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September 2018 Board Meeting Update

[Posted on 09/28/2018 at 3:17 PM]

In an effort to provide information more quickly to you about actions taken by the MOSERS Board of Trustees, we are developing these updates, emailing them to members, and posting them online. This is a summary, not the official minutes of this meeting. Once the Board approves the minutes at their next Board meeting, we will post them to the MOSERS website.

The MOSERS Board met on September 13, 2018. Please watch the video above and read the summary below.

Adoption of FY20 Employer Contribution Rates

After adopting the Board's Funding Policy, the Board reviewed the results of the June 30, 2018 actuarial valuations for the MSEP and the Judicial Plan. These annual reports provide a "snap shot" of the retirement plans as of that date. Below is a portion of the results from these reports.

June 30, 2018 Actuarial Valuations MSEP Judicial Plan
Market Value of Assets $8,034,508,424 $150,199,575
Actuarial Value of Assets $8,830,410,210 $162,135,045
Actuarial Accrued Liability $13,612,763,961 $593,788,592
Unfunded Actuarial Accrued Liability $4,782,353,751 $432,653,547
Funded Ratio 64.9% 27.3%
Employer Contribution Rate (For FY20 – Beginning 07/01/19) 21.77% of payroll 63.80% of payroll
Employer Contribution in Dollars (Estimated) $445.9 million $40.1 million

The Board voted to certify the employer contribution rates for FY20 as recommended by MOSERS' external actuary. These certified rates are 21.77% of payroll for the MSEP and and 63.80% of payroll for the Judicial Plan.

Note: The state of Missouri, as the employer, has consistently paid contributions on time and in full as certified by the MOSERS Board of Trustees. Recent action by the Board to reduce the assumed rate of return on investments and change the smoothing method have caused the employer contribution rate to increase in the short term but will work to ensure MOSERS' sustainability over the long term.

Investment Committee Update

The Investment Committee reported that staff has been working with the Board Investment Consultant, Verus Investments, LLC, to produce revised board governance policies relative to investments. The committee will continue their work with the goal of having a final version of the investment governance policy for the Board's review and approval at the November Board meeting.

Staff reported the audited MOSERS investment return of 7.4% for fiscal year ending June 30, 2018. Staff also reported that, in FY18, MOSERS reduced its investment management fees by $9 million.

Strategic Planning & Governance Update

The Strategic Planning & Governance Committee reported they are working on several items. Their current priorities include re-writing the non-investment governance policies, forming an audit committee, determining metrics for the evaluation of the executive director and chief investment officer, and developing a formal board strategic plan.

Board Election Results

Staff reported the official results of the board election. Crystal Wessing and Jennifer Jacobs retained the active member representative seats on the Board. Gary Findlay was elected to the retired member representative seat and will begin his term on January 1, 2019. Participation in the 2018 election cycle increased by 2% from the 2014 cycle.

Future Board Meeting Dates

November 15, 2018 – 9:00am in MOSERS Boardroom

More information is available at www.mosers.org or see our Key Facts regarding funding of MOSERS.

MOSERS
Missouri State Employees' Retirement System
Address: 907 Wildwood Dr., Jefferson City, MO 65102
https://www.mosers.org/images/mosers-logo-bg-375-280.jpg Phone: 800.827.1063 URL: Email: mosers@mosers.org Founded On: September 1, 1957