A Moment with MOSERS November 2023

Dec 10, 2023, 00:00 AM

September 2023 A Moment with MOSERS

The MOSERS Board of Trustees met for their regular quarterly meeting on November 16, 2023. Since the official minutes of that meeting won't be available until after they are approved at the next quarterly board meeting, we are providing this summary in order to get information to you more quickly. Please watch the video above and read the information below to learn more.

Hello and welcome to this edition of A Moment with MOSERS!

On November 16th, the MOSERS Board of Trustees met for their fourth quarter meeting. As always, the main objective of Board meetings is to ensure the long-term sustainability of promised benefits.

At the meeting, we presented the MOSERS Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023.

In the fiscal year, MOSERS-covered employers, including the state of Missouri, contributed 100% of the requested employer contributions needed to meet current and future benefit obligations.

Also in fiscal year 23, MOSERS paid more than $1 billion in pension benefits to retired members. These benefits have a significant and positive economic impact on our state and local communities since nearly 90% of MOSERS retirees remain in Missouri.

Next, the Board voted to approve revisions to the MOSERS strategic plan, including support of a new pilot program with the Missouri Department of Corrections, our largest state agency employer. Beginning in 2024, we will bring member education services into state Corrections facilities. Members will be able to meet with a benefit counselor at their workplace and receive other retirement education. The team at MOSERS is excited to kick off the new year with this expansion of our member outreach efforts to these dedicated public servants.

You can find the latest annual financial report and strategic plan on our website.

Turning to investments, the Board is currently in the process of reviewing our asset allocation as part of an asset/liability study, which occurs every 5 years. This work is very important as it determines how the system’s assets will be invested. The asset allocation is responsible for 90% of the investment returns generated by the System. At the meeting, the Board received an update on the timeline and next steps in the study, which will be completed in 2024.

Staff also reported on investment performance for the last quarter, which was down 4.76%. However, our investment team outperformed the policy benchmark by a half percent during the period, which equates to an additional $50 million of value added to the fund.

Next, the Board heard information relative to MOSERS’ exposure to China. Like many other public pension systems, MOSERS maintains a broad allocation to emerging markets. China represents approximately one third of the emerging market index and about 2% of MOSERS’ current assets.

After a thoughtful discussion about excluding China from the portfolio, the Board decided not to make any changes.*

Thank you for watching this edition of A Moment with MOSERS. Please have a safe and wonderful holiday season with your loved ones. I wish you much happiness as we move into 2024. We’ll see you then.

*Subsequent to the filming of A Moment With MOSERS, on December 12, 2023, the MOSERS Board approved a motion to divest from China.

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