RECIPE BOOK MSEP 2011 MEMBERS

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2 Effective January 1, 2018 RECIPE BOOK MSEP 2011 MEMBERS 2018 As a courtesy to other participants during the seminar, please turn off all cell phones or place them in silent or vibrate mode. Thank you.

3 2 MOSERS PO Box 209 Jefferson City, MO

4 Overview and Disclaimer This workbook is intended to be used during a MOSERS PreRetirement Seminar. The basic information included applies to members hired in a MOSERS-covered position on or after January 1, The purpose of the seminar is to give you a basic understanding of MOSERS benefits, allowing you to make an informed decision about various options. However, for specific questions, please consult a benefit counselor, as details will vary from person to person depending upon: Rules and laws in effect at time of hire, termination, or retirement Prior service with the state or some other entity Employing agency Many different rules and laws apply, and there may be exceptions. So please consider the information received today as reliable, but not necessarily applicable in every situation. If there is any difference between the information provided in this reference book and the law and policies which govern MOSERS, the law and policies will prevail. Contents The Missouri State Employees' Retirement System (MOSERS)...4 Employee Benefits... 4 Retirement Funding... 4 MOSERS and You...5 The MOSERS Website and Your Online ID ( 5 Life Event - Incapacity... 6 Life Event - Death and Your Retirement Benefit... 7 Purchase Credited Service... 8 Value of Your Contribution... 9 PreRetirement What You Should Know...10 Early Retirement Eligibility...10 Normal Retirement Eligibility...10 Applying for Retirement...11 Retirement Timeline...12 Benefit Payment Details...13 Your Recipe for Retirement...14 Benefit Formula...14 Unused Leave Time...15 Temporary Benefit...15 Benefit Calculation Worksheet...16 Cost-of-Living Adjustment (COLA)...17 Consumer Price Index (CPI)...17 Annual COLA Rate Calculation...17 When to Expect a COLA...17 COLA Calculations...18 Benefit Payment Options...19 Life Income Annuity...19 Joint & 50% Survivor Option...19 Joint & 100% Survivor Option...19 Life Income with Guaranteed Payments...20 Life Event - Marriage After Retirement...21 Life Event - Divorce After Retirement...21 Life Event - Death of Your Spouse...21 Benefit Payment Options Summary...22 Basic and Optional Life Insurance...23 Basic Life Insurance...23 Travel Assistance...23 Optional Life Insurance...24 Working After Retirement...25 Benefit-Eligible Position...25 Non-Benefit Eligible Position...25 Reemployment by MPERS...25 Noteworthy Communications...26 (800)

5 The Missouri State Employees' Retirement System (MOSERS) Employee Benefits The staff, under the direction of the board, of the Missouri State Employees Retirement System (MOSERS) administers your retirement, according to Missouri Revised Statutes, as a defined benefit pension plan. Additionally, MOSERS also administers your basic life insurance and long-term disability (LTD) benefits, and MO Deferred Comp. Defined Benefit Pension Basic Life Insurance * Long-Term Disability * 5-Year Vesting Lifetime Benefit (felony clause, pg. 10) Formula Determines Benefit Amount (pg. 14) Death Benefit Paid to Beneficiary 1 x Annual Salary Term Life Policy Premium Paid by Your Employer (State) Partial Income if Become Disabled Bridges Gap Between Disability Until Back to Work or Retirement Retirement Savings Plan (MO Deferred Comp) Personal Savings Automatic Deduction Pre-Tax Supplements Pension Income * Life Insurance: 1) optional coverage available; premium paid by employer; 2) all coverage can be ported/converted when terminate employment; 60-day window, regardless if retiring or not; 3) see pages for more information. Retirement Funding (Employer & Employee Contributions + Investment Earnings = MOSERS Trust Fund) Each year, the MOSERS Board of Trustees establishes a contribution rate to be paid by the state of Missouri (your employer) the following fiscal year. The contribution rate, which is set as a percentage of payroll, is actuarially calculated to cover the system s benefit obligations and administrative costs for the coming fiscal year and the future. When the system s actuary calculates the contribution rate, it is based on a number of factors including the current level of benefits; how many members are in the plan; current and expected future pay levels; the age, service, and life expectancy of members; expected earnings on investments; and the plan s unfunded liability. In addition to employer contributions, employees (members of the MSEP 2011) are required to make a contribution of 4% of pay. The employer and employee contributions are invested, grow over time, and assist in financing future pension obligations from the trust fund. To find out more about how your retirement is funded, consult MOSERS Summary Annual Financial Report. It is published annually and sent to you as part of the winter newsletter. It includes: Financial statements Investment information Actuarial information Statistical information This summary as well as the entire Comprehensive Annual Financial Report can be found online at Some benefits may not apply to employees of certain universities/colleges, the Department of Conservation, or in all situations. Please check with your local HR staff for details. 4 MOSERS PO Box 209 Jefferson City, MO

6 Log In With Your Online ID MOSERS and You The MOSERS Website and Your Online ID ( For secure access to your own system data on the MOSERS website, you may log in to review your benefit payment information, service and salary history, life insurance coverage and beneficiaries. You may also estimate your retirement benefits, including cost-of-living adjustments. You can complete and submit most retirement forms online. The Document Express feature is a secure, fast way to check your MOSERS updates. You will be notified by when a document is placed in your online mailbox (login to print or view). As of September 3, 2016, all MOSERS members wishing to log in to their MOSERS Member Homepage must create an Online ID. Your Online ID replaces the use of your Social Security number/member ID for logging in and is a more secure practice. Click on the blue Member Login button at the top of our website main page and we will guide you through the process. You will only need to create an Online ID once, then, any time you log in again, you will simply use your Online ID and MOSERS password. This is a unique ID you will create especially for your MOSERS login, so if you have created one for MCHCP or MO Deferred Comp, you will still need to set one up for the MOSERS website. Whether active or retired, you will find general information about MOSERS investments and legislation affecting your retirement, as well as forms and brochures you can view and print. The site offers services ranging from links with other benefit providers to financial calculators for savings or credit. Access Your MOSERS Information Any Time 24/7. Keep personal information current. ( , cell phone number, address, contribution information, etc.) Submit forms Designation of Agent (or Durable Power of Attorney) See Incapacity on page 6. Designation/Change of Beneficiaries (Contributions and Life Insurance) Authorization to Release Information Designate Final Payment of Benefits (done in retirement) Access Document Express and Document Upload Generate Benefit Estimates Retire Online (800)

7 NOTES Incapacity Incapacity is an event or condition that may require a decision-maker to assist you during your lifetime (not a beneficiary after your death). If you act in advance of possible incapacity in the future, you can use a Designation of Agent or Durable Power of Attorney to identify the person of your choice to handle your MOSERS benefits. Designation of Agent* - This form can be accessed using your Online ID, is included in the online retirement process (RetireOnline), or you may find and download a PDF under Forms on the MOSERS website. The powers of an agent become effective when your physician submits written documentation stating your incapacity and ends upon your death. Durable Power of Attorney* - To address all of your assets and resources, in addition to your MOSERS benefits, you may choose instead to prepare a Durable Power of Attorney. You may wish to consult a lawyer about preparing it. MOSERS will accept a copy of your Durable Power of Attorney unless it specifically states a copy cannot be accepted. Designation of Agent is Preferred. Power of Attorney is Acceptable. * Both documents are not required; either is acceptable. life event Legal Process If you do not name an agent or choose a durable power of attorney, the power to address your MOSERS benefits may be granted by law, with little flexibility, in the following order, to (1) spouse, (2) child, (3) parent, (4) brother or sister, or (5) niece, nephew, grandchild. 6 MOSERS PO Box 209 Jefferson City, MO

8 Death and Your Retirement Benefit If your death occurs before your retirement, your retirement plan determines your beneficiaries automatically. If your death occurs after you retire, the payment option you elected at retirement determines the beneficiary, if any, for your retirement benefits. Survivor Benefits While Actively Employed Before Retirement If you die with at least five years of credited service, a survivor benefit will be paid to your eligible spouse or child(ren). Although survivor benefit payments begin the first of the month following your date of death, they are not automatic. Each eligible benefit recipient must submit an Application for Survivor Benefits with the required proof-of-age and lawful presence documentation. To be eligible, your surviving spouse must be married to you on your date of death. The monthly benefit for your spouse will be based on the benefit you have accrued as of your date of death and calculated according to the Joint & 100% Survivor Option. The survivor benefit will be payable for the remainder of your spouse s life. If there is no eligible spouse, (or the spouse's benefit is no longer payable), a total of 80% of your monthly base benefit will be paid to your natural or legally adopted child(ren) who are younger than age 21. This benefit is dependent on the law in effect at the time of your termination. If there is more than one eligible child, the benefit will be divided equally among them. The survivor benefit for each child will stop when the child becomes age 21 (unless a child is totally disabled. If you die and have no eligible survivors, there will be no retirement or survivor benefits paid on your behalf. The state's annual contribution is pooled with investment returns (and employee contributions from the MSEP 2011 members) to fund the retirement system. A refund of your retirement contributions, however, will be made to the beneficiaries you have listed on your Contribution Beneficiaries form or otherwise according to law. Effective January 1, 2018: If you leave state employment and die prior to retirement eligibility, survivor benefits are not payable until the member would have reached their normal retirement eligibility age (rather than right away). In the event of a duty-related death, there is no minimum service requirement. life event NOTES (800)

9 Credited Service Calculation Number of Months Decimal Equivalent Waiting to purchase service may cost you more money, due to interest, in addition to the purchase price. Contact MOSERS for plan specifics. Purchase Credited Service Service credit available for purchase depending on your situation. Purchasing service may increase your retirement benefit, allow you to retire sooner, or both. Credited Prior Public Service You may combine certain types of prior nonfederal public work with your MOSERS service including: Transfer of service as a circuit clerk, deputy circuit clerk or division clerk Transfer of service with a state agency under the Public School Retirement System (PSRS) Transfer of service from the MoDOT and Highway Patrol Employees Retirement System (MPERS) Purchase or transfer of service at full actuarial cost of eligible prior public service Transfer of service as a juvenile court employee (including juvenile and deputy juvenile officers) How to Pay for Service Credit Single lump-sum (cash) payment. Monthly payments (up to 24 months with interest). Payroll deductions (up to 24 months with interest). Rollover from an IRA or an eligible retirement plan (see also the Tax-Free Rollovers to MOSERS brochure) [i.e. 403(b), 401(k), 401(a), etc.], such as MO Deferred Comp. A combination of any of the above. Service purchases must be initiated after you are vested and completed (paid in full) prior to applying for retirement. Cost estimates available without obligation. 8 MOSERS PO Box 209 Jefferson City, MO

10 Value of Your Contribution As a MSEP 2011 member, you are required, by law, to contribute 4% of your salary directly to the MOSERS trust fund. Employee contributions are combined with the contributions made by your employer (state) and investment earnings to fund future retirement benefits for all eligible state employees. Upon retirement, your monthly retirement benefit amount will be calculated using a formula established in law that includes your final average pay, credited service and a multiplier, regardless of the amount of contributions made over course of career. Following is a simplified example of what an employee's career and future retirement benefit might look like over time: Begins employment with the state at age 34 with a starting salary of $22,000 Begins contributing 4% of pay to MOSERS Works 28 years with the state and age 62, under the Rule of 90, decides to retire with an ending salary of $37,552 (FAP). Contributions made by the employee over 28 years equals $32,605 or $97 a month from their pay. Benefit paid monthly to retiree by MOSERS will be approximately $1,489 (calculated using the formula), for the rest of their life. After enjoying 25 years in retirement, retiree passes away at age 87. The total base benefit received by retiree during 25 years in retirement, equals $504,648. In other words, the employee contributed $32,605 (to help fund their retirement) and received $504,648 in retirement benefits from MOSERS. To determine how much a person would need to invest on their own in a personal retirement savings plan, a private sector 401(k), or IRA to equal the total benefit of $504,648, contact MO Deferred Comp or a financial planner. Contribution Options If you leave state employment, you should carefully consider what to do with the contributions you have accumulated in the MOSERS trust fund. This decision may affect your future financial security. Regardless of how long you have contributed, the pension credit accumulated with MOSERS is a valuable asset. Your options are: Do Nothing: Leave your contributions with MOSERS and remember to keep contribution beneficiaries current Rollover Option: Roll over your contributions to MO Deferred Comp, an IRA, or other qualified retirement plan Cash Option: Receive a cash refund (penalties apply) Combination Cash & Rollover Option: Roll over a specific amount to MO Deferred Comp, and IRA, or other qualified tax plan and receive the remainder of the refund in cash If you request a refund, you will forfeit all accrued service credit and waive all future rights to retirement and LTD benefits from MOSERS and potential rights to coverage under MCHCP. NOTES (800)

11 Forfeiture/Disqualification of Retirement Benefits You (and your beneficiary) will forfeit all rights to retirement benefits accrued on or after August 28, 2014 if you have been convicted on or after August 28, 2014 of a felony under state law (or a substantially similar offense provided under federal law) involving stealing or receiving stolen money, property, or service valued at $5,000 or more, forgery, counterfeiting, bribery of a public servant, or acceding to corruption, in connection with your duties as a state employee. However, if you are such a member of the MSEP 2011, you may still request from MOSERS a refund of your contributions including interest credited to your account. The system shall not pay an annuity to any survivor or beneficiary who is charged with the intentional killing of a member, retiree or survivor without legal excuse or justification. A survivor or beneficiary who is convicted of such charge shall no longer be entitled to receive an annuity. If the survivor or beneficiary is not convicted of such charge, the board shall resume annuity payments and shall pay the survivor or beneficiary any annuity payments that were suspended pending resolution of such charge. PreRetirement What You Should Know Early Retirement Eligibility (Reduced Benefit) Attain the age of 62 prior to leaving state employment Have at least 5 years of credited service I meet the above age and service requirement and am eligible for early retirement. If you elect early retirement, your base benefit is reduced by one-half of one percent (0.005) for each month your age at early retirement is younger than your normal retirement age. Normal Retirement Eligibility Age 67 with 5 years of service Rule of 90 At least age 55 plus service equaling 90 or more prior to leaving state employment. I meet one or more of the above age and service requirements and am eligible for normal retirement. Example of Rule of 90 Age 62 years 4 months Service 27 years 8 months 89 years 12 months = 90 Does "Rule of 90" Apply to Me? Age years months Service years months years months = To be vested means you are eligible to receive a retirement benefit once you have met the age and service requirements 10 MOSERS PO Box 209 Jefferson City, MO

12 Applying for Retirement Step 1 Complete and submit a Retirement Application. Your retirement application must be dated and received by MOSERS according to the due date coinciding with your retirement date (see chart on accompanying page) or your retirement will be delayed. Along with your Retirement Application you must submit from the list below, one proof-of-age and lawful presence document for yourself and one for your spouse (if applicable). Original U.S. Birth Certificate (with embossed, raised seal issued by state or local government) OR, a photocopy of one of the following: Valid Missouri Driver s License or Missouri Nondriver ID* U.S. Passport (valid or expired) U.S. Certificate of Citizenship U.S. Certificate of Naturalization U.S. Certificate of Birth Abroad IF MARRIED, attach a legible copy of: Spouse s proof-of-age and lawful presence document (see above) Marriage certificate * If you apply online and indicate that you and your spouse (if applicable) have a valid Missouri Driver s License or Missouri Nondriver ID, you will not be required to submit a photocopy. Please submit all forms according to the Retirement Guide with your Retirement Application. Any original proof-of-age documents will be returned to you. If you submit a Retirement Application and then decide not to retire, please send MOSERS a written notice or an from the account on file for you at MOSERS to rescind your application. Step 2 Complete and submit a Retirement Election Form. On this form, you will elect a benefit payment option. This form must be received by MOSERS prior to your retirement date (see chart on the accompanying page). The form may be submitted electronically if you apply online and meet necessary requirements. Log in to your secure Member Homepage to upload your proof documents online. It's faster, easier, and even more secure. For your convenience, you may apply for retirement online at Simply log in using your MOSERS Online ID and password, then select Retire Online from the menu. Consider using MOSERS Retirement Guide, a summary of the process including useful tips and hints, to assist you. First, complete Step 1 of the retirement process. Checkmarks will appear in the progress bar on the left side of the screen as you complete the forms below: Retirement Application Direct Deposit Authorization Substitute W-4P (tax form) Designation/Change of Beneficiaries (if applicable) Retain/Change Optional Life Insurance (if applicable) Designation of Agent (optional) For most people, Step 2 and the following forms can be completed online. Retirement Election For added convience, remember you can upload any scanned documents using the Document Upload feature. * If you choose not to retire online, contact a MOSERS benefit counselor for a personalized Retirement Application. (800)

13 Retirement Timeline When applying for retirement, specific due dates are required for you to submit your Retirement Application (Step 1) and Retirement Election Form (Step 2) as listed in the chart below. Retirement Date Always the first day of the month This is the date you will provide on your Retirement Application and also the month you begin receiving retirement benefits. Before this date you must meet age and service eligibility criteria, leave state employment, and apply for benefits. Step 1 Retirement Application Due MOSERS suggests you submit your application materials days before your actual retirement date. Retirement Process Due Dates Step 2 Retirement Election Form Due You must submit this form no later than the day before your retirement date. January 1 November 30 December 31 February 1 December 31 January 31 March 1 January 31 February 28 April 1 February 28 March 31 May 1 March 31 April 30 June 1 April 30 May 31 July 1 May 31 June 30 August 1 June 30 July 31 September 1 July 31 August 31 October 1 August 31 September 30 November 1 September 30 October 31 December 1 October 31 November 30 My Retirement Date My Application is Due My Election Form is Due Termination Date Your last day of work as a MOSERS benefit-eligible employee, as reported by your employing department (must be at least one day before your retirement date). You will work directly with your employer to terminate your employment. Retirement Date and Termination Date are NOT the same. Normal Retirement Eligibility Date The date on which you first become eligible for MOSERS retirement with normal (unreduced) retirement benefits. Retirement Anniversary Date Your retirement date is the first of the month in which you receive your first retirement payment. Your retirement anniversary date will be in the same calendar month in each year and COLAs will be paid at the end of that month with your benefit. Benefit Payment Date The last working day of the month for each month in which you are retired. 12 MOSERS PO Box 209 Jefferson City, MO

14 Benefit Payment Details Payment of Funds The standard payment method for receiving your monthly benefit is PAY direct deposit. With direct deposit, your benefit payment is electronically transferred to your bank and automatically deposited into your checking or saving account on the last working day of the month. Currently, 98% of MOSERS retirees receive their monthly benefit via direct deposit. You must complete the Direct Deposit Authorization, even if your salary is automatically deposited now. As a Retiree you will receive your benefit payment information by logging in with your MOSERS Online ID. Deductions from Your Benefit If applicable, the following deductions may be withheld from your monthly benefit payment: Missouri income tax as specified on your Substitute W-4P form Federal income tax as specified on your Substitute W-4P form (without this form, MOSERS is required to withhold federal taxes as if you are married and claiming three exemptions) MOSERS optional life insurance premium Missouri Consolidated Health Care Plan premium Department of Conservation s health and life insurance premiums Miscellaneous deductions such as vision and dental insurance, and Missouri State Employees Charitable Campaign (MSECC) contributions Other payroll deductions (not listed above) may or may not be deducted from your retirement benefit. Contact the provider directly to determine what options may be available to you. Protection of Benefits Your benefits from MOSERS are not subject to execution, garnishment, attachment, writ of sequestration, or any other process or claim, except with regard to the collection of child support or maintenance, payment made to a former spouse pursuant to a division of benefits order, or an IRS levy. Also, your benefit may not be transferred or assigned. However, you may authorize a deduction from your retirement benefit for premiums due for any state-sponsored life or medical insurance, Missouri income taxes, federal income taxes, and Missouri State Employees Charitable Campaign (MSECC) contributions. Annual Retiree Benefit Statement This document is provided to you each year in the anniversary month of your retirement and includes, if applicable: Monthly benefit amount Member contribution information Benefit payment option Life insurance coverage and primary beneficiary information COLA information You may elect to be notified by when your benefit statement is posted to Document Express (log in to view or print), or have a paper copy mailed to you. (800)

15 NOTES Your Recipe for Retirement Benefit Formula At the time you apply for retirement, your base benefit* is calculated using a formula that takes into account the following factors: Final Average Pay (FAP) - The average of your highest 36 consecutive months of compensation. 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 or taxes/other deductions are calculated. FAP x Multiplier x Credited Service = Monthly Base Benefit Your benefit is calculated using the above formula, regardless of your contributions and interest earned. In other words, the amount you contributed does not affect the amount of your retirement benefit and/or survivor benefits. Final Average Pay Analyzes your entire pay history under MOSERS Uses your gross salary (before taxes, health insurance, cafeteria plan, etc.). May include overtime pay and holiday pay. Example of Final Average Pay Months Year Salary $12, $35, $33, $27, Total $108,000 Final Average Pay $108, Months $3,000 Multiplier (Base Benefit) MSEP Multiplier is 1.7% (0.017). Since the plan s inception on January 1, 2011, there have been no changes to the multiplier. Credited Service Your years and months of service including unused sick leave (if applicable) Includes other service that has been purchased (if paid in full) or transferred. Does not include part-time, temporary, or seasonal employment (unless deemed benefit-eligible position). 14 MOSERS PO Box 209 Jefferson City, MO

16 Unused Leave Time Unused Sick Leave Converts to credited service, which can increase your retirement benefit. Cannot be used to determine eligibility will not allow you to retire sooner. Every 168 hours (21 days) = one month of credited service (no partial months) if you retire directly from active service. Eligible hours used (as documented and reported to MOSERS by your last employer when you terminate). If you are vested and leave state employment after January 1, 2018, but before retirement eligibility you may not use unused sick leave for service credit. Unused Annual Leave Cannot be used when calculating your retirement benefit. Your employing agency, department, college, or university will pay you for your unused annual leave (vacation), according to that employer s policy. Policies for leave time may be administered by each employer independently. Please contact your HR or personnel office for more information. Details of leave explained here may not apply to Universities/Colleges and the Department of Conservation. Temporary Benefit The temporary benefit is designed to provide supplemental income until age 62. Multiplier is 0.8% (0.008). Available to retirees who retire under the Rule of 90. Not available to early retirees. Not available to survivors or beneficiaries. MOSERS does not require you to file for early Social Security benefits. The temporary benefit and any COLAs earned on that amount will end at age 62. NOTES (800)

17 Benefit Calculation Worksheet (Numbers Rounded) Retirement Benefit FAP $3,000 x Multiplier x Credited Service Years = Monthly Benefit $1,199 MSEP 2011 FAP $3,000 x Multiplier x Credited Service Years = Monthly Temporary Benefit* $564 Monthly Benefit $1,199 + Monthly Temporary Benefit $564 = Total Monthly Benefit $1,763 My Retirement Benefit FAP $ x Multiplier x Credited Service Years = Monthly Benefit $ MSEP 2011 FAP $ x Monthly Base Benefit $ Multiplier x Credited Service Years Monthly Temporary Benefit $ = = Monthly Temporary Benefit* $ Total Monthly Benefit $ One Additional Month of Sick Leave or Service Credit Calculation (Refer to sidebar on page 8) FAP $ x Multiplier x One Month of Credited Service = Additional Monthly Benefit $ MSEP 2011 FAP $ x Temporary Benefit Multiplier x One Month of Credited Service = Additional Monthly Temporary Benefit* $ Additional Monthly Benefit $ + Additional Monthly Temporary Benefit $ = Additional Total Monthly Benefit $ * Additional temporary benefit per month if eligible under "Rule of 90"; ends automatically at age MOSERS PO Box 209 Jefferson City, MO

18 Cost-of-Living Adjustment (COLA) The COLA is a very valuable part of your retirement benefit. The purpose of a COLA for any type of pay or retirement benefit is to help you cope with inflation. As inflation raises consumer prices, your COLA will assist in maintaining the purchasing power of your benefits. COLAs are calculated annually based on the guidelines defined in the Revised Statutes of Missouri. By law, you will receive a COLA each year after retirement, as long as you are receiving a benefit payment from MOSERS. Eligible surviving spouses and beneficiaries who receive benefits based on your retirement benefit may also be eligible for COLAs. Consumer Price Index (CPI) The CPI is calculated monthly by the Federal Bureau of Labor Statistics and used to measure the rate of inflation and to show larger economic trends on a yearly basis. To learn more about the CPI, visit the Bureau of Labor Statistics list of Frequently Asked Questions (FAQs) on its website or the MOSERS website COLA page with links and a helpful video. Annual COLA Rate Calculation Each January the average CPI for the calendar year just completed is compared to the average CPI from the prior year to determine the percentage change between the two years. The COLA rate is equal to 80% of the percentage increase in the average CPI (0-5%). COLA Rate Calculation Example Change in CPI 2.50 x 80% 0.80 = COLA Rate 2.0% When to Expect a COLA If you retire from active employment, you will receive an annual COLA between 0-5% for your lifetime beginning on the 1st anniversary date of your retirement. If you left state employment after becoming vested and retire at a later date, you will receive an annual COLA between 0-5% for your lifetime beginning on the 2nd anniversary date of your retirement. Where do you find your specific COLA information in retirement? Your Annual Benefit Statement! NOTES (800)

19 COLA Calculations* Effect of COLA on Your Benefit (for a member retiring at age 56 who receives a 2% COLA) Age COLA Calculated for Base Benefit COLA Calculated for Temporary Benefit Total 57 $1, % COLA = $1,223 $ % COLA = $575 $1, $1, % COLA = $1,247 $ % COLA = $587 $1, $1, % COLA = $1,272 $ % COLA = $599 $1, $1, % COLA = $1,297 $ % COLA = $611 $1, $1, % COLA = $1,323 $ % COLA = $623 $1, $1, % COLA = $1,349 $1, $1, % COLA = $1,376 $1, $1, % COLA = $1,404 $1,404 COLAs Continue for Life Temporary Benefit and any COLAs on that amount end at age 62 * Numbers have been rounded in the example. MOSERS does not round when calculating benefits. Actual annual COLA rates will vary. 18 MOSERS PO Box 209 Jefferson City, MO

20 Benefit Payment Options The election of a benefit payment option determines whether or not a benefit will potentially be paid to anyone after your death. Regardless of the payment option you elect, you will receive a monthly benefit payment for your lifetime. The payment option you choose is irrevocable and cannot be changed after your first benefit payment has been sent by MOSERS (even in the event of divorce). There are only two circumstances under which you may re-elect your benefit payment option (see page 21). Regardless of the payment option you elect, you will receive a monthly benefit payment for your lifetime. Life Income Annuity Your retirement benefit WILL NOT BE REDUCED for the purpose of providing a survivor benefit. No ongoing monthly survivor benefits will be paid to anyone after your death. You must name a beneficiary to receive your final benefit payment. If no survivor/beneficiary option is elected and you pass away before receiving retirement benefits equal to the amount contributed during your active employment, your beneficiary on file will receive the remaining amount. Joint & 50% Survivor Option Your retirement benefit WILL BE REDUCED to provide a lifetime survivor benefit for your spouse. The reduction is based on your age at retirement, the full years difference between you and your spouse, and whether your spouse is younger or older than you. Your eligible spouse will receive 50% of the benefit amount you are receiving at the time of your death (excluding any temporary benefit). Survivor benefits will be paid to the spouse named on your Retirement Application (or Designation of New Spouse as Beneficiary for Retirement Benefits form), regardless of your marital status at the time of death. Joint & 100% Survivor Option Your retirement benefit WILL BE REDUCED to provide a lifetime survivor benefit for your spouse. The reduction is based on your age at retirement, the full years difference between you and your spouse, and whether your spouse is younger or older than you. Your eligible spouse will receive 100% of the benefit amount you are receiving at the time of your death (excluding any temporary benefit). Survivor benefits will be paid to the spouse named on your Retirement Application (or Designation of New Spouse as Beneficiary for Retirement Benefits form), regardless of your marital status at the time of death. NOTES (800)

21 NOTES Life Income With Guaranteed Payments A certain number of payments are guaranteed from your retirement date. The guarantee starts on your retirement date (not date of death), and extends for the term you select. Your retirement benefit WILL BE REDUCED and payable for life. Life Income with 120 Guaranteed Payments - 5% reduction Life Income with 180 Guaranteed Payments - 10% reduction You must name a beneficiary or beneficiaries (person, trust, corporation, organization, charity, or your estate) to receive your final benefit payment from MOSERS and any remaining guaranteed payments. No survivor payments will be paid if you have received all payments in the guaranteed period (other than the final payment). BE SURE YOU DESIGNATE A BENEFICIARY FOR YOUR CONTRIBUTIONS You or a survivor or beneficiary, will receive, at minimum, a benefit or refund in an amount equal to what you contributed, and interest credited thereon, less any benefits received. 20 MOSERS PO Box 209 Jefferson City, MO

22 Marriage After Retirement When you retire and elect a benefit payment option, there are life two circumstances under which you may reelect your benefit event payment option: Your marriage Your spouse's death What options are available to you and when must you make those decisions? Single Then Marry After Retirement IF: You were single at retirement, and you Elected the Life Income Annuity option, then Married after retirement THEN: You have one year from the date of your marriage to reelect either of the joint & survivor options. Please contact MOSERS for a Designation of New Spouse as Beneficiary for Retirement Benefits form. Remarriage After Spouse's Death IF: You were married at retirement, and you Elected a joint and survivor option, then were Preceded in death by your spouse and later remarry THEN: You have one year from the date of your marriage to reelect either of the joint & survivor options naming your new spouse as your beneficiary. Divorce After Retirement Your divorce before or after your retirement may have significant impact on your retirement. Please review the MOSERS brochure Divorce and Your Retirement Benefit for more information. Your divorce after your retirement does not allow you to change your payment option or your survivor. Death of Your Spouse IF: You were married at retirement, and you Elected a joint and survivor option, then were Preceded in death by your spouse life event life event THEN: Your benefit will revert (pop up) to the life income annuity amount effective the first of the month following your spouse s date of death. The pop-up is not automatic. You must notify MOSERS and provide a copy of the death certificate before your benefit can be adjusted. NOTES (800)

23 Benefit Payment Options Summary Survivor benefits exclude the temporary benefit, which is paid to the retiree only, not spouse or beneficiary. Below is a summary of the payment options available in the MSEP2011. (See pages for detailed explanation) MSEP 2011 Which Payment Option Best Meets Your Needs? Retiree Benefit Survivor Benefit Life Income Annuity No Reduction No Survivor Benefits Joint & 50% Survivor Reduced (based on your age and spouse s age) Joint & 100% Survivor Reduced (based on your age and spouse s age) Life Income with 120 Reduced by 5% Guaranteed Payments Life Income with 180 Reduced by 10% Guaranteed Payments * The beneficiary for guaranteed payments can be anyone. Eligible spouse will receive 50% of your base benefit for the remainder of his or her lifetime Eligible spouse will receive 100% of your base benefit for the remainder of his or her lifetime Beneficiary* will receive your final payment and remainder of 120 guaranteed payments (if any) Beneficiary* will receive your final payment and remainder of 180 guaranteed payments (if any) 22 MOSERS PO Box 209 Jefferson City, MO

24 Basic & Optional Life Insurance Basic Life Insurance The life insurance administered by MOSERS is term insurance. This means your insurance has no cash or loan life event value. Furthermore, your beneficiaries will not receive a benefit payment if your insurance coverage through the state has been terminated or if you cease to pay the required premium (in special circumstances, for example, during a leave of absence). Active Members If you meet the criteria for eligibility, the state automatically pays for basic life insurance coverage equal to one times your annual salary ($15,000 minimum; $800,000 maximum). This amount will be payable to your designated beneficiary at the time of your death, providing your coverage is in force at that time. Your basic life coverage amount will automatically be adjusted each January according to your annual earnings on: (1) July 31 of the previous year, or (2) the day after you complete one full day of active work as an eligible member, if you were not eligible on July 31 of the previous year. Retired Members If you retire within 60 days of leaving state employment, the state will continue to pay for $5,000 of basic life insurance coverage. You have 60 days from the date of retirement to make an election to port or convert the remaining basic life insurance to an individual policy through Standard Insurance Company. Travel Assistance Active & Retired Members Additionally, Standard Insurance Company includes Travel Assistance with its group insurance policies through an arrangement with United Healthcare Global. This provides an additional sense of security for you and your eligible family members during travel more than 100 miles from home or internationally for trips of up to 180 days. There is no enrollment process insured employees are automatically covered. To access this service simply call (800) LIFE SERVICES TOOLKIT Members who have life insurance through MOSERS now have access to new online resources to help in the event of the loss of a family member, such as funeral planning and legal services. Tools to aid in other important life decisions, such as credit or debt problems and identity theft are also available. Visit (username = assurance) Duty-Related Death Provision If it is determined by Standard Insurance Company that your death is a result of personal injury or illness arising out of, and in the course, of performing your duties as an employee, your designated beneficiary(ies) will receive an amount equal to three times your basic life insurance coverage. Primary Beneficiary The person or organization recognized first to receive your life insurance proceeds. Contingent Beneficiary Alternate beneficiary in the event the primary beneficiary precedes you in death. Don t forget to review and update your beneficiaries regularly! Some benefits do not apply to certain universities/colleges and the Department of Conservation. Please check with your local HR staff for details. (800)

25 Important Points Review MOSERS Life Insurance Handbook for additional details. To Initiate or Increase Coverage (before retirement) You must submit an application and medical history statement (completed by the member without a physical and available online at to apply for increased coverage. The Standard will contact you directly if additional information is needed to prove insurability. Acceptance is not automatic. Allow adequate time (two to three months) to complete the application process. To Retain Coverage (after retirement) Complete a Retain/Change Optional Life Insurance form for yourself. Coverage amount cannot be increased after retirement; you may decrease or drop coverage at any time. You may not continue optional family coverage in retirement, except for dependent children;* however you may port or convert spouse coverage. Optional Life Insurance The optional life insurance administered by MOSERS is term insurance. This means your insurance has no cash or loan value. Furthermore, your beneficiaries will not receive a benefit payment if your insurance coverage through the state has been terminated or if you cease to pay the required premium. Active Members Your premium for optional life insurance coverage will depend on your age and the amount of coverage you have selected. Your premium is paid through payroll deductions unless you are on an approved leave of absence. If you choose to enroll in the optional life insurance plan, you must select a flat amount in multiples of $10,000. The coverage amount cannot exceed the lesser of six times your annual earnings (rounded up to the nearest $10,000 increment) or $800,000. Optional life insurance coverage on your child(ren) is available in a flat amount of $10,000 per eligible child and is the only coverage amount available. You will not be required to provide evidence of insurability for your child(ren). Premium for any number of children (age 26 or younger) is $2.00 per month. Retired Members If you retire within 60 days of leaving state employment, or if you retire directly from active employment (i.e. you retire the first day of the month after you leave state employment), you may elect to continue purchasing optional life insurance. However, the amount of coverage you can carry into retirement cannot exceed the amount you carried while actively employed. For example, if as an active employee you have $40,000 of optional coverage, you can retain any amount (in increments of $500) from $1,000 to $40,000 when you retire. Your premium will be deducted from your monthly retirement benefit. If you retire under the Rule of 90, you may retain all of your optional life insurance coverage until age 62. At age 62, your coverage will automatically reduce to $60,000. For additional information, please see the MOSERS Life Insurance Handbook. You may elect to purchase the remainder of your optional life insurance by porting or converting it to an individual policy through The Standard insurance company. You must make your election to continue coverage within the 60-day requirement as mentioned above. Log into to view your personal insurance information. * Retain/Terminate Dependent Child Life Insurance form must be completed. My optional life insurance coverage amount is $ My current beneficiary(ies) are: Primary Contingent 24 MOSERS PO Box 209 Jefferson City, MO Some benefits do not apply to certain universities/colleges and the Department of Conservation. Please check with your local HR staff for details.

26 Working After Retirement If you retire and later return to work for the state of Missouri, in a benefit-eligible position covered by MOSERS, your retirement benefit will be suspended while working in this position. Your employer determines if you are working in a benefit-eligible position. Benefit-Eligible Position A benefit-eligible position must be in the nature of an ongoing (a multi-year position including a position covered by a contract) or permanent position and must normally require the performance of duties during not less than 1,040 hours per year. If you return to work for the state in a benefit-eligible position: Your monthly retirement benefit from MOSERS stops for any month during which you are actively employed in that position. For example, if you return to work on July 27, your retirement benefit will stop. You will not receive a benefit payment for July or any subsequent months while employed in a benefit-eligible position. You will accrue additional service credit and salary for periods of reemployment after you have worked continuously for one year. When you retire again, your benefit will be equal to the monthly benefit you were receiving at the time you returned to work plus an additional monthly benefit for the service earned during reemployment periods of one year or more. You will not be able to change any elections made at retirement. Non-Benefit-Eligible Position Working for the state in a position that is not deemed benefit-eligible has no impact on your eligibility to continue receiving a retirement benefit. You may work in that position and receive a retirement benefit from MOSERS. Reemployed by MPERS If you become employed in a position covered by the MoDOT and Patrol Employees Retirement System (MPERS), your MOSERS benefit will be stopped until you retire again. The rules, laws, and decisions about potentially accruing additional service credit and retirement benefits which are current at the time of your possible reemployment will apply then. MOSERS encourages you to consult the HR staff where you are considering work after retirement for updated information at that time. NOTES (800)

27 NOTES Noteworthy Communications Retiree Coffee Break Seminars The purpose of the Coffee Break seminars is to provide educational programs of interest to our retirees. Find out how to participate through the web and in RetireeNews. Newsletters MOSERS publishes PensionsPlus for active members and RetireeNews for retired members two times a year. You may elect to be notified by when newsletters are posted to the MOSERS website or have paper copies mailed to you. To check your selection, log in using your MOSERS Online ID, click on Options to review or change your preferences. MOSERS Summary Annual Financial Report The Summary Annual Financial Report is located in the MOSERS fall/winter issue of the newsletter. Your Annual Benefit Statement As a retiree, you will continue to receive information each year, in the anniversary month of your retirement, about your benefits which provide you with regular updates to your MOSERS information. MOSERS Website and Online Resources To better serve you, MOSERS is available on the web ( 24 hours a day, seven days a week, 365 days a year. In addition to accessing your personal information with your MOSERS online ID, you can search our website for valuable benefit information and find a variety of online resources including: Financial Calculators Recent News Informational brochures Forms Links to other benefit providers Survivor information 26 MOSERS PO Box 209 Jefferson City, MO

28 Social Media MOSERS uses various online social media tools to provide general information and resources to our members. Rumor Central - Straight Talk about Your Benefits MOSERS Rumor Central is designed to provide online answers to rumors circulating regarding retirement, life insurance and long-term disability. Sign up to receive an each time there is a new post. You can search for a particular topic in the archive or submit a question or rumor that you have heard and it will be posted anonymously with the answer. Facebook and Twitter MOSERS uses many social media tools to help members become aware of important topics, up-to-date issues, and valuable services provided. Like us on Facebook and follow us on Twitter today! Facebook - Twitter - YouTube MOSERS produces and posts a variety of informational videos on YouTube. YouTube - Legislative Websites Missouri General Assembly - Joint Committee on Public Employee Retirement - Contacting MOSERS Benefit counselors are a valuable source for information regarding your benefits and are available to assist you weekdays from 8:00 a.m. - 12:00 p.m. & 1:00 p.m. - 4:30 p.m. They can explain the different plan provisions, provide you with a benefit estimate, and counsel you regarding your benefit options. To make an appointment to personally speak with a benefit counselor at our office, call (800) or (573) During your retirement, please let MOSERS know of: Name, address, or address changes. Spouse or beneficiary death (for pop-up provision or beneficiary changes). Tax withholding changes. Direct deposit changes (bank, account number). (800)

29 Missouri State Employees Retirement System Mail PO Box 209 Jefferson City, MO Visit 907 Wildwood Drive Jefferson City, MO Phone (573) (800) Relay MO 711 (Voice) (800) (TTY) Fax (573) Web 28 MOSERS PO Box 209 Jefferson City, MO