Rumor Central

Your co-worker appears to be mixing up two different topics. We are glad you came to MOSERS for clarification! MOSERS retirees and surviving beneficiaries receive an annual cost-of-living adjustment (COLA) to help offset the effects of inflation on their retirement benefits. COLAs allow retirees to maintain their purchasing power as inflation increases the cost of various items they buy.

The COLA for retired general state employees is based on 80% of the percentage increase in the average CPI from one year to the next. The COLA can range from a minimum of 0% to a maximum of 5%.

However, MSEP retirees employed before August 28, 1997, receive a minimum 4% COLA (maximum 5%) until they reach their COLA cap. This happens when accumulated COLAs equal 65% of their initial base benefit. After reaching the cap, their COLA will be calculated like other retirees and will range from 0% to 5% each year, depending on the increase in the Consumer Price Index.

Example: $1,000 (Initial Base Benefit) x .65 (65%) = $650. The hypothetical member in this example would reach their COLA Cap when their monthly benefit equaled $1,650. Going forward, they would continue to receive an annual COLA between 0 and 5%.

The COLA section on your Annual Benefit Statement contains an estimated date you will reach the COLA cap. Typically, members reach the COLA cap around 12 to 13 years after retirement.

See our Cost-of-Living Adjustments page for more information.

To get back to your co-worker, the significance of 26 years of service has to do with the maximum subsidy members get toward their medical insurance premiums in retirement. It has nothing to do with COLAs from MOSERS.

Yes, in most cases, you can designate multiple beneficiaries on your MOSERS benefits. The number of beneficiaries you can name depends on the specific type of benefit. Here's a quick breakdown:

• Life Insurance Beneficiaries – You may name multiple primary and contingent beneficiaries for both your basic and optional life insurance coverage.
• Final Payment Beneficiaries – Once you retire, you can list multiple individuals to receive your final benefit payment. MOSERS will pay your beneficiaries if that payment is returned to MOSERS by your financial institution. The final payment is the payment that is due to you at the end of the month in which you pass away.
• Guaranteed Payment Option Beneficiaries – At retirement, if you elect a guaranteed payment option (5, 10, or 15 years), you may name multiple beneficiaries to receive any remaining payments if you pass away during the guarantee period.
• Joint & Survivor Beneficiary – At retirement, if you elect a Joint & 50% or Joint & 100% survivor benefit, your beneficiary is automatically your spouse.
• Contribution Beneficiaries (MSEP 2011 and Judicial Plan 2011 only) – If you are a member of MSEP 2011 or the Judicial Plan 2011 and are eligible for a refund of your contributions (in the event of death before retirement), you may name multiple beneficiaries to receive those funds.

If you’re unsure which beneficiaries you currently have listed or would like to update your designations, log in to myMOSERS to review or make changes. If you have an account with MO Deferred Comp, please ensure your beneficiary designations are up to date there as well.

If you are vested and leave state employment, you will still be eligible for a future pension benefit when you reach retirement age. A termination, whether voluntary or involuntary, marks the end of service accrual and impacts your MOSERS benefits.

Exceptions apply: You will forfeit all rights to a future pension benefit if you take a refund of your employee contributions (MSEP 2011 or Judicial Plan 2011) after leaving state employment or if you are convicted of a felony in connection with your duties as a state employee on or after August 28, 2014.

Retirement eligibility depends on your plan and is based on a combination of your age and service. Once MOSERS is notified of your termination, we will send you a letter outlining your eligibility for benefits.

Normal Retirement Eligibility Requirements:

• Age 65 + 5 years of service or
• Age 60 + 15 years of service or
• Rule of 80 – (at least age 48) when age + years of service = 80 or more

• Age 62 + 5 years of service or
• Rule of 80 – (at least age 48) when age + years of service = 80 or more at the time of termination

• Age 67 + 5 years of service or
• Rule of 90 – (at least age 55) when age + years of service = 90 or more at the time of termination

See the What’s My Plan? tool for information about plan membership, retirement eligibility requirements, and more!

You will need to complete a Direct Deposit Authorization form for MOSERS to redirect payment to a new bank account.

How to Access the Form

• Log in to myMOSERS and complete the form online.
• Find the form in our online Library, print it, and send it by email, fax, or mail to MOSERS.
• Contact us by calling (800) 827-1063 or (573) 632-6100 to request a copy of the form.

At MOSERS, we are focused on ensuring the long-term stability of our member’s benefits. The MOSERS Board and staff continually monitor economic trends and actively engage with policymakers on legislative developments at the federal and state levels. Just last week, at the February 21, 2025, MOSERS Board meeting, our external Board Investment Consultant provided an analysis of key market drivers, including interest rates, inflation expectations, and potential shifts in trade policy.

While we monitor emerging trends, our focus is on long-term goals, and our diversified investment portfolio is designed to weather the volatility of the financial markets over the long term. Furthermore, the Board has also made significant changes to the MOSERS funding policy over the past few years. A key change includes the adoption of a 32% minimum employer contribution rate. The policy is designed to increase the plan’s funded status more rapidly, albeit gradually, than without the policy.

Benefit recipients can now access an electronic copy of their 1099-R form. Once you log in to myMOSERS, you can find your 2024 1099-R in your Document Express online mailbox. You may view, save, or print it.

In the future, you will be able to find your 1099-R in myMOSERS on your Member Dashboard in a card labeled Tax Documents. 1099-Rs from 2024 and prior years will remain in Document Express.

MOSERS started mailing 1099-R forms to all retirees and beneficiaries on January 21 and will mail all of them by January 31, 2025. Please allow adequate time for the US Postal Service to deliver them.