Board Structure and Governance - Why is it Important. Special Insert - Summary Annual Financial Report. In This Issue. Winter 2003

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1 Board Structure and Governance - Why is it Important In our continuing effort to provide you with information about the roles and responsibilities of board members and the types of decisions they make, this month s edition of PensionsPlus will focus on the importance of board governance and how it specifically translates to providing oversight of the retirement, life insurance and long-term disability plans. Before getting to that, let s take a look at the structure of the board. Board Structure MOSERS operates under the direction and control of an eleven member board of trustees consisting of two ex-officio members, the state treasurer and the commissioner of administration; two members of the House of Representatives appointed by the speaker of the house; two members of the Senate appointed by the president pro tem of the senate; two members appointed by the governor; two active members elected by the active members; and one retired member elected by the retired members. Your current board members are noted in the sidebar on the last page of this newsletter. Board Governance Everybody is talking about governance these days. It s been a hot topic of late due to the scandals that erupted at Enron, WorldCom, and even, more recently, the New York Stock Exchange. But what exactly does governance mean? Generally speaking, governance describes how we go about our business specifically, it involves working continually to define the results the organization is to produce and to define the acceptable boundaries within which the board can delegate the means for achieving those results. At MOSERS, the Board of Trustees has the fiduciary obligation to make sound decisions concerning all aspects of the retirement system. In order to make sure the board is meeting its fiduciary obligation, it uses a governance model that outlines the process and describes how decisions are made and how they are implemented. In 1999, the MOSERS Board of Trustees formally adopted written governance policies to serve as the framework through which the board could organize thoughts, activities, structures, and relationships. During the months leading up to the adoption of this model, the board sought the help of an outside consultant who had developed a governance model that has Continued on page 2 In This Issue Winter 2003 Special Insert - Summary Annual Financial Report Inside this edition of PensionsPlus you will find the 2003 Summary Annual Financial Report. This report highlights the financial status of your retirement system. In the past, we have mailed a copy of this report to each member s home. Taking into consideration the current budget concerns, we determined it was more economical to provide this information inside a publication you already receive. We hope all recipients of this report find it informative and useful. If you would like more details regarding the financial status of the retirement system, you may request a copy of the Comprehensive Annual Financial Report by contacting MOSERS. Contact information is located on the back of this newsletter. Board Structure and Goverance - Why is it Important... 1 Special Insert - Summary Annual Report... 1 Facts About Applying for Retirement... 3 Look for Beneficiary Information in Annual Benefit Statement... 3 New Seminar will Focus on the Basics of Financial Education... 4 Workshops/Seminars to Fit Every Need Educational Seminar Schedule... 5 Two Step Retirement Process... 6 Meet Your Benefit Specialists... 6 Locating Important Documents... 7 Web Enrollment - Number One Way to Enroll... 7 Voice Your Opinion... 8

2 been used by many boards across the United States and abroad. The foundation for this method of policy governance is centered on four core philosophies: 2 Accountability which recognizes that the board has a fiduciary obligation to MOSERS members. Servant-Leader which recognizes that the board is both a servant to MOSERS membership and the leader of the organization. Clarity of group values which means that the board is vested with group responsibility and authority (no single trustee may act alone without specific board authorization). Empowerment of staff which recognizes that the system is best served if staff is given the latitude to implement board policy decisions and achieve board goals. How the Board Sets Goals The board determines the direction of the system by defining ends policies. In defining ends policies, the board has determined the ultimate goals of the system in a number of key areas including investments, benefits, legislation, and the actuarial condition of the plan. For example, the board has decided that members are to receive: High quality service from staff Adequate benefit education training Access to benefit information in a cost-effective and timely manner Updates on plan changes that are tailored to the individual Benefits delivered in a respectful, cost-effective, timely manner The investment ends policy is also one of the key policies developed by the board. This policy reflects the board s risk tolerance and expectations and centers on the system s end product the payment of retirement benefits. Simply stated, before benefits can be paid, funds must be available and investment returns are vital in accumulating the resources needed for funding the system s benefit obligations. Delegation of Duties Because the board members are not in a position to implement all of their policy decisions, they have delegated authority for day-to-day decision making to the executive director. Critical to this delegation is the requirement for the executive director to comply with specific limitations that the board has expressly established in the governance policy. Examples of limitations include the requirement that the system operate in a manner which does not violate the law, descriptions of how members and staff are to be treated, processes for budgeting, and monitoring the financial condition of the systems and protecting the assets. How the Board Monitors Performance The first step in the monitoring process is for the executive director to report all progress made toward achieving the goals described in the ends policies. Likewise, the executive director is required to report efforts made to satisfy the limitations established by the board. At a minimum, the executive director makes those reports annually. Violations of any of the limitations must be reported to the board immediately by the executive director, chief legal counsel, internal auditor, and/or the external investment consultant (depending on the limitation involved). After the board receives these reports, the second step is for the board to judge whether the executive director s performance is in alignment with its expectations as stated in the policies. If the board finds that the executive director has successfully met its expectations as reflected in the policies, it can be assured that it has met its fiduciary duties. If the executive director has not successfully met the board s expectations, the board is required to investigate the cause of the deficient performance. Once the board identifies the cause of the deficient performance it should be able to correct the situation. As a final check on the overall effectiveness of their governance policies, the board employs the services of independent external authorities (consultants) that have expertise regarding the various disciplines involved in retirement system operations. These specialists provide one more safeguard in monitoring and controlling the risks associated with the operation of a multibillion dollar financial institution. It is important to note that, under MOSERS governance policies, the executive director is the link between the board and staff. This structure is a necessary part of the delegation and monitoring process. Without it, the board would have a difficult time monitoring the executive director s performance and holding the executive director accountable for carrying out its policy objectives. What This Means for You as A Member Good governance is the key to the success of any organization. The system s governance policy is not a fancy book that ends up gathering dust on a shelf, but rather is a tool that is used on a daily basis to keep us focused on our mission and goals in order to effectively and efficiently deliver the benefits you have been promised. You can rest assured that MOSERS board members take their fiduciary obligations very seriously. They have gone to great lengths to assure that the system is administered in the exclusive interest of you, the plan participants, by following an organized process for making decisions, implementing proper controls, and serving in their oversight capacity by regularly monitoring system activities.

3 Facts About Applying for Retirement Retirement Benefits Are Not Automatic Before the retirement process can begin, you must complete an Application for Retirement. We recommend that you submit the application to MOSERS at least 45 to 90 days before your retirement date. For more information on application deadlines, please refer to the Two-Step Retirement Process chart on page 6 of this newsletter. The Application for Retirement meets the statutory requirements for members to apply for retirement. No other form will start the retirement process at MOSERS. You may obtain an Application for Retirement from your payroll/personnel representative, on-line at or by contacting MOSERS. You Must Leave State Employment Before Benefit Payments Will Begin By law, you cannot work in a benefit eligible position for the state and receive a retirement benefit from MOSERS at the same time. For example, if you intend to retire May 1, you cannot work in a benefit eligible position beyond April 30. Your employer will send MOSERS a Termination of Employment form, which states your last day of employment with the state. Your retirement service credit ends on that day. Your employer may require you to be at work on your last day of employment. Please contact your payroll/personnel representative to determine if you can use annual leave on your last day or if you must be at work that day. Benefit Payments Are Not Retroactive In order for benefit payments to start on your intended date of retirement, you must provide the required documents in a timely manner. Any purchase or transfer of service credit must be completed prior to your date of retirement. Benefit payments will begin the later of: (1) your intended date of retirement, or (2) the first of the month coinciding with the deadlines on the Two-Step Retirement Process chart. If you do not meet the required deadlines that enable us to complete the verification process, your benefit payment and date of retirement may be delayed. Benefit payments cannot be made retroactively to an intended date of retirement. Acceptable Proof-of-Age Documents When you apply for retirement, you will be asked to include documentation that verifies your age. Please submit a legible photocopy and not the original document. Acceptable proof-of-age documents include: Look for Beneficiary Information in Annual Benefit Statement There will be something new in your Annual Benefit Statement, which is scheduled to be mailed in March. For your convenience, MOSERS will be including the names of your primary life insurance beneficiaries. (Contingent beneficiaries will not be listed.) The Annual Benefit Statement is a personalized statement designed to provide an overview of your benefits as an active state employee. It includes information regarding your: Medical, dental, and vision coverage Cafeteria plan Deferred compensation Retirement service credit Retirement benefit estimate Life insurance MOSERS is including beneficiary information as a reminder to keep your beneficiary designations current. We are in the process of keying beneficiary designations into our computer system. For your convenience, your primary beneficiary designation(s) has been added to your personal information available on our secured web site. A password is required to view this information. If you do not have a password, log on to and follow the steps to request a password. Birth certificate Military Form DD214 Passport (current or expired) You may change your beneficiary designation(s) at any time by completing a Designation of Life Insurance Beneficiaries form and mailing it to MOSERS. The form is available on our web site, through your payroll/personnel representative, or by contacting MOSERS. 3

4 Money Matters New Workshop will Focus on the Basics in Financial Education What can make you money and doesn t cost a thing? It s the new MOSERS workshop, Money Matters. Do you want to buy a house, put a child through college, or get out of debt? In this workshop you will set financial goals, then learn strategies to achieve those goals. The workshop includes information about investment opportunities with PEBSCO, using the Cafeteria Plan, and life insurance options. Basic information is also provided on stock market investments. Many people think estate planning is for your retirement years, but there are some basic steps you can take now to provide for your future financial concerns. In Money Matters you will learn about the three basic documents every employee should acquire now as part of his or her estate planning. What about your future financial goals? In this workshop, you also will learn about resources for estimating your MOSERS retirement benefit and social security benefit. Money Matters is a free, half-day workshop 8:30 a.m. to noon. It will be offered at a location near you starting in February Workshops/Seminars to Fit Every Need MOSERS offers educational workshops and seminars as a service to members. These educational opportunities are presented in various locations around the state beginning in February and continuing through November. Registration information will be mailed to your home in January. Advance registration is required to attend. Please let us know if you wish to bring a guest. There is no registration fee for the Benefits Basics or Money Matters workshops. For the Pre-Retirement Seminar, please include your check for $10 ($20 if you bring a guest) made payable to MOSERS. See the table below for various ways to enroll. Phone registration Fax (800) or (573) (573) On-Line Phone Mail Workshop/Seminar Enrollment Enrollment Enrollment Benefits Basics Yes Yes Yes Money Matters Yes Yes Yes Pre-Retirement No No Yes How To Select A Seminar Benefit Basics (formerly Introduction to MOSERS Benefits) FOR: Recommended for state employees with less than 10 years of service In this free two hour workshop, you will learn the basics about your MOSERS benefits. Do you know what benefits you have as a state employee? When will you be vested? What happens to your benefits if you leave state employment? How soon can you think about retiring? You will get answers to these frequently asked questions and others you may have about your MOSERS benefits. Money Matters FOR: Any state employee with little or no financial planning experience This half-day workshop is free for any member who wants to learn about basic financial planning including setting goals, managing credit/debt, saving for a house or putting a child through college, understanding PEBSCO, and the Cafeteria Plan. You will also learn of resources to further your financial education and how to estimate your retirement and social security benefits. Pre-Retirement ($10 per person fee) FOR: State employees within five years of retirement You will start this seminar with an estimate of your retirement benefit and a packet of information provided by MOSERS. Then, you will learn about eligibility for retirement, and the steps required to apply. Information is provided on choosing a retirement payment option, BackDROP, credit for prior service, and life insurance. Additionally, representatives from Missouri Consolidated Health Care, PEBSCO, and Social Security present information about those programs and are available to answer your questions. This is a full day seminar that includes lunch. 4

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6 The Penny The penny is part of our nation s history and culture. Over the centuries, the penny has been an integral part of the American experience. Did you know that most Americans still count their pennies? Statistics show that when the economy slows, Americans count their pennies and cash them in. At MOSERS, we count, pinch, save, and invest every penny we can because we know a little change today can make a big difference tomorrow. 2

7 A penny for your thoughts... Our Mission To play an integral role in the future financial security of plan participants by promptly and courteously delivering quality benefits and information which members value and trust, through professional plan administration and prudent management of system assets. Dear Members: Letter From the Board Chair On behalf of the board of trustees, I am pleased to present the MOSERS Summary Annual Financial Report for the fiscal year ended June 30, In keeping with this year s annual report theme, fiscal year 2003 will certainly be remembered as a year filled with change for the system. This report highlights these changes and provides information on the financial status of your retirement system. Your retirement system remains well funded and your promised benefits are secure. Fiscal year 2003 began with the board s approval of a new asset allocation based upon an asset/liability study which was conducted in the spring of The majority of the past year has been spent implementing this new asset allocation mix. As a result of many of the changes that were implemented, I am pleased to report that the system generated a return of 7% net of expenses for the fiscal year. This return compares quite favorably to the public pension fund universe of funds greater than $1 billion, placing MOSERS investment returns in the top 9% of funds within this category. On the legislative front, Senate Bill 248 was passed and took effect July 1, This bill established a health care retirement incentive for eligible active or retired members who were eligible on or after February 1, 2003, through January 1, 2004, and actually retired no later than September 1, Those eligible members who retired during this period may continue medical coverage for themselves and any eligible dependents at the active employee rate for five years or until becoming eligible for Medicare. The legislation was designed to reduce state payroll as a means of helping balance the state budget. While the financial impact to the retirement system has not yet been determined, the system has witnessed a significant increase in the number of members applying for retirement. Despite record numbers of retirements during this period, MOSERS staff mobilized to meet the counseling needs of the members and processed all paperwork in a timely manner. The board experienced significant turnover throughout the fiscal year. We bid farewell to several long time members who have contributed a great deal to the system. I would like to express the board s collective thanks to elected trustees Tom Hodges and Bryan Ornburn and appointed trustees Representative Richard Franklin and Representative Bill Skaggs for their dedication and service to the system and our members. Several new additions were made to the board throughout the year. On behalf of the board, I am pleased to welcome Wayne Bill, Marsha Buckner, and Don Martin who were all elected by the membership. In addition, we welcome two newly appointed trustees, Representative Bill Deeken and Representative Todd Smith. We look forward to working with them. In closing, if you have any questions regarding this report, please contact us at MOSERS, PO Box 209, Jefferson City, MO 65102, or by calling We look forward to our continued service to you, as we strive to make little changes today for a big difference tomorrow. Sincerely, Carol Gilstrap, Board Chair Board of Trustees 3

8 A penny saved is a penny earned... Investment Performance 15.0% 10.0% 5.0% 7.0% 5.8% 3.3% 1.3% 8.4% 7.8% The portfolio s investment return relative to specific benchmarks is one means of evaluating the fund s investment performance. The graph to the left illustrates MOSERS portfolio return relative to our policy benchmark. 0.0% -5.0% -10.0% -0.6% -4.7% Your retirement system generated a return of 7.0%, net of expenses, in FY03. On a relative basis, the fund outperformed the policy benchmark by 1.2% % 1 Year 3 Years 5 Years 10 Years MOSERS' Return (Net of Expenses) MOSERS' Total Fund Policy Benchmark* * The policy benchmark provides an indication of the returns that could be achieved (excluding transaction costs) by a portfolio invested passively in the broad market with percentage weights allocated to each asset class in MOSERS policy asset allocation. Diversification of Plan Assets The foundation of the system s strength and stability rests upon the diversification of plan assets. Just as building a house with one support beam would not be sound, investing all assets in one particular company or investment type would not be prudent. As you will note from the pie chart below to the left, MOSERS investment program is widely diversified through a variety of asset classes with numerous holdings in each category. In addition, each asset class serves to provide diversification under a variety of economic scenarios that may play out over time. The second pie chart below illustrates the various economic scenarios and which asset classes are anticipated to perform well in those various scenarios. By diversifying MOSERS holdings, or avoiding placing all of our eggs in one basket, the fund is able to minimize the overall risk of the portfolio while striving to reach its return objectives. Timber - 4.7% Private Equity - 2.9% Distressed Debt - 4.6% Commodities - 2.3% Real Estate - 4.0% Market Neutral - 5.1% Domestic Equity % DEFLATION Long Treasuries Timber Real Estate Emerging Markets Commodities TIPS RISING INFLATION 4 Treasury Inflation Protected Securities - 9.5% High Yield Bonds - 4.9% Core Fixed Income - 9.9% Emerging Market Equity - 4.9% Hedged Equity - 5.1% Developed International Equity % FALLING GROWTH Treasuries TIPS Equities Corp./Mrtg. Bonds Emerging Markets Timber Real Estate Commodities RISING GROWTH Equities Corporate Bonds Treasuries FALLING INFLATION

9 Pinching pennies... Funding the Retirement System MOSERS funding ratio at June 30, 2003, was 87.9%. A funding ratio over 80% is considered good. $8.00 BILLIONS $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $ % 80.1% 81.3% 76.5% 82.1% % 84.9% 93.5% 92.5% 87.9% Your retirement benefits are funded by contributions from the state of Missouri. In order to ensure your benefits are available to you, MOSERS is constantly evaluating the plans assets (dark copper bar) relative to the value of liabilities (light copper bar). The percentages shown in the bar chart to the left indicate the plans funding ratio for a given year. According to MOSERS actuary, Gabriel, Roeder, Smith & Company, the plan is strong and sound per their annual review. Valuation Assets Accrued Liabilities Financial Statements The Statements of Plan Net Assets are summaries of what MOSERS owns and what it owes as of the end of the fiscal year. Summary Comparative Statements of Plan Net Assets As of As of Amount Percentage June 30, 2003 June 30, 2002 of Change Change Total assets $ 6,743,388,933 $ 6,376,857,882 $ 366,531, % Total liabilities 1,508,542,806 1,314,575, ,967, Net assets $ 5,234,846,127 $ 5,062,282,646 $ 172,563, The Statements of Changes in Plan Net Assets summarize the flow of money in and out of the fund throughout the fiscal year. Summary Comparative Statements of Changes in Plan Net Assets Year Ended Year Ended Amount Percentage June 30, 2003 June 30, 2002 of Change Change Total additions $ 518,210,724 $ (113,571,787) $ 631,782, % Total deductions 345,647, ,085,249 54,561, Net increase (decrease) 172,563,481 (404,657,036) 577,220, Net assets beginning of year 5,062,282,646 5,466,939,682 (404,657,036) (7.4) Net assets end of year $ 5,234,846,127 $ 5,062,282,646 $ 172,563,

10 Every penny counts... Legislation Health Care Retirement Incentive On June 19, 2003, Governor Holden signed into law Senate Bill 248 legislation that created a health care retirement incentive plan for general state employees who are eligible to retire on or after February 1, 2003, through January 1, 2004, and actually retired no later than September 1, Under this legislation, an eligible retiree who retired during the window could elect to continue health care coverage for him/herself and any eligible dependents at the same cost as if such retiree were an active employee for a maximum period of five years or until becoming eligible for Medicare, whichever occurs first, at which time the rate reverts to the applicable rate for retiree coverage. The health care retirement incentive was only available to eligible general employees covered under Chapter 103, RSMo; however, the legislation also contained a provision that allowed the governing boards of Truman State University, Lincoln University, and the colleges and universities, and the commission that governs the Department of Conservation to elect to offer the same health care retirement incentive to their eligible employees. Senate Bill 248 also contained provisions that require MOSERS to make a report in writing to the Governor, Commissioner of Administration and the General Assembly by April 1, 2004, and to also provide monthly tracking, as to the effect of state employee retirements. The written report covers the period February 1, 2003, through January 31, 2004, and includes the number of retirements, the amount of the affected payroll, and the financial effect as expressed by the system s actuary. There are additional provisions that require the Office of Administration and the Missouri Consolidated Health Care Plan to make a similar report on the budgetary effect of state retirements, including the reduction in payroll, the number of positions core cut, the number of employees replaced, and the financial effect on the budget including any costs associated with payment of medical premiums. The legislation limits the number of employees departments may hire to replace those employees who retired under the incentive to no more than 25% of the positions vacated. Exceptions to the 25% restriction may be made for critical or seasonal positions or any positions which are entirely federally funded. Lastly, Truman University, Lincoln University and the educational institutions described in section have been excluded from the 25% restriction. Age 48 for Rule of 80 Senate Bill 248 also contained provisions that lowered the minimum age for Rule of 80 from age 50 to age 48. Administrative Changes The legislation contained provisions that involve minor modifications to and clarifications of the Missouri State Employees Plan (MSEP) and the Missouri State Employees Plan 2000 (MSEP 2000) that will enable MOSERS to more effectively administer these plans. Other Provisions Another provision contained in Senate Bill 248 allows employees of the Division of Public Safety, who are transferred to the Missouri Department of Transportation (MoDOT) by virtue of executive order 03-05, the option of electing to remain in MOSERS or transferring their service to the Highway and Transportation Employees and Highway Patrol Retirement System (HTEHPRS) that covers MoDOT employees. For any employee who elects to transfer their service to HTEHPRS, MOSERS will be required to pay to HTEHPRS an amount actuarially determined to equal the liability at the time of transfer to the extent that liability is funded as of the most recent actuarial valuation not to exceed 100%. 6

11 Pocketful of pennies... Member Snap Shot June 30, 2003 Actuarial Valuations MSEP* ALJLAP Judicial Plan Outstanding Achievement in Popular Annual Financial Reporting Active Members Average age Average years of service Average annual salary $30,229 $81,717 $102,176 Retired Members Average age Average annual benefit $12,552 $36,814 $44,129 Total Membership 93, Active 57, Terminated-Vested 12, Retired 22, * Includes general employees, legislators, and statewide elected officials in both the MSEP and MSEP MSEP* Members Retiring During the Fiscal Year Ended June 30, 2003 Years Average Credited Monthly Average Final No. of Service Benefit Average Pay Retirees <5 $107 $1, $288 $2, $492 $2, $720 $2, $1,060 $2, $1,453 $3, $1,820 $3, All members $1,036 $2,766 1,814 The Government Finance Officers Association of the United States and Canada (GFOA) presented an Award for Outstanding Achievement in Popular Annual Financial Reporting to MOSERS for its summary annual report for the fiscal year ended June 30, This prestigious national award recognizes popular reports for creativity, presentation, understandability, and reader appeal and is valid for a period of one year. We believe the current summary annual report continues to meet these program standards and we are submitting it to GFOA for evaluation. * Includes general employees, legislators, and statewide elected officials in both the MSEP and MSEP

12 This summary annual report is derived from the information contained in MOSERS Comprehensive Annual Financial Report (CAFR) but does not include all funds administered by MOSERS nor certain other information required to be in conformity with Generally Accepted Accounting Principles (GAAP). MOSERS CAFR is produced in conformity with GAAP. Contact MOSERS to request a copy of the CAFR, or explore it on our web site. Contact Information Office Location 907 Wildwood Drive Jefferson City, MO Mailing Address PO Box 209 Jefferson City, MO Telephone (573) or (800) Missouri Relay (800) (Voice) or (800) (TDD) Web Site mosers@mosers.org Business Hours 8:00 a.m. - 5:00 p.m., Monday - Friday Alternative formats available upon request. To request an alternative format, please contact MOSERS at (573) or (800) MOSERS is an equal opportunity employer. M OSERS PO BOX 209 JEFFERSON CITY, MO PRSRT STD U.S. Postage PAID Jefferson City, MO Permit No

13 2004 Educational Workshop/Seminar Schedule Pre-Retirement Money Matters Benefit Basics February Jefferson City March 24...Rolla Jefferson City May Jefferson City June 3... St. Joseph Hannibal Jefferson City February Jefferson City Jefferson City March St. Louis St. Joseph April St. Louis Kansas City Jefferson City May 5... Springfield February 11...Jefferson City 25...Jefferson City March St. Louis Jefferson City/St. Joseph Rolla 30...Jefferson City April 1... Kansas City 7... Springfield 8... St. Louis Cape Girardeau Sedalia Kansas City 28...Jefferson City May 4... Springfield 12...Jefferson City Columbia St. Louis June 2... Jefferson City/St. Joseph 8... Kirksville 9... Hannibal Kansas City 16...Jefferson City 23...Jefferson City St. Louis July 7... Columbia/Jefferson City Springfield St. Louis Jefferson City/St. Joseph Kansas City 27...Jefferson City August 3...Farmington 4... Springfield/St. Louis 5... Rolla July Sikeston Springfield Jefferson City August 5... Springfield September Joplin St. Louis October 6... Cape Girardeau Kansas City July Jefferson City Jefferson City September 2... Jefferson City/St. Joseph 9... Kansas City Jefferson City November 4... Springfield September 1... Jefferson City/St. Joseph 8... Kansas City Poplar Bluff Springfield Joplin Cape Girardeau Jefferson City/St. Louis October Kansas City November 3... Springfield 10...Jefferson City 16...Jefferson City St. Louis 5

14 Two-Step Retirement Process Applying for retirement is a two-step process for general state employees, legislators, and elected state officials. This process provides you with individualized information needed to make informed decisions regarding your retirement benefit payment. Step 1. Complete and submit an Application for Retirement. The retirement application must be dated and received by MOSERS according to the due date listed on the chart below coinciding with your date of retirement. MOSERS will use this information to prepare and send you an individualized Retirement Election Form and benefit estimate. By law, your retirement forms must be submitted by the dates listed on the chart below. However, we recommend that you submit your Application for Retirement at least 45 to 90 days prior to your date of retirement. Step 2. Complete and submit the Retirement Election Form. On the election form, you will choose a retirement plan (if applicable), the BackDROP (if eligible), and a benefit payment option. This form must be received by MOSERS prior to your date of retirement. The chart below provides document deadlines for each possible date of retirement. If you do not submit these documents by the deadline, your retirement benefit payment will be delayed. Two-Step Retirement Process Date Forms are Due at MOSERS Date of Application for Retirement Election Retirement* Retirement Due Form Due January 1 November 30 December 31 February 1 December 31 January 31 March 1 January 31 February 28 April 1 February 28 March 31 May 1 March 31 April 30 June 1 April 30 May 31 July 1 May 31 June 30 August 1 June 30 July 31 September 1 July 31 August 31 October 1 August 31 September 30 November 1 September 30 October 31 December 1 October 31 November 30 *The date of retirement will always be the first day of a month. The two-step retirement process does not apply to judges or administrative law judges and legal advisors. There have been no changes in the retirement process for these members because there is not a benefit plan election (MSEP or MSEP 2000) in these plans. Meet Your Benefit Specialist Who: Dearld Snider Worked at MOSERS: 4 years Quote: MOSERS is an excellent place to work because the leadership appreciates out-of-the-box thinking and is open to creative ideas. Our staff is continually looking for new ways to communicate with members and improve our service. Dearld s tip: Begin the planning process for retirement and attend a retirement seminar about two years before getting ready to retire. It s easier to help someone who has planned well ahead of their retirement date. Who: Debbie Murphy Worked at MOSERS: 2 1/2 years Quote: I especially enjoy counseling with our members. I worked for the state for 24 years before coming to MOSERS and often have the pleasure of assisting personal friends or previous co-workers with their retirement. Debbie s tip: Take the time to read the material sent by MOSERS and prepare for retirement. If you submit an Application for Retirement and then decide not to retire, please send MOSERS a written notice to rescind your application. Your application will become null and void if you do not complete this process within 90 days of your date of retirement. 6

15 Locating Important Documents Web Enrollment - Number One Way to Enroll Not sure where to locate important documents? The following is a list of important documents and addresses for where to write for copies. Here s how: *Birth or death certificate Cost of copy: $10.00 Missouri Department of Health Bureau of Vital Records 930 Wildwood PO Box 570 Jefferson City, MO *Marriage Certificate (state) Cost: $10.00 (corrected after printing) Missouri Department of Health Bureau of Vital Records 930 Wildwood PO Box 570 Jefferson City, MO Marriage (county) Cost: Varies Recorder of Deeds County where license was issued It looks like members are logging on in increasing numbers. Enrolling on-line was the number one way members elected to add or change their life insurance coverage during MOSERS Optional Life Open Enrollment. Optional Life Open Enrollment proved to be a valuable option for many members. In total 9,323 members increased or added life insurance coverage. Of those numbers, 2,971 members mailed in their changes, 2112 phoned them in, and 4,754 used the web to enroll or make changes on-line. This was the first year MOSERS provided the option to increase optional life insurance without proving insurability through the open enrollment. The enrollment period will be available annually, during October. MOSERS will continue adding to its on-line services. Current plans include allowing you to update your address or personal information, use financial calculators, post your questions or opinions on a bulletin board, and if you lose your password, you will be able to have it sent to you electronically via . Divorce (county) Cost: Varies Clerk of Circuit Court County where divorce was granted (*These documents are necessary when applying for retirement.) You can already log-on to MOSERS web site ( to get benefit estimates, download forms, get information about educational workshops, and learn of other information about MOSERS. Look for these enhancements in the coming months as MOSERS strives to meet the needs of members by adding to its on-line communication services. 7

16 BOARD OF TRUSTEES Of the 49 people who responded: 6% are very confident 22% are somewhat confident 43% are not too confident 29% are not at all confident Voice Your Opinion How confident are you that you will have enough money to live comfortably throughout retirement? Forty-three percent of the people who responded to our Voice Your Opinion web site question are not too confident. You can Voice Your Opinion every month on the MOSERS web site ( Be sure to check back and see the results. Carol Gilstrap, Board Chair Governor Appointed Member Don Martin, Vice Chairman Elected Retired Member Wayne Bill Elected Active Member Marsha Buckner Elected Active Member Representative Bill Deeken House Appointed Member State Treasurer Nancy Farmer Ex-Officio Member Senator Edward E. Quick Senate Appointed Member Senator John T. Russell Senate Appointed Member Representative Todd Smith House Appointed Member Lori Strong-Goeke Governor Appointed Member Commissioner Jacquelyn White Ex-Officio Member Gary Findlay Executive Director PensionsPlus is published quarterly by the Missouri State Employees Retirement System. To obtain an alternative format of this publication, please contact MOSERS. Mailing Address: PO Box 209 Jefferson City, MO Office Location: 907 Wildwood Drive Jefferson City, MO Phone: (573) (800) Fax: (573) Missouri Relay: (800) (Voice) or (800) (TDD) Web Site: M OSERS PO Box 209 Jefferson City MO PRSRT STD U.S. Postage PAID Jefferson City, MO Permit No. 327 PensionsPlus Newsletter