Noteworthy News â–
BOARD OF TRUSTEES Antwaun Smith - Board Chair Lori Neidel - Vice Chair Laura Davis Representative Caleb Jones Senator Joe Keaveny Senator John Lamping Representative Mike Leara Don Martin Commissioner Doug Nelson Treasurer Clint Zweifel EXECUTIVE DIRECTOR Gary Findlay MAILING ADDRESS PO Box 209 Jefferson City, MO 65102-0209 BUILDING LOCATION 907 Wildwood Drive Jefferson City, MO OFFICE HOURS 7:30 a.m. - 4:30 p.m. • Monday - Friday PHONE (573) 632-6100 • (800) 827-1063 AUTOMATED PHONE OPTIONS Deferred Compensation/MCHCP............1 Password Assistance..................................2 Change Email/Mailing Address................3 Benefit Counselor.....................................4 Investments..............................................5 Dial Employee by Name..........................8 Operator..................................................0 FAX (573) 632-6103 MISSOURI RELAY 7-1-1 (Voice) • (800) 735-2966 (TTY) EMAIL
Benefit Statements Your Annual Benefit Statement will soon be available. This information is intended to be helpful as you make decisions and plan for the future.
5 Retirement Considerations Ryan Toebben, Benefit Counselor,
provides some general tips to consider if retirement is in your near future.
Helpful tips make registering online for PreRetirement seminars a little easier.
Retirement & You
4 Announcements Trustees elect Antwaun Smith as new 7 board chair and announce newly appointed members. Life Planning
Social Security Hints Don't miss out on social security retirement benefits to which you may be entitled.
Retirement Terminology Understanding what we mean when we talk about Final Average Pay.
Introducing New Tagline MOSERS' new tagline reinforces our mission and commitment to financial security for our members.
5 2013 Calendar MOSERS isn't closed on all state
holidays. This convenient calendar lists our holiday schedule and additionally, important mailings headed your way.
www.mosers.org Graphic Designer - Tracy Upschulte Writer/Editor - Jade Elwess
PensionsPlus is published quarterly by the Missouri State Employees’ Retirement System. To obtain an alternative format of this publication, please contact MOSERS. This publication is designed using stock photography. The photographs chosen are for illustrative purposes only; they do not imply any particular attitudes, behaviors, or actions on the part of any person who appears in the photographs.
Noteworthy News ■
Annual Benefit Statements
Craft Your Financial Future With This Helpful Tool As a benefit-eligible state employee, your total compensation is much more than the dollars you receive in your paycheck. The cost of the benefits you receive (retirement, health care, life and long-term disability insurance, employer contributions to social security, etc.) plus the value of time off (annual leave, sick leave, and holidays) represent a significant part of your total compensation. Each spring, MOSERS distributes annual benefit statements – a summary of your pay and benefits – a tool that should be helpful as you make decisions today and plan for tomorrow. The format of these statements has been revised and improved to provide you with a more comprehensive summary of your total compensation and to help you better estimate the income you will have in retirement. This personalized information should help you decide things like: • Are you saving enough for retirement in your deferred compensation account? • Should you make any changes to your cafeteria plan or health or life insurance coverage the next time you have the opportunity?* • When will you be financially ready to retire?
Your income in retirement may come from several different sources such as: • Your MOSERS defined benefit pension plan • Social security retirement benefits • Part-time or full-time re-employment • Savings and investment income (such as from the State of Missouri Deferred Compensation Plan) In 2013, your annual benefit statement will help you see your current deferred compensation savings (if you contribute) and how much income that savings may produce for you in retirement - at your current rate, and if you increase your contributions. You will also be able to access your annual benefit statement from your Document Express mailbox through your secure Member Homepage on MOSERS’ website. You will receive an email from MOSERS letting you know it has been posted and will be available for you to print or save, as you wish. If you have opted to receive your correspondence from MOSERS through the mail, your statement will be sent to your home address in March or April.
Check Your Beneficiaries
Spring is a good time to “clean up” your life insurance beneficiary designations and make sure they are current! Check the beneficiaries listed on your Annual Benefit Statement. Or, log in to the secure Member Homepage on MOSERS’ website and click on Life Insurance Beneficiaries from the menu on the left side. You may change your designation while you are logged in or by completing and submitting the Designation/ Change of Beneficiaries (Basic & Optional Life) form, available online.
MOSERS exists to advance the financial security of our members. We hope you find your 2013 Annual Benefit Statement to be an effective tool in this effort.
*Conservation and College & University Employees (except Lincoln University and Linn State Technical College) – Some of your benefits (such
as health care and life insurance coverage, among others) are provided by your employer so no information on these benefits will appear in your Annual Benefit Statement. Contact your human resources office for more information on those benefits. 3
â– Board Corner
Announcing New Officers & Appointments Officer Elections Antwaun Smith, co-founder of the Smith Law Office, based in St. Joseph and Kansas City, was elected chair of MOSERS' Board of Trustees. Mr. Smith serves on the MOSERS board as a governor appointed member and began his term on August 10, 2011.
Antwaun Smith Board Chair
Lori Neidel, who was appointed by the governor in November 2010, was elected as vice-chair of the board of trustees. Ms. Neidel is the founder of a law practice that provides compliance and regulatory affairs counsel for the financial industry. She advises broker-dealers and investment advisers in matters of compliance, and represents financial professionals in regulatory investigations and proceedings.
Newly Appointed Members Senators John Lamping (24th district) and Joe Keaveny (4th district) were appointed to the MOSERS Board of Trustees by Senate President Pro Tem Tom Dempsey on January 11, 2013. Senator John Lamping Senator Lamping is a native of St. Louis. He is a graduate of St. Louis University High School and earned his degree in economics from Princeton University. After graduation, he moved to Manhattan and began work as a currency trader. He later obtained an MBA in finance from New York University.
Lori Neidel Vice-Chair
Senator Lamping works as the branch manager for a major St. Louis-based securities brokerage firm and is very active in his community. He has served as a member of the finance board and as parish council president for St. Alphonsus Church and as the treasurer for Boys Hope Girls Hope of St. Louis. He is currently serving as the endowment chair for St. Louis University High School, is a member of the stewardship committee for Our Lady of the Pillar and is a member of the endowment committee for the St. Louis City Academy. Senator Joe Keaveny Senator Joe Keaveny was first elected to represent the citizens of the 4th Senatorial District, which includes the City of St. Louis and St. Louis County, during a special election on Nov. 3, 2009, to fill an unexpired term. Senator Keaveny completed the unexpired term on Jan. 5, 2011 and was re-elected to a full term, which will expire in 2014. He was recently elected by his colleagues to serve as Senate Minority Caucus Chair. In addition to his legislative duties, Sen. Keaveny practices in the trust and probate section of Weiss Attorneys at Law and continues to serve as committeeman for the 28th Ward in St. Louis, Mo. He earned an undergraduate degree in accounting from the University of Missouri-St. Louis and holds a masterâ€™s degree in finance, in addition to a law degree, both from St. Louis University.
For the past 20 years, Senator Keaveny has worked in the banking industry, managing portfolios for high-income individuals and later managing compliance issues with the U.S. Securities and Exchange Commission (SEC) for U.S. Bank. For several years, he volunteered as a board member for the Skinker-DeBaliviere Housing Corporation, learning first-hand the challenges of rebuilding derelict properties, which led to a strong advocacy for state historic tax credits. Senator Keaveny continues to work with the Missouri Bar on legislation relating to trusts and retirement.
Life Planning ■
By Ryan Toebben, Benefit Counselor Retirement is a decision best approached with careful consideration. With a little advanced planning, it can be a smooth transition into the next phase of your life. Below are some general tips to consider if retirement may be on your horizon: • Plan in Advance – When initially planning your retirement, try to choose a date a few years in the future. This will allow you more flexibility in planning, and reduce the potential for any unforeseen consequences of retiring. • Determine Your Cash Flow – Estimate what your budget will be at retirement. Contact any potential source of retirement income such as all retirement systems in which you are vested, the Social Security Administration, financial institutions where you have any IRAs or other savings and investments, and ask for projections of your expected earnings, and when you can receive them. Likewise, anticipate your expenditures at retirement such as utility bills, food costs, and medical premiums. Comparing these sets of data will help you determine when retirement is most feasible. • Reduce Debt – Since the shift to retirement usually means a lower income, use your time as an active employee to reduce the amount of any debt you might carry into retirement. This will free up your retirement income and allow you to stretch your pension to its fullest extent. • Build a Nest Egg – Whenever possible, save for retirement. No amount of planning will allow you to predict the future with absolute certainty. Usually the future brings with it burdens like flat tires or leaky roofs. If you don’t have the luxury of a flexible retirement income, a predetermined savings plan can be the patch that holds things together.
MOSERS' 2013 Calendar
Holiday Schedule and Important Mailings January______________________ 1 New Year’s Day 21 Martin Luther King, Jr. Day February_____________________ 12 Lincoln Day (observed) 18 Washington’s Birthday March_______________________ – Spring PensionsPlus newsletter – Annual Benefit Statements for active employees April _________________________ 15 Tax Day May ________________________ 8 Truman Day 27 Memorial Day
June ________________________ – Summer PensionsPlus newsletter July__________________________ 4 Independence Day August_______________________ – No scheduled holidays or mailings September___________________ 2 Labor Day – Fall PensionsPlus newsletter – Annual Optional Life Insurance Review materials sent to eligible members
October______________________ 14 Columbus Day 1-31 Annual Optional Term Life Insurance Review Period November____________________ 11 Veterans Day 28 Thanksgiving Day December____________________ – Winter PensionsPlus newsletter (includes Summary Annual Financial Report) 25 Christmas Day
MOSERS' Office Open MOSERS' Office Closed 5
■ Life Planning
Seminar Registration Tips
It's Never Too Soon to Get Ready for Retirement Our 2013 PreRetirement Planning Seminars and Money Matters Workshops schedules are online and registration is open. Many sessions are already filling up, so register now if you plan to attend a PreRetirement session this year. Your registration process will go faster if you enroll online, and you can also see how many spaces are left in your area. To make registration easier for you, here are some handy tips:
REGISTRATION REQUIRES A MOSERS PASSWORD To register online, you must first have a MOSERS password. Whether you haven’t registered for a password yet or you forgot your password, you can get one online right away. Simply find the Secure Member Login box on our website, and underneath the login, click on Register for a Password if you don’t have a MOSERS password, or Forgot Your Password if you need to change it. You will be taken through a few questions to verify your identity first.
BEING PREPARED For your security, you will be automatically timed out of the registration process after 15 minutes of inactivity. This protects your information in case you are using a public computer. To save time, have your information ready when you begin.
CONFIRMATION INFORMATION You will receive a confirmation in the mail or by Document Express as a reminder of your specific date and location. This is just one reason why it is important to keep MOSERS informed of your current email address and mailing address. If you do not receive a confirmation by email the next day or by mail within one week, call MOSERS to verify that you are registered. 6
REGISTER EARLY TO RESERVE YOUR SPOT The PreRetirement seminars fill up fast, especially in Jefferson City. If you are planning on retiring and would like to ensure you get a spot, register early.
REGISTERING A GUEST Bringing a guest? Guests who are state employees must complete their own registration form to receive a personalized benefit estimate.
ESTIMATE YOUR RETIREMENT DATE Estimated retirement date: MOSERS will calculate the first eligibility date for your personal benefit estimate if you leave this field blank.
PROVIDE US WITH YOUR SPOUSE'S BIRTHDATE If you are married and wish to compare all the benefit payment options available to you, please provide your spouse's date of birth. The amount of the reduction to your benefit for a joint and survivor option will be based on your age and the difference between your age and your spouse's age.
Retirement & You ■
Social Security Hints
Maximize Your Retirement Benefits
The BMO Retirement Institute released a report in October 2012 warning that retirees are missing out on social security retirement benefits they may be entitled to, either because they don’t know about certain benefits, or because they take them at the wrong time. They urge people considering applying for social security to make sure they understand all of their options and think carefully about the implications on both themselves and their spouses. It is a huge decision that will follow you the rest of your life, so it shouldn’t be taken lightly. Here are a few tips to maximize your benefits: • FULL RETIREMENT AGE (FRA): Waiting until at least your full retirement age to claim benefits, which are based upon your birth year, will result in a higher benefit. This can also impact the spousal benefit, so the higher earner’s decision to claim early can reduce the spousal, and, eventually, the survivor’s benefit. • SPOUSAL OPTIONS: Make sure you know all of the options, such as one where the higher earner files for but suspends benefits. This allows the lower-earning spouse to claim spousal benefits, and the higher-earning spouse to earn delayed retirement credits. This is called “file and suspend.” • SURVIVORS: Survivors can earn delayed retirement credits on their own benefit while taking survivor benefits. • DIVORCED SPOUSES: If your marriage lasted at least 10 years, you have been divorced at least two years, your ex-spouse is at least 62, and you are unmarried, you can apply for the same benefit as a married spouse. The report also says that there are a lot of myths about social security that cause people to make decisions based on incorrect information. Social security should be viewed as one strategy within your overall financial plan. Your financial advisor can help you understand your options. Go to www.bmoharris.com/pdf/bmo_retirement_institute_report_q4.pdf for the full report. Another valuable resource is the Social Security Online Retirement Planner available at www.socialsecurity.gov/retire2/index.htm. It provides detailed information about your social security retirement benefits under current law and points out additional things you may wish to consider as you prepare for the future.
Final Average Pay . . . What Does That Mean?
Your Final Average Pay (FAP) is the average of your highest 36 consecutive months of compensation. Your FAP is important because it is one of the factors in the formula used to calculate retirement benefits for general state employees. The base benefit formula* is a multiplier (which depends on which plan you belong to) x Final Average Pay x Credited Service. For example: • MSEP = .016 x Final Average Pay x Credited Service • MSEP 2000 and MSEP 2011 = .017 x Final Average Pay x Credited Service * A different formula is used in calculating the base benefit for legislators, statewide elected officials, and judges. 7
PRSRT STD U.S. Postage PAID Jefferson City, MO Permit No. 327
PO Box 209 Jefferson City MO 65102-0209
■ Retirement & You
We Are Here for Your Benefit
New Tagline . . . Same Financial Commitment
In the coming months, you may notice that MOSERS has a new look to its member communications. Our new tagline, We Are Here for Your Benefit, will be added to all of our publications and our website as an indication of our commitment to strive for excellence in how we serve our members over the phone, in person, and online. Our new tagline reinforces what motivates each one of us as we do our jobs every day—you, our members. Every single staff person is here to help you advance your financial security. Along with this new look, you’ll get to know the faces of MOSERS and the various departments that work together behind the scenes to ensure that retirement benefits are paid accurately and on time. THE COMMUNICATIONS SECTION IS HERE FOR YOUR BENEFIT! Our mission is to provide exceptionally well-designed and delivered written, electronic and in-person education to our members so they can make wellinformed, smart decisions about their MOSERS benefits. Here are a few things we do every day for our members: • Update and continually increase functionality on the MOSERS website • Conduct educational seminars in 16-plus cities around the state each year • Produce various publications and educational videos for print and web • Host and post educational webinars online • Use social media resources to disseminate important information online