MOSERS Lump-sum Buyout Could Save $90 Million

According to data from the Missouri State Employees Retirement System (MOSERS), a buyout program for retirees should save the $8 billion pension system an estimated $90 million after 22% of former employees opted for a lump-sum payout, the St. Louis Post-Dispatch reports.

To reduce the system’s long-term liabilities, the lump-sum buyout program was offered in September, after being approved by lawmakers, to former state employees who were not receiving pensions and had left the payroll before June 30. .

Upon approval, MOSERS sent letters giving 17,000 former workers the option to either cash in on the majority of their earnings or wait until they’ve reached retirement age for full benefits. With the deadline ended on November 30, MOSERS revealed that 3,748 former state workers decided to take the lump-sum payout.

Of those lump-sum receivers, MOSERS reported the average age of the former employees was 47, who forfeited an average of $380 per month. The average state employment tenure was nine years.

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While the average check amount is expected to be roughly $14,000, MOSERS is expecting $2.5 million in first-year savings.

More than 2,000 of the checks have been mailed out, the Post-Dispatch reports.

Tags: Lump-sum, MOSERS, Pension

Tax incentives for employer-sponsored retirement savings are the most important benefit over the next 10 years for registered voters, according to a recent survey from The American Benefits Council, a trade association that advocates for employer-sponsored benefit plans.

Of the 800 people interviewed for the survey, 27% ranked retirement savings plans sponsored by their employers as the most important workplace benefit, edging out health insurance coverage, which was ranked most important by 26% of the respondents.

The survey also found that many Americans expect they will have to rely more on themselves or the government for financial security over the next 10 years, and less on their employer. Of those polled, 52% said they expect an individual’s role in their own financial security will be larger over the next 10 years, while 45% expect the federal government to play a bigger role, and 39% said they expect that from their state government. But only 29% of those surveyed said they expect their employers to play a larger role in their financial security over that same time period.

As a result, only 18% said they expect to play a smaller role in their own financial future over the next 10 years, and 27% don’t expect any change in their role. Federal and state governments are expected to have a smaller financial role by only 28% and 25% of respondents, respectively, while 25% expect no change from the federal government, and 34% expect no change from state governments. Meanwhile, 35% of those surveyed said they expect their employers to play a smaller financial role in their retirement, and 34% expect that role to stay the same.

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From those figures, it’s no surprise that more respondents said they trust the individual financial market for opportunities to save for retirement more than other entities, including their employers.

The American Benefits Council also found that by a ratio of nearly 2-to-1, survey respondents said they prefer compensation packages that emphasize more, quality benefits over a larger salary. The survey found that 60% would take a more generous benefits package and less take home pay, while only 34% said they would opt for a bigger paycheck than a better retirement plan.

Tags: American Benefits Council, Pension, Survey