My daughter is considering becoming employed for a state agency and is curious if she will be required to put a % of her pay check towards her retirement since she will be hired after the 1/1/2018 and the new rule that is in place.Yes, anyone who is first employed in a MOSERS or MPERS benefit-eligible position on or after January 1, 2011 must contribute 4% of pay to the retirement system. Your daughter's 4% contribution is used to help pay the cost of her future defined benefit retirement plan and could potentially pay her back far more than she contributes. See a simplified example in The Value of Your Retirement Benefit. When she retires, she will receive a benefit payment every month for as long as she lives. This means she can never outlive her MOSERS retirement benefit.
If she leaves state employment prior to becoming eligible for normal retirement, she may request a refund of her contributions plus credited interest. Or, she may leave her contributions with the system if she thinks she might return to work for the state at some point in the future and would like for those years of service to count toward an eventual retirement benefit. See our Member Contributions brochure for more information.
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