Skip to navigation Skip to login
Saturday, December 16
Home » News Archive » 2017

News Archive

PAGE TOOLS: TEXT SIZE: Larger | Smaller Print Logo Print this Page

5 Year Vesting

The change from 10 to 5-Year Vesting for MSEP 2011 Members

[Posted on 07/19/2017 at 12:00 AM]

To be “vested” means you are eligible for a future retirement benefit once you also meet the age requirement for retirement. On July 14, the Governor signed legislation which will change the vesting requirement from 10 years to 5 years for members of the Missouri State Employees Plan 2011 (MSEP 2011), effective January 1, 2018.

9 things to know about the change from 10 to 5-year vesting for MSEP 2011 members of MOSERS

  1. SB 62 is the legislation authorizing this change, which has been passed by the Missouri legislature and signed by the Governor.
  2. The 5-year vesting for MSEP 2011 members will go into effect on 1/1/2018.
  3. MSEP 2011 members must be actively employed on or after 1/1/2018 to be covered by this change.
  4. Prior employees who return to work:
    • MSEP 2011 members who left state employment prior to 1/1/2018 and DIDN’T take a refund of their member contributions, must return to a MOSERS or MPERS benefit eligible position and work for 12 continuous months and attain 5 years of service to be vested.
    • MSEP 2011 members who left state employment prior to 1/1/2018 and DID take a refund of their member contributions, must return to work for 12 continuous months. Previously forfeited service credit will be restored if the member pays back the refund plus interest.  
  5. Once this change goes into effect (1/1/18), in addition to being vested, members qualify for retirement as follows:
    • Normal retirement (Unreduced Retirement Benefit):
      • Age 67 with 5 years of service OR
      • The “Rule of 90” - Under the Rule of 90, the member must be at least age 55 with their age and service equaling 90 or more when they leave state service.
    • Early Retirement (REDUCED retirement benefit):
      • Age 62 with 5 years of service when they leave state service. With early retirement, the member’s base benefit will be reduced ½ of 1% (0.005) for each month their age is younger than normal retirement.
  6. We estimate that 3,811 current, active, MSEP 2011 members within MOSERS will become vested in January 2018. The first date any of these newly vested MSEP 2011 members may retire will be 2/1/2018 (assuming they also meet the age requirement).
  7. Members applying for retirement must meet the Retirement Process Due Dates (see below) for the Retirement Application and Election Form. See Ready to Retire? For more information.
    Date of Retirement
    Always the first day of the month
    Step 1
    Retirement Application Due
    Step 2
    Retirement Election Form Due
    January 1 November 30 December 31
    February 1 December 31 January 31
    March 1 January 31 February 28
    April 1 February 28 March 31
    May 1 March 31 April 30
    June 1 April 30 May 31
    July 1 May 31 June 30
    August 1 June 30 July 31
    September 1 July 31 August 31
    October 1 August 31 September 30
    November 1 September 30 October 31
    December 1 October 31 November 30
  8. There are three “offsets” in this legislation (to ensure there is no increase in plan liability and cost to the employer) that affect new MSEP 2011 members who are vested but leave state employment after 1/1/2018 and prior to being eligible for retirement:
    • The first COLA would be on the 2nd anniversary of their retirement (rather than the 1st anniversary).
    • If they die prior to retirement eligibility and have an eligible surviving spouse or child, the survivor(s) will not be eligible to receive survivor benefits until the member would have been eligible for normal retirement.
    • They will get no service credit for unused sick leave.
  9. MOSERS has scheduled PreRetirement Planning webinars and in-person seminars for members of MSEP 2011. Watch our website and your email for more information if you are a member of MSEP 2011.

MOSERS will have more information on our website and in future newsletters about the vesting change.



Comments or questions for MOSERS?

Your opinions and questions are important to us. If you would like a direct response to a question, please include your name and email address below. If your feedback involves an email you received from MOSERS, please include the subject of that email with your comments below.

Help us help others. If you have a question, others may too.
If your question is of general interest and has not already been addressed on Rumor Central, we may post it there. We won’t use your name, email address or any other individually identifying information.


  1. (required if you desire a response from MOSERS)


  2. (required if you desire a response from MOSERS)

  3. Receive an email copy of your submission

  4. Please enter the numeric code above before submitting.


MOSERS
Missouri State Employees' Retirement System
Address: 907 Wildwood Dr., Jefferson City, MO 65102
https://www.mosers.org/images/mosers-logo-bg-375-280.jpg Phone: 800.827.1063 URL: Email: mosers@mosers.org Founded On: September 1, 1957