Losing BackDROP?

I've hear a rumor that MOSERS employees are telling people that we need to retire soon because we will probably be losing our backdrop money. 

Any changes to BackDROP, or any retirement provision, must go through the legislative process and be signed into law by the Governor.

It is possible that someone misunderstood information from a MOSERS employee. If you elect the BackDROP* at retirement, it will likely reduce your monthly pension benefit amount because you are electing to take part of your benefit as a lump-sum and part of your benefit as a lifetime monthly payment rather than all of it as a monthly benefit.

Another possible scenario that someone may have misunderstood has to do with the timing of one’s BackDROP period relative to when they otherwise would have been eligible for the Temporary Benefit. The Temporary Benefit is available to members eligible to retire under the MSEP 2000 through the Rule of 80. It is payable, in addition to the base benefit, until age 62. The BackDROP lump sum is calculated based on 90% of what you would have received in retirement benefits had you been retired during the BackDROP period. The maximum BackDROP period is 5 years. If someone had been eligible for the Temporary Benefit but worked until age 67 or older, the amount of the lump-sum payment might decrease.

The BackDROP is simply a benefit payment option that is available to eligible members. Details related to BackDROP can be confusing! Members who are or may become eligible for BackDROP are encouraged to attend a PreRetirement Planning Seminar and/or make an appointment with a MOSERS benefit counselor for further explanation.

*BackDROP is available only to general state employees who are members of MSEP & MSEP 2000 and who work at least two years beyond normal retirement eligibility.