Your MOSERS Benefits are Secure
[Posted on 08/26/2015 at 10:00 AM]
If you are counting down the years to retirement, or are within a few months, the recent stock market plunge may have you concerned about the security of your retirement.
As a MOSERS member, you have some distinct advantages that you should find reassuring:
Your MOSERS pension is a defined benefit (DB) plan. It is not an individual account subject to the volatility of the market or one that YOU must manage. Rather, a DB plan is one that is based on a retirement formula defined by law. For general state employees covered under MOSERS, your pension is calculated using your service, salary, and a multiplier. This means that the pension fund, not the individual members, assumes the risks. The MOSERS pension fund is professionally managed, invests over the long-term and can withstand ups and downs of the market much better than an individual account holder. Key facts of MOSERS’ plan design make it stable and secure over generations.
MOSERS has a strong track record and in recent years has adjusted its strategy to better protect against down markets. While MOSERS’ investment returns don’t directly impact members’ individual pension payments, our long-term above-average returns have resulted in our fund getting more of its income from investment returns and less from tax dollars as compared to other pension funds. See Not Your Average Pension Fund for more information.
In addition to your defined benefit pension plan, the State of Missouri Deferred Compensation Plan has a variety of tools available to help you accumulate and manage additional retirement come. Advantages of participating include possibly lower income taxes, before- and after-tax (Roth) savings options, low investment fees, professionally managed, customized Target Date Funds that adjust risk levels based on your anticipated retirement date, educational resources, and much more.
MOSERS exists to advance your financial security and is here to assist you as you approach and enjoy your retirement.
Comments or questions for MOSERS?
Your opinions and questions are important to us. If you would like a direct response to a question, please include your name and email address below. If your feedback involves an email you received from MOSERS, please include the subject of that email with your comments below.
Help us help others. If you have a question, others may too.
If your question is of general interest and has not already been addressed on Rumor Central, we may post it there. We won’t use your name, email address or any other individually identifying information.