Governor's Years-of-Service Retention Plan | Missouri Office of Administration

Information About the Years-of-Service Pay Plan:

The launch of the Governor's years-of-service retention plan (years-of-service pay plan) is a step forward in valuing contributions and fostering a rewarding work environment. The plan is designed to recognize and reward dedicated service and commitment from those serving our Missouri citizens and visitors to the great State of Missouri. Investing in our employees is a priority, and this plan reflects appreciation for hard work, dedication, and loyalty.

The years-of-service pay plan is a 1% pay differential provided to eligible state employees for every two years of continuous state service, up to a maximum of 10% with 20 or more years of service.

This plan represents a long-term commitment to valuing state employees, with funding intended to continue in perpetuity, subject to appropriation.

Key Benefits of the Years-of-Service Pay Plan:

Longevity Recognition/Appreciation: The plan rewards employees based on years-of-service and acknowledges the value of sustained commitment, dedication, experience, and expertise.
Enhanced Retention: An experienced team is vital to our success. This plan encourages continued service and supports a stable and productive workforce.
Increased Loyalty and Commitment: By formally recognizing dedication, the aim is to strengthen employee loyalty and commitment to shared goals.
Improved Morale: Feeling valued and appreciated contributes significantly to overall job satisfaction and morale.
Attracting and Retaining Top Talent: We strive to offer a competitive compensation structure, which is essential for attracting and retaining skilled professionals who are dedicated and consistently contribute to the State of Missouri.

Thank you for your continued dedication and commitment.

Years of Service Retention Plan (PDF)

Frequently Asked Questions:

What is the years-of-service pay plan?

The years-of-service pay plan is a 1% pay differential provided to eligible state employees for every two years of continuous state service, up to a maximum of 10% with 20 or more years of service.

A pay differential is separate from your base salary. The differential pay is additive to your base pay as long as you remain eligible, but it does not raise your base pay. If your eligibility changes, the differential may be adjusted or removed.

Who is eligible for this specific pay plan?

You are eligible for the years-of-service pay plan if you meet the following criteria:

You work at least 1,040 hours or more in a rolling calendar year beginning with their start date, as these positions accrue sick or annual leave;
Your W2 is issued by the State of Missouri’s Office of Administration, Division of Accounting and you work within the Executive, Legislative or Judicial Branch of Missouri state government; and
You are in a position where your pay is determined by law or other specific guidelines to be outside of this plan.

Who is NOT eligible for this specific pay plan?

Seasonal and temporary hourly employees who work less than 1,040 hours a year, as these positions are not considered benefit-eligible. Other employees are not covered by this plan because their salaries are set by law, or they are covered by a separate compensation plan. This includes:

Statewide elected officials, members of the General Assembly, judges and employees whose salaries are set by state law.
Uniformed members of the Missouri State Highway Patrol (MSHP) and Missouri Capitol Police as these employees already receive salary adjustments based on their length of service.
Department of Transportation (MoDOT) and Department of Conservation (MDC) team members, as their pay is handled by their respective commissions.
Department of Corrections (DOC) team members, who will continue to receive retention pay under their department's existing plan.
Team members in specific roles at 24/7 congregate care facilities who are covered by the congregate care retention pay plan. This includes facilities within:
- Department of Mental Health (DMH)
- Department of Social Services (DSS), Division of Youth Services (DYS)
- Department of Elementary and Secondary Education (DESE)
- Missouri Veterans Commission (MVC)
- Office of Administration (OA) Facilities Management working at DMH
Team members at institutions of higher education, Missouri State Employees' Retirement System (MOSERS), and Missouri Consolidated Health Care Plan (MCHCP).

Please note that if your department or job classification is on the "Who IS NOT Eligible" list, it is typically because you are covered by a separate pay or retention plan. These departments and groups manage their own compensation strategies will communicate any details or changes for those different plans directly to their team members.

What is "continuous state service"?

State service is considered continuous as long as a team member does not have a break in full time status service of more than 24 consecutive months. If a break of more than two years occurs, your service time resets, and the calculation is based on your most recent hire date into a benefit-eligible position. Time spent on military leave or FMLA-covered leave counts as continuous service.

Example 1: When Prior Service Does Count (A Break of Less Than 24 Consecutive Months). I currently have four years of continuous service with the DSS. I was previously employed in two other benefit-eligible positions with the State of Missouri for six years and had one break in service for a period of 1 year and 1 month outside of state government. What counts towards and what does not count as “continuous state service”?

The chart below illustrates this example:

Month/Year	Position	Service Time	Eligible
6/14 – 6/18	Department of Revenue	4 years	Yes
6/18 -7/19	University of Missouri	1 year 1 month	No, because your employment was outside of state government
7/19 – 7/21	Department of Higher Education and Workforce Development	2 years	Yes
7/21 – Current	Department of Social Services (DSS)	4 years	Yes

Based on the example provided, your total eligible service time is 10 years, which qualifies you for a 5% years-of-service pay increase.

All of your prior service with the Department of Revenue and the Department of Higher Education and Workforce Development counts as continuous state service. This is because your break in service to work outside of state government was only 1 year and 1 month, which is less than the two-year period that would reset your service time clock.

For the purposes of this specific years-of-service pay plan, employment at the University of Missouri is not considered eligible service time because it falls outside of the state's central payroll system. The eligibility for this plan is determined by who issues an employee's W2. The plan is specifically for team members who receive a W2 issued by the Office of Administration’s Division of Accounting with the State of Missouri.

Institutions of higher education, like the University of Missouri, have their own payroll systems and are not covered by this plan. This is why, in the employment history examples, service at the University of Missouri is listed as "employment outside of the state."

Example 2: When Prior Service Does Not Count (A Break of Longer than 24 Consecutive Months). I currently have 3 years of continuous state service with the Department of Social Services (DSS). I was previously employed in two other benefit-eligible positions with the State of Missouri (General Assembly [5 years, 11 months] and in the Office of Administration [11 months]) but had two breaks in service which were greater than two years. What counts towards and what does not count as “continuous state service”?

The chart below illustrates this example:

Month/Year	Position	Service Time	Eligible
1/08 – 12/14	Missouri House of Representatives	5 years 11 months	No, employment occurred previous to a break in service that was greater than two years.
1/15 – 7/16	Private law firm	1 year 6 months	No, employment outside of the state government
8/16 – 7/17	Office of Administration (OA)	11 months	No, employment occurred previous to a break in service that was greater than two years.
7/17 – 2/22	Private bank	4 years 8 months	No, employment outside of the state government
2/22 – Current	Department of Social Services (DSS)	3 years	Yes

Based on the example provided, your total eligible service time is 3 years, which qualifies you for a 2% years-of-service pay increase.

Your prior state service with the Missouri House of Representatives and the Office of Administration does not count toward this calculation. This is because your most recent break from state employment lasted 4 years and 8 months. Since that break was longer than the two-year limit, your service clock was reset, and only your most recent 3 years of employment with the Department of Social Services is considered continuous service.

Example: I worked for Office of Administration for 10 years in a benefit-eligible role and then switched to a part-time, non-benefit-eligible position for three years at the same agency before returning to a full-time, benefit-eligible role a year ago. What counts towards and what does not count as “continuous state service”?

In this example, your total eligible service time is 1 year. Your previous 10 years of full-time service do not count toward the calculation because moving to a non-benefit-eligible position for three years is considered a break in continuous service of more than two years. That break reset your service clock, so only your most recent period of benefit-eligible employment is counted.

If I previously worked for an excluded state government department like MoDOT, does that time count?

Yes. If you are now in a position eligible for this plan, all of your prior continuous, benefit-eligible service with any state department, elected official's office, the legislature, or the judiciary will be counted. For example, three years at MoDOT followed by one year at DNR would result in four years of total service and a 2% increase.

Example: My first full-time role was with the Missouri Department of Transportation (MoDOT) for three years. I then moved to a position with the Department of Natural Resources (DNR) and have been here for one year. Does my time at MoDOT count toward my continuous service?

Yes. Even though MoDOT team members are not eligible to receive pay under this specific plan, your benefit-eligible service time there still counts toward your total continuous service. This results in four years of service and a 2% increase for years-of-service pay.

How does a leave of absence or military leave impact my service time?

Time spent on military leave or any FMLA-approved leave counts toward your service time. If you use paid sick or annual leave to cover an absence, that time also counts. However, if you are on an unpaid leave of absence not covered by FMLA or military service, that time does not count toward your service accrual.

Example: I’ve worked for DNR for 10 years in a benefit-eligible position. During that time, I was deployed with the Army Reserves for 18 months and was on military leave at DNR. Does my time on military leave still count toward my continuous service?

Yes. Time spent on military leave is required to be counted toward your service time for years-of-service adjustments. Your total service time would be 11 years and six months, and you will receive a 5% increase.

Does part-time or seasonal work count?

Only if the position is benefit-eligible (1,040+ hours per year). If you work in a permanent part-time position where you accrue sick and annual leave, that time counts. Temporary or seasonal appointments are generally not benefit-eligible and will not count toward service time.

Example: I have five years of benefit-eligible service working at the Department of Revenue. Before this, I worked in an hourly position as a Tax Season Assistant for several years. Will the time I spent in my temporary, hourly role count toward my continuous service?

No, time spent in temporary, seasonal, or hourly positions that are not benefit-eligible does not count toward your service time for this pay plan. To be eligible, a position must involve working 1,040 hours or more in a year. Roles like a seasonal Tax Season Assistant are considered temporary appointments and are not eligible for years-of-service adjustments.

Team members in these positions work less than 1,040 over a 12-month time period. This is a temporary appointment based on 1 CSR 20-3.030 (2)(C). Temporary appointments are not considered state service time and will not count toward years-of-service adjustments.

There are rare instances where an appointment in an hourly non-benefit eligible position extends longer than anticipated, and the team member is moved into a permanent position without a break in service. In this situation, the team member will receive service time for the portion of work that exceeds 1,040 hours. The standard practice is to move the person out of these temporary roles prior to this occurring. If this were applicable, then the few additional month(s) of service should already be reflected in your service time.

Will my continuous service time for this plan match my MOSERS service time?

Not necessarily. The times may only match if you have always been in benefit-eligible positions, had no breaks in service, and any unpaid leave was covered by FMLA.

When will I receive my years-of-service differential?

Adjustments are calculated on July 1st of each fiscal year. The plan looks ahead for the entire year; if you are projected to reach your next two-year service milestone at any point during that fiscal year, the increase will be applied as of July 1st. The first paycheck that will include this adjustment is the one issued on July 31st.

Here is how it works:

Increases are Effective July 1st: All years-of-service adjustments are calculated and applied on July 1st of each fiscal year.
The Plan Looks Ahead: The calculation looks at the entire upcoming fiscal year (from July 1 to June 30). If you are projected to reach your next two-year service milestone (e.g., 2, 4, 6 years) at any point during that fiscal year, you will start receiving the corresponding 1% increase on July 1st.

This plan was developed as an investment in every team member and to offer "an expectation that every two years, they will receive an increase differential.” While this establishes a clear and predictable path for future increases, it is the primary strategy where the state has decided to invest funding for this fiscal year. As with all state programs, the continuation of this plan in future years is subject to appropriations.

Example 1: You will reach 2 years of continuous service in January 2026. You will begin receiving the 1% increase on July 1, 2025, rather than waiting until January 2026.

Example 2: You will reach 7 years of continuous service on November 1, 2025, but will not reach 8 years until November 1, 2026, which falls in FY27. For this initial roll out, your years-of-service adjustment pay differential is based on your last completed two-year milestone, which is 6 years of service. This means you will receive a 3% pay differential on the initial roll-out on July 1, 2025. Hitting an odd-numbered year of service (like your 7-year anniversary) does not trigger an increase, because the plan only provides increases for every two full years of service.

For the next year, starting July 1, 2026, the plan looks ahead and sees that you will reach your 8-year anniversary in November 2026 (which is during Fiscal Year 2027). Because your next two-year milestone falls within FY 2027, your differential will be increased to the 8-year level (an additional 1%) on July 1, 2026.

The chart below illustrates this scenario if you had base salary of $50,000:

Years of Service	Retention %	Base Pay	TOS Differential	Annual Salary with TOS Differential	Start Date	End Date
7 years	3%	$50,000	$1,500	$51,500	7/1/25	6/30/26
8 years	Additional 1% (total 4%)	$50,000	$2,000	$52,000	7/1/26	6/30/27
9 years	None	$50,000	$2,000	$52,000	7/1/27	6/30/28
10 years	Additional 1% - (total 5%)	$50,000	$2,500	$52,500	7/1/28	6/30/29

It would carry on this same pattern until you reached a maximum of 10% in future years. If you receive an increase in your base pay, your differential would be impacted.

Years of Service	Retention %	Base Pay	TOS Differential	Annual Salary with TOS Differential	Start Date	End Date
11 years	None	$50,000	$2,500	$52,500	7/1/29	6/30/30
12 years	Additional 1% (total 6%)	$60,000	$3,600	$63,600	7/1/30	6/30/31
13 years	None	$60,000	$3,600	$63,600	7/1/31	6/30/32
14 years	Additional 1% (total 7%)	$75,000	$5,250	$80,250	7/1/32	6/30/33
15 years	None	$75,000	$5,250	$80,250	7/1/33	6/30/34
16 years	Additional 1% (total 8%)	$85,000	$6,800	$91,800	7/1/34	6/30/35
17 years	None	$85,000	$6,800	$91,800	7/1/35	6/30/36
18 years	Additional 1% (total 9%)	$95,000	$8,550	$103,550	7/1/36	6/30/37
19 years	None	$95,000	$8,550	$103, 550	7/1/37	6/30/38
20 years	Additional 1% (total 10%)	$100,000	$10,000	$110,000	7/1/38	6/30/39

What happens to my years-of-service pay if my salary changes during the year?

The dollar amount of your years-of-service differential will be recalculated immediately when your base pay changes. Your years-of-service percentage will stay the same, but that percentage will be applied to your new base salary.

Example: You have 7 years of service and a 3% years-of-service differential. Your base pay increases from $50,000 to $55,000 mid-year. Your 3% differential is applied to the new salary, and your years-of-service pay increases from $1,500 to $1,650 annually ($55,000 x 3%) immediately.

I have only been with the state for one year. Will I receive a .5% increase on July 1, 2025?

No. The plan does not provide for partial or incremental increases based on single years of service. Adjustments are applied as a 1% increase for every two years of service.

Why is the plan calculated on a fiscal year basis instead of on my anniversary date?

For this pay plan, the years-of-service adjustment differential is being implemented using the fiscal year as the basis for calculating eligibility and applying increases. We recognize that this may differ from other pay plans that use anniversary month or dates. However, aligning with the fiscal year allows a more consistent and efficient mass update process across a broader employee group. It also helps ensure that adjustments can be applied in a uniform way at a predictable point in time for future budget calculations. This fiscal model was selected for this plan.

What happens if I move to a different position or get a raise?

Your years-of-service percentage will remain the same, but the dollar amount will change. The percentage will be applied to the new base pay rate of your new position. This is illustrated in the top chart (or we can label as Chart A) above.

What happens if the years-of-service pay puts my total earnings over my position's maximum salary range?

You will still receive the full years-of-service increase, even if it puts your total pay over the maximum for your position's salary range. This is because the years-of-service pay is applied as a differential and does not increase your base pay rate. Think of it as a separate, additional payment on top of your regular salary. Salary range maximums only apply to your base pay, so this differential is not affected by that limit.

Example: You are a Program Manager at the Department of Mental Health (DMH) with 20 years of experience. Your current salary is 8% lower than the maximum of the range. The 10% increase differential for 20 years will put you over the salary range. Are you still eligible to receive the full 10% increase differential? Yes, the years-of-service pay is applied as a differential and will not increase your base pay rate; therefore, it will not affect your salary range maximum. You will receive the full 10% increase applied as a differential.

Does this pay count toward my retirement?

Yes. The years-of-service pay is included in your gross pay reported to MOSERS, which is used to determine your highest 36 consecutive months of pay for retirement calculations.

Will this pay be included in leave payouts or comp time?

Yes. The differential is included when calculating payouts for federal, state, and holiday comp time. It is also included in annual leave payouts.

How will my pay be handled if I have multiple state jobs?

Most second jobs with the state are not benefit-eligible and therefore would not receive this adjustment. In the rare case that you hold more than one benefit-eligible position, the appropriate years-of-service plan will be applied to each job.

Will this plan create "compression" where some employees earn more than their supervisors?

This plan was developed to address the fact that many long-serving team members did not receive consistent increases in the past. While compression can occur, supervisors will also see their own years-of-service percentage increase over time. The state will continue to consider compression as it evaluates future pay plans.

Will disciplinary actions or performance concerns affect my eligibility?

For the Initial Rollout (FY26): No, for the initial rollout on July 1, 2025 (Fiscal Year 2026), disciplinary actions or performance concerns will not be a factor in determining initial eligibility for the years-of-service adjustment.

For Future Years (Starting in FY27): Yes. Beginning on July 1, 2026, your continued eligibility for future adjustments will take into account any disciplinary actions or performance concerns from the prior fiscal year. While these factors do not affect your initial eligibility, they will be important for future adjustments to help ensure that team members are accountable for meeting professional requirements for their positions. The final criteria for this are being developed in partnership with state agencies to ensure a consistent process.

I work for DOC or in a congregate care facility. How does this plan affect me?

You are not eligible for this specific years-of-service plan because you are covered by your own retention plan. These departments and groups manage their own compensation strategies will communicate any details or changes for those different plans directly to their team members.

I work in a permanent part-time position and accrue sick and annual leave. Will I receive a years-of-service adjustment?

Yes, if you are in a position that accrues sick and annual leave, you are earning state service time toward retirement, and you will receive years-of-service pay. The number of hours an employee can work to be considered a 50% employee and be benefit-eligible is 1,040 hours a year. To be eligible for years-of-service pay you must work 1,040 hours or more annually.

Why are some departments or team members not included?

Certain departments and team members are not included in this specific pay plan because their compensation is determined by other established methods. These groups either have their own retention pay plans, receive separate salary adjustments based on their length of service, have pay strategies approved by their own commissions, or have salaries that are set by state law.

Does this years-of-service pay plan apply to managers and other department leadership?

Yes, so long as the individual is eligible and not otherwise excluded under this specific pay plan.

Does receiving this years-of-service pay prevent me from getting other types of raises?

No. This years-of-service pay plan is a separate differential and does not limit your ability to obtain other pay increases. This plan operates independently of other compensation adjustments. You remain fully eligible to receive other pay increases, such as:

Increases to your base salary through promotion, reclassification, or other pay plans.
Other applicable pay differentials you may be eligible for.

Who do I contact if I have more questions?

Please contact the Human Resources office within your department.

Is this information or its criteria subject to change?

Yes. This information is a guide, but the details of the pay plan are subject to change. Please keep the following in mind. All provisions of the FY26 Years-of-Service Pay Plan are subject to final approval by the Office of Administration. The continuation of this plan in future years is contingent upon annual budgetary appropriations. The State of Missouri reserves the right to adjust the plan as necessary. Any changes to the plan must be approved by the Commissioner of Administration and will be formally communicated to team members.