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Jun 25, 2020, 10:05 AM By MOSERS
can you borrow money from your account prior to retirement and if so, how do you do this?
Thank you for your question. You are not able to access your MOSERS defined benefit pension until retirement. However, if you no longer work in a MOSERS benefit-eligible position, and you are a member of MSEP 2011, you may be eligible to request a refund of your employee contributions. By taking a refund, you will lose all your credited service and future rights to receive pension and LTD benefits from MOSERS.
The MO Deferred Comp 457 retirement savings plan permits in-service withdrawals from your account 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 www.modeferredcomp.org for more information or if you have any questions please call 800-392-0925.
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.
Benefit counselors are available:
Monday - Friday
8:00 am - 12:00 pm
1:00 pm - 4:30 pm
Aug 20, 2018, 3:46 PM By MOSERS
Is it possible to contribute more to your pension, to lower your retirement date and still receive a full pension?
No. The only potential way to move your retirement eligibility date closer is to purchase or transfer qualifying prior public service that you may have and combine it with your MOSERS pension. See our Purchasing and Transferring Service Credit brochure (MSEP 2011) for more information or contact a MOSERS benefit counselor to see if you qualify and if it would be beneficial for you to do so.
In order for any prior public service to qualify, it must have been full-time, nonfederal, public (government) employment that you performed in Missouri. Examples include prior employment with a public school, city, or county in Missouri, or employment covered by the MoDOT & Patrol Employees Retirement System (MPERS). This could potentially make you eligible for retirement sooner if the extra service resulted in you hitting the Rule of 90 prior to age 67. (The Rule of 90 is available only to those still actively employed by the state.)
You may also want to keep in mind that you are not required to keep working for the state until retirement age in order to get your pension. Once you are vested with MOSERS, even if you leave state employment, you will be eligible for a lifetime monthly benefit once you also meet the age and all other legal requirements and retire under a MOSERS defined benefit pension plan. Your benefit is calculated using the formula:
Final Average Pay x Credited Service x Multiplier = Monthly Base Benefit.
Remember, it is this formula, NOT employee contributions (made by those first employed on or after 1/1/2011), that determines your monthly retirement benefit. The longer you work, the more your benefit will be.
You certainly can contribute more to MO Deferred Comp to increase your supplemental savings for retirement but it won’t make you eligible for retirement any sooner.
May 31, 2018, 11:33 AM By MOSERS
Correction Officers have been hearing that the State of Missiouri Retirement System is bringing back the "80 and out" rule or 80/80 and the Employee is vested after 5 years of service?
For members of MSEP 2011 who are actively employed on or after 1/1/2018, yes, the vesting requirement did change to 5 years, effective 1/1/2018. This change was part of Senate Bill 62, which was passed during the 2017 legislative session. The changes were summarized on our legislative page.
However, requirements for retirement eligibility were not changed. Members of MSEP 2011 reach normal retirement eligibility when they have at least 5 years of service and are age 67 or under the “Rule of 90”. Under the “Rule of 90”, they must be at least age 55 and their age plus years of service equal 90 or more. For example, if someone is age 60 and has 30 years of service, they would meet the Rule of 90.
Not sure if you are in MSEP, MSEP 2000, or MSEP 2011? See What’s My Plan? (bottom of the MOSERS website homepage) with information about plan membership, retirement eligibility requirements, and other plan provisions.
Mar 14, 2018, 8:31 AM By MOSERS
Vesting is changed to 5 years, so why is the monthly benefit not payable until 10 years? If I were to retire after 8 years, would I receive a lump sum payout of my contributions plus any amount vested by the plan, or would the benefit be deferred until after 10 years?
Vesting is one part of retirement eligibility. The other part is age. Both vesting and age requirements must be met in order to retire under a MOSERS defined benefit plan. As a member of MSEP 2011, you will become eligible for normal retirement when you have at least 5 years of service and reach age 67 OR under the “Rule of 90” which is when you are at least age 55 and your age plus service equals 90 prior to you leaving state employment.
Once you are vested with MOSERS, even if you leave state employment, you will be eligible for lifetime monthly benefit payments once you also meet the age requirement (and any other legal requirements) and retire under a MOSERS defined benefit pension plan. The 5-year vesting for MSEP 2011 members went into effect on 1/1/2018 and MSEP 2011 members must be actively employed on or after 1/1/2018 to be covered by this change.
Your contributions go toward helping pay for your future lifetime monthly benefit payments. You will receive a lump-sum payment only if you request a refund of your employee contributions. By taking a refund, your forfeit all your credited service. If you are vested and take a refund, you give up your future lifetime monthly benefit payments.
Jan 18, 2018, 10:54 AM By MOSERS
I have an employee who was hired June 2011. He has a question about the 5 year vesting. Since 5 year vesting is back he would like to know if Moser's will start contributing to retirement or if he will still have to make those contributions through his payroll.
MSEP 2011 members will still have to contribute 4% of pay to their future retirement benefit. Other than the vesting period changing from 10 years to 5 years for MSEP 2011 members employed on or after January 1, 2018, the provisions of SB 62 have NO impact on members of MSEP 2011 who work in a MOSERS benefit-eligible position until they reach normal retirement eligibility.
Money to pay current and future MOSERS pension benefits comes from:
- Contributions from employees who are members of the MSEP 2011 or Judicial Plan 2011 (4% of pay for MOSERS members; typically 5-10% nationally*),
- Earnings on investments of money in the MOSERS trust fund (61% of assets in the MOSERS trust fund have come from investment earnings), and
- Contributions from employers (state agencies) as a percent of active employee payroll.
Below is a simplified example of what future retirement benefit might look like over time. The benefit would be even more with compounding cost-of-living adjustments (COLAs), which are included in MSEP 2011, but not shown here for simplicity. The benefit formula is:
Final Average Pay x Credit Service x Multiplier = Monthly Base Benefit
*Understanding Public Pensions, April 2017, Center for State & Local Government Excellence, AARP
Jan 8, 2018, 8:03 AM By MOSERS
I am a MSEP 2011 Employee and had a question regarding the new retirement benefit plan. I understand you can now become vested at 5 years instead of 10, but my question is, if my spouse and I are both deceased before the retirement age, who will receive my benefits? The previous handbook states if there is no eligible spouse, a total of 80% of your monthly base benefits will be paid to your natural or legally adopted children who are younger than age 21. Who will have children at the retirement age of 67 under the age of 21? A vast majority of employees will not have dependent children at retirement age, so where will the retirement benefits go then? Will there be a new MSEP2011 general employee handbook sent out soon?
It is accurate that, if you are an active general state employee, married, vested in MOSERS, and die before you retire with MOSERS, your eligible surviving spouse will receive survivor benefits, and also that if there is no surviving spouse, a survivor benefit is payable to your natural or legally adopted child(ren) younger than age 21. If you die without any eligible beneficiaries, no survivor benefits are paid.
If you made employee contributions to MOSERS and die without any eligible survivors, a refund of your contributions plus interest will be made to the beneficiary(ies) you have listed on your Contribution Beneficiary(ies) form or as otherwise permitted by law.
All of the above information applies if you die while actively employed and BEFORE you begin receiving your MOSERS pension benefit. Members often have similar questions about death AFTER retirement. A key feature of your MOSERS defined benefit (DB) pension plan is that it can provide financial security for your eligible survivor(s) as well. During the retirement process, you will make elections to determine if any potential survivor benefits will be paid to anyone after your death or not – to a spouse if you are married, or, potentially, to another beneficiary.
If you terminate employment, then die before retirement, other stipulations apply. Effective January 1, 2018 for MSEP 2011 terminated-vested members: If you die after leaving state employment but prior to normal retirement eligibility age, monthly pension benefits will be payable to your eligible survivor(s) when you would have reached normal retirement eligibility. Please see the updated MSEP 2011 Handbookon our website for more information.
Jan 4, 2018, 10:00 AM By MOSERS
I know that the 10 years vested has been reversed back to 5 years, however I'm inquiring where the process is with going back to 80 & out vs. 90 & out. Is this still on the table?
We are not aware of any plans to change retirement eligibility requirements.
The 5-year vesting for MSEP 2011 members went into effect on 1/1/2018, and MSEP 2011 members must be actively employed on or after 1/1/2018 to be covered by this change.
Members of MSEP 2011* will become eligible for normal retirement when they reach age 67 and have at least 5 years of service OR under the “Rule of 90,” which is when they are at least age 55 and their age and service equals 90 prior to leaving state employment.
The 2018 legislative session began January 3 and will end on May 18th. We do not know what might happen with individual bills during the legislative session, but we will monitor all legislation impacting MOSERS and inform our members of any changes that become law.
*Members of MSEP 2011 are those who were first employed in a MOSERS benefit-eligible position on or after January 1, 2011.
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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.