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  • How is the Benefit Formula Calculated?

    Oct 24, 2024, 3:27 PM By MOSERS
    Can you please send information on how the retirement is calculated?

    For general state employees, MOSERS uses a three-part formula to calculate your monthly base benefit. This formula, as defined by law, includes the following factors:

    • Final Average Pay (FAP) – The average of your highest 36 consecutive months of compensation.
    • Multiplier – A number established by the legislature (1.6% or 0.016 for MSEP; 1.7% or 0.017 for MSEP 2000 and MSEP 2011).
    • Credited Service – Your years and months of credited service earned, purchased, or transferred, and unused sick leave (if applicable).
     

    Examples - Using the multiplier for MSEP 2000 or MSEP 2011 retirees:

    $3,000 (FAP) x 0.017 (Multiplier) x 15 years (Credited Service) = $765 monthly base benefit

    $3,500 (FAP) x 0.017 (Multiplier) x 17.5 years (Credited Service) = $1,041.25 monthly base benefit

    $4,000 (FAP) x 0.017 (Multiplier) x 30 years (Credited Service) = $2,040 monthly base benefit

    $_____ (FAP)   x   ____ (Multiplier)   x    ____ years (Credited Service)   =   $_______ monthly base benefit

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

    Learn more about the benefit formula breakdown in the Summary of Plan Benefits and by plan on our website: MSEP, MSEP 2000, and MSEP 2011.

    You can also generate a benefit estimate by logging in to myMOSERS or contacting a MOSERS benefit counselor.

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  • Life Insurance After Retirement

    Oct 4, 2024, 11:55 AM By MOSERS
    Can you retain your state life insurance when you retire? If so, how?
    The answer to your question is yes.

    If you retire within 65 days of leaving state employment, the state will continue to provide $5,000 in basic life insurance coverage at no cost to you, provided you had basic coverage while actively employed. You may retain up to $60,000 in optional life insurance, provided you had at least that amount while actively employed. You may retain all your coverage until age 62 if you retire under the “Rule of 80” in the MSEP 2000 or under the “Rule of 90” in the MSEP 2011. At age 62, the coverage amount will automatically reduce to $60,000. You may reduce or terminate your optional life coverage amount after you retire, but you may not increase it.

    At retirement, your premium will be deducted from your monthly pension benefit and may be adjusted every January based on your age and the amount of life insurance coverage you elected. You may continue coverage for your lifetime, as long as you pay the premiums and meet the terms of the group policy.

    See The Standard – Benefits at a Glance for MOSERS Members brochure for more information about retaining life insurance at retirement.
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  • Unused Sick Leave at Retirement

    May 22, 2024, 9:14 AM By MOSERS

    What’s the limit for unused sick leave at retirement? It’s never mentioned when there is a question.

    State employees accrue sick leave at a rate of 10 hours per month. You will receive one month of credited service for every 168 hours of unused sick leave reported to MOSERS by your employer when you leave your position.

    Your sick leave is used to calculate the amount of your retirement benefit but cannot be used to determine eligibility.

    For example, if you have 336 hours of unused sick leave, you will receive credit for an additional two months of service (336/168 = 2) when your retirement benefit is calculated.

    Unused sick leave does NOT count towards service for retirement eligibility. In other words, it does not allow you to retire sooner. You must meet both the age and service requirements for your plan to be eligible to retire.

    For sick leave to count as credited service:

    • MSEP – You must be eligible to retire on the date of termination.

    • MSEP 2000 – You do not have to be eligible to retire on the date of termination.

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Disclaimer

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.