September 2015 DC Update

  • September 1, 2015


A Lifelong Benefit

When you think of employee benefits, you think of benefits that you receive while you’re, well, employed. But did you know that the State of Missouri Deferred Compensation Plan can be a lifelong employee benefit? To help us illustrate this, we’ve enlisted Buzz, the State of Missouri Deferred Compensation Plan mascot.

While you’re working for the state, the deferred compensation plan works for you by providing a convenient, low cost way to save extra money for retirement via automatic payroll deferral. The Plan’s core investment lineup is made up of unique fund options that aren’t commercially available elsewhere. One of the most popular set of options is the Missouri Target Date Funds, which provide automatic diversification to a variety of different assets – ensuring you don’t put all of your eggs in one basket. These funds are named for the year closest to your retirement date and managed by investment professionals who rebalance each fund’s asset mix – made up of stocks, bonds and other diversifiers – as it moves toward retirement. These funds are designed to invest more aggressively early on and become more conservative as investors approach and enter retirement. The Plan’s also at work for you during your career by providing FREE educational seminars and consultations at agencies all over the state. Saving money for retirement is a journey, and the Plan’s education specialists are poised to be with you every step of the way.

As you prepare for retirement, the Plan can be working for you too. If you’re eligible to receive a BackDROP payment, you can roll that lump sum distribution into the deferred compensation plan, even if you never participated in the Plan while you were working. Doing so will defer taxes on that payment until you withdraw those savings at a later date. Plus, if you accumulated savings in a previous employer’s retirement account (like a 401(k), 403(b), 457 or IRA), you can roll that balance into the deferred compensation plan too – making account consolidation a snap. And again, whatever you roll into the account, whether it’s a BackDROP payment or other retirement savings balance, you’ll gain access to those custom investment options and dedicated customer support.

Most importantly of all, the Plan can keep working for you even after you’re done working for the state. Keeping your money in the deferred compensation plan is a smart way to maintain access to all of the great features you enjoyed while you were working. In fact, 60% of state retirees still have a deferred compensation plan account after 5 years of retirement. Even better, once you retire, the money you contributed to the 457 plan can be accessed penalty free before age 59 ½. Many other retirement savings accounts will impose a 10% penalty on top of federal tax withholdings for any distribution made prior to 59 ½. Plus, the deferred compensation plan provides a variety of manual and automatic payment options to help you access your hard-earned savings in retirement.

Making the decision to save money for retirement is one of the best gifts you can give your future self. Saving with the deferred compensation plan ensures you will enjoy access to low cost, custom investment options and dedicated customer service both during your working career and in retirement. That’s why the State of Missouri Deferred Compensation Plan is one employee benefit that never retires, even after you do.



Auto Enrollment Statistics

The deferred compensation plan’s auto enrollment initiative began on July 1, 2012. Since that time, over 10,000 employees have been auto enrolled in the State of Missouri Deferred Compensation Plan and began building valuable retirement savings. The text version of this update contains cumulative auto enrollment statistics by department as of August 1st. If you’re a current state employee and don’t participate in the deferred compensation plan, remember that you can enroll in the plan at any time throughout the year. Simply visit modeferredcomp.org and click the Enrollment button, or call 800-392-0925 to get started. Currently, over 70% of state employees participate in the deferred compensation plan, making it the most popular retirement savings account for Missouri’s public employees.

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
23
0
23
100.0%
Office of Administration
277
21
256
92.4%
Dept of Corrections
2733
261
2472
90.5%
Dept of Labor & Industrial Relations
73
7
66
90.4%
Dept of Elem & Sec Ed
262
28
234
89.3%
Dept of Social Services
1879
209
1670
88.9%
Department of Health & Sr Services
346
42
304
87.9%
Dept of Revenue
313
40
273
87.2%
Dept of Ins, Fin Inst, Prof Reg
82
11
71
86.6%
Dept of Transportation
704
101
603
85.7%
Dept of Agriculture
54
8
46
85.2%
Secretary of State
51
8
43
84.3%
Public Safety
1153
181
972
84.3%
Judiciary
707
111
596
84.3%
Dept of Natural Resources
191
30
161
84.3%
Dept of Conservation
107
18
89
83.2%
Dept of Mental Health
2009
368
1641
81.7%
State Public Defender
198
43
155
78.3%
Dept of Econ Development
114
26
88
77.2%
Attorney General
112
26
86
76.8%
Legislature
155
43
112
72.3%
Dept of Higher Education
-
-
-
-
Governor's Office
-
-
-
-
Highway & Highway Patrol
-
-
-
-
Housing Development Commission
-
-
-
-
Lt. Governor
-
-
-
-
Missouri Consolidated Healthcare
-
-
-
-
MOSERS
-
-
-
-
State Treasurer
-
-
-
-
TOTALS
11,599
1,591
10,008
86.3%


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

Thanks for tuning in to the September video edition of the DC Update. Remember you can view other informative videos, just like this one, on our YouTube channel. Be sure to also connect with us on Facebook, Twitter and LinkedIn . Connecting with us online is the best way to receive timely Plan news and savings tips. Until next time, this has been Brooke Rowden with the State of Missouri Deferred Compensation Plan, your smart, simple savings solution.