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Second Chance Pension Buyout Program Resource Center

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Second Chance Buyout Program


Buyout Resources


On March 29th, the MOSERS Board of Trustees approved board rules to establish the Terminated-Vested Member Second Chance Buyout Program (the “Second Chance Buyout Program”) which will take effect April 28, 2018. This is a voluntary pension buyout program that allows certain members who are no longer employed by the State of Missouri to choose to cash out their future retirement annuity in exchange for a one-time lump-sum payment.

TIMING: If the Board makes no changes in response to the 30-day public comment period, MOSERS will mail letters & applications to eligible members during the week of April 30. If you want to participate in the Second Chance Buyout Program, your completed application must be received by MOSERS by May 31, 2018.

Payments will be issued after June 19, 2018. Please allow up to 90 days for payment.

AMOUNT: The lump-sum amount will be 60% of the present value (as of 10/1/2017) of your future retirement annuity. This is the same amount that was previously offered in the Buyout Program of 2017.

ACTION: If you want more information (including a detailed letter and application), you should ensure that all your contact information is on file and up to date at MOSERS, especially your mailing address and email address.

If you do not want to participate in the Second Chance Buyout Program, you do not need to do anything.


MOSERS has established a second chance voluntary pension buyout program (the "Second Chance Buyout Program") that allows certain members who are no longer employed by the State of Missouri to choose to cash out their future retirement annuity in exchange for a one-time lump-sum payment. The Second Chance Buyout Program is available only through May 31, 2018.

If you are eligible for this program, MOSERS will mail you a personalized letter with your estimated future normal retirement annuity and your estimated buyout payment. Please read your letter carefully before making any decision whether to participate in the Second Chance Buyout Program.

The Second Chance Buyout Program is voluntary. If you do not want to cash out your future retirement annuity, you do not need to do anything.

If you want to participate in the Second Chance Buyout Program, you must complete the Second Chance Buyout Program Application, have it properly notarized, and mail it so that MOSERS receives your completed application no later than May 31, 2018. If you are married, your spouse must consent to your election to participate in the Second Chance Buyout Program. MOSERS will reject any applications that are incomplete or not received by May 31, 2018. You should consider consulting a financial advisor before making a decision to participate in the Second Chance Buyout Program. You should also consider the legal and tax consequences of the Second Chance Buyout Program which are discussed below.

If you elect to participate in the Second Chance Buyout Program, you will receive 60% of the present value of your future normal retirement annuity. The present value calculation assumes a 7.5% annual return on investments, uses unisex mortality tables, and is as of October 1, 2017, regardless of when you elect to participate in the Second Chance Buyout Program or we issue the buyout payment to you. The lump-sum buyout payment is less than what you and/or your spouse (if married) otherwise could potentially receive in future monthly retirement benefits once retired.

Senate Bill 62, codified under Section 104.1092, RSMo (and enacted in 2017), authorizes MOSERS to offer this program.

Eligibility to Participate in the Second Chance Buyout Program

Consequences of Participation in the Buyout Program

Tax Implications

Second Chance Buyout Program Logistics

  • Properly completed applications will be accepted if received by May 31, 2018.
  • You may cancel an election to participate in the Second Chance Buyout Program if you do so in writing and MOSERS receives your cancellation no later than May 31, 2018.
  • MOSERS will begin issuing payments after the May 31, 2018 deadline has passed and will send your payment as soon as possible. However, please allow up to 90 days for payment.
  • If you die before the buyout payment is issued and MOSERS has received timely notice of your death, your application will become null and void. Any survivor benefits payable to any spouse or minor children will commence once all necessary documentation has been received and processed by MOSERS.
  • Your application will become null and void if you become subject to a Division of Benefit Order ("DBO") issued by a court under sections 104.312 or 104.1051, RSMo, during a divorce proceeding and MOSERS has received notice of the DBO before it issues the buyout payment.
  • If you owe past-due child support, up to 50% (or more, if penalties apply) of your lump-sum buyout payment may be subject to a lien.

Present Value Definition & Examples

Second Chance Buyout FAQs

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