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Jan 28, 2019, 2:26 PM By MOSERS
If you are receiving a retirement check from the state of Missouri are you required to claim it on your state tax income tax return as income?
Yes, you are required to claim your MOSERS benefits on your state taxes if you are a Missouri resident. (If you are not a Missouri resident, contact your state department of revenue or a qualified tax advisor for the answer to this question.) Below is some additional information that MOSERS retirees often need when filing their taxes:
- MOSERS is a public defined benefit (DB) pension plan and the benefit you receive through MOSERS is considered a “public pension”.
- MOSERS withholds state taxes only for Missouri residents.
- As long as you reside in Missouri, your retirement benefits are subject to Missouri state income tax and federal tax. However, you may qualify for the Missouri state tax Public Pension Exemption on your Missouri state tax return.
- We have mailed 1099-R tax forms to all retirees/benefit recipients.
Jan 28, 2019, 1:54 PM By MOSERS
My wife also worked for the state of Missouri for 29 years. Her office closed just before she reached 80 and out. A year later she started collecting her state retirement when she turned 51. Does she still get the $5,000 life insurance like I do. I stayed for 35 years and received full backdrop at age 55.
No. Anyone who does not retire directly from state employment ;(within 60 days from their last day of state employment), does not get the automatic $5,000 in basic life insurance coverage at no cost to them.
The state will continue to pay for $5,000 of basic life insurance coverage for life for retirees who meet the following conditions:
- They had basic life insurance coverage as an active employee and did not terminate coverage at retirement.
- They have a MOSERS retirement date that is within 60 days of when they left state employment.
Jan 25, 2019, 4:05 PM By MOSERS
Does my backdrop withdrawals add to my state pension income which adds to my state taxable income that effects my state tax exemption?
Yes, the BackDROP distribution 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. 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?
Any withdrawal after retirement is taxable in the year of the withdrawal.
We suggest you speak to a tax professional or financial advisor for advice specific to your situation . For more information about state taxes, or the Missouri State Tax Public Pension Exemption, please contact the Missouri Department of Revenue or go to: www.dor.mo.gov/personal/ptc/pension.php.
Jan 23, 2019, 9:15 AM By MOSERS
I'd always thought retirement benefits were based on the highest pay of our state employment career. I was told by a coworker who recently attended a pre-retirement seminar that once you become eligible (under the rule of 80 for MSEP employees), that the highest pay rate considered for retirement benefits is already locked in and pay increases after that point will have no impact on retirement benefit. Please advise.
What you heard is not necessarily true – so thanks for checking with us! Whether or not pay for a given period will be considered in determining your final average pay (FAP) depends on if you elect BackDROP* (if eligible); not when you hit “80 & Out”.
To calculate your pension benefit, we will use your highest 36 full consecutive months of pay – wherever that occurs in your individual pay history. Practically speaking, most people earn their highest 36 consecutive months of pay in their last three years of state employment, but not always. If you become eligible for and elect the BackDROP upon retirement, your FAP will be calculated using your MOSERS-covered work history prior to your BackDROP date. In other words, pay (and service) during the BackDROP period is excluded when calculating your monthly benefit amount.
If, at retirement, you do not elect BackDROP, we will review your entire pay history and find the 36-month period with your highest pay (regardless of whether that is before or after you might hit “80 & Out”) and will use that in calculating your monthly benefit. You may elect not to take BackDROP if you want all of your pay and service to count. In most cases, opting not to take BackDROP will increase your monthly benefit amount.
*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.
Jan 23, 2019, 8:57 AM By MOSERS
Will state pension still be tax exempt for 2018 pension?
If you are referring to the Public Pension Exemption, we are unaware of any changes to it compared to the previous year. This means that you may not have to pay Missouri state taxes on some or all of your MOSERS pension. See the Missouri State Tax Public Pension Exemption flyer. For more information about taxes, please contact the Missouri Department of Revenue or go to: www.dor.mo.gov/personal/ptc/pension.php.
Jan 23, 2019, 8:44 AM By MOSERS
We received two questions about 1099-Rs recently:
- When will 2018 1099-R be on-line?
- Why can I not receive/access my 1099R online? It would seem to me that it would save thousands of dollars.
You can access an electronic copy of your 1099-R after we have mailed it, which will be by the end of January. Simply log in through myMOSERS to your MOSERS Member Homepage and you will find it listed under Personal Information. Watch our website for more information.
We appreciate your comment indicating you would be ok getting it online only and that it would save money. We have taken that approach with our other publications and correspondence - based on individual member preference. The 1099-R is one document that we still make available to all retirees both in hard copy and online. The decision to do so is based on our experience with retiree preference and needs. However, we will certainly take your suggestion into consideration for future planning.
Jan 18, 2019, 12:52 PM By MOSERS
Does MOSERS use the pay period end date or the check issue date when calculating the highest 36 consecutive months?
In our calculation of final average pay, we credit you based on when the payroll was earned, rather than the month it was actually paid. To calculate your pension benefit, we will use your highest 36 full consecutive months of pay –wherever that occurs in your individual pay history. Practically speaking, most people earn their highest 36 consecutive months of pay in their last three years of state employment, but not always*.
*Note: If you become eligible for and elect the BackDROP upon retirement, your FAP will be calculated using your MOSERS-covered work history prior to your BackDROP date. In other words, pay during the BackDROP period is excluded when calculating your monthly benefit amount.
Jan 17, 2019, 8:25 AM By MOSERS
I need to know if we still have Travel Assistance thru The Standard? I was told it might change beginning 1-1-19 and I will be leaving on a trip out of the US. I am retired & live in Fl. now. It also paid anything over 100 miles from home. Any information will be greatly appreciated.
Yes, members and retirees who have MOSERS basic life insurance* are eligible for travel assistance when traveling at least 100 miles from home or in a foreign country. Family members, including a spouse and children through age 25 are also covered. Medical assistance is one of the services they provide, including locating medical care, 24-hour access to nurses by phone, and emergency transportation services. (Please note: Travel assistance is not the same as travel health insurance. Please contact your health insurance provider regarding health care coverage when travelling.)
*MOSERS' life insurance is not available to employees of the Department of Conservation or state regional colleges/universities except for Lincoln University and State Technical College of Missouri.
Dec 19, 2018, 10:02 AM By MOSERS
Your RetireeNews, Fall Winter 2017 states if a retiree lives in Missouri, then Missouri state income tax may be due on the pension. Does this imply that if a retiree is a resident of another state (even one without a state income tax) that the Missouri pension is not taxed by the State of Missouri?
Each person’s situation may be different and we cannot advise you on your tax liability as it pertains to your MOSERS pension. We suggest you contact the Missouri Department of Revenue and/or a qualified tax advisor about your tax liability.
MOSERS withholds state taxes only for Missouri residents. If you aren’t a Missouri resident in retirement, contact the appropriate state and local tax authorities to determine the taxability of your MOSERS benefit there. We will mail 1099-R tax forms to all retirees by January 31.
Dec 17, 2018, 8:33 AM By MOSERS
After a person retires and receive their first retirement check, I am curious to know how will it will be paid out? Will it be monthly, or bi-weekly?
Retirees are paid once a month, on the last working day of each month. If you enroll in direct deposit during the retirement process, your payment will be transferred electronically on that day. If you receive a paper check, it will be mailed on the last working day of the month. We encourage retirees to participate in direct deposit, since it is faster and more secure than a paper check.
You can view the Pension Payments page on our website, which we will be updating for 2019 soon.
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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.