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Jul 14, 2023, 1:44 PM By MOSERScan we withdraw from retirement?
If you are actively employed as a state employee, you cannot opt-out or withdraw any funds from your MOSERS defined benefit retirement plan. If you participate in MO Deferred Comp (the supplemental savings program), you may contact them at (800) 392-0925 or (573) 893-1053 to ask about making an emergency withdrawal from your savings.
Members of MSEP 2011 or the Judicial Plan 2011 who leave state employment may choose to either request a refund of their employee contributions (if they don’t anticipate returning to state employment) or leave their contributions with MOSERS (if they do anticipate returning to state employment).
Please note that, there is a 90-day waiting period and if you take a refund, you will forfeit all your credited service. Alternatively, you may leave your contributions with the System if you think you might return to work for the state at some point in the future and would like for those years of service to count toward an eventual retirement benefit. To learn more, please visit our Refund of Employee Contributions page.
If you saved money with the MO Deferred Comp Plan while employed with the state, you do have the option to withdraw your 457 savings penalty-free upon leaving state service or you may roll your savings balance to another qualified retirement savings plan. Please visit www.modeferredcomp.org for more information.
We encourage you to contact a tax professional or financial advisor for advice specific to your situation.
Jun 13, 2023, 1:38 PM By MOSERS
I have taken the retirement class previously, but now that I am closer to retirement, can I take it again for more clarification?
Absolutely! We encourage members to attend a Ready to Retire session more than once in the years leading up to retirement. Now that you are nearing retirement, it would be a great choice to attend again.
Please note that our system will not allow you to enroll in more than one session in a calendar year. This is to keep seats available for those who are very close to retirement.Visit our Education page to learn more and register today!
Jun 1, 2023, 12:00 AM By MOSERS
Not a comment, but a question. How do I change the beneficiary of this pension? I didn't see an online form to make changes.
The number and types of beneficiaries you have depends primarily on your employment status and eligibility for MOSERS benefits:
- Actively employed as a state employee or
- Inactive-vested (worked long enough to earn a future pension benefit but no longer employed by the state and not yet retired) or
ACTIVE: You may have beneficiaries for life insurance (if provided through MOSERS) and/or employee contributions (if you are a member of MSEP 2011 or the Judicial Plan 2011).
INACTIVE-VESTED: You may have beneficiaries for employee contributions (if you are a member of MSEP 2011 or the Judicial Plan 2011). However, you won’t make decisions about your future MOSERS defined benefit pension benefits, including those about survivor beneficiaries, until you apply for retirement.
RETIRED: You may have beneficiaries for life insurance (if provided through MOSERS and you retained life insurance coverage in retirement) and/or employee contributions (if you are a member of MSEP 2011 or the Judicial Plan 2011). You may change the above beneficiaries at any time. You are allowed to change your survivor beneficiaries for your MOSERS defined benefit pension only under the following circumstances:
- You were married at retirement, elected a joint & survivor benefit payment option and your spouse passes away. See more information about reporting a death.
- You were married at retirement, elected a joint & survivor benefit payment option and you get divorced after retirement. Go to the Life Events page and scroll down to Divorce.
- You were single at retirement, elected the Life Income Annuity benefit payment option and then got married. Go to the Life Events page and scroll down to Marriage.
- You elected one of the “life income with guaranteed payments” benefit payment options at retirement and want to change your beneficiary(ies).
Log in to myMOSERS and go to Forms. If any of the above apply to you, you will see the forms to update your beneficiaries. If you still have questions, please contact a MOSERS benefit counselor at email@example.com, (800) 827-1063 or (573) 632-6100.
If you participate in MO Deferred Comp, which is a supplemental savings plan separate from your MOSERS defined benefit pension plan, you may update your beneficiaries with MO Deferred Comp, on their website.
Apr 5, 2023, 7:53 AM By MOSERSIs our pension fund safe? The fed is considering bail-ins. Have you backed our pension funds with gold and silver or other tangible assets? We all worked for years to get to retirement. Our little pensions mean the world to our living standards. Please tell me you are protecting our pension fund.
Your promised pension benefits are an obligation of the state and they are secure. Unlike individual retirees, MOSERS invests over a very long-term time horizon. Our portfolio is well-diversified and designed to weather the volatility of the financial markets. We encourage you to visit our Funding page to learn more.
Apr 4, 2023, 4:07 PM By MOSERSI am eligible for retirement January 1, 2025. If I choose to do a backdrop say for instance for 5 years. So continue working until January 1, 2030. Can I continue working after the 5 year back drop? I am aware that my pay will remain the same pay rate the day I retire until I leave employment.
Yes, you may continue working as many years as you like beyond your initial retirement eligibility date. If, at retirement, you elect BackDROP, this would affect when your BackDROP period would start. Your BackDROP period will always be the period immediately prior to actual retirement date.
Based on your example:
If you are initially eligible to retire 1/1/2025, but decide to work to 10 more years, retiring in 1/1/2035, and elect a 5-year BackDROP, your BackDROP period would start 1/1/2030.
If you elect a BackDROP, we will calculate your monthly benefit using your final average pay (FAP) and credited service as of your BackDROP date. We would look at your entire pay history prior to the BackDROP period and find the highest 36-consecutive months of pay. We will not include any service credit or pay (including pay increases, overtime, etc.) earned during the BackDROP period to calculate your monthly pension payment.
See the BackDROP page on our website or contact a MOSERS benefit counselor for more information.
Note: BackDROP is available only to general state employees (including university employees) in MSEP and MSEP 2000.
Mar 10, 2023, 1:55 PM By MOSERSAre we retirees getting a cost of living increase this year?
Retirees will receive their first COLA on the anniversary month of their retirement. The amount of the COLA for the calendar year is calculated each year in January. The COLA this year is 5%.
COLAs are payable on the anniversary of your retirement date except for:
- Retirees who converted from MSEP to MSEP 2000 during the conversion window in 2000 will have COLAs payable in July.
- Retirees who elected a BackDROP will have COLAs payable on the anniversary of their BackDROP date.
- Retirees who were terminated-vested members of the MSEP 2011 will receive their first COLA on the second anniversary of their retirement (rather than the first anniversary).
We will send you a notice, either in the mail or in your MOSERS Document Express online mailbox, during the month when you get your COLA.
Please see the COLA page on our website for additional information.
Mar 7, 2023, 3:40 PM By MOSERS
Hi Folks, Just wondering if a person earns Backdrop time, if they can cash out some of their Backdrop and roll over the rest into Deferred Comp, CD"s etc? Thank you.
Yes, if you are eligible for and elect BackDROP, you have three options for your BackDROP lump-sum payment:
- Cash Option: This is either one lump-sum payment at retirement or three annual installments. From any amounts paid in cash, we will deduct 20% for federal income tax (as required by the IRS) and any Missouri state income tax withholding you choose. You will be responsible for any IRS early withdrawal penalties that may apply.
- Rollover Option: We will send your tax-deferred distribution directly to a qualified employer plan, such as Mo Deferred Comp.
- Combination Cash & Rollover Option: You can take a portion of the lump sum in cash (less 20% for federal income tax, as required by the IRS, and any Missouri state income tax you choose to have withheld) and roll the rest over to a qualified employer plan. You will be responsible for any IRS early withdrawal penalties that may apply.
MO Deferred Comp is a qualified employer plan and you may be able to roll over your funds to them. Before you make any decisions, we recommend that you read the Special Tax Notice to ensure you understand the tax implications of your choice. We also encourage you to consult a tax professional. Read Thinking About the BackDROP? for more information.
Mar 3, 2023, 4:56 PM By MOSERS
will we get the gov.parson wage increase for state employees if we are in retirement (retired)
On Monday, February 27, 2023, Governor, Mike Parson signed supplemental spending bill, HB 14. This bill will implement a cost-of-living adjustment for all active state employees, but it does not apply to retirees. However, all retired general state employees will receive a 5% COLA in 2023.
Feb 21, 2023, 11:37 AM By MOSERSIf an employee is eligible to retire and stays more than 5 years past normal retirement eligibility ( I will use 10 years as an example), does the 5 year Backdrop period start from the time of normal retirement eligibility or does it start 5 years prior to whenever the employee actually retires? If so, which time period is used to calculate the FAP at retirement?
In the example you gave and assuming the employee elected a 5-year BackDROP, the BackDROP period would be the 5 years prior to when they actually retire.
The BackDROP period is the period of time between the employee’s BackDROP date (the day their BackDROP period begins) and their actual retirement date. The maximum BackDROP period is five years. The BackDROP date can move depending on when the employee actually retires and the BackDROP period they elect at retirement.
If the employee is initially eligible to retire 3/1/2023, but decides to work to 10 more years, retires 3/1/2033, and elects a 5-year BackDROP, their BackDROP period would start 3/1/2028.
If they elect a BackDROP, we will calculate their monthly benefit using their final average pay (FAP) and credited service as of their BackDROP date. We would look at the employee’s entire pay history prior to the BackDROP period and find the highest 36-consecutive months of pay. We will not include any service credit or pay (including pay increases, overtime, etc.) earned during the BackDROP period to calculate their monthly pension payment.
See the BackDROP page on our website for more information.
Note: BackDROP is available only to general state employees (including university employees) in MSEP and MSEP 2000.
Feb 21, 2023, 7:55 AM By MOSERSGood morning. How exactly does the public pension exemption work? Do I have to sign up for that or does someone automatically know that I qualify due to the amount I make? I’m confused on how this works. Thanks for any help you can give me.
Your MOSERS pension benefit is subject to normal federal taxes. It is also subject to normal Missouri state income taxes if you are a resident of Missouri. However, because you are a Missouri resident, you may qualify for the Public Pension Exemption as it relates to Missouri state taxes.
In order to be eligible for the full deduction, your Missouri adjusted gross income must fall within certain income limitations. These limitations are not decided by MOSERS, you may contact the Missouri Department of Revenue to see if you qualify or ask your tax professional. If your income exceeds the limitation, you may qualify for a partial exemption. Visit the Missouri Department of Revenue's Public Pension Exemption page or read our Missouri Public Pension Exemption flyer for more information.
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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.