Contributions from employees who are members of the MSEP 2011 or Judicial Plan 2011 (4% of pay for MOSERS members; typically 5-10% nationally*),
- Earnings on investments of money in the MOSERS trust fund (61% of assets in the MOSERS trust fund have come from investment earnings), and
- Contributions from employers (state agencies) as a percent of active employee payroll.
Below is a simplified example of what future retirement benefit might look like over time. The benefit would be even more with compounding cost-of-living adjustments (COLAs), which are included in MSEP 2011, but not shown here for simplicity. The benefit formula is:
Final Average Pay x Credit Service x Multiplier = Monthly Base Benefit
*Understanding Public Pensions, April 2017, Center for State & Local Government Excellence, AARP
1099-Rs for MOSERS RetireesJan 18, 2018, 12:00 AM By MOSERS
When will 1099s be distributed, or is there a way I can go online to get my last years benefit information?
We will mail your 1099-R form by January 31. If you prefer an electronic copy of your 1099-R or if you find you need a replacement copy of it, simply log in to myMOSERS and you will find it listed under Personal Information. Your 1099-R form will be available for you to view or print after they have been mailed.
MSEP 2011 Survivor BenefitsJan 8, 2018, 8:03 AM By MOSERS
I am a MSEP 2011 Employee and had a question regarding the new retirement benefit plan. I understand you can now become vested at 5 years instead of 10, but my question is, if my spouse and I are both deceased before the retirement age, who will receive my benefits? The previous handbook states if there is no eligible spouse, a total of 80% of your monthly base benefits will be paid to your natural or legally adopted children who are younger than age 21. Who will have children at the retirement age of 67 under the age of 21? A vast majority of employees will not have dependent children at retirement age, so where will the retirement benefits go then? Will there be a new MSEP2011 general employee handbook sent out soon?
It is accurate that, if you are an active general state employee, married, vested in MOSERS, and die before you retire with MOSERS, your eligible surviving spouse will receive survivor benefits, and also that if there is no surviving spouse, a survivor benefit is payable to your natural or legally adopted child(ren) younger than age 21. If you die without any eligible beneficiaries, no survivor benefits are paid.
If you made employee contributions to MOSERS and die without any eligible survivors, a refund of your contributions plus interest will be made to the beneficiary(ies) you have listed on your Contribution Beneficiary(ies) form or as otherwise permitted by law.
All of the above information applies if you die while actively employed and BEFORE you begin receiving your MOSERS pension benefit. Members often have similar questions about death AFTER retirement. A key feature of your MOSERS defined benefit (DB) pension plan is that it can provide financial security for your eligible survivor(s) as well. During the retirement process, you will make elections to determine if any potential survivor benefits will be paid to anyone after your death or not – to a spouse if you are married, or, potentially, to another beneficiary.
If you terminate employment, then die before retirement, other stipulations apply. Effective January 1, 2018 for MSEP 2011 terminated-vested members: If you die after leaving state employment but prior to normal retirement eligibility age, monthly pension benefits will be payable to your eligible survivor(s) when you would have reached normal retirement eligibility. Please see the updated MSEP 2011 Handbookon our website for more information.
MSEP 2011 Retirement EligibilityJan 4, 2018, 10:00 AM By MOSERS
I know that the 10 years vested has been reversed back to 5 years, however I'm inquiring where the process is with going back to 80 & out vs. 90 & out. Is this still on the table?
We are not aware of any plans to change retirement eligibility requirements.
The 5-year vesting for MSEP 2011 members went into effect on 1/1/2018, and MSEP 2011 members must be actively employed on or after 1/1/2018 to be covered by this change.
Members of MSEP 2011* will become eligible for normal retirement when they reach age 67 and have at least 5 years of service OR under the “Rule of 90,” which is when they are at least age 55 and their age and service equals 90 prior to leaving state employment.
The 2018 legislative session began January 3 and will end on May 18th. We do not know what might happen with individual bills during the legislative session, but we will monitor all legislation impacting MOSERS and inform our members of any changes that become law.
*Members of MSEP 2011 are those who were first employed in a MOSERS benefit-eligible position on or after January 1, 2011.
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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.