Modified Supplemental Retirement Plan Amended Human Resources | Curt Devan | Matt Moore | September 2006.
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Modified Supplemental Retirement Plan Amended Human Resources | Curt Devan | Matt Moore | September 2006
Agenda Board of Governors amends Modified Supplemental Retirement Plan (MSRP) Two Plans Offered Application periods and Retirement Dates − Current Modified Supplemental Plan − Short-Term Modified Supplemental Plan Short-Term Pay Out Options Summary Frequently Asked Questions MOSERS Overview
Resolution approved August 4, 2006, which amended Section 10.110.3 of the Code of Policies entitled Application Periods and Retirement Dates, and enacting a new Section 10.110.3 entitled Application Periods and Retirement Dates. Board of Governors Policy
Provides Information on Two Plans 1. Current Modified Supplemental Retirement Plan (MSRP) 2. New Short-Term Modified Supplemental Retirement Plan
Modified Supplemental Retirement Plan The final application period for the current Modified Supplemental Retirement Plan is October 1 through December 15, 2006. The current plan will terminate on June 30, 2007.
Modified Supplemental Retirement Plan Meet the same eligibility requirements as current plan: − Are at least age 50 with the sum of age and service credit equaling 80 or more; or − Have at least 15 years of full-time service at the University and are at least 57 years of age at the time of retirement. (Chapter 10 – Fiscal and Business Affairs – Personnel, Para.10.110.1 Eligibility, pages 10-14, Code of Policies)
Modified Supplemental Retirement Plan Employees who will become eligible before July 1, 2007, may apply during this final application period; Employees making application must state their effective date of their retirement no later than June 30, 2007. In February 2007- the Board will consider all pending applications and grant or deny in accordance with Section 10.110.4 of this policy.
Modified Supplemental Retirement Plan An employee whose application is approved by the Board must retire on the effective date stated in the application; An approved application will be considered as a resignation on the effective date stated in the application; Eligible MOSERS participants who qualify are approved to receive continued provision of medical insurance benefits until age 65. medical insurance benefits
Applications TO APPLY: − Contact Matt Moore at x7480 or Curt Devan at x7298. − http://hr.truman.edu/benefits/msrp/ − Completed applications are taken to the February 2007 Board of Governors’ meeting for approval. − Once approved by the Board, the retirement date is locked in.
Short-Term Modified Supplemental Retirement Plan New
Short-Term Modified Supplemental Retirement Plan Effective July 1, 2007 until December 31, 2009 Application window will be March 1 – May 15, 2007; Plan will terminate on December 31, 2009. New Requirements for eligibility and retirement will apply beginning July 1, 2007; − Section 10.110.1 Eligibility − Section 10.110.2 Retirement Benefits
Eligibility Full-time employees in positions paid by unrestricted University funds, who are current members of MOSERS are eligible for benefits under the Short-Term Modified Supplemental Retirement Plan if they are: (a) at least 57 years of age with the sum of age equaling 80 or more or (b) have a minimum of 15 years full-time employment at Truman and are eligible to retire under any MOSERS program.
Retirement Benefits Individuals whose receive retirement benefits approved by the Board of Governors will agree to one of the options described below: − Option A – A lump sum benefit based on the number of years from the employee’s retirement date until the retiree reaches 65 years of age. − Under this option, early retirees will receive a payment of $6,000 per year up to an 8 year maximum.
Retirement Benefits - Continued − Option A – continued − Partial years will be prorated to the nearest month; − The maximum lump sum benefit for eligible retiree regardless of their age at retirement will be $48,000.
Retirement Benefits - Continued − Option B – A monthly health insurance payment of $500 based on the number of months from the employee’s retirement date until the retiree reaches 65 years of age with a maximum of 96 monthly payments regardless of employee’s age at retirement. − The payment will only be made toward the Truman State University health insurance plan. − The retiree will be required to pay the difference between $500 and the actual cost of the insurance.
Applications TO APPLY: − Contact Human Resources at x7480 or x7298 − Application window will be March 1 – May 15, 2007; − Completed application are taken to the June 2007 Board of Governors’ meeting for approval. − http://hr.truman.edu/benefits/msrp/
Summary Modified Supplemental Retirement Plan − Final application window: October 1 – December 15, 2006 Applications reviewed at February Board meeting Applications are binding once approved by the Board Short-Term Modified Supplemental Retirement Plan − Application for retirements between July 1, 2007 and December 31, 2009 − Eligibility requirements have changed from the previous MSRP − Plan benefits have changed from the previous version − Applications are binding once approved by the Board
Frequently Asked Questions Q: If they have applied in the past and was not approved, can they apply again? A: The answer is that they should apply again if they want to be considered. Applications from the past that are not approved are not brought forward for consideration in the future. Q: If I am eligible for MOSERS does that mean that I am also eligible for the Modified Supplemental Retirement Plan (MSRP)? A: Not necessarily. MOSERS will accept years from the University as well as other reciprocating institutions, while the MSRP will only except years worked at Truman State University. With the Short – Term Modified Supplemental Retirement Plan you must be a full-time employee in a position paid by unrestricted funds, and a current members of MOSERS.
Frequently Asked Questions Q: If I submit my application for the MSRP, does that mean that I am approved to retire under the Modified Supplemental Early Retirement Plan? A: Applications must be approved by the Board of Governors. Q: Will the Board of Governors bring back the Early Retirement Plan after December 2009? A: The board has given no indications that the plan will be reinstated after December 2009 and persons should not apply to retire if they want to retire at a later date. Q: Are there changes to the amended MSRP that I should be aware of and are different with those stated in Board policy? A: The retirement dates and applications dates have changed. An employee whose application is approved by the Board must retire on the effective date stated in the application.
Frequently Asked Questions Q: How will the Board of Governors review my application for the MSRP? A: If the estimated total costs of qualified applications are more than the budgeted amount then the Board will select applications to be accepted within the budgeted amount. If other factors are considered to be equal between two or more applications, preference will be given to the applications whose positions will be eliminated or reduced in salary, or whose job descriptions will be significantly modified, after their retirements. Preference also will be given to applicants whose retirement dates best accommodate the University’s budgetary limits. Q: If I apply for early retirement and circumstances later change for me, am I locked into the retirement date? A: Persons applying should plan on retiring as they indicated. There is no “out” in the plan as approved by the Board.
General Retirement Benefits Two plans available from MOSERS (Missouri State Employees’ Retirement System) 1. MSEP Employees enrolled in the MSEP may choose the MSEP at the time of their retirement 2. MSEP 2000 Effective for hires on or after July 1, 2000 Plans offer different benefits depending on your age and circumstances at the time of your retirement MSEP 2000 “Temporary Benefit” MSEP guaranteed COLA Payment plan options
MOSERS Retirement Eligibility MSEP − Early Retirement Age 55 with 10 years of service − Age 65 and active with 4 years of service − Age 65 with 5 years of service − Age 60 with 15 years of service − “Rule of 80” At least age 48 with the sum of age and service credit equaling 80 or more
MOSERS Retirement Eligibility MSEP 2000 − Early retirement Age 57 or older with 5 years credited service − Age 62 with at least 5 years of service − “Rule of 80” Retiring from active service at least age 48 with the sum of age and service credit equaling 80 or more
MOSERS Application Process Two-step process 1. Application Form ( W-4P, Direct Deposit Authorization and Designation of Agent) 2. Election Form ( member chooses MSEP vs. MSEP 2000) Application form is available in Human Resources or on line at http://www.mosers.orghttp://www.mosers.org Application must be received by date indicated Election form is sent to the member − Must be returned to MOSERS by the date indicated