In light of Illinois’ issue with their underfunded pension, how much is Missouri’s pension underfunded?
As of June 30, 2016 (the close of the most recent fiscal year), MOSERS is 69.6% funded. That means that we have 69.6% of assets necessary to pay all accrued liability over the long term. Because we operate on a very long-term horizon (already analyzing and anticipating funding needs 30-50 years into the future), our funded status is expected to go down somewhat over the next few years and then begin to go back up. We will send a summary annual financial report for fiscal year 2017 to all members in December.
The MOSERS board has taken several actions to keep the retirement system solid and secure into the future. The board approved a proposal to reduce the system�s long-term liability by offering a voluntary lump-sum payment (rather than a monthly pension) to former state employees who will be eligible for a pension benefit at some point in the future. This is contingent upon the Governor�s action on SB 62. The Governor has until July 14, 2017 to take action on the bill (sign it, veto it, or allow it to become law without his signature). If SB 62 is approved by the Governor, we will contact eligible members.
Also, unlike in Illinois, the Missouri General Assembly has consistently appropriated the full employer contribution to MOSERS as recommended by the plan�s actuary. The FY18 employer contribution contained in HB 5 was no exception and was Truly Agreed to and Finally Passed and sent to Governor Greitens on Thursday May 4th. The Governor has until July 1 to take action on HB 5, which includes MOSERS� appropriation. You can find more information on Rumor Central about other related Board decisions and MOSERS’ appropriation as well as additional details regarding MOSERS’ funded status.