Purchasing and Transferring Service MSEP 2000

MSEP 2000 Members

Prior service credit may be available to transfer at no cost or purchase. Since your future pension benefit with MOSERS is based on your years of service, it may be to your advantage to transfer or purchase your prior service. This may increase your benefit, allow you to retire sooner, or both.

  • Estimates are available without obligation.
  • Contact a MOSERS benefit counselor at (573) 632-6100 or (800) 827-1063 for more information.
  • All transfers or purchases must be completed prior to applying for retirement.

Military Service

Automatic Credit

  • Member must have been employed by the state immediately before active-duty military service and return within USERRA requirements.

Purchase

  • Members may purchase all available active-duty military service, up to a maximum of four years. To be eligible, the member must be vested in MOSERS.

Prior Public Service

Prior public service must be full-time, nonfederal, public employment, and rendered in Missouri (state, local, school districts, political subdivisions, etc.).

Nonvested Service in Another Public Retirement Plan

Reduced Rate
  • Members may purchase up to four years of full-time, nonfederal, public employment at a reduced rate.
  • To be eligible, the member must be actively employed and vested in a MOSERS-covered position. A nonvested employee becomes eligible once vested in a MOSERS-covered position.
Full Actuarial Cost
  • Members may purchase prior nonvested service covered by another public retirement plan.
  • To be eligible, the member must be vested in MOSERS but does not have to be active.

Vested Service in Another Public Retirement Plan

Members may transfer and/or purchase vested service from the following plans. The member must be vested in MOSERS.

  • PSRS/PEERS
  • LAGERS
  • Employees Retirement System of the City of St. Louis
  • Police Retirement System of St. Louis
  • Kansas City Employees’ Retirement System

This transfer is not a day-for-day transfer. The transferring system sends the actuarial value of the member’s service to MOSERS. MOSERS then converts that value to MOSERS service. Members may purchase any remaining service not covered by the transfer at full actuarial cost.

Members may transfer vested service from the following plans only if they are active, have at least 10 years of active service, and elect the MSEP 2000 at retirement.

  • Community Fire Protection District
  • County Employees’ Retirement Fund (CERF)
  • Employees’ Retirement System of the City of St. Louis
  • St. Louis County Retirement Plans
  • University of Missouri Retirement, Disability, & Death Benefit Plan

Nonfederal Public Employment Not Covered by a Retirement Plan

Reduced rate
  • Members may purchase up to four years of full-time, nonfederal, public employment at a reduced rate.
  • To be eligible, the member must be actively employed and vested in a MOSERS-covered position. (A nonvested employee becomes eligible once vested in a MOSERS-covered position.)
Full Actuarial Cost
  • Members may purchase creditable service up to the actual number of years of prior public service in the uncovered position.
  • To be eligible, the member must be vested in MOSERS.

MoDOT and Patrol Employees’ Retirement System (MPERS)

Service in MPERS can be transferred to MOSERS.

Miscellaneous Service

Call MOSERS at (800) 827-1063 for information on the following service:

  • State Agency Service Under PSRS
  • Lincoln University service prior to June 30, 1988
  • Circuit clerk, deputy circuit clerk, or division clerk service
  • Juvenile court employee/officer service

Payment Methods

Prior service credit may be purchased using one or more of the following methods:

  • Lump-Sum Payment - Make a single payment to MOSERS to cover the cost of purchasing the prior service credit.
  • Monthly Payments/Payroll Deductions - Make monthly payments directly to MOSERS or have payments deducted from payroll. Interest will be added to the cost of purchase if the member elects this payment method.
  • Rollover From Eligible Employer Plan or Traditional IRA - Use funds from an eligible employer plan (including MO Deferred Comp account) or IRA.
  • Combination of Lump-Sum and Monthly Payments - Make a partial lump-sum payment up front. MOSERS will then recalculate the amount of the monthly payments to include the interest which will be applied to the remaining balance.

Purchasing Service with After-Tax Dollars

MOSERS will send a 1099-R (similar to a W-2) to retirees each year for preparing income tax returns. If service was purchased with after-tax dollars, the “taxable amount” on the 1099-R will be less than the “gross distribution.” Since taxes were already paid on the money used for the purchase, only a portion of the member’s total benefit during the calendar year will be considered taxable income. If using rollover funds to purchase service, the taxable amount will not be reduced.