Retire News Winter 2019
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Board of Trustees Crystal Wessing - Chairwoman Gary Metzger - Vice Chair etee Representative Rusty Black ES Gary Findlay Treasurer Scott Fitzpatrick Jenny Jacobs Joe Keifer Commissioner Sarah Steelman Contents Senator Wayne Wallingford Senator Gina Walsh BOARD CORNER LIFE PLANNING Representative John Wiemann Executive Director September Meeting Public Pension Exemption Ronda Stegmann 3At the September Board meeting, You6 may be able to deduct some or trustees certified the FY21 employer all of your pension benefit on your contribution rate. Missouri state taxes. Office Hours Monday−Friday 8:00 am–12:00 pm NOTEWORTHY NEWS COLA Adjustments 1:00 pm–4:30 pm Learn6 how your cost-of-living Contact Customer Service adjustment is calculated and Toll Free: (800) 827-1063 when you’ll get it. 4MOSERS' cost, when compared In Jefferson City: (573) 632-6100 Fax: (573) 632-6103 to peers, remains low, while our customer service rates high. Automated Phone Options RETIREMENT & YOU Benefits MO Deferred Comp Contact Information Coffee Break Schedule Investments 4 7Our Coffee Break schedule is now Operator It is important to keep your email and address up to date with available! Join us for new topics MOSERS. Here's why. in 2020. Visit 907 Wildwood Dr Jefferson City, MO MOSERS Online Library 1099-Rs Mailing Address 5Want to search for a document or 7We will send your retirement PO Box 209 publication on our new website? benefit tax information to you by Jefferson City, MO 65102-0209 Find out how. the end of January. Email [email protected] Appointments ARMSE Relay MO 5Did you know counselors are The8 Active and Retired Missouri 711 (Voice) available to meet with you face to State Employees group monitors (800) 735-2966 (TTY) face in our Jefferson City office? your benefits. RetireeNews is published by the Missouri Connect With Us On Social Media State Employees’ Retirement System. Contact us to obtain this publication in an alternative format. f a ce b o o k .co m / M OSER SRe t ir e m e nt m o s e r s r c . b l o g s p o t . c o m Stock photos are used in this publication and are chosen for illustrative purposes twitter.com/MOSERSjc youtube.com/MOSERSOnline only; they do not imply any particular attitudes, behaviors, or actions on the part of any person who appears in the photographs. Make sure you receive your important benefit information now and in the future. Communciations Manager - Candy Smith Verify or update your mailing address, email, and phone number while logged Writer/Editor - Candy Smith in. Go to www.mosers.org and click on myMOSERS. Under Personal Information, Graphic Designer - Mike Azar click on Email Options to change your preferences. BOARD CORNER The Board also received an update on the status of the Plan's funded ratio. As of June 30, 2019, the actuarial funded ratio of the MSEP is 62.9%. This is a ratio of plan assets to plan liabilities. The funded ratio is projected to decrease over the next 5 years but is then projected to steadily increase. Projection of Funded Ratio 8 7 6 5 4 3 20 An Update from the Executive Director 1 September 2019 Board Meeting Update 0 1 4 2029 34 3 44 The MOSERS Board of Trustees met for their quarterly meeting on September 19, 2019. In order to get A key component of the employer contribution rate and information to you as quickly as possible, we have the Plan's funded ratio is the assumed rate of return posted a short video online and included a meeting on investments. The Board has been systematically summary below. reducing the MOSERS investment return assumption. This reduction results in an increase in the employer At their recent quarterly meeting, the MOSERS Board of contribution rate and a decrease in the Plan's funded ratio. Trustees certified the FY21 employer contribution rates for the Missouri State Employees' Plan (MSEP) and the For example, the Board's adopted investment assumption Judicial Plan. of 7.1% contributed to the 22.88% employer contribution rate and the 62.9% funded ratio. If the Board had Beginning July 1, 2020, the certified employer adopted a higher assumed investment return, such as contribution rate for MSEP will be 22.88% of payroll 8.1%, then the employer contribution rate would be – up from 21.77%. The employer contribution rate is closer to 18% and the funded ratio would be almost 70%. the percent of pay that the employer sends to MOSERS every pay period to properly fund our retirement plan. This rate has increased over the last several years and Investment Return Assumption 7.1% 8.1% will continue to do so. Employer Contribution 22.88% 18.18% These increases are a calculated result of the Board's Funded Ratio 62.9% 69.5% funding policy adopted in 2018. This funding policy is designed to reflect investment expectations and to While a lower employer contribution rate and a higher ensure the long-term sustainability of MOSERS. funded ratio might make some "feel" better, the current It is important to know that more than 58% of the investment assumption is a more conservative approach money in the MOSERS trust fund has come from to ensuring the long-term sustainability of MOSERS. investment returns, 41% has come from the employers, These are complicated topics, no doubt. Please know that and 1% is from employee contributions (those first- your Board of Trustees is deeply engaged in these topics employed since 2011). and is focused on the future. Together, we continue to work hard for your benefit. Investment58% Eer41% Eee1% Returns + Cutions + Cutions mosers.org | 3 NOTEWORTHY NEWS Annual Benefit Scorecard similar basic resources). Nonetheless, Among those who attended a MOSERS' Cost and Service with our FY18 Administrative Cost PreRetirement Seminar, 99% reported Relative to Our Peers per Member of $79, our costs are they were somewhat satisfied to very significantly less than that of our peer satisfied with the content. To see how we compare to our peers average of $86. Our retiree population Of the retirees who attended a Coffee and how we can improve, each year, is growing each year, causing member MOSERS analyzes our costs and Break seminar, 98% reported that they transactions and communications to were somewhat satisfied to very satisfied. service scores relative to our peer increase. But this cost comparison retirement systems. Using FY18 data information helps gauge the MOSERS benefit counselors had 2,756 so we have complete peer information, reasonableness of our expenses and in-person meetings with members the takeaways are: aids in continuing to develop ways to in FY18. Regarding the counselor improve our cost-effectiveness. explaining information in a manner • Overall, our administrative costs that was easy to understand, the remain below our peer average. Service thoroughness with which the counselor • Our costs per member are at or Excellent customer service is an answered questions, and their overall below average in two of the three expectation and a hallmark of experience, 97% of members said areas measured. MOSERS. In FY18, in all measures, they were somewhat satisfied to very • Our customer service scores our members give us an “A” grade. satisfied. On average, members’ wait remain above average. In comparison to other pension time to see a counselor was less than systems and financial service one minute, while the duration of their Cost appointments averaged 33 minutes. As one of the smaller systems in providers, MOSERS ranks high with a our peer group, we do not enjoy the rating of 91 out of 100 in the American In addition to face-to-face meetings, economies of scale available to larger Customer Satisfaction Index (ACSI). our benefits staff handled 83,230 calls systems (that is, the larger systems In the actual retirement process, our from members in FY18. have proportionate savings gained by members gave us an overall rating of For more information, read the full serving more members with the same or 9.3 out of 10. Annual Benefits Scorecard online. OVERA .3 RATI Don't Forget Currently, we have 20 situations in Sometimes, after a member has Reasons to Keep Your which we have stopped a retirement passed away, we are unable to make Information Updated payment and three instances of stopping payments because we can’t track down my 1. Contact Information: a refund of employee contributions. beneficiaries. Visit MOSERS to If your email or mailing address Some go as far back as 2016. Once we ensure your beneficiary designations changes and we lose contact with are able to verify the address of someone are up to date with the person you you, you could miss out on important due a payment, we will pay benefits currently want named, including their: retroactively to the date of suspension. benefit information. • Full name (may change if they get Nobody wants to miss important married or divorced) 2. Money: information or have their payment • If we are mailing a paper check stopped! So, please be sure to keep • Address and find that you have an invalid your contact information up to date! • Social Security number mailing address, we will stop Easily update your information online payment immediately and suspend at myMOSERS. • Date of birth payment until we get a new address We contract with The Standard from you in writing. Update Your Beneficiary Insurance Company for life insurance. • If you are getting paid by direct Designations, too! Standard will honor a beneficiary Depending on your situation, plan deposit and we find that you have an designation for life insurance that you membership, and career stage, you invalid mailing address, we will also have on file with MOSERS, even if it may have beneficiaries for your: stop payment.