May 2015 DC Update

  • May 6, 2015


Employee Recognition Week

The strange thing about employee benefits is that sometimes you don't understand how they work until you actually need them. Unfortunately, as it relates to your pension and personal retirement savings, that's not the best approach. We understand that you lead a busy life and it's not always easy keeping up with employee benefits, but we also want you to know that some employee benefits aren't just working for you today, tomorrow or even within the calendar year. Instead, some benefits are poised to provide a lifetime of support for the days and years you haven't even started to envision. In that spirit, and in celebration of Employee Recognition Week, which runs from June 8-12, we'll soon be launching the Retirement Information Quest - or IQ for short. Retirement IQ will be a 3-week-long scavenger hunt culminating at Employee Recognition Day on June 11.

Now, we know what you're thinking, scavenger hunts can be a bit frustrating and retirement planning can be little abstract, but it's our hope that you'll gain a better understanding of these important employee benefits that you don't necessarily "use" on a daily basis. Even better, you'll earn swag just for participating in Retirement IQ and be entered in the deferred compensation plan's Employee Recognition Day prize drawing on June 11.

Here's how it will work: Around May 13 the Retirement IQ game announcement, including rules, game sheet (PDF), and prize information, will be distributed via email to state employees. These resources will also be posted to the MOSERS and deferred compensation plan websites and social media channels. Then, beginning on May 20th, we will start posting questions and clues about various retirement and savings topics. Answers can be found by searching online at either www.mosers.org or www.modeferredcomp.org. Game contestants must follow along with each question throughout the contest and keep track of their answers on their personal game sheets. At the end of the contest, players can submit their finished game sheets via email, fax or by handing them in at the employee recognition event in Jefferson City on June 11. For those who didn't follow along in the weeks leading up to Employee Recognition Day, game sheets will be available at the MOSERS and State of Missouri Deferred Compensation Plan booths the day of the event. Employees wishing to participate at that time must complete the scavenger hunt during Employee Recognition Day by using the resources available at both booths. Finished game sheets must be returned by the end of the day on June 11.

We hope this fun event encourages you to learn more about MOSERS and deferred compensation plan benefits. Regardless of your age or career stage, gaining a better understanding of your retirement benefits can have a huge impact on your future.



Statement & Newsletter Reminder

As a reminder, 2nd quarter statements will soon be available within the Statements and Confirms section of Account Access. It’s recommended that you periodically evaluate your savings progress to make sure you're on track to reach your goals. Quarterly statements include account balance and asset allocation information, performance history, future account balance and income projections, fee and contribution details, and important Plan communication.

Also, don’t forget to check out this quarter’s edition of the Simply Put newsletter. Available within Account Access and on the deferred compensation plan website, this edition defines ‘Asset Allocation’ and ‘Diversification’, explains why every investor should understand these concepts, and illustrates how both are at work in the Plan’s Missouri Target Date Funds.



Now That’s a Great Question

Every so often we like to highlight popular participant questions in a segment we call "Now That's a Great Question." This month's great question is: What is the deferred compensation plan? Marketing Technologist Brooke Rowden recently addressed this very topic as part of the DC Explains video series.

Very simply, the State of Missouri Deferred Compensation Plan is a retirement savings plan for state of Missouri employees. Its main role is to provide an additional monthly paycheck that will supplement pension and social security in retirement. More specifically, the deferred compensation plan is a defined contribution plan, where employees contribute their own money, choose their own investments, and manage their own balance while working and through retirement. The deferred compensation plan is also known as a 457 plan, which is the public employee equivalent of a 401k savings account found in the private sector. The major difference between a 401k and a 457 plan is that public employees can access their retirement savings prior to age 59 ½ without paying an early withdrawal penalty. It’s one of the many reasons why 457 plans like the deferred compensation plan are a valuable employee benefit.

You can find other short videos like this by visiting the DC Explains page, or by visiting the DC Explains section of our YouTube channel. And remember, for more answers to popular questions, be sure to visit the FAQ section of our website. If you can't find what you're looking for there, give one of our friendly participant service representatives a call at 800-392-0925.



Auto Enrollment Report

We're happy to report that as of April 1, more than 9,500 state employees have been auto enrolled in the deferred compensation plan. Together, these newly enrolled employees have contributed a combined $5.9 million in retirement savings.

Please note: Detailed data for agencies with 10 or fewer hires is omitted in this report.

Department Total AE Opt Out Net AE AE Success Rate
State Auditor
18
0
18
100.00%
Office of Administration
235
16
219
93.19%
Dept of Corrections
2602
226
2376
91.31%
DESE
269
28
227
89.02%
Labor & Industrial Relations
72
8
64
88.89%
Social Services
1783
202
1581
88.67%
Health & Senior Services
334
39
295
88.32%
Revenue
283
35
248
87.63%
Transportation
714
96
618
86.55%
Agriculture
50
7
43
86.00%
Ins, Fin Inst, Prof Reg
71
10
61
85.92%
Natural Resources
176
26
150
85.23%
Judiciary
662
101
561
84.74%
Secretary of State
52
8
44
84.62%
Public Safety
1089
171
918
84.30%
Conservation
92
16
76
82.61%
Mental Health
1857
335
1522
81.96%
State Public Defender
184
39
145
78.80%
Attorney General
107
24
83
77.57%
Econ Development
110
26
84
76.36%
Legislature
156
43
113
72.44%
DNR
-
-
-
-
Governor's Office
-
-
-
-
Higher Education
-
-
-
-
Highway & Highway Patrol
-
-
-
-
Housing Development Commission
-
-
-
-
Lt. Governor
-
-
-
-
Missouri Consolidated Healthcare
-
-
-
-
MOSERS
-
-
-
-
State Treasurer
-
-
-
-
TOTALS
10,902
1,456
9,446
86.64%


Stay Connected with the Plan on Facebook, Twitter, LinkedIn and YouTube

Thanks for tuning into the May edition of the DC Update. Remember to keep your eyes peeled in the coming weeks for information on the Retirement IQ scavenger hunt. The best way to do that is by connecting with the Plan on Facebook, Twitter, LinkedIn or YouTube. Our social media channels are a great way to receive timely Plan news, important savings tips and much more. Until next month, this has been Casey Fick from the State of Missouri Deferred Compensation Plan, your smart, simple savings solution.