Details Demonstrate MOSERS Benefits Are Secure
[Posted on 06/22/2012 at 12:38 PM]
As indicated in our previous posting regarding the report on public pension plans issued by the Pew Center on the States (Widening Gap Update), we were confused by their assertions regarding Missouri. Specifically, they reported that Missouri failed to make required contributions and that the state had a pension liability that is much larger than is known to be the case. In preparing their report, their pension ratings were based on:
- Being above 80% percent funded (2 pts.)
- Having an unfunded liability less than the active member payroll (1pt.)
- Receiving at least 90% of the annually required contribution over the last 5 years (1pt.)
Plans that received all 4 points were rated as solid performers; plans with 2 or 3 points were scored as plans that need improvement; and plans with 1 or 0 points were considered plans with cause for serious concern.
Based on that rating system and the data set they used in preparing their report, MOSERS is considered a solid performer (4pts.) and the Judicial Plan was considered by them to be a plan with cause for serious concern (1pt). That being said, a Pew Center representative acknowledged that the Judicial Plan is not large enough to drive the overall grade for Missouri. (With regard to the Judicial Plan, the annually required contribution is being made. The fact that the Judicial Plan did not score in the other two areas was simply a function of the reality that the funding program for that plan was not initiated until 1998.)
As we have stated in the past, the bottom line is that the benefits that are the responsibility of the MOSERS’ board of trustees are secure.
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