Employer Reference Guide

This page is currently under construction. As this page is built the navigation items and information on the page will increase.
Overview

The annual salary verification process is completed each year so that adjustments can be made to employee's basic life insurance coverage amounts based on changes in salary. The annual salary verification process is completed for employee's that have basic life insurance coverage through MOSERS.

What You Need to Know
  • Benefit-eligible employees with life insurance coverage through MOSERS receive one times their annual salary in basic life insurance coverage ($15,000 minimum; $500,000 maximum).
  • The amount of coverage adjusts each January according to the employee’s annual earnings in effect on July 31 of the previous year, or the employee’s first day of coverage if not covered on July 31.
  • Annual earnings are normal earnings from a benefit-eligible position, including recurring shift differential, security differential, and retention pay. Overtime pay and other irregular payments are excluded from annual earnings.
  • If an employee is working in more than one position, only pay from the benefit-eligible position is included in annual earnings.
Overview

Occasionally, employers misclassify a benefit-eligible employee as non-benefit eligible at the time of hire or neglect to enroll a benefit-eligible employee through SEBES. Fortunately, there is an easy way to correct those mistakes when they occur.

What You Need to Know
  • Benefit-eligible employees are entitled to service credit and salary credit towards the calculation of their future pension.
  • Your department/agency must pay employer contributions for pension, life insurance, and long-term disability benefits (as applicable) for all benefit-eligible employees. Additionally, your department/agency remits employee contributions to MOSERS on behalf of MSEP 2011 and Judicial Plan 2011 employees.
  • You can correct a record for an employee who did not receive credit for benefit-eligible service by completing an Application to Correct Service.
  • Once MOSERS receives the application, we will work with your department/agency to collect the necessary contributions. This includes contacting the Office of Administration to approve any corrections for agencies that use the SAM II payroll system.
  • Once the service credit is approved and granted, we will send your employee a confirmation letter.
What You Need to Do
  • Once you discover the mistake, complete the Application to Correct Service and enter the employee into SEBES (if not already entered into SEBES).
  • To access the Application to Correct Service, log in to the Employer Login, enter the employee’s SSN, and select the Forms tab.
Overview

Determining whether a position qualifies for MOSERS benefits is an important decision that employers must apply consistently.

What You Need to Know
  • Benefit-eligible employees are entitled to service credit and salary credit towards the calculation of their future pension.
  • Employees who work in positions that normally require at least 1,040 hours a year are eligible for benefits.
  • The number of hours required by a position should be based on the number of hours expected during the normal course of business over a one-year period by position, regardless of whether the position is intended to be temporary or permanent in nature.
  • The employer, not MOSERS, will determine if a position is eligible for benefits.
  • Your department/agency must pay employer contributions for pension, life insurance, and long-term disability benefits (as applicable) for all benefit-eligible employees. Additionally, your department/agency remits employee contributions to MOSERS on behalf of MSEP 2011 and Judicial Plan 2011 employees.
What You Need to Do
  • Determine if a position is benefit-eligible at the time of hire.
  • Enroll benefit-eligible employees through SEBES on their date of hire or as soon as possible after that. Employees have only 31 days from their date of hire to complete their enrollment.
  • Inform non-benefit eligible employees that they do not qualify for benefits through MOSERS and keep documentation to that effect.
  • Review all positions periodically to ensure they are correctly designated as benefit-eligible or non-benefit eligible.
  • Notify MOSERS if the status of an employee’s position changes.
Overview

It is not uncommon for an employer to hire an employee with prior MOSERS-covered service at another department/agency. Whether or not an employee experienced a break in service determines if they need to re-enroll for benefits or maintain their existing benefits.

What You Need to Know
  • A break in service occurs when an employee is off payroll for 30 calendar days, except when the employee is on an approved leave of absence (paid or unpaid).
  • After a break in service of 30 or more calendar days, an employee rehired by the state must re-enroll for benefits through SEBES.
  • An employee rehired by the state within 30 calendar days of their termination, (no break in service), is considered a transfer. Transfers maintain their existing benefits through MOSERS (service credit and salary credit towards their future pension, life insurance, and long-term disability insurance coverage) and should not re-enroll for benefits through SEBES unless the employee is transferring to your department/agency from the Department of Conservation, the Missouri State Highway Patrol, the Missouri Department of Transportation, or a university (except State Technical College of Missouri and Lincoln University), as these employers administer one or more of their own benefit packages. See our Benefit Providers flyer for additional information.
  • Some employers under MOSERS will accept unused sick leave transfers and tenure for annual leave accrual to and from other state agencies, but others will not. This determination is made by your department/agency, not MOSERS.
What You Need to Do
  • Enroll benefit-eligible employees rehired by the state after a break in service of 30 or more calendar days or employees transferring to your department/agency from the Department of Conservation, the Missouri State Highway Patrol, the Missouri Department of Transportation, or a university (except State Technical College of Missouri and Lincoln University) through SEBES on their date of hire or as soon as possible after that. Rehired employees have only 31 days from their date of hire to complete their enrollment.
Overview

This section describes how comp time payouts impact an employee’s pension benefit.

What You Need to Know
  • Payments of unused compensatory leave time, or comp time payouts, to benefit-eligible employees made before or after an employee’s termination, are included in retirement-eligible pay. These payments are eligible for salary credit, provided that contributions are remitted to MOSERS for the payment.
  • Comp time payouts must be allocated to the months in which they were earned.
  • Since comp time payouts may impact the calculation of an employee’s pension benefit, it is beneficial to pay out unused comp time either before or with an employee’s final paycheck.
  • A delayed comp time payout could result in an incorrect benefit estimate or pension check and require MOSERS to recalculate a retiree’s pension.
Overview

Accurately remitting employer contributions and employee contributions to MOSERS is fundamental to benefit-eligible employees receiving retirement service credit and salary credit.

What You Need to Know
  • Each year, the MOSERS Board certifies an employer contribution rate for retirement benefits which prudently funds the system over the next fiscal year.
  • Employers currently remit employer contributions to MOSERS as a percentage of payroll for all benefit-eligible employees for pensions and, if applicable, basic life and long-term disability insurance premiums.
  • Employers remit mandatory 4% employee contributions to MOSERS on behalf of MSEP 2011 and Judicial Plan 2011 members.
  • Employers also remit employer contributions and employee contributions (if applicable) for non-benefit eligible employees working in more than one position for another MOSERS-covered employer and that position is benefit-eligible.
  • Employers do not remit employer contributions and employee contributions (if applicable) for pay in excess of IRS compensation limits.
What You Need to Do
  • If you are a SAM II employer, contributions occur automatically as a percentage of payroll, and no additional action is required.
  • If you are a Local employer, you must review and adjust contributions as needed for the benefits applicable to your agency. Changes to the employer contribution rate for pension plans take effect July 1 of each year.
Overview

Service, salary, and contribution reporting duties are vital to ensuring the timely and accurate payment of benefits to members and their beneficiaries. MOSERS is required by law to correct benefit errors when they are discovered.

What You Need to Know
  • The executive director of MOSERS is in charge of all records of the retirement system. If a benefit recipient receives more or less than the benefit to which they are entitled due to an error, the error – when discovered – will be corrected and the recipient’s benefit will be adjusted accordingly.
  • If errors in records are due to fraud, the perpetrator(s) of the fraud will be subject to prosecution and punishment including a fine or imprisonment.
Overview

Employers with life insurance and long-term disability benefits through MOSERS remit contributions for basic life and long-term disability insurance premiums on behalf of actively employed, benefit-eligible employees. See our Benefit Providers Table flyer for more information.

What You Need to Know
  • Actively employed, benefit-eligible employees with optional life insurance, including spouse and child coverage, pay the premiums for optional life insurance through automatic payroll deduction.
  • While on a leave of absence, employees may keep their basic life, optional life, and long-term disability insurance coverage by paying the required premiums directly to MOSERS. We refer to this as direct bill. Employers should note that:
    • An employee must keep basic life insurance in order to keep child coverage during a leave of absence.
    • An employee must keep their optional life insurance in order to keep spouse coverage during a leave of absence.
    • If an employee’s leave of absence is due to workers’ compensation, the employer continues to pay basic life and long-term disability premiums on behalf of the employee.
    • A terminated employee filing a claim for long-term disability benefits will be direct billed for insurance coverage pending the outcome of a decision on their claim.
  • An employee set up on direct bill who does not pay their premiums will have their coverage canceled effective the end of the pay period in which premiums were paid.
  • If an employee cancels coverage while on a leave of absence, the same level of coverage will automatically be reinstated when they return to work in a benefit-eligible position.
  • The standard method of payment for insurance premiums while on a leave of absence is automatic deduction from an authorized checking or savings account. The Autopay Authorization form is available to employees on direct bill through the myMOSERS secure member portal. Premium payments can also be remitted to MOSERS by personal check.
  • Our Leaves of Absence Impact on Your MOSERS Benefits flyer provides a comprehensive list of leave types and their impact on retirement and insurance coverage, including time limits and employee vs. employer-paid insurance premiums.
Overview

A leave of absence, whether due to illness, workers’ compensation, active-duty military service, or other leave types, may impact an employee’s benefits through MOSERS.

What You Need to Know
  • Unpaid leaves of absence for benefit-eligible employees must be reported to ensure employees receive the correct service credit and salary credit towards their future pension.
  • An approved leave of absence without pay will not constitute a break in service.
  • Employees on a leave of absence may keep their basic life, optional life, and long-term disability insurance coverage. In most cases, we bill employees directly for their insurance premiums while on leave. We refer to this as direct bill.
  • Our Leaves of Absence Impact on Your MOSERS Benefits flyer provides a comprehensive list of leave types and their impact on retirement and insurance coverage, including time limits and employee-paid versus employer-paid insurance premiums.
Overview

Benefit-eligible employees or former employees with long-term disability (LTD) coverage under the MOSERS group policy with The Standard Insurance Company (The Standard) can file a claim for LTD benefits for a disability that occurred while covered under the policy.

What You Need to Know
  • A department/agency cannot take any action that prohibits an employee or former employee from filing a claim. A termination for cause does not prohibit a former employee from filing a claim.
  • The employee can initiate a claim for LTD benefits by calling The Standard’s Claim Intake Service Center at (844) 505-6026.
    • After initiating the claim, the employee will be instructed to inform their HR rep that they filed a claim.
    • If you know in advance that your employee will be filing a claim, please advise them to have their HR rep’s name and phone number, and their physician’s name, address, phone number, and fax number when they call The Standard.
  • After the employee files a claim, the HR rep designated by their agency/department will complete the Employer’s Statement and email it to ltdmosers@standard.com with the employee’s name listed in the subject line of the email.
  • The Standard will review the claim once they receive all the required information and will inform the employee in writing of the outcome. This process may take anywhere from one week to four months.
  • For additional information regarding the LTD claim process, read The Standard's Frequently Asked Questions About Filing A Long-Term Disability Claim.
  • For comprehensive information regarding LTD benefits through MOSERS, read our Long-Term Disability Insurance Handbook.
  • As an alternative to LTD, the Workplace Possibilities Program provides accommodations or services to employees who are being treated for a medical condition that limits their ability to perform their job duties.
Overview

Pay is a key component in calculating an employee's future pension benefit. Part of the pension benefit formula uses an employee's final average pay, which is the average of an employee's highest consecutive 36 months of pay. Accurate reporting of retirement-eligible pay to MOSERS ensures that member retirement benefit estimates and retirement benefits are calculated correctly.

What You Need to Know
  • Benefit-eligible employees receive salary credit towards their future pension for their retirement-eligible pay.
  • Retirement-eligible pay includes all salary and wages payable to an employee for work performed. The following payment types are excluded from retirement-eligible pay and must not be reported as salary and wages:
    • Allowances and reimbursements for items such as phones, meals, uniforms, mileage or commuting, education or tuition, and housing or moving.
    • Nonrecurring single sum payments (such as a one-time bonus).
    • Payments for unused annual leave or sick leave.
    • Payments made after termination, unless for a final installment of salary or wages (such as a comp time payout or contract payout).
    • Pay in excess of IRS compensation limits.
    • Payments for which employer contributions have not been made.
  • A leave of absence may impact an employee’s salary credit. Our Leaves of Absence Impact on Your MOSERS Benefits flyer provides a comprehensive list of leave types and their impact on retirement and insurance coverage.
  • A benefit-eligible employee working in more than one position for another MOSERS covered employer and that position is non-benefit-eligible will receive salary credit for both positions.
What You Need to Do
  • If you are a SAM II employer, non-retirement-eligible pay codes are automatically excluded from reporting to MOSERS, and no additional action is required on your part.
  • If you are a local employer, you must ensure that payroll files submitted to MOSERS exclude all non-retirement-eligible sources of pay.
  • Before making benefit payments, MOSERS will verify the accuracy of service and salary data reported by employers.
Overview

The Statewide Employee Benefit Enrollment System (SEBES) is used by newly hired benefit-eligible employees to enroll in state-sponsored benefits, including pension, term life insurance, long-term disability insurance, medical, dental, vision, cafeteria plan, deferred compensation, and universal life insurance benefits.

What You Need to Know
  • Newly hired benefit-eligible employees have 31 days from their date of hire to enroll for benefits through SEBES. After the deadline, employees must contact the appropriate benefit provider to determine eligibility for benefits.
  • Before an eligible employee can enroll for benefits through SEBES, the employee must be added into SEBES through the SEBES Employer Login. All newly hired benefit-eligible employees should be added to SEBES on their date of hire or as soon as possible after that. This includes former state employees rehired by the state into a benefit-eligible position after a break in service of 30 or more calendar days. Please note that:
    • Benefit-eligible employees transferring to your agency from another MOSERS-covered employer within 30 calendar days do not need to be added to SEBES, unless the employee is transferring to your department/agency from the Department of Conservation, the Missouri State Highway Patrol, the Missouri Department of Transportation, or a university (except State Technical College of Missouri or Lincoln University), as these employers administer one or more of their own benefit packages.
    • University employees transferring from CURP to MOSERS must be added to SEBES in addition to completing the Transfer of CURP Membership form.
  • After adding the new employee to SEBES, provide them with their online SEBES card. The online SEBES card is personalized to the employee and contains enrollment instructions, including the deadline to enroll for benefits. The online SEBES card can be printed as a PDF then saved and emailed to the employee.
  • Failure to timely add a new employee to SEBES and provide them with their SEBES card and enrollment instructions could result in a delay or ineligibility for certain benefits.
  • If an error is made when entering a new employee’s demographic information in SEBES, correct the error by updating the employee’s profile in SEBES through the SEBES Employer Login.
  • If an error is made when entering a new employee's SSN or employment information such as hire date, benefit-eligible information, or job classification, the record must be deleted and re-entered in SEBES through the SEBES Employer Login.
  • The SEBES website is maintained by the Missouri Consolidated Health Care Plan (MCHCP).
Overview

In rare situations, an employer will enter into a legal agreement with a former employee to grant retirement credit for the period after an employee’s termination. Specific requirements must be met for MOSERS to process such agreements.

What You Need to Know
  • For a former employee to receive service credit and salary credit towards the calculation of their pension benefit for a period after the employee’s termination, the following must occur:
    • An agreement approved by a court of law or administrative tribunal with jurisdiction must be received by MOSERS, and
    • The employee must be paid a salary or wage for any service credit awarded and the appropriate contribution must be remitted to MOSERS.
  • The amount of salary or wage is not pertinent to the employee receiving retirement credit. However, the amount of salary or wage may impact the calculation of the employee’s pension benefit.
  • If an agreement as outlined above is reached to reinstate an employee after termination but no back salary or wage is paid, the employee is to be considered on a leave of absence without pay (no service credit or salary credit), which will not constitute a break in service.
Overview

Employees who meet certain age and service requirements and retire under a MOSERS defined benefit plan are guaranteed a lifetime pension benefit. A key component to the eligibility for and calculation of an employee’s future pension benefit is their service credit. In general, the longer an employee works in a benefit-eligible position, the higher their pension benefit will be.

What You Need to Know
  • Employees will receive one day of service credit towards their future pension for each day worked in a benefit-eligible position for a MOSERS covered employer.
  • A vested former member rehired in a benefit-eligible position will have their previous service combined with their new service at the date of rehire.
  • A non-vested former member rehired in a benefit-eligible position without a break in service will have their previous service combined with their new service at the date of rehire.
  • A non-vested former member rehired in a benefit-eligible position after a break in service will have their previous service restored and combined with their new service after they have completed 12 continuous months of service, unless they received a refund of employee contributions. If they received a refund of employee contributions, after completing 12 continuous months of service, the employee may elect to return their refunded contributions plus interest to the System to have their previous service restored and combined with their new service.
  • Depending on specific eligibility requirements, an employee can potentially receive one month of service credit for every 168 hours of unused sick leave. Credit for unused sick leave cannot be used to determine eligibility for a pension benefit but can be used in calculating the amount of a pension benefit. You must report an employee’s final unused sick leave balance in conjunction with reporting their termination.
  • Depending on specific eligibility requirements, an employee can potentially increase their service credit by purchasing or transferring eligible prior public service performed in Missouri or prior active-duty military service. Read the purchasing and transferring service guide for the applicable plan for more information.
  • A leave of absence may impact an employee’s service credit. Our Leaves of Absence Impact on Your MOSERS Benefits flyer provides a comprehensive list of leave types and their impact on retirement, life insurance, and long-term disability insurance coverage.
  • You can correct the service record for an employee who did not receive service credit for benefit-eligible employment by completing an Application to Correct Service.
What You Need to Do
  • Enroll benefit-eligible employees through SEBES on their date of hire or as soon as possible after that. Employees have only 31 days from their date of hire to complete their enrollment.
  • To report an employee’s leave of absence, transfer or termination, or to correct an employee who did not receive service credit for benefit-eligible employment, log in to the Employer Login, enter the employee’s SSN, and select the Forms tab.
  • To access an employee’s service credit history, log in to the Employer Login, enter the employee’s SSN, and select the Member Data tab.

Overview

If you are considering hiring a MOSERS retiree into a non-benefit eligible or benefit-eligible position, you must ensure they properly terminated their pre-retirement employment. If an employee did not properly terminate their pre-retirement employment, they will not be eligible to retire and receive benefits.

What You Need to Know
  • Before receiving a benefit payment from MOSERS, IRS rules require a “bona fide termination” of a member’s employment. For purposes of MOSERS Board Rules, a "bona fide termination" occurs when:
    • The member has completely severed employment;
    • The member has not entered into a prearranged agreement (written or oral), prior to retirement, with the State of Missouri or any MOSERS-covered employer for subsequent employment on any basis (full-time, part-time, or other); and
    • The member is not subsequently employed with the State of Missouri or any MOSERS-covered employer on any basis (full-time, part-time, or other) within 30 days after their employment with their prior employer has ended.
  • After meeting the termination and reemployment rules noted above, you may hire a MOSERS retiree into a non-benefit eligible position.
  • If you hire a MOSERS retiree into a benefit-eligible position:
    • The employee’s monthly pension payment will stop.*
    • Any life insurance the employee retained through MOSERS as a retiree will end. The employee may re-elect life insurance through SEBES within 31 days of employment without proving insurability.
    • Depending on various factors (the employee’s plan, how long they work, etc.), the employee may or may not earn additional service credit during reemployment.
    • When the employee returns to retirement status, their monthly pension payment will equal the amount** they were receiving when they returned to work plus any additional benefit they may have earned during reemployment. The employee may also retain life insurance up to the maximum amount allowed, if applicable.

*Effective August 28, 2023, a retiree serving as a legislator or statewide elected official will not have their pension payment stopped.

**If you were receiving the temporary benefit, it will be payable only if you return to retirement status prior to age 62.

See our Working After Retirement page for additional information.

Overview

A termination, whether voluntary or involuntary, marks the end of service accrual and impacts an employee’s benefits through MOSERS.

What You Need to Know
  • A termination occurs when a benefit-eligible employee ceases to be employed in a benefit-eligible position, either voluntarily or involuntarily.
  • Terminations must be reported to ensure employees receive the correct service credit and salary credit towards their future pension.
  • An employee’s final unused sick leave balance must be reported in conjunction with the reporting of their termination.
  • When reporting an employee’s termination, indicate if the reason for termination is due to a suspected work-related felony. An employee convicted of a work-related felony on or after August 28, 2014, will forfeit all rights to pension benefits accrued on or after that date.
    • A work-related felony includes a felony under state law (or a substantially similar offense under federal law) involving stealing or receiving stolen money, property, or service valued at $5,000 or more, forgery, counterfeiting, bribery of a public servant, or acceding to corruption, in connection with duties as a state employee.
  • Payments made to an employee after termination are excluded from salary credit unless it is for a final installment of salary or wages (such as a comp time payout or contract payout).
  • After terminating, a former employee covered under MSEP 2011 or the Judicial Plan 2011 who is not yet eligible to retire may choose to take a refund of their employee contributions or leave their contributions with MOSERS. See our Refund of Employee Contributions page for specific details and eligibility requirements.
  • Basic and optional life insurance coverage will end the last day of the calendar month in which an employee terminates. See our Life Insurance page for specific details and eligibility requirements for retaining life insurance into retirement, purchasing portable group insurance through our insurance carrier, or converting coverage to an individual policy through our insurance carrier.
  • Employees retiring from active employment who are seeking reemployment with the State of Missouri or any MOSERS-covered employer must observe specific IRS rules regarding termination and reemployment to be eligible to retire and receive benefits.

What You Need to Do

To report an employee’s termination, log in to the Employer Login, enter the employee’s SSN, and select and complete the Termination of Employment form under the Forms tab.

Overview

Employees who transfer to your department/agency from another MOSERS-covered employer may be eligible to maintain their existing benefits through MOSERS.

What You Need to Know
  • A transfer occurs when an employee moves from one benefit-eligible position with a MOSERS-covered employer to another benefit-eligible position with a MOSERS-covered employer within 30 calendar days , i.e., without incurring a break in service.
  • Transfers maintain their existing benefits through MOSERS (service and salary credit towards their future pension, life insurance and long-term disability insurance coverage) and should not re-enroll for benefits through SEBES unless the employee is transferring to your department/agency from the Department of Conservation, the Missouri State Highway Patrol, the Missouri Department of Transportation, or a university (except State Technical College of Missouri and Lincoln University), as these employers administer one or more of their own benefit packages. See our Benefit Providers Table flyer for additional information.
  • An employee rehired by the state after a break in service is not considered a transfer and must re-enroll for benefits through SEBES.
  • Some employers under MOSERS will accept unused sick leave transfers and tenure for annual leave accrual to and from other state agencies, but others will not. This determination is made by your department/agency, not MOSERS.
Overview

Unused sick leave may increase the amount of an employee’s future pension benefit. As an employer representative, there are specific reporting and eligibility requirements regarding unused sick leave that you should be aware of.

What You Need to Know
  • An employee’s final unused sick leave balance must be reported in conjunction with the reporting of their termination.
  • Except as noted below, an employee who is vested when they leave state employment will receive one month of service credit for every 168 hours of unused sick leave. Credit for unused sick leave cannot be used to determine eligibility for a pension benefit but can be used in calculating the amount of a pension benefit. Credit for unused sick leave cannot be granted in the following situations:
    • MSEP 2011 members who left state employment on or after January 1, 2018, and prior to being eligible for early or normal retirement.
    • MSEP members who left state employment prior to being eligible for early or normal retirement.
    • Legislators, statewide elected officials, and judges do not accrue sick leave.
  • For retirement purposes, employees may receive service credit for unused sick leave as reported by their last employer provided the sick leave was not paid out, was available for the employee to use for sickness or injury, and did not accrue at a rate greater than 10 hours per month.  
  • Some employers will accept unused sick leave transfers to and from other MOSERS-Covered Employers, but others will not. This determination is made by your department/agency, not MOSERS.
  • A MOSERS retiree reemployed in a benefit-eligible position after observing the termination and reemployment rules cannot receive credit for pre-retirement unused sick leave, including any remaining hours that did not convert to whole months of service credit at retirement. It is important to ensure that unused sick leave balances are zeroed out in your payroll system after an employee retires. 
  • An employee who transfers from CURP to MOSERS may receive service credit for unused sick leave accrued while employed under CURP. 
Overview

An employee may work for different MOSERS-covered employers simultaneously when one position is benefit-eligible and the other position is non-benefit eligible.

What You Need to Know
  • An employee working simultaneously for different MOSERS-covered employers in a benefit-eligible position and a non-benefit eligible position, sometimes referred to as a secondary appointment, will receive service credit for only the benefit-eligible position and salary credit for both the benefit-eligible and non-benefit eligible positions.
  • Employers remit employer contributions and employee contributions (if applicable) to MOSERS for both the benefit-eligible and non-benefit eligible positions.
  • Employers remit basic life insurance and long-term disability contributions, if applicable, for only the benefit-eligible position.