Showing posts with label state match. Show all posts
Showing posts with label state match. Show all posts

HB5 and State Matching

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I heard that the bill passed to on the retirement plan to match up to $75.00. Is this true?
The short answer is that state funding is currently not available for theemployer incentive (match) associated with the State of Missouri Deferred Compensation Plan.

Here is  a bit more detail: Funds were appropriated in HB 5 for the payment of incentive match funds by the state in the amount of $25 per month for eligible employees who contribute at least $25 per month to deferred compensation and HB 5 was passed by the legislature. However, state funding for the match was withheld. This means that the funding for the incentive is not available in the Fiscal Year 2015 budget that began July 1, 2014. Generally speaking, withheld or "restricted" funds may be restored to the state's budget later in the fiscal year as deemed appropriate. For more on this budget action, view Gov. Nixon's press release.
Stay tuned to the Plan's website and social media channels (Facebook, Twitter, LinkedIn and YouTube) for more information as it becomes available.
Also, we recently answered a similar Rumor Central question about this topic. You can read our response here.

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Has the state match for deferred comp been funded?

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I was wondering if DOC was going to start matching employee retirement contributions again?
Funding for the reinstatement of the employer incentive (match) program associated with the State of Missouri Deferred Compensation Plan has been withheld from the FY15 state budget at this time. You can read Governor Nixon’s press release on the budget vetoes here.

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Matching Contributions

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Is there anymore information on the state restarting the matching contributions to our Deferred Compensation Plans as of July 1, 2014. The Governor's office, in an informational e-mail, a while back had said something about this match starting up again July 1st.? If it does start up again how much are they proposing to match each pay period?
The bill, which proposes a $25 per pay period match for qualified participants who contribute at least $25 per month, is included in the budget, which has not been signed by the Governor yet. You can read the full text of the bill here. For the latest news on the match, continue to check the State of Missouri Deferred Compensation Plan website and follow the Plan on Facebook, Twitter and YouTube.

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State Matching for Contributions

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I was wanting to know when the state was matching our amount of money into our retirement again. I heard they started already. How much are they matching and what is they max limit?
There is currently no state match for contributions to the State of Missouri Deferred Compensation Plan. However, earlier this year, the Governor announced a proposal to fund it in Fiscal Year 2015. At this time, this is still only a proposed budget item, and it would have to go through the legislative process and be signed by the Governor to go into effect for the Fiscal Year 2015 budget. Visit the State of Missouri Deferred Compensation Plan’s website for more information, or follow the Plan on Facebook and  Twitter for the latest updates. Print Friendly and PDF

Deferred Comp Matching Funds

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I have heard Legislature will be taking a vote to restore our Deferred Compensation Matching Funds.
Rumors abound, especially as the start of the legislative session approaches. If there is a proposal to resume the state contribution to the deferred compensation plan, that provision would be in House Bill 5, which provides funding for the Office of Administration.  We will not know if that funding will be included in House Bill 5 until the appropriations process begins after the Governor’s State of the State address.

You can monitor this and other legislation by visiting the Missouri House of Representatives and Missouri Senate websites.

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MSEP 2011 Members, State Match to Deferred Comp

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Do new hires coming in now get a pension? Do they get a match on their 401k?
Members hired for the first time on or after January 1, 2011 are in the MSEP 2011. This is simply a different tier in the MSEP 2000 and they are entitled to a defined benefit once they meet the eligibility requirements. Members of this plan must contribute 4% of their salary, however, they still receive a guaranteed benefit upon retirement.

The state match on the State of Missouri Deferred Compensation Plan has been suspended for all employees, regardless of what MOSERS plan they are in.

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Will Deferred Comp Match Resume?

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Question: Since the state financial health has improved and took in more than expected/projected in the budget; Has MOSERS lobbied the state for re-instituting the state-match monies with employee contributions?
While we certainly support the reinstatement of the match to participants in the State of Missouri Deferred Compensation Plan, the decision to reinstate this incentive is ultimately determined by the Missouri General Assembly and the Governor as part of the annual budget process. We have no way to determine when funding for the incentive may resume.

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State of Missouri Deferred Compensation Plan changes

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I’ve received information on the upcoming changes to the State of Missouri Deferred Compensation plan and it makes me nervous. Why is this change a good thing?
The purpose of the new plan design is to provide a more customer-focused deferred compensation plan with high quality, well diversified, cost conscious investment products that will work to the advantage of state employees and encourage them to save for their retirement years. These changes are causing some participants to worry and question why these changes are being made. It is important to understand these changes were developed by investment professionals after considerable research, including feedback from participants just like you.
So, how will these changes benefit participants? The new plan design:
  • Has lower fees
  • Is much simpler to understand
  • Provides real choices.
Many participants don’t understand and some don’t even know there are expenses associated with their deferred compensation account. The target date funds available under the new plan design reflect fees at a fraction of the cost associated with the funds in the present lineup. Expenses erode the return of your portfolio as reflected in the following chart.
The present fund lineup offers 31 funds. In that lineup there are 11 different large cap funds. How would you choose which one to use? The target date funds under the new plan design eliminate that confusion. These funds cover all the bases so you don’t have to attempt to put together a diversified portfolio from a long list of fund options that actually don’t offer much in the way of diversification potential. The funds making up the target date arrangements come from State Street Global Advisors, Vanguard, and Barclay’s Global Investors, all reputable organizations.
Maybe you are a hands-on investor wanting the flexibility of choosing your own funds? If so, you don’t have to use the default target date auto-pilot approach. Instead you can work through the self-directed brokerage (SDB) window. The SDB gives you access to most individual stocks and bonds, and over 9,000 mutual funds. The SDB under the new plan design

  • Has no annual fee (presently $50)
  • Stock trade charges will decrease from $24.95 to $14.95

There are a number of resources available to participants to address their questions about these changes. First, you may want to review the
New Plan Brochure. It offers an overview of the changes with a brief explanation. If you are interested in learning more regarding why these changes were developed, the Message to Plan Participants is the place to go. For specific responses to frequently asked questions, check out this FAQ.
A number of Plan Transition Meetings have been scheduled across the state for those wanting in person contact with a plan representative about these changes. Check out the
Plan Transition Meeting Schedule and make plans to attend a meeting in your area. Of course you can always access information about the present and new plan by contacting a Participant Service Representative at 1-800-392-0925, Monday –Friday, 7:00 a.m. to 7 p.m. Central Time. Print Friendly and PDF

Deferred Compensation Incentive Plan (State Match)

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The Pensions Plus newsletter for Fall 2008 had an article on page 8 that refers to a ‘State of Missouri Deferred Compensation plan account’, which the state of Missouri matches. What is that, and am I enrolled in it? I wasn’t aware of the state matching anything.
We apologize for the confusion. The state budget provides for funding of fringe benefits, such as the deferred compensation plan incentive (often called the state match), for the executive departments. The colleges, universities, and various boards and commissions budgets are separate from the executive department budget in regard to fringe benefits. These organizations may offer the deferred compensation incentive if the funds are available in their own budgets.
We have made a note to include a disclaimer in future newsletter articles regarding the state incentive. Check with your human resources representative to see what type of savings options are available where you work.
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