Yes, your final average pay, for the purpose of calculating your pension benefit, is your highest 36 consecutive months pay, regardless of when that occurs in your pay history. We will look at your entire pay history, as reported by your employer, and find the “high 36”. This can include overtime pay and holiday pay. All 36 months must be consecutive.

Your base benefit is calculated using a formula, as defined by law, that takes into account the following factors:

• Final Average Pay (FAP) – The average of your highest 36 consecutive months of pay

• Multiplier – The multiplier established by the legislature

• Credited Service – Your years and months of credited service earned, purchased, or transferred, and unused sick leave (if applicable)

  (Base benefit is the amount before any reductions, taxes, or other deductions.)

  Here is an example of how the base benefit formula works for a person whose gross pay is $50,000 per year (for at least 36 months) and who retires under MSEP 2011 with 25 years of service:

   FAP ($4,167) x MSEP 2011 Multiplier (.017) x Credited Service (25) = $1,770.98 monthly base benefit in retirement

Except for employees of regional universities, active state employees working in a MOSERS benefit-eligible position have long-term disability (LTD) insurance coverage. Employees are automatically enrolled and there is no cost to the employee. This coverage ends when the member is eligible for normal retirement. LTD insurance provides partial income replacement if you are unable to work for an extended period. This benefit also includes a program that may assist in making workplace changes so you can avoid going or staying on LTD. You can find more information in the LTD Handbook or on the Long-Term Disability page.

Service credit may be available for purchase or transfer, depending on your situation. Purchasing service may increase your retirement benefit, allow you to retire sooner, or both. Waiting to purchase service may cost you more money, due to interest, in addition to the purchase price. You can view the Purchasing and Transferring Service Guide for MSEP 2011 members on our website to see if you are eligible to purchase or transfer prior service. We strongly encourage you to contact a MOSERS benefit counselor to discuss your individual situation as there are many factors that will determine your eligibility. 

MOSERS has been providing retirement benefits for Missouri’s state employees for more than 60 years. Our mission is to advance the financial security of our members by providing them a secure retirement income. That is why the Board and staff work hard every day to ensure the long-term sustainability of the System.

MOSERS trust fund assets equal approximately $8.5 billion. In providing retirement benefits, the Board recognizes that the most important determinant of long-term return and risk is the asset allocation decision. The Strategic Target Allocation (below), as set by the Board, is designed to provide the highest probability of meeting or exceeding the Plan’s investment objectives at a controlled level of risk and with an acceptable level of liquidity.

As you can see, the portfolio is highly diversified across many different asset classes. For every $1.00 of assets that we have, MOSERS has $1.40 of market exposure. This extra exposure is primarily held in the Long US Treasuries and US TIPS portions of the portfolio. Implementing extra exposure in these asset classes works to increase the diversification of the portfolio. 

As part of the Fiscal Year 2023 state operating budget, which began July 1, 2022, the General Assembly and Governor Parson approved an extraordinary payment of $500 million to the Missouri State Employees’ Retirement System (MOSERS). This one-time payment will not be used to reduce future employer contributions to MOSERS but, rather, will be used to strengthen the System and increase the funded status of the System over time. This extraordinary payment is in addition to the $610 million annual employer contribution for Fiscal Year 2023 approved by the General Assembly and Governor Parson. The state of Missouri, as the largest MOSERS-covered employer, has consistently contributed 100% of the required annual employer contribution as recommended by the System’s actuarial professionals and certified by the MOSERS Board of Trustees.

Members of MSEP 2011 or the Judicial Plan 2011 who leave state employment may choose to either request a refund (if they don’t anticipate returning to state employment) or leave their contributions with MOSERS (if they do anticipate returning to state employment).

If you decide to request a refund of your employee contributions, please be aware that there is a 90-day waiting period from the date of termination before MOSERS can issue a refund. You must complete the Member Request for Refund of Employee Contributions form, get it notarized, and submit it to MOSERS.

Please note that, if you take a refund, you will forfeit all your credited service. Alternatively, you may leave your contributions with the System if you think you might return to work for the state at some point in the future and would like for those years of service to count toward an eventual retirement benefit. To learn more, please visit our Refund of Employee Contributions page. 

As a member of MSEP or MSEP 2000, you may purchase up to four years of active-duty military service credit for service performed prior to last becoming a member of MOSERS. This may include active-duty military training. This information is included in our Purchasing and Transferring Service Guide for MSEP (Closed Plan) Members or Purchasing and Transferring Service Guide for MSEP 2000 Members materials. Purchase of prior military service is not available to members of MSEP 2011 or the Judicial Plan 2011.

Contact a MOSERS benefit counselor to get additional information and to request an Application to Purchase Active-Duty Military Service. Once you complete the application, MOSERS will provide you with an estimate of the cost to purchase service and how doing so will affect future benefit payment amounts.

You must complete any purchase of military service prior to applying for retirement. If you have money in your MO Deferred Comp account, as a member of MSEP or MSEP 2000, you can use those funds to purchase prior military service (exception: Roth 457 assets cannot be used to purchase service credit). If you have questions about accessing your funds, contact MO Deferred Comp.

Before receiving a benefit payment from MOSERS, IRS rules require a “bona fide termination” of your employment. Upon meeting the termination and reemployment rules, you may return to work and continue receiving your monthly pension payment, as long as your position is not a MOSERS or MoDOT and Patrol Employees’ Retirement System (MPERS) benefit-eligible position.

Generally speaking, an employee must work in a position normally requiring at least 1,040 hours per year to qualify for MOSERS benefits. It is the responsibility of the employer, not MOSERS, to determine if a position is eligible for MOSERS benefits. Therefore, your new employer would make the decision regarding your question about a maximum amount of weekly or monthly hours. Once your employer has notified you if it is a benefit-eligible position or not, we encourage you to contact a MOSERS benefit counselor to discuss your specific situation.

Since your question relates to medical insurance, please contact your medical insurance provider. For most state employees, that is Missouri Consolidated Health Care Plan (MCHCP). If you are employed at a college, university, or the Department of Conservation, contact your human resources/employee benefits office. As a reminder, at MOSERS, we administer retirement, life insurance, and long-term disability benefits, but not medical insurance. We cannot respond to questions about benefits we don’t administer. 

Each person’s situation may be different, and we cannot advise you on your tax liability as it pertains to your MOSERS pension. We suggest you contact the Missouri Department of Revenue and/or a qualified tax advisor about your tax liability and to determine your withholding amounts.

You will elect both your Missouri state and your federal tax withholdings on the Substitute W-4P form and submit it to MOSERS. The fastest, easiest way to submit it is by logging in to myMOSERS. You may also submit it to us via mail, email, or fax (see our Contact page for details). Please note that the amount of withholdings you elect does not change your tax liability.