There are persistent rumors that there will be lay-offs, salary reductions, or demotions to save money due to the shortfall of the sales taxes. I know this isn't your area but do know that occasionally you try to find the answers for particularly troubling issues facing state workers. Would you please try to find out if there is any truth to this? There are a number of state workers who are very worried and because of the persistence of these rumors, there are some who are taking it quite seriously. It is also rumored that November 1 to December 1 will be the target dates for these actions.
I would appreciate your help as would many others.
Thank you.
We are hearing these same rumors but we do not have any information to either confirm or refute them. Consequently, we encourage individuals to contact their Human Resources office for additional information but realize that even they may not have definitive answers at this time to address your concerns either. (We are not attempting to dodge the question – we simply don’t know the answer.)
Friday, October 16, 2009
Garnishments
Can my MOSERS benefit be garnished? If yes, can they take the whole check? Will the garnishment be the first deduction made (i.e., will I be billed for my medical).
Your MOSERS benefit cannot be garnished, except for the collection of child support and maintenance, bankruptcy, or an IRS levy.
Essentially the entire benefit can be withheld, except that MOSERS is required to issue all members a check for at least $1. The rest could be redirected according to court or IRS direction. The priorities for which deductions may be made are as follows:
¨ Federal and State income tax
¨ IRS levies
¨ Child support/maintenance
¨ Bankruptcy court orders
¨ Any voluntary deductions (medical, life insurance, etc.)
Depending on the amount withheld, you could be billed for any life insurance or medical premiums not covered by the balance of the benefit amount available to you.
Your MOSERS benefit cannot be garnished, except for the collection of child support and maintenance, bankruptcy, or an IRS levy.
Essentially the entire benefit can be withheld, except that MOSERS is required to issue all members a check for at least $1. The rest could be redirected according to court or IRS direction. The priorities for which deductions may be made are as follows:
¨ Federal and State income tax
¨ IRS levies
¨ Child support/maintenance
¨ Bankruptcy court orders
¨ Any voluntary deductions (medical, life insurance, etc.)
Depending on the amount withheld, you could be billed for any life insurance or medical premiums not covered by the balance of the benefit amount available to you.
Wednesday, September 23, 2009
Financial condition of plan
Is MOSERS currently under-funded? Are the current obligations greater than the resources available? Does this threaten the payment of future benefits?
The most important message for MOSERS members is that promised benefits are secure. According to the June 30, 2009, report from the System’s actuary, MOSERS has a funding ratio of 83%, based on the actuarial value of assets. The board, as required by law, certified the actuarially determined contribution rate that is necessary to cover the current liabilities of the plan administered by the system and move the system toward 100% funding over a period of future years.
The September 17th meeting of the MOSERS Board of Trustees received a certain amount of media coverage. We think that was due to the board’s scheduled vote regarding the state’s contribution rate that the general assembly will be requested to fund in the FY11 budget, which begins July 1, 2010. Each September the board certifies the state’s contribution rate that will become effective the following July. The rate certified this year was 13.81% of payroll for the fiscal year that starts July 1, 2010. That is up 1.06% from our current rate of 12.75%, and translates to an increase of approximately $20 million. While it is normal for the contribution rate to fluctuate from year to year, this was a larger change than would normally be expected but then the financial markets over the last year have not behaved as would normally be expected either.
Perhaps the most important takeaway from the most recent report of the system’s actuary is the conclusion which reads as follows:
Based on the results of the June 30, 2009 regular annual actuarial valuation, it is our opinion that the Missouri State Employees Retirement System continues to be in sound financial condition in accordance with actuarial principles of level percent-of-payroll financing.
Given the recent tumultuous economic conditions and concerns about the effect on the state budget, we expect that there will continue to be news reports, as well as rumors and concerns circulating about the effect of these issues on the retirement system. We encourage you to visit the MOSERS website frequently to stay informed of issues and decisions that impact your retirement system.
The most important message for MOSERS members is that promised benefits are secure. According to the June 30, 2009, report from the System’s actuary, MOSERS has a funding ratio of 83%, based on the actuarial value of assets. The board, as required by law, certified the actuarially determined contribution rate that is necessary to cover the current liabilities of the plan administered by the system and move the system toward 100% funding over a period of future years.
The September 17th meeting of the MOSERS Board of Trustees received a certain amount of media coverage. We think that was due to the board’s scheduled vote regarding the state’s contribution rate that the general assembly will be requested to fund in the FY11 budget, which begins July 1, 2010. Each September the board certifies the state’s contribution rate that will become effective the following July. The rate certified this year was 13.81% of payroll for the fiscal year that starts July 1, 2010. That is up 1.06% from our current rate of 12.75%, and translates to an increase of approximately $20 million. While it is normal for the contribution rate to fluctuate from year to year, this was a larger change than would normally be expected but then the financial markets over the last year have not behaved as would normally be expected either.
Perhaps the most important takeaway from the most recent report of the system’s actuary is the conclusion which reads as follows:
Based on the results of the June 30, 2009 regular annual actuarial valuation, it is our opinion that the Missouri State Employees Retirement System continues to be in sound financial condition in accordance with actuarial principles of level percent-of-payroll financing.
Given the recent tumultuous economic conditions and concerns about the effect on the state budget, we expect that there will continue to be news reports, as well as rumors and concerns circulating about the effect of these issues on the retirement system. We encourage you to visit the MOSERS website frequently to stay informed of issues and decisions that impact your retirement system.
Tuesday, August 25, 2009
Contributions for retirement
I’ve heard that there is discussion taking place about changing the funding for the state employees pension plan. I have heard that the employee will be required to contribute a % of his/her salary to the retirement fund instead of the current method which is funded by the State. This sounds similar to the change implemented by the University of Missouri system. Is this being considered?
As a result of the economic downturn there are a number of rumors circulating about the future of our retirement plan. While the University of Missouri has modified their plan to now include employee contributions there has been no official discussion that we are aware of to do the same thing for MOSERS. Such a change would require a modification to the law. The next legislative session begins in January 2010. Bills for that session may be filed as early as December. As usual, MOSERS will monitor all relevant legislation and inform members accordingly should a bill pass or appear to be moving through the legislature.
As a result of the economic downturn there are a number of rumors circulating about the future of our retirement plan. While the University of Missouri has modified their plan to now include employee contributions there has been no official discussion that we are aware of to do the same thing for MOSERS. Such a change would require a modification to the law. The next legislative session begins in January 2010. Bills for that session may be filed as early as December. As usual, MOSERS will monitor all relevant legislation and inform members accordingly should a bill pass or appear to be moving through the legislature.
Monday, August 3, 2009
Questions on medical benefits
Over the last few weeks the number of inquiries submitted to Rumor Central concerning medical benefits has increased. Keep in mind that MOSERS does not administer medical benefits subsequently those issues should be directed to the Missouri Consolidated Health Care Plan. They can be reached at (800) 487-0771 or through their website at www.mchcp.org.
Tuesday, July 28, 2009
Furloughs and Pay raises
Rumor currently on the vine involves the possibility of giving state workers unpaid furloughs of like 4 to 8 hours per week to save money. Any truth? Also heard that federal stimulus money may be used for a late state employee pay raise?
Although MOSERS does not handle issues related to pay for state employees we have received several inquires on these issues. Subsequently we contacted the Office of Administration to make them aware of the rumors. Here is their response:
“There are currently no plans for furloughs. As for pay raises, the legislature did not appropriate funds for a pay increase for state employees for the current fiscal year (FY10). In addition, the federal stimulus funds are earmarked for very specific programs and cannot be used for employee pay raises, so they cannot be appropriated for a pay raise. The federal stabilization funds are more flexible, but are intended to stabilize existing state service costs. The stabilization funds will be needed during the next few years in order to avoid deep cuts to the state budget. Cuts will still be needed, but the stabilization funds will help lessen the level of cuts that must be made. Therefore, they are not available for a pay raise.
In FY 2009 revenue collections declined 6.9 percent from the previous year; this resulted in a $778 million shortfall in revenue collections. Current estimates are that FY 2010 revenue collections will be nearly $400 million short.”
Although MOSERS does not handle issues related to pay for state employees we have received several inquires on these issues. Subsequently we contacted the Office of Administration to make them aware of the rumors. Here is their response:
“There are currently no plans for furloughs. As for pay raises, the legislature did not appropriate funds for a pay increase for state employees for the current fiscal year (FY10). In addition, the federal stimulus funds are earmarked for very specific programs and cannot be used for employee pay raises, so they cannot be appropriated for a pay raise. The federal stabilization funds are more flexible, but are intended to stabilize existing state service costs. The stabilization funds will be needed during the next few years in order to avoid deep cuts to the state budget. Cuts will still be needed, but the stabilization funds will help lessen the level of cuts that must be made. Therefore, they are not available for a pay raise.
In FY 2009 revenue collections declined 6.9 percent from the previous year; this resulted in a $778 million shortfall in revenue collections. Current estimates are that FY 2010 revenue collections will be nearly $400 million short.”
Friday, July 17, 2009
Is RC a blog?
Why is “Rumor Central” classified a blog? Access has been restricted to the Questions and Answers section.
In 2007 we converted Rumor Central from static web content to a blog format using that technology to better organize the content and make it more user-friendly. Advantages of the blog format include:
- Tags/labels and time/date stamps on each posting
- The ability to sort and search content by subject and/or date
- A continuous log of all questions and answers
This makes it much easier to navigate and search among the 440 + questions and answers for the topics that are of most interest to users.
Currently we don't allow comments from outside MOSERS to be posted to Rumor Central because the benefits we administer (retirement, life insurance and long-term disability insurance) are very technical in nature and governed by state statute. We are concerned that information posted by a user could be inaccurate or be misunderstood by other members.
You may find a recent article about Rumor Central interesting. As mentioned in the article, we are always looking for ways to use the latest technology to enhance this and all the services we provide. Recently, we began including a web feedback option when we post news to our website. This allows members to inform us about their thoughts, feelings and questions on developing issues. Web users may include name and contact information if they would like to receive a response, or they may submit feedback anonymously.
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