Employee Contributions

History of Employee Contributions

When MOSERS was first established in 1957, by law, state employees contributed 4% of their pay to the System. In 1972, following a period of no or very modest pay raises for state employees, policy makers eliminated employee contributions in lieu of giving employees a pay raise.

In 2010, following the Great Recession, the Missouri General Assembly made changes to pension plans. That legislation reinstated employee contributions at 4% of gross pay on a before-tax basis for members first employed by the state on or after January 1, 2011. It also increased the retirement age. However, state employees retained the valuable defined benefit plan structure.

These changes have already produced cost savings. They will continue to reduce overall pension costs for the state going forward, helping to ensure MOSERS' sustainability over the long term.

Currently, more than 50% of active state employees contribute 4% of their pay to the System. Annually, state employees in the MSEP 2011 and the Judicial Plan 2011 contribute more than $39 million to MOSERS.

See our Key Facts Regarding Funding and Employee Contributions (2011 Plan) for more information on funding.