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Extraordinary Payment
Jul 5, 2022, 2:13 PM By MOSERSWhat is the extraordinary payment approved by the legislature?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.
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Receiving a Refund of Employee Contributions
Jul 5, 2022, 2:06 PM By MOSERSI recently had my last day of employment on June 30, 2022 and want to know what the next steps are to cash out my contributions.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.
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Recent Appropriation Bills
Jun 30, 2022, 3:38 PM By MOSERSfollowing up on this rumor: https://www.mosers.org/rumor-central/rumor-central/2022/03/07/supplemental-budget-bill
Did the version of the bill submitted to the governor include the $25 matching incentive? I'm reading through the text of the bill and it's difficult to tell.
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.
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COLA Cap
Jun 22, 2022, 9:10 AM By MOSERSIs there a "cap" on the amount of COLA increases retirees receive each year, given the economy warrants it?
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.
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Purchasing Military Service
Jun 22, 2022, 9:08 AM By MOSERSIs purchasing military service still an option? I can't seem to find that information on the website. Thank youAs 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.
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Returning to Work
Jun 22, 2022, 8:59 AM By MOSERSHello. Quick question. I am a current state retiree, and am starting to work part time with a state agency. I know that I'm limited to 1,000 hours in a calendar year. However, is there a weekly or monthly maximum of hours? I have never heard that there was, but I may be working quite a few hours for short periods of time, and I wanted to make sure there would be no issues. Thanks!
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.
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Medical Insurance
Jun 14, 2022, 8:22 AM By MOSERSIt has been rumored that payment of the healthcare premium for upcoming retirees will be paid until the individual is medicare eligible. Are you able to confirm this rumor? And if so, is there a timeframe that one would need to retire in order to receive this benefit? Thank you.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.
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Understanding the Substitute W-4P Form
Jun 6, 2022, 11:28 AM By MOSERSRegarding information needed for retirement process, where or how do I obtain the "withholding amounts from benefit for federal and Missouri state taxes", is this from a check stub for when taxes are filed each year
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.
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Updating Your Email Preferences
Jun 3, 2022, 2:45 PM By MOSERSI would like to receive my communications from MOSERS on paper rather than by email.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.
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Working in a Different State
Jun 1, 2022, 9:07 AM By MOSERSI am currently working in a different state and want to pull my MOSERS retirement account and place it with my current retirement account. How do I get that done?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.
Topics
- 1099-R (10)
- Annual Leave (3)
- BackDrop (10)
- Board of Trustees (1)
- COLA (14)
- Credited Service (9)
- Death (1)
- Deferred Compensation (5)
- Divorce (1)
- Early Retirement (4)
- Education (7)
- Employee Contributions (13)
- Final Average Pay (8)
- Former State Employee (5)
- Funding (5)
- Leaving State Employment (19)
- Legislation (5)
- Life Insurance (11)
- Long-term Disability (1)
- Medical Insurance (6)
- Military Service (5)
- MSEP (5)
- MSEP 2000 (5)
- MSEP 2011 (11)
- Normal Retirement (22)
- Payday (4)
- Re-employment (16)
- Retirement Process (11)
- Rule of 80 (9)
- Sick Leave (6)
- Taxes (27)
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- Termination (4)
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Disclaimer
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.