Volume 9 | July 2021
The Pensioner: In the Moment
Welcome to the digital MPERS newsletter! The Pensioner: In the Moment contains news, updates, and important information for retirees of the Missouri Department of Transportation, the Missouri State Highway Patrol, and MPERS.
In the March edition of The Pensioner: In the Moment, the oversight formula was introduced:
As noted in last month’s MPERS’ Matters, the MPERS Board of Trustees has responsibility for the investment of assets used to cover the payments for the System’s beneficiaries.

This is an area where the Board of Trustees has a lot of flexibility with decision-making. These decisions are critical for public pension plans because investment returns often cover 60% or more of the cost of a pension plan. Over the last 20 years or so, investment returns have covered approximately half of the cost of the benefits administered by MPERS.

Investment direction is largely established through MPERS’ Investment Policy, which includes the asset allocation. Asset allocation involves dividing an investment portfolio among different asset categories such as stock, bonds, real estate, and cash. This board-approved allocation, noted in the chart below, provides direction for the professional investment staff on how to invest these assets.

In order to have positive investment returns, the investor (MPERS) must take some amount of risk otherwise the employers would have to cover an unnecessarily high cost. If an investor takes too little risk, investment returns are minimal, thereby putting extra costs back on the covered employers. Taking too much risk on the other hand, may result in excessive losses during market downturns, again putting extra pressure on covered employers. The Board must consider this delicate balance and spend considerable time and attention when developing or changing an asset allocation.
The asset allocation is reviewed at least annually to be sure the Board knows the return expectations and the associated risk. The asset allocation is also reviewed more formally through an in-depth process called an asset/liability study, usually every five years. This extensive review helps to align the risk taken with the Plan’s liabilities.

For a more in-depth study of MPERS’ Investment Policy and how it evolved, see the white paper on the Evolution of Investments located on MPERS’ website.
If you would like to give permission for a person or an organization to speak to MPERS about your pension benefits, simply complete the MPERS Authorization to Release Information form.

Why is this important? A good example would be if a member's spouse calls on behalf of the member. If we do not have an Authorization to Release Information on file, MPERS' staff will not be able to speak with the spouse about the member's pension benefit. If the member were to complete this form and give permission for staff to speak with the spouse, we can do so without issue.

As a member, you can give authorization to a spouse, sibling(s), child(ren), trusted friend(s), financial advisor, etc.

The Authorization to Release Information form is different from the Designation of Agent form and/or Power of Attorney.
Completion of the Designation of Agent form allows a member to designate an agent to act on his/her behalf should the member become incapacitated. This form is only applicable to MPERS-related business and is not transferrable to other agencies or organizations.

The Authorization to Release Information form, the Designation of Agent form, and many others are located at www.mpers.org, under the Forms section of the Resources tab.

If you need assistance with these forms or others, please contact an MPERS benefit specialist by phone at 800-270-1271 or by email at mpers@mpers.org.
Upcoming Events
  • 5 - Independence Day observed; office closed
  • 15 - Deadline to submit direct deposit and/or tax withholding changes. Complete changes here.
  • 30 - Payday for benefit recipients
We value your feedback!
What would you like to see in The Pensioner: In the Moment?
Send comments and suggestions to Julie.West@mpers.org.