I was wondering if you could explain the May 29th, 2017, article in the St. Louis Post-Dispatch. It stated that should Gov. Greiten sign into law legislation that was recently passed the following would occur: MOSERS would be placing “new restrictions on using accumulated unused sick leave in calculating a pension payout.” I have quite a bit of unused sick leave. Can you tell me how this would impact me and others in my situation? The article stated: “If signed into law, the changes outlined in the legislation will go into effect on January 1, 2018.” If this change would have a tremendous impact, it sounds as though some of us might want to think about retiring before January 1st.
In the event that the Governor signs SB 62 what effect does the following statement have: MOSERS is placing new restrictions on using accumulated unused sick leave in calculating a pension payout. This was included in the story in the St.Louis Post Dispatch. I have not seen it anywhere else.
The provisions in SB 62 have NO impact on members of MSEP or MSEP 2000. Additionally, other than to reduce the vesting period from 10 years to 5 years, 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.
Effective January 1, 2018, only members who meet both of the conditions below will NOT have service credit granted for unused sick leave:
� First hired in a benefit-eligible position on or after January 1, 2011 (member of MSEP 2011) and
� Left state employment with a vested retirement benefit but prior to reaching retirement eligibility.
We refer to these members as �terminated-vested� members of MSEP 2011. (Similarly, terminated-vested members of MSEP do not receive service credit for unused sick leave if they left state employment prior to retirement eligibility, either normal or early.)
In contrast, all members of MSEP, MSEP 2000, or MSEP 2011 who retire directly from active employment receive service credit for unused sick leave. Every block of 168 hours of unused sick leave equals one month of service credit. Unused sick leave is used in calculating the amount of the benefit but does not factor into reaching retirement eligibility.
Note: Other �offsets� in SB 62 which contribute to making the vesting reduction cost neutral include the following for terminated-vested members of MSEP 2011 only, effective January 1, 2018:
� Cost-of-living adjustments (COLAs) will be applied on the second anniversary of retirement (rather than the first anniversary).
� If such a member dies prior to retirement eligibility, survivor benefits are not payable until the member would have reached their retirement eligibility age (rather than right away).