When we talk to state employees about saving for retirement, one of the first questions we hear is, "Does the state offer a match?" The State of Missouri has always offered a match. It just looks a little different than what most people expect. Your defined benefit pension from MOSERS or MPERS should be considered the ultimate retirement savings match. While you have the option to save and invest a portion of your paycheck in the MO Deferred Comp Plan, these additional savings are meant to supplement – not replace – your defined benefit pension, which is guaranteed and increases with your years of state service. When we talk about a match, it is important to mention that IRAs and investments with local advisors do not match your savings contributions. And while many private-sector employers offer a traditional match, like matching your 6% contribution with another 6%, most do not offer a defined benefit pension. As a state employee, you have a pension. That benefit provides guaranteed retirement income based on your years of service and final average pay, and it has the potential to replace a substantial portion of your income in retirement. But here's the important thing to remember: your defined benefit pension was designed to be the foundation of your retirement income, but it was never meant to be the entire house. That's where your personal savings, like the money you invest with the MO Deferred Comp Plan, come into play. Your savings can help provide additional income, help offset inflation, and give you more flexibility in retirement. Together, these three sources of income — your defined benefit pension, Social Security, and your MO Deferred Comp personal savings — can give you a well-rounded source of retirement income after your career in state service. So the next time someone asks if you receive an employer match, remember: your defined benefit pension plan is the real state match.
