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Pension Buyout Program Resource Center

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Pension Buyout Program

MOSERS has established a voluntary pension buyout program (the "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 now. The Buyout Program is available only through November 30, 2017.

If you are eligible for this program, MOSERS will send you a personalized letter in September 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 Buyout Program.

The 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 Buyout Program, you must complete the Buyout Program Application, have it properly notarized, and mail it so that MOSERS receives your completed application no later than November 30, 2017. If you are married, your spouse must consent to your election to participate in the Buyout Program. MOSERS will reject any applications that are incomplete or not received by November 30, 2017. You should consider consulting a financial advisor before making a decision to participate in the Buyout Program. You should also consider the legal and tax consequences of the Buyout Program which are discussed below.

If you elect to participate in the 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 unsex mortality tables, and is as of October 1, 2017, regardless of when you elect to participate in the 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 the Buyout Program.

Eligibility to Participate in the Buyout Program

Consequences of Participation in the Buyout Program

Tax Implications

Buyout Program Logistics

Present Value Definition & Examples

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