As part of the Fiscal Year 2023 state operating budget, which began July 1, 2022, the General Assembly and Governor Parson approved an extraordinary payment of $500 million to the Missouri State Employees’ Retirement System (MOSERS). This one-time payment will not be used to reduce future employer contributions to MOSERS but, rather, will be used to strengthen the System and increase the funded status of the System over time. This extraordinary payment is in addition to the $610 million annual employer contribution for Fiscal Year 2023 approved by the General Assembly and Governor Parson. The state of Missouri, as the largest MOSERS-covered employer, has consistently contributed 100% of the required annual employer contribution as recommended by the System’s actuarial professionals and certified by the MOSERS Board of Trustees.

Members of MSEP 2011 or the Judicial Plan 2011 who leave state employment may choose to either request a refund (if they don’t anticipate returning to state employment) or leave their contributions with MOSERS (if they do anticipate returning to state employment).

If you decide to request a refund of your employee contributions, please be aware that there is a 90-day waiting period from the date of termination before MOSERS can issue a refund. You must complete the Member Request for Refund of Employee Contributions form, get it notarized, and submit it to MOSERS.

Please note that, 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. 

The General Assembly passed the FY23 appropriation bills on May 6, 2022. This included $34 million to fund a deferred compensation employer match of up to $75 per month (with a minimum contribution of $25 per month). If signed by the Governor, this incentive will go into effect July 1, 2022. To stay up to date on recent legislation, check out our Legislation page. 

The maximum increase for the COLA in a single year is 5%.

COLAs for most retirees are equal to 80% of the percentage increase in the average Consumer Price Index (CPI) from one year to the next, with a maximum of 5% (minimum of 0%). 

You may have read information about another type of COLA Cap: Members employed before August 28, 1997, who retired under MSEP, have a COLA cap. Retirees in this situation, get a guaranteed COLA of at least 4% each year (maximum 5%) until they reach the COLA cap. They reach the COLA cap when the sum of their COLAs equals 65% of their initial benefit amount.

Example:

$1,000 (Initial Base Benefit) x .65 (65%) = $ 650 (COLA Cap) 

• After reaching the COLA cap, annual COLAs will be equal to 80% of the percentage increase in the average Consumer Price Index (CPI) from one year to the next. The minimum is 0% and the maximum is 5%. In other words, retirees eligible for the guaranteed 4% COLA continue receiving a COLA after reaching the COLA cap, however, it isn’t guaranteed at any rate.
• Typically, members reach the COLA cap around 12 to 13 years after retirement.

As a member of MSEP or MSEP 2000, you may purchase up to four years of active-duty military service credit for service performed prior to last becoming a member of MOSERS. This may include active-duty military training. This information is included in our Purchasing and Transferring Service Guide for MSEP (Closed Plan) Members or Purchasing and Transferring Service Guide for MSEP 2000 Members materials. Purchase of prior military service is not available to members of MSEP 2011 or the Judicial Plan 2011.

Contact a MOSERS benefit counselor to get additional information and to request an Application to Purchase Active-Duty Military Service. Once you complete the application, MOSERS will provide you with an estimate of the cost to purchase service and how doing so will affect future benefit payment amounts.

You must complete any purchase of military service prior to applying for retirement. If you have money in your MO Deferred Comp account, as a member of MSEP or MSEP 2000, you can use those funds to purchase prior military service (exception: Roth 457 assets cannot be used to purchase service credit). If you have questions about accessing your funds, contact MO Deferred Comp.

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.

Since your question relates to medical insurance, please contact your medical insurance provider. For most state employees, that is Missouri Consolidated Health Care Plan (MCHCP). If you are employed at a college, university, or the Department of Conservation, contact your human resources/employee benefits office. As a reminder, at MOSERS, we administer retirement, life insurance, and long-term disability benefits, but not medical insurance. We cannot respond to questions about benefits we don’t administer. 

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 and to determine your withholding amounts.

You will elect both your Missouri state and your federal tax withholdings on the Substitute W-4P form and submit it to MOSERS. The fastest, easiest way to submit it is by logging in to myMOSERS. You may also submit it to us via mail, email, or fax (see our Contact page for details). Please note that the amount of withholdings you elect does not change your tax liability.

If you would like to change your email preferences, please log in to myMOSERS After logging in, select Personal Information then Email Options. From there you can opt-out of receiving email updates. If you are unable to log in, please contact a MOSERS benefit counselor who will be happy to help you.

You are not able to access your MOSERS defined benefit pension until retirement and it is not transferable to a pension plan in a different state. However, if you are no longer working in a MOSERS benefit-eligible position, and you are a member of MSEP 2011 or the Judicial Plan 2011, you may be eligible to request a refund of your employee contributions. By taking a refund, you will lose all your credited service and future rights to receive pension and LTD benefits from MOSERS. By law, there is a 90-day waiting period before we can issue a refund.

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.