Showing posts with label OPEB. Show all posts
Showing posts with label OPEB. Show all posts

MOSERS has received several questions regarding a Missourinet report which

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MOSERS has received several questions regarding a Missourinet report which cites unfunded retirement plans in Missouri. The article is referring to retiree healthcare costs, which are unrelated to MOSERS.
We have addressed your concerns in a new website feature found on our homepage, and also by answering the questions listed below.
Question 1: I have heard recently on the news that Missouri's retirement system may be as much as 1.32 billion short in funds for the near term. First of all, is this true? And secondly, if so, how will this shortfall affect my retirement benefits?
Question 2:A recent article from the local radio station states that "our government retirement plan for tens of thousands of former government workers in MO face a financial crunch within months. State and local governments have only a few months to determine how much it will cost to pay for the benefits promised to their employees who have retired... or who will retire... in the next several decades. Budget officials say the state's unfunded liability is about 1.3 billion dollars. New federal rules will require the legislature to put about 40 million dollars a year into its budget for at least 20 years to make sure promised benefits are met." What does this mean to state employees and is this true?
Question 3:Several of my co-workers stated that they heard a news blurb on the local radio station on July 6, 2006 (KTJJ, Farmington, MO) about changes to the state retirement fund. Some of their statements really scare me. Can you help by repeating the information given in the news release as I have been unable to find it.
Question 4:There is an article on the Missourinet, by Bob Priddy with the title: "Unfunded Government Retirement Plans Could Be Billions Short." Would you please address that article in relation to the funding for MOSERS? Is MOSERS in trouble and to what extent?
MOSERS' Response:
The radio report you mentioned was referring to retiree health care costs, and is not in any way related to MOSERS’ funding. The MOSERS trust fund is stable and your future retirement benefits are secure. This issue, commonly referred to as Other Post Employment Benefits (OPEB), is a result of new accounting rules for government employers and is difficult to reduce to a short, easy-to-understand summary. Much of the publicity about this topic tends to confuse – and in this case concern – our members, as well as employees of other public agencies.
While MOSERS does not administer any of the state health care plans, we do understand that this is an important issue for public employers and for our members. We have posted a feature on our web site that provides more details about this issue. While this does not affect the funding of MOSERS in any way, it is a serious issue for the state and other governmental entities. The Office of Administration is working with the Missouri Consolidated Health Care Plan (MCHCP) and other agency health care plans to address these new accounting rules.
The article that prompted these questions may be accessed by clicking on the link below. Given some of the statements that were made, the false interpretation by some of our members is understandable. Once again, this story is totally unrelated to MOSERS and has nothing to do with the security of your retirement benefits.
Link to Missourinet Article
We hope the feature article on our website will provide you with a general understanding of OPEB. As noted in the article, we will provide additional information on this important issue through our website and in future newsletters as further information becomes available. Print Friendly and PDF