MOSERS board raised contribution policy as funded ratio hovers at 55%; committee urged caution

Officials from the Missouri State Employees Retirement System told the House Budget Committee that the pension plan’s funded ratio is 55.4 percent and that the unfunded liability remains substantial.

"We are 55.4% funded," the MOSERS representative said, noting the board has reduced its investment return assumption from 8.5% to 6.95%, extended mortality assumptions, moved to a closed five‑year smoothing window and amortized the unfunded liability over a closed 25‑year period. Those actuarial changes and the board’s funding policy drove the board’s certified contribution, which is being phased up to a 32% minimum funded policy.

Committee members pressed whether the certified rate and any additional $46 million request are mandatory and sustainable. Speakers noted the board has statutory authority to set the contribution rate; if the actuarially determined rate or the board’s minimum funding policy exceeds the current statutory or budgeted level, the committee would need to provide appropriation authority. MOSERS trustees and legislative members discussed the long time horizon for improving the funded ratio and the trade‑offs of paying higher contributions now versus delaying payments and increasing future liabilities.

The hearing did not produce a committee vote; members requested further data on how delayed funding or pausing an increase would affect the funded ratio and long‑term liabilities.