MoDOT & Patrol Employees’ Retirement System
In this update, Scott Simon, Executive Director of MPERS, explains why the retirement contribution amount on your paycheck may appear smaller, and why that’s actually good news. Learn how a lower employer contribution rate reflects the growing financial strength of the retirement system, without affecting your take-home pay or future benefits. Read the transcript below.
Hello, I’m Scott Simon, Executive Director at the MoDOT and Patrol Employees’ Retirement System. I’m here to share some encouraging news about your retirement benefits and the improving financial strength of our retirement system.
This year, employer contribution rates for retirement benefits have decreased again, particularly on the civilian side. These reductions reflect a positive, ongoing trend that reflects our progress in strengthening the financial health of the retirement system.
For employers, this means reduced financial obligations. But what does it mean for you as an employee?
You may have noticed a smaller retirement contribution amount on your paycheck. This is expected and simply reflects the lower employer contribution rate. It is important to understand that this change does not affect your take-home pay, and it does not impact the value of your future retirement benefits.
Your retirement benefits are calculated based on your salary and years of service, not on the contribution rate. Whether the rate goes up or down, your benefit formula remains unchanged and secure.
These improvements are the result of aggressive funding policies for covered employers, coupled with strong investment returns achieved by our investment team.
For more details on the employer contribution rate, look for my annual MPERS financial status update, which comes out in October each year. This year I will go into more detail on this subject so you will have a better understanding of all these details. Most importantly for now, though, is to understand that a reduction in the employer contribution rate is a sign that our system is getting stronger. And don’t forget, any time you have questions about any aspect of the retirement system, give us a call.
Thank you for your continued service and trust. We are here to support your future, and we will keep you informed every step of the way.