MoDOT & Patrol Employees’ Retirement System
MPERS is committed to efficiently delivering secure, lifetime retirement benefits. In this issue, we are spotlighting how your retirement system keeps costs low while maximizing value.
Here’s how we do it:
- Lower administrative costs than most other similarly sized public pension plans
- Pooled investments that reduce overhead and boost returns
- Sustainable funding strategies that protect your future
How MPERS Compares to Other Public Pension Plans
MPERS ranks third lowest in cost per member among a similarly sized public pension system peer group—just $196 per member, compared to a peer average of $362.
That’s far more cost-effective than most other similarly sized public retirement plans. There are also benefits when comparing a plan like MPERS to a private retirement plan.
| Feature | MPERS (Defined Benefit) | Private Retirement Plan (e.g., 401(k)) |
|---|---|---|
| Lifetime Income | Guaranteed monthly benefit for life | Depends on account balance; risk of outliving savings |
| Investment Management | Professionally managed by MPERS staff | Self-directed or outsourced to high-fee providers |
| Administrative Costs | $196 per member (2024) | Often 2-3x higher, depending on the provider |
| Cost-of-Living Adjustments (COLAs) | Included for eligible benefit recipients | Rare or nonexistent |
| Risk | Managed by the System | Borne entirely by the individual |
These efficiencies do not just save money—they strengthen your benefits. MPERS’ strong investment performance and disciplined funding strategy may even help reduce employer contribution rates, freeing up resources.