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Purchasing Military Service with Deferred Comp Funds
I was told that I could use the money from my Deferred Comp to purchase my military time. Is that correct? If so, how would I do so? I could not find any details about in on the website.
Yes, your MO Deferred Comp 457(b) – excluding Roth 457 assets – and 401(a) funds are available to use for purchasing prior military service. If you have not already done so, complete the Application to Purchase Active-Duty Military Service, required documentation and submit it to MOSERS. We will provide you with an estimate of the cost to purchase your prior military service and a Tax-Free Rollover to MOSERS form that you can use to perform that transaction.
For additional information, here is a description of this service purchase option from page 6 of our Purchasing and Transferring Service Credit brochure (MSEP & MSEP 2000):
You may purchase up to four years of active-duty military service credit performed prior to last becoming a member of MOSERS. This may include active-duty military training. To be eligible to purchase military service credit, you must be:
- A vested, actively employed member of MOSERS, or
- A terminated-vested member of MSEP (eligible for future benefits, but no longer working for the state).
If you elect to purchase your active-duty military service, you must purchase all that you served (total months and days) up to a maximum of four years. In connection with such a purchase, MOSERS requires that you submit a copy (not the original) of your military DD 214 or NGB 23 discharge form, which verifies the following:
- Your service was active duty.
- Your service was in an eligible branch of the U.S. Armed Forces or reserve component (Army, Air Force, Navy, Marine Corps, Coast Guard, Army National Guard, or Air National Guard).
- Your dates of service.
- You were honorably discharged.
Any active-duty military service you wish to purchase must have been performed prior to last becoming a member of MOSERS. Active-duty military service performed after you last leave state employment is not eligible for purchase or automatic credit.
You may only acquire active military service that is not being used for credit or benefits under another retirement plan, other than the U.S. military.
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