Funding

Funding

Your promised pension benefits are an obligation of the state and they are secure.

Only a portion of the entire cost of pensions comes from the state. Employees also contribute, through a required payroll deduction, toward their future retirement income. MOSERS investment staff use the employer and employee contributions to generate the largest source of System funding: investment income.

MOSERS has been providing employee benefits for more than 60 years. Our mission is to advance the financial security of our members. That is why we work hard every day to ensure the long-term sustainability of the System.


Fiscally Sound

The MOSERS Board of Trustees is taking strategic action to make MOSERS more fiscally sound. They recently:

  • Reduced the assumed rate of return on investments (ARR) from 7.25% to 7.10%. They intend to further reduce the ARR to 6.95%. While this will cause the employer contribution rate to increase in the short term, it will work to help ensure MOSERS' sustainability over the long term.
  • Authorized a one-time pension buyout program (2017- 2018) for vested former state employees. This resulted in a net reduction in system liabilities of $41 million.
  • Adopted a new asset allocation as described in the Investment Policy Statement.

Where does MOSERS funding come from?

As noted above, investment earnings are the largest source of funding for paying pensions to retirees. The money we invest comes from both employer contributions and employee contributions.

  • 58% from investment income
  • 41% from employer contributions
  • 1% from employee contributions

We distribute more than $800 million in pension benefits annually.

Understanding MOSERS’ Investment Approach infographic


Funding for Public Pensions Means Funding for Missouri

Our Economic Impact reports show the significant, positive impact of MOSERS pension benefits on our economy.

  • The average pension benefit for MOSERS retirees is approximately $15,000 per year. This modest benefit provides those who served the public during their working years with income to meet their basic needs in retirement.
  • Nearly 90% of retirees and their dependents remain in Missouri. They spend their money on housing, goods, and services. Each $1 paid in benefits has $1.43 in economic impact.
  • Retirees have more than $15 million in state taxes and $75 million in federal taxes withheld from their benefit payments each year.

Committed to Transparency

The MOSERS Comprehensive Annual Financial Report (CAFR) provides a complete overview of the System's financial condition. Each year, we publish the full CAFR to our website and send our Summary Annual Report to all members.