Benefits And Health

Friday, October 5, 2018

Employer Contribution Rate

I see the contribution rate has gone up to 21.77%. You're back at the trough again. I suppose it makes your job easier when all you have to do is simply charge institutions like MSSU more. It's an unfunded mandate that puts significant financial stress on all Missouri universities.
Where can I find the contribution rates for previous years? Is it a constant upward trend with no end in sight?
Here is a link to a fact sheet on the employer contribution rates on our website. It shows the employer contribution rates from FY14 through FY20. 

After considerable deliberation, the MOSERS Board of Trustees voted to lower the assumed rate of return (ARR) on investments from 7.50% to 7.25% and intends to further reduce the ARR to 6.95% for the June 30, 2020 actuarial valuation. 

Funding for the system comes from 1) investment returns, 2) employer contributions, and 3) employee contributions (from those first employed in a benefit-eligible position on or after 1/1/2011). 

Changing the assumption about the amount of funding that will come from investments (the ARR) automatically causes employer contributions to increase and our funded status to decrease in the short term, but will work to ensure MOSERS’ sustainability over the long term.

Share on Facebook
Share on Twitter
Share on Google+

Related : Employer Contribution Rate

  • Public Pension ExemptionWill state pension still be tax exempt for 2018 pension? If you are referring to the Public Pension Exemption, we are unaware of any changes to it compared to the previo ...
  • BackDROP Lump-Sum PaymentI keep being told that if a person work at least 2 years backdrop pass their normal retirement, they will receive their monthly lifetime benefits, plus whatever their lu ...
  • BackDROP & Survivor Benefit?If I have completed my five year backdrop period and continue working in my state position, would my spouse receive the backdrop lump sum payment if I died while still w ...
  • Final Average Pay and BackDROP PeriodMY PENSION IS BASED ON MY BEST 36 MONTHS EARNINGS. WAGES DURING MY 5 YEAR BACKDROP PERIOD ARE EXCLUDED. WHAT IF MY BEST 36 MONTHS ARE AFTER I COMPLETE MY 5 YEAR BACKDROP ...
  • Pay Raise & Final Average Paywill the raise that we are suppose to get in 2020 effect my retirement? if I am already on my backdrop and if I retire in dec of 2021. Assuming the pay raise is included ...

0 comments:

Post a Comment