We recently received several similar questions about SB 62:
1. How will SB62 change the way accumulated sick leave is calculated when a person chooses to retire?
2. I am receiving conflicting information on the recently passed SB 62 and would like clarification. I am currently employed by the state (hired in 1993) and I intend to participate in MSEP upon retirement. With the recent passage of SB 62, will I receive service credit for unused sick leave, and, will I receive a COLA on my first anniversary? It is my understanding that SB 62 provision do not apply to MSEP members but I want to be certain. Thank you for your clarification.
3. An article in the St. Louis Post Dispatch says “MOSERS is placing new restrictions on using accumulated unused sick leave in calculating a pension payout.” What is the change and when will the new calculations be adjusted?
4. I have a question regarding the new pension law that was just passed, Senate Bill 62. According to the St. Louis Post Dispatch article, there are new restrictions on accumulated sick leave. Exactly what are these restrictions? Does this mean the blocks of sick leave I have accumulated will no longer count toward my retirement formula? The article leaves more questions than answers.
5. What did the Governor just sign re: retirement and unused sick leave and cost of living?
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).