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Jul 28, 2020, 9:23 AM By MOSERSI plan on retiring first of the year. If the legislature meets in January and approves an incentive to get state employees to take early retirement, would I just miss out or would any offers customarily be retroactive to the start of the legislative session - January?
As you are aware, a retirement incentive would require legislative authorization. The specific provisions of any such proposed legislation would determine timeframes and who would be eligible. We are not aware of any such proposals. You can follow any bills affecting MOSERS on our Legislation page.
Jul 27, 2020, 3:46 PM By MOSERSI took early retirement a couple of years ago. Can I stop my retirement now and resume at full retirement age?
A retired member may waive receipt of their benefits. Once the benefit is waived, it can be resumed at any time, however, the calculation of the benefit will not change. Any reductions (such as a reduction due to early retirement) will remain in force once the benefit resumes. If a member retires and returns to work in a benefit-eligible* position, their monthly retirement payment will stop as soon as we are notified that they are re-employed. Once they have worked for at least 12 continuous months in their new benefit-eligible position, they will begin accruing a separate retirement benefit. Once they re-retire, their previous benefit will restart and their new benefit (based on their new service and salary) will be calculated and their benefit payments (old benefit plus new benefit) will resume.
We encourage you to contact one of our benefit counselors to fully explore the circumstances applicable to stopping and restarting retirement benefits.
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Jul 17, 2020, 10:03 AM By MOSERSQuestion about early access to retirement funds base on emergence COVIN-19 policy.
You cannot access your pension from MOSERS until you are eligible for retirement. However, if you have money in the MO Deferred Comp 457 retirement savings plan, in-service withdrawals from your account are permitted under the following circumstances; you experience a qualifying, unforeseeable emergency that causes extreme financial hardship, or if your account balance is $5,000 or less – you may elect a one-time, in-service distribution provided you have not made a contribution during the prior two-year period. Please visit https://www.modeferredcomp.org for more information or, if you have any questions, please call (800) 392-0925.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides a new in-service distribution type from a plan or IRA called a “coronavirus-related distribution” (CRD). To be eligible for CRD treatment, the distribution must be made to an individual who is diagnosed with the disease, has a spouse or dependent who is diagnosed, or has experienced adverse financial consequences as a result of the disease. Employees may self-certify eligibility. More info on the CARES act, qualifications and provisions can be found here: https://www.modeferredcomp.org/news/2020-caresact.html
Jul 15, 2020, 8:50 AM By MOSERSEarly retirement incentives with budget cutbacks......we have heard two rumors: possible paying of retirees insurance and possible 70 and out instead of 80 and out??
Any retirement incentive, such as paying retiree medical insurance or changing retirement eligibility rules, would require legislative authorization. There were no retirement incentives that passed during the recent legislative session, which ended May 15. Any time the Missouri General Assembly is in session, you can follow any bills affecting MOSERS on our Legislation page.
If the Governor were to call a special session of the General Assembly, we will post that information on our website. Otherwise, the General Assembly will meet again in January 2021.
Jul 8, 2020, 3:51 PM By MOSERS
As I review my state working credit history, I will earn my 5 year vesting at age 52. I am interested in possibly leaving the state workforce once I have reach that mark. Is there any way to receive a monthly payment at this age or do I have to wait until age 67 to begin collection of my benefits?
Under the MSEP 2000, you would not be eligible for early retirement and to receive benefits until at least the age of 57.
Minimum Requirements for Early Retirement by Plan:
Age 55 with 10 years of service
Age 57 with 5 years of service
Age 62 with 5 years of service
If you elect early retirement, your base benefit will be reduced by one-half of one percent (.005) for each month your age at retirement is younger than your normal retirement age. The formula for calculating the early retirement reduction factor is: 1 – (Months Retiring Early x .005) = Early Retirement Factor.
Mar 17, 2020, 4:16 PM By MOSERS
I am in MSEP11 and have vested. I may leave service at 65, but not retire until my normal retire age of 67. Will I still receive a reduced benefit?
No, your benefit will not be subject to reduction if you are vested, leave service, then retire at age 67. (The reduction you are referring to is for “early retirement” and is a reduction of ½ of 1% (.005) off your base benefit for each month your age is younger than normal retirement.)
However, if you continue working until you are 67, then your benefit would ultimately be higher because you would have more service. When you apply for retirement, your base benefit will be calculated using a formula that takes into account your final average pay and your credited service. For a more in-depth look at which option may be best for you, we encourage you to use our Comparison Calculator to compare various scenarios over time or contact one of our benefit counselors.
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Feb 20, 2020, 10:53 AM By MOSERSI will reach my 80 and out at age 52. Is there any penalties for retirement before age 55 once i meet the 80 and out requirements. I will have 27 years of service at 52.
No, there are no IRS tax penalties for taking your MOSERS monthly pension benefit prior to age 55.
If you are eligible for and elect BackDROP, you have three options for your BackDROP lump-sum payment. Before you make any decisions, we strongly recommend that you read the Special Tax Notice to ensure you understand the tax implications of your choice. We also encourage you to consult a tax professional. If you’d like to learn more about the tax advantages of rolling the lump sum over to a qualified employer plan, like MO Deferred Comp, read Thinking About the BackDROP?
- Cash Option: This is either one lump-sum payment at retirement or three annual installments. From any amounts paid in cash, we will deduct 20% for federal income tax (as required by the IRS) and any Missouri state income tax withholding you choose. You will be responsible for any IRS early withdrawal penalties that may apply. If you terminate service before the year you reach age 55, there will be a 10% early withdrawal penalty on any payments not rolled over, unless you meet another exception to the penalty. See the Special Tax Notice brochure for more information.
- Rollover Option: We will send your tax-deferred distribution directly to a qualified employer plan.
- Combination Cash & Rollover Option: You can take a portion of the lump sum in cash (less 20% for federal income tax, as required by the IRS, and any Missouri state income tax you choose to have withheld) and roll the rest over to a qualified employer plan. You will be responsible for any IRS early withdrawal penalties that may apply.
On another note, unless you have plans for medical coverage elsewhere, you may want to consider the cost of medical insurance in the timing of your retirement. The cost of medical insurance is significantly higher for retirees than it is for active state employees. Contact your medical insurance provider for coverage and premium options. 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.
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We strive to provide the most accurate information possible in our answers to Rumor Central questions. However, occasionally, laws, policies or provisions change and individual circumstances may vary. Please contact a MOSERS benefit counselor or see the handbooks in our website Library for more detailed information. If there is any difference between the information provided in this blog or on the MOSERS website and the law or policies that govern MOSERS, the law and policies will prevail. See our Privacy, Security & Legal Notices for more information.