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What
are non-forfeited accounts?
Non-forfeited accounts represent employment that you
have earned service credit or are currently earning service credit toward a
retirement benefit. Since you have not
taken a distribution from these accounts, they have not been forfeited.
What
are forfeited accounts?
Forfeited
accounts represent previous employment from which you earned service
credit but has since been forfeited. You may have taken a distribution
from this account and chosen to forfeit any future retirement benefit
or the service was automatically forfeited because you did not re-employ
in a LAGERS covered position within 10 years of leaving this previous employment.If the distribution was a refund of employee contributions,
you may be eligible to reinstate this service. If your previous account
has been inactive for 10 years and you are now an active member of LAGERS,
you may be able to purchase this previous service.
Please contact LAGERS if you have questions
about reinstating or purchasing service credit.
What
is reinstatement?
If you have
previous LAGERS service credit that you forfeited by taking a refund of your
account balance, you may be eligible to reinstate this service.
Please contact LAGERS if you have refunded
service and wish to reinstate. If you
choose to reinstate a previously refunded account, you must be an active
employee and all payments to reinstate must be received prior to termination
or retirement.
What is a payment account?
A payment account is created each time LAGERS begins to pay a member monthly benefit, lump sum, or refund. The account(s) shown here are organized by the payment effective date.
My hire date is wrong
The date listed on myLAGERS as your hire date is either the actual date you were hired or the date your employer joined LAGERS, whichever is later. For example, if you were hired July 1, 1995 but your employer didn’t join LAGERS until August 1, 2003, then your ‘hire date’ on myLAGERS will be August 1, 2003. In most cases, you have received service credit for at least a portion of the time you worked for your employer before it joined LAGERS. That ‘prior service’ credit will be reflected on myLAGERS along with the time you worked for your employer after it joined LAGERS, called ‘membership service.’ If you believe your hire date and/or service credit is incorrect, please discuss the matter with your employer. If they determine that a change is necessary, they may certify the change to LAGERS so we can update our records.
Your
Defined Benefit
LAGERS is a Defined Benefit Plan.
Your
LAGERS retirement benefit will not be based on your account balance, employer
or employee contributions, or market conditions.Your benefit will be determined using a
formula that multiplies your employer-elected benefit factor times your
monthly final average salary times your years of service.Since salary and length of service are key
components of the benefit formula, eligible LAGERS members will receive a
benefit that is a direct reflection of their actual career.Once you are eligible to begin receiving a
monthly benefit, it will continue for the remainder of your lifetime.
What is account balance?
Your account balance is the sum of your mandatory employee contributions plus interest,
purchase of service plus interest and prior service contributions plus interest.Your employer decides whether or not the
employees will be required to contribute.
Your employer contributes an amount, in addition to the employee
contributions, necessary to fund the remainder of retirement benefits.
Employer contributions are deposited in the employer’s account for all
employees’ retirement benefits.
The
amount of your account balance does not affect the amount of your retirement
benefit.
LAGERS is a defined benefit public pension
plan so all retirement benefits are calculated using a formula, not an
account balance.
You are
guaranteed to receive your entire account balance either through refund, lump
sum, or monthly retirement benefit upon separation from LAGERS covered employment.
What is NCR?
NCR, or Non-Contributory Refund, is an option that may be elected by an eligible employer. If elected, each active employee with a LAGERS account balance is refunded the balance of his or her contributions plus interest.
Receiving a NCR distribution has no affect on an employee's LAGERS retirement benefits. If there is an amount listed here, your employer has elected the NCR and your account balance has been refunded to you. If this amount is $0.00, then your employer either has not elected the NCR or is not eligible to elect the NCR. An employer must have previously required employee contributions and be currently in employee non-contributory status for at least two years before they are allowed to elect the NCR.
Leave
Help
All service credit listed under leave types is
already included in Total Service Credit, with the exception of Leave of
Absence, for which no service credit is given.
What does Benefit Option mean?
When a member retires, he or she must choose how they want their benefit to be paid to them. No matter which option is chosen the member will receive a payment each month for their lifetime. If the member has employee contributions remaining in the system after all monthly benefits have been paid, the remaining balance will be refunded to a beneficiary. Once a monthly benefit begins, the payment option cannot be changed by the member or any beneficiary. Below is a brief description of the payment options available:
Life Option: This option provides the member with 100% of their monthly benefit until death. Upon the death of the member, payments cease.
Option A: This is a continuing spouse option which allows the member to receive less of a monthly benefit so that upon the member's death, his or her spouse will receive a monthly benefit for the spouse's lifetime. The member would receive 85% (adjusted for age) of the Life Option amount until death. The spouse would then receive 75% of the member's benefit for his or her lifetime.
Option B: Like Option A, this payment option provides a lifetime benefit for the member and the member's spouse. The member will receive 90% (adjusted for age) of the Life Option amount until death. The spouse would then receive 50% of the member's amount for his or her lifetime.
Option C: This option provides for a reduced monthly benefit (95% of the Life Option amount) payable for the member's lifetime. Should the member die within 10 years after their retirement date, the beneficiary of record will receive the same amount until a total of 120 payments (between the member and beneficiary) have been made. If the member lives longer than 10 years in retirement, he or she will continue to receive a payment, but the beneficiary would not be eligible for a monthly benefit.
An eligible survivor for Option A and Option B is either a spouse that has been married to the member for at least the two years immediately the member's retirement effective date or a person 40 years of age or older that has been receiving more than half support from the member for at least the two years immediately preceding the member's retirement effective date. The beneficiary cannot be changed after retirement under Options A and B.
The member may choose any person they wish as a beneficiary for Option C. They may also have multiple beneficiaries and have the ability to change beneficiaries after they retire.
Partial Lump Sum (PLUS): The member may choose any of the options listed above with or without a partial lump sum distribution that would be paid 90-150 days after the retirement effective date. The lump sum will be equal to 24 monthly payments of the Life Option benefit. The monthly benefit would still begin on the retirement effective date and would continue for the member's lifetime, but would be reduced by 16% (adjusted for age).
What
does this include?
This section includes
all military service purchase service estimates performed by you on this
portal and all service purchase estimates performed by LAGERS at your
request. You may create a new military
service purchase estimate for yourself by clicking the “New” button or remove
saved estimates by clicking the “Remove” button.
How do I know the earliest date to receive full retirement benefit?
This is the date when you reach full retirement age and are eligible to draw an unreduced benefit from all of your LAGERS accounts. Full retirement age is 60 for general employees, 55 for police officers and fire fighters, or the age when you reach Rule of 80 eligibility if you are covered under the Rule of 80. If you have already reached your retirement age, LAGERS projects this date ahead a few months to allow time for the application process. If you are over your full retirement age and would like an estimate for a different date than the one shown, simply provide an alternate date in the text box on the screen.
If you have service credit with more than one LAGERS employer, you may have different retirement ages based on the employers' elections or your job status. For example: Joe Employee was a police officer at City A for 15 years and a general employee at City B for 10 years. Joe's unreduced retirement age for his City A police service is age 55 and his unreduced retirement age for his City B general employee service is age 60. Joe may draw both benefits at age 55, but his general employee benefit would be reduced because he is drawing it early. Since Joe is vested in his police account, he can also draw his police benefit at age 55 and wait to draw his general employee benefit until age 60 and neither benefit would be reduced. Please keep in mind that you cannot be an active member of the LAGERS system when you begin to receive a monthly benefit.
Your final average
salary will be the highest monthly average of your gross salary during the
period of either 36 or 60 consecutive
months of your LAGERS service within your last 120 months of LAGERS
service. Your employer determines
whether your benefit will be based on the 36 or 60 month final average salary
calculation. For most members, final
average salary will be the monthly average of your earnings during the last
36 or 60 months of your LAGERS membership.
You will want to add service credit to this estimate if you
are considering purchasing service credit. Please visit www.molagers.org
For purposes of this section, an eligible survivor
would be a spouse that you have been married to for at least the two years
immediately preceding your retirement effective date or a person age 40 or
older that has been receiving more than half support from you for at least
the two years immediately preceding your retirement effective date.
Just before you retire, you will decide how you want
your benefit paid to you. Rather than
choosing to be paid 100% of your benefit for your lifetime only, you may wish
to take a reduction in your monthly benefit so that a portion of your benefit
will continue to be paid to your eligible survivor.
What
are my retirement options?
At
retirement, you must choose how you wish your benefit to be paid to you.No matter which option is chosen, you, the
member, will receive a payment each month for your lifetime.If you have employee contributions
remaining in the system after all monthly benefits have been paid, the
remaining balance will be refunded to your beneficiary.Below is a brief description of the payment
options available:
Life
Option:
This option
provides you with 100% of your monthly benefit until death.Upon your death, payments cease.
Option A:
This is a continuing spouse option
which allows you to receive less of a monthly benefit so that upon your
death, your spouse will receive a monthly benefit for his or her
lifetime. You would receive 85%
(adjusted for age) of the Life Option amount until death.Your spouse would then receive 75% of your
benefit for his or her lifetime.
Option B:
Like Option A, this payment option provides
a lifetime benefit for you and your spouse.
You will receive 90% (adjusted for age) of the Life Option amount
until death. Your spouse would then
receive 50% of your benefit for his or her lifetime.
Option C:
This option provides for a reduced
monthly benefit (95% of the Life Option amount) payable for your
lifetime. Should you die within 10
years after your retirement date, the beneficiary of record will receive the
same amount until a total of 120 payments (between you and your beneficiary)
have been made. If you live longer
than 10 years in retirement, you will continue to receive a payment, but your
beneficiary would not be eligible for a monthly benefit.
An
eligible survivor for Option A and Option B is either a spouse that you have
been married to for at least two years immediately preceding your retirement
effective date or a person 40 or older that has been receiving more than half
support from you for at least the two years immediately preceding your
retirement effective date. You cannot
change your beneficiary after retirement under Options A and B.
You
may choose any person you wish as a beneficiary for the Life Option or Option
C. You may also have multiple
beneficiaries and you have the ability to change beneficiaries after you
retire.
Partial Lump
Sum (PLUS):
You may choose
any of the options listed above with or without a partial lump sum
distribution that would be paid 90-150 days after your retirement effective
date. The lump sum will be equal to 24
times the Life Option benefit. Your monthly
benefit would still begin on your retirement effective date and would continue
for your lifetime, but would be reduced by 16% (adjusted for age).
Why
do I need to select an option?
Your monthly benefit amount changes depending upon
the retirement payment option you choose.
This will also affect withholdings for taxes.
How do I know what type of retirement?
Normal Retirement: You are eligible for Normal Retirement when you reach age 60 as a general employee, age 55 as a police officer or fire fighter, or you have reached your Rule of 80 eligibility (if your employer has elected the Rule of 80).
Early Retirement: You may begin to draw your monthly benefit up to five years earlier than your normal retirement age (60 for general employees, 55 for police and fire). Your monthly benefit will be reduced by one half of one percent for each month you are younger than your normal retirement age.
Deferred Retirement: If you are vested but not age eligible for a retirement benefit when you leave LAGERS covered employment, you may apply for a deferred retirement. By applying for a deferred retirement, you are letting LAGERS know you wish to postpone receiving your monthly benefit until you reach your normal or early retirement age. This allows LAGERS to verify your employment history with your employer right away in order to ease the retirement process in the future. You will be required to apply for your benefits to begin when you reach your normal or early retirement age, they will not start automatically.
Duty Disability: If you are totally and permanently disabled from completing your current job duties because of an injury or illness caused by your job, you may apply for a Duty Disability benefit from LAGERS. You do not need to be vested to be eligible.
Non-Duty Disability: : If you are vested, under your normal retirement age, and totally and permanently disabled from completing your current job duties you may apply for a Non-Duty Disability from LAGERS.
Who is an eligible survivor?
An eligible survivor would be a spouse that you have
been married to for at least the two years immediately preceding your
retirement effective date or a person age 40 or older that has been receiving
more than half support from you for at least the two years immediately
preceding your retirement effective date.
Help
for Missouri withholding.
Your
LAGERS benefit may be exempt from Missouri state income taxes.Please visit the Missouri Department of
Revenue web site for details:
http://dor.mo.gov/personal/
LAGERS
will withhold state income tax for Missouri ONLY.If you move out of Missouri, you should re-evaluate
your tax withholdings.
How
can I send this information to LAGERS?
You may send to LAGERS using one of the following
methods:
Fax:
573-636-9671
Mail: P.O. Box
1665
701
W. Main St.
Jefferson City, MO 65102
E-mail: [email protected]
LAGERS does not need an original proof of birth, a
copy is sufficient.
If your current name does not match the
name listed on your birth certificate, please indicate your current name on the
document.
What
does it mean to forfeit my account?
When you terminate LAGERS covered employment and
choose to receive a refund of employee contributions or a lump sum payment,
you forego the right to a future monthly retirement benefit based on that
service. Service credit for the
account(s) from which you choose to take a distribution will be forfeited.
If you re-employ in a LAGERS covered position in the
future and had previously received a refund of your account balance, you may
be eligible to reinstate your service credit.
How
do I qualify for a rollover?
Your employee contributions to LAGERS are not tax
deferred so you have already been taxed on that portion of your account
balance and will receive the entire amount you contributed tax-free.Any additional amount paid to you beyond
employee contributions has not been taxed.
Any taxable amount greater than $200 may berolled over into another eligible
retirement account. If you do not
rollover the taxable amount, LAGERS must withhold 20% of this amount and
forward to the IRS. You may also be
subject to a 10% additional penalty at the end of the year. |