On Monday, February 27, 2023, Governor, Mike Parson signed supplemental spending bill, HB 14. This bill will implement a cost-of-living adjustment for all active state employees, but it does not apply to retirees. However, all retired general state employees will receive a 5% COLA in 2023.

As part of the Fiscal Year 2023 state operating budget, which began July 1, 2022, the General Assembly and Governor Parson approved an extraordinary payment of $500 million to the Missouri State Employees’ Retirement System (MOSERS). This one-time payment will not be used to reduce future employer contributions to MOSERS but, rather, will be used to strengthen the System and increase the funded status of the System over time. This extraordinary payment is in addition to the $610 million annual employer contribution for Fiscal Year 2023 approved by the General Assembly and Governor Parson. The state of Missouri, as the largest MOSERS-covered employer, has consistently contributed 100% of the required annual employer contribution as recommended by the System’s actuarial professionals and certified by the MOSERS Board of Trustees.

The General Assembly passed the FY23 appropriation bills on May 6, 2022. This included $34 million to fund a deferred compensation employer match of up to $75 per month (with a minimum contribution of $25 per month). If signed by the Governor, this incentive will go into effect July 1, 2022. To stay up to date on recent legislation, check out our Legislation page. 

The General Assembly passed the FY23 state budget on Friday, May 6. This budget will be effective beginning July 1, 2022. Within the FY23 budget, the General Assembly appropriated and fully funded the amount requested by the Office of Administration of $610 million to fund the State’s annual employer contribution to MOSERS. 

In addition, the General Assembly passed a $500 million one-time extraordinary payment to MOSERS. For more information, visit our Legislation page or view HB 3005.