MoDOT & Patrol Employees’ Retirement System
Watch: Benefit Basics – Retirement Terms 101
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MPERS Retirement Terms 101 – Transcript
Type: Text transcript of narrated video content.
Narrator: Retirement can be an exciting time in your life, but it can also be confusing.
Narrator: Benefit, service credit, backdrop, COLA, vested. These are all terms commonly used to explain your retirement benefit.
Narrator: But what do they mean?
Narrator: MPERS is a defined benefit plan. This means your future retirement benefit is calculated using a formula set by law. It does not rely only on your contributions.
Narrator: Members who are vested are eligible to receive a future retirement benefit from MPERS. Being vested means you have at least five years of service in a benefit eligible position.
Narrator: A benefit is the monthly payment you receive.
Narrator: Once members are vested and they retire, they receive a monthly benefit payment every month for the rest of their life. Now that is something to be excited about.
Narrator: A benefit eligible position is one in which you have worked at least 1,040 hours per year. MoDOT and the Highway Patrol determine which positions are benefit eligible and which are not.
Narrator: Service credit is how long you have worked in a benefit eligible position at MoDOT, the Highway Patrol, or a MOSERS covered agency. It may include service purchased or transferred.
Narrator: Backdrop is a payment option in which a member will receive a lump sum payment at retirement. You still receive your monthly payment from MPERS for life, but in most cases it will be reduced due to receiving the lump sum. The backdrop option is available to those in the Closed Plan or the Year 2000 Plan, not the 2011 Tier.
Narrator: COLA is more than just a fizzy beverage. In retirement, it stands for Cost of Living Adjustment.
Narrator: The COLA is a yearly percentage increase in your benefit payment.
Narrator: MPERS is here for you. If you have questions, visit mpers.org or call 800-270-1271.
Narrator: You can also visit the MPERS office in Jefferson City, Missouri.
Narrator: Make sure to follow us on Facebook and Twitter at MPERS Online.
Note: Some contact details mentioned in this video may have changed. Please visit mpers.org for current information.
How Much is My Benefit?
MPERS stands for the Missouri Department of Transportation and Highway Patrol Employees’ Retirement System. It’s a defined benefit plan — meaning your retirement benefit is calculated using a formula, not based on how much you save.
Learn more about the benefit formula →
What Plan Are You In?
The date on which you were first hired in a benefit-eligible position will determine your membership in the Closed Plan, Year 2000 Plan or 2011 Tier.
When Can I Retire?
Your eligibility depends on your age and how long you’ve worked in a benefit-eligible position.
Learn more about your retirement benefits →
What is Service Credit?
Service credit is the amount of time you’ve worked in a benefit-eligible position. It’s one of the key factors used to calculate your retirement benefit. The more service credit you earn, the higher your benefit may be.
In some cases, you may also be eligible to purchase additional service credit for prior public service, military duty, or other qualifying periods, which can increase your benefit or help you reach retirement eligibility sooner.
Learn more about purchasing service credit →
What is BackDROP?
BackDROP is a payment option available to eligible retirees. It allows you to receive a lump-sum payment in addition to your monthly benefit, based on the time you worked beyond your normal retirement eligibility.
Learn more about the BackDROP →
What Does It Mean to Be Vested?
Being vested means you’ve earned enough service credit to qualify for a future retirement benefit, even if you leave your job before reaching retirement age. Vesting typically occurs after five years of service.
What Happens After I Retire?
You’ll receive your benefit on the last working day of each month. MPERS will also send you an annual statement showing your benefit amount, cost-of-living adjustments (COLAs), and other important details.
Learn more about cost-of-living adjustments (COLAs) →
What If I Go Back to Work?
Returning to work after retirement can affect your benefits, depending on the type of job and your plan. It’s important to check with MPERS before accepting a new position.
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