Do you know the value of your MOSERS benefits? As a state employee, you have access to a defined benefit pension plan, which provides a guaranteed, lifetime monthly income in retirement.

What’s a defined benefit pension?

A defined benefit (DB) plan requires a member to be vested to receive a set benefit for life after meeting the age and service requirements for retirement. Look at the following examples to see how much you would need to save on your own to replace your lifetime MOSERS pension benefit. Remember that the longer you work for the state, the higher your income replacement in retirement.

How is my pension funded?

Your pension benefits are funded by three sources: contributions from employers, contributions from employees, and investment earnings. Depending on your plan, you may or may not contribute toward your future retirement benefit. See the What’s My Plan? tool to determine your plan requirements.

What’s the value of my pension?

Not all employees are fortunate to have a pension plan. You may not realize how valuable this lifetime benefit is until you compare it to another type of retirement savings plan, such as an IRA, 401(k), or defined contribution plan.

According to the Federal Reserve’s Economic Well-Being of U.S. Households in 2023 report, only 21% of American workers who have retirement accounts participate in a defined benefit pension plan. This means that most workers depend on a workplace retirement plan or a retirement savings plan to help support them in retirement. Keep in mind that you can’t outlive your pension benefit, but you can outlive a retirement savings plan.

How can I save more for retirement?

If you haven’t started saving with MO Deferred Comp, now is a great time to start. This defined contribution plan is another valuable benefit that is available to you. Money invested in the deferred comp plan can supplement your pension in retirement. Visit MO Deferred Comp to learn more about how the plan works.