Noteworthy News ■

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BOARD OF TRUSTEESAntwaun Smith - Board Chair

Lori Neidel - Vice ChairLaura Davis

Representative Caleb JonesSenator Joe Keaveny

Senator John LampingRepresentative Mike Leara

Don MartinCommissioner Doug Nelson

Treasurer Clint Zweifel

EXECUTIVE DIRECTORGary Findlay

MAILING ADDRESSPO Box 209

Jefferson City, MO 65102-0209

BUILDING LOCATION907 Wildwood Drive Jefferson City, MO

OFFICE HOURS7:30 a.m. - 4:30 p.m. • Monday - Friday

PHONE(573) 632-6100 • (800) 827-1063

AUTOMATED PHONE OPTIONSDeferred Compensation/MCHCP. ..........1Password Assistance .................................2Change Email/Mailing Address ...............3 Benefit Counselor ....................................4Investments .............................................5Dial Employee by Name .........................8Operator .................................................0

FAX(573) 632-6103

MISSOURI RELAY7-1-1 (Voice) • (800) 735-2966 (TTY)

EMAILmosers@mosers.org

WEBSITEwww.mosers.org

Graphic Designer - Tracy UpschulteWriter/Editor - Jade Elwess

Noteworthy News

3 Achievements MOSERS proudly receives several

notable awards.

4 Member Feedback Communications survey indicates

interest in social media is growing.

Life Planning

6 Rumor Central The truth about your MOSERS

benefits is just a click away. Subscribe today to Rumor Central.

6 Online Videos A quick overview on how to retire

online using MOSERS' website.

6 Social Security Social security launches new mobile-

friendly version of their website.

Retirement & You

7 Web Tools New interactive economic impact

maps now available on our website.

7 Retirement Trends Find out which benefit payment

options our members tend to choose at retirement.

8 CEM Results See how MOSERS is performing

in relation to other comparable retirement systems.

10 Research Report Survey of Americans serves as a

valuable tool for policy makers.

12 Benefit Counselors Your direct source to retirement,

life insurance and LTD benefits.

Special Insert Benefits You Can Count On Valuable Pieces of Your Total

Compensation.

PensionsPlus is published quarterly by the Missouri State Employees’ Retirement System. To obtain an alternative format of this publication, please contact MOSERS.

This publication is designed using stock photography. The photographs chosen are for illustrative purposes only; they do not imply any particular attitudes, behaviors, or actions on the part of any person who appears in the photographs.

Noteworthy News ■

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Excellence. Always. MOSERS Presented WithVery Notable Awards

Executive Director Gary FindlayReceived Lifetime Achievement Award

Gary Findlay, executive director of MOSERS, has been awarded the 2012 Money Management Letter Lifetime Achievement Award. This Institutional Investor News award is considered to be the standard setter for excellence in the financial services industry.

The announcement reads in part, “In the 18 years since Findlay became director, MOSERS assets have compounded at an annualized rate of 9% net of fees, outperforming the fund's benchmark by 1.2% annually. When compared to other public funds across the country, this performance places MOSERS among the very best. A recent study of 10-year results conducted by consulting firm Cliffwater & Associates found that MOSERS' returns were the highest among its peers for the decade.”

“It’s been an interesting lifetime with the most interesting part being the last 18 years here,” said Findlay. “I now consider the years leading up to 1994 as being preparation for what has happened since 1994. Almost all of the opportunities to play a part in policy development at the national level happened since then. Not mentioned were the Year 2000 plan, a new culture, a new focus, almost all of which stemmed from being alert to opportunities and capitalizing on them. Critical to all of this was attracting and retaining the right people and being willing to take calculated risks, which most public pension organizations are not willing to do.”

The full article can be read at the Money Management Intelligence website at www.moneymanagementintelligence.com.

Deferred Compensation PlanNamed Plan Sponsor of the YearThe State of Missouri Deferred Compensation Plan was named “Plan Sponsor of the Year” for 2013 by PLANSPONSOR magazine, the industry’s leading resource for retirement-benefits related news. Cindy Rehmeier, MOSERS’ manager of defined contribution plans and the State of Missouri Deferred Compensation Plan are featured in the March 2013 edition of PLANSPONSOR. Read the press release on the State of Missouri Deferred Compensation Plan’s website at www. modeferredcomp.org.

Annual Report Receives First Place Award From NACGMOSERS received the first place award from the National Association of Government Communicators (NAGC) for our 2012 Comprehensive Annual Financial Report (CAFR).

The theme of the 2012 annual report, Yesterday. Today. Tomorrow. was chosen to convey to members and to all stakeholders, the system’s public value, longevity, consistency, and ongoing commitment to professional plan administration.

The NAGC Blue Pencil & Gold Screen Awards Competition salutes superior communications efforts of government agencies and recognizes the people who create them.

The NAGC is a national not-for-profit professional network of federal, state and local government employees who disseminate information within and outside government. NAGC awards underscore the association's high standards of professionalism in public service.

Preparation of the CAFR is a monumental undertaking but it is our annual opportunity to tell our very positive story. Go to the About MOSERS section of our website to view the full annual report, the summary annual report, or previous annual reports.

■ Noteworthy News

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Member Feedback Growing Interest in Social MediaWe have expanded our communications strategy to include the use of some forms of social media. Social media includes various online technology tools that enable people to communicate easily via the Internet to share general information and resources. Tools such as Facebook, Twitter, blogs, and podcasts, have become increasingly popular, in general, and in the retirement industry specifically.

In April, we conducted our fourth annual MOSERS social media/communication preferences survey. If we have your email address on file, you may have been randomly chosen to take part. Thank you to those who participated. We received 1,810 responses (an 8.5% response rate).

Keep in mind that these are simply tools we use to help us improve our communication with you. We are not discontinuing our website. On the contrary! The MOSERS website is one of the most popular forms of communication that we use and we are continually improving its look, security features, and functionality. Additionally, MOSERS' communications and information technology sections work together to protect our members' security and reduce our members' risk of identity theft. We take your privacy concerns very seriously as we strive to provide you with accurate, timely information.

We appreciate your feedback. It will help guide us in our future communications efforts. Your feedback helps us achieve our mission of advancing the financial security of members.

Missouri State Government You can follow many Missouri state government agencies, including MOSERS, on your favorite social networks. For more information, visit the MO.gov’s Social Media Directory, which lists each agency with links to their Facebook, Twitter, You Tube, and Flickr sites.

COMMUNICATIONS PREFERENCES

Members prefer to receive their information from MOSERS via individual email and the website. Following that, they prefer to get their information via the newsletters, from a benefit counselor, from various social networking sites such as Facebook and Twitter, and via local newspaper/radio/public service announcements (in that order). This doesn't change significantly by age category.

Of those surveyed:

• 18% of respondents are interested in a mobile version of the MOSERS website.

• 83% are very or somewhat interested in MOSERS' investments.

• 46% are very or somewhat interested in MOSERS' Rumor Central blog as a way of getting information. This jumps to 48% for those age 56 and above.

• 62% think MOSERS does a very good job communicating with members, up from 59% a year ago; 30% think MOSERS does a good job but communication with members could be improved. Among the respondents who are age 26-35, that number (those who think we could do a better job) jumps to 50%.

Noteworthy News ■

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Join our community of nearly 400 Facebook friends and over 200 Twitter followers, and follow our Straight Talk Blog and Rumor Central to help you stay in the know, on the go!

Below are your views regarding various forms of social media as a means of communication.

• 76% of respondents are familiar with social networking and over 42% are familiar with blogging.

• 17% of respondents read blogs frequently or somewhat frequently.

• 50% of respondents make frequent or somewhat frequent use of Facebook and online video (44%) as communication techniques.

• Use of Facebook jumps to 82% in the 26-35 age group and to 89% in the 18-25 age group.

• Online video use jumps to 68% in the 26-35 age group.

• The percentage of respondents age 56+ who use Facebook frequently or somewhat frequently is 46%, up from 39% a year ago.

YOUR SOCIAL MEDIA STATUS

Those who weren’t “unsure” about social media indicated that the very or somewhat useful communication tools include:

• Webinars - 56%

• Online video - 41%

• Facebook page - 33%

• Audio podcasts - 28%

• RSS feed - 20%

• Blogs - 19%

• Twitter feed - 9%

Of those who use social networks:

• 61% use them to keep in touch/socialize with family, friends, and former colleagues and contacts.

• 12% use them for professional networking and getting news/updates from companies/organizations of interest to them.

• 23% use them for all of the above.

The social networks that respondents use the most are:

• Facebook - 56%

• YouTube - 21%

• LinkedIn and RSS feeds - 13%

• Blogs - 5%

• Twitter - 4%

WEBSITE AND NEWSLETTER STATUS

Of those familiar with the categories:

• 94% find the MOSERS website to be very or somewhat useful.

• 95% find email notifications to be very or somewhat useful.

• 98% strongly or somewhat agreed that information on the website is timely and relevant.

• 98% strongly or somewhat agreed that information on the website is accurate and credible.

Of those active respondents familiar with PensionsPlus, our active member newsletter:

• 98% strongly or somewhat agreed that information is relevant and timely.

• 98% strongly or somewhat agreed that information is accurate and credible.

Of those retired respondents familiar with RetireeNews, our retired member newsletter:

• 98% strongly or somewhat agreed that information is timely and relevant.

• 99% strongly or somewhat agreed that information is accurate and credible.

Follow us on

TWITTER

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■ Life Planning

Valuable VideosApply Online for RetirementWould you like to get an overview in less than 3 minutes of how to retire online? In the PreRetiree Video Library on MOSERS' website, click on the Apply to Retire Online video. You will be taken step by step through the online retirement application process, which is step 1 of the two-step retirement process. This video is especially helpful to watch before you start the process, since you will get a better idea of the information you will need to have on hand once you login to your secure Member Homepage and begin. You can also follow along with the video if you need some helpful tips as you go through the steps and make your selections. Upon completing step 1, you will see a confirmation screen. MOSERS will then prepare a personalized Retirement Election Form and benefit estimate and mail them to you, which is for step 2. If you need additional help, our Retirement Guide, available online in the Member section, explains each form involved in step 1 in more detail.

Website UpdateSocial Security Administration Goes MobileIn May 2013, the Social Security Administration (SSA) announced that users with smartphones will be able to access a new mobile-friendly version of their website. From this mobile site, you can login and view your social security statements, find the SSA on social media, locate and get directions to the nearest field office, and even listen to publications over the phone.

Go to www.socialsecurity.gov from your smartphone’s browser.

You can also access MOSERS' website and your secure Member Homepage from most mobile devices to access your personal benefit information and complete many tasks online.

Rumor Central The Truth About Your BenefitsAnother way to stay on top of rumors about retirement benefits is to subscribe to Rumor Central. Log into MOSERS’ website and change your email preferences under Personal Information to receive automatic updates by email when new information is published. Remember, you can also search for a particular topic to see if your question has already been addressed.

If you are hearing rumors about benefits other than retirement, life insurance or long-term disability, please contact that organization directly for information.

MOSERS video library - a quick and

simple reference tool for you. These

short clips are designed as a quick

introduction, or refresher, to your

MOSERS benefits. Because they are

general in nature, they may not cover

every specific situation.

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Retirement & You ■

Interactive Web ToolsEconomic Impact MapsMOSERS posted new maps on our website that show how much of the retirement benefits we distribute to retirees and survivors stays in Missouri. Choose Congressional, House or Senate maps, and then hover over a district to see an interactive display of the number of active and retired MOSERS members in that area, plus the economic impact in dollar amounts paid, for both active payroll and retirement benefits. Clicking on a district will bring up a printable map with data. If you aren’t sure which district you are in, click on the links provided and enter your zip code. Your district will be shown.

Find the maps in the About MOSERS section of our website under Legislative Maps.

Retirement TrendsPayment Options for Retired Members by Plan We are often asked which benefit payment option our members tend to choose when they retire. There are many factors that should be taken into account when selecting a payment option, and they vary from person to person. We encourage you to get a benefit estimate before retirement, either online or from a benefit counselor, and think carefully about all of your choices. Here is a graphic showing the options our retirees chose, as shown in the 2012 Member Profile Summary.

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■ Retirement & You

CEM ResultsSuccessfully Sweet PerformanceEach year, we receive a "report card" from a public pension plan benchmarking service, Cost Effectiveness Measurement Benchmarking, Inc. (CEM), which establishes performance measurements and rates us on seven core benefits administration functions. They then rank our scores compared to 60 other pension plans in the U.S., Canada, and around the world. The seven functions are Member Transactions, Member Communication, Collections and Data Maintenance, Governance and Financial Control, Major Projects, Information Technology, and Support Services. We report our scores to our members so you can see how we are performing in relation to our peer group of 10 other systems comparable in total membership size.

ServiceMOSERS’ total service score was 91 out of 100. This was above the peer median of 80. Our service score increased from 90 to 91 between 2009 and 2012. Factored into this increase were enhancements to member statements, our website, and member presentations. We ranked highest in our peer group and one of the highest in the entire CEM universe.

Service includes:

• Paying pensions accurately and on time (Score: 100 - 3 years in a row)

• Member communications:

– Newsletters (Score: 100 - 3 years in a row) - We give members the choice of receiving paper or electronic newsletters. Separate newsletters for active, terminated-vested, and retired members provide targeted benefits information. We distribute our active and retiree newsletters quarterly to keep members as up-to-date as possible via this method of communication.

– Website (Score: 94) – This includes:

› Retirement calculator on a secure site tied to individual member data

› Document Express gives members the ability to view correspondence in a secure mailbox

› User friendly password registration is a secure process which lets members generate or reset passwords immediately

› Online transactions and tools for member including availability of electronic forms

– Retirement estimates (Score: 100) – Turnaround for written estimates is less than one day (Peer average: 8 days). The content score for estimates is also 100. Timely, individualized estimates help members see how their pension income fits with other sources of retirement income such as personal savings and social security benefits.

Other factors involved in the service score are the call center, member counseling, and member education.

CEM defines service as "anything a member would like,

before considering costs," so a high level of customer

service tends to increase a system's costs. Our goal

is to maintain and increase our service ratings without

significantly increasing our total cost.

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Retirement & You ■

CostPension Administration Cost helps us analyze our costs related to economies of scale; transaction volume; productivity per full-time employee; salaries; building and information technology; third party and front office cost; and back office cost.

MOSERS’ total pension administration cost was $71 per active member and annuitant. This is $50 below the peer average of $121. MOSERS’ costs trends have remained fairly level between 2009 and 2012. It is important to note that MOSERS does not enjoy the economies of scale available to larger systems in the CEM study. We have 9% fewer members than the peer weighted‐average.

The information we receive aids us in developing ways we can continue to improve our cost-effectiveness each year. Our retiree population is growing each year, causing our member transactions and communications to increase. Providing members with more resources on our website than they can seek out on their own and communicating electronically increases our efficiency as membership grows.

Why We Participate CEM gathers the data for their report through an extensive survey process. Last year's survey contained nearly 200 questions and examined every aspect of what we do in terms of operations. Why do we do it?

• To improve our understanding of our business: Knowing how and why we are different from our peers helps us better understand our business.

• To establish service standards: The CEM measures have helped us develop new service standards to maintain and improve our service to members.

• To demonstrate our performance in the absence of competition: Good benchmarking allows us to compare our costs and performance to that of our peers.

• To communicate performance: The results of the CEM analysis are presented to our staff and board members.

• What gets measured gets managed: Without measures, it is difficult to assess where improvements or cost-effective strategies can be applied.

• To identify best practices: By observing how other systems conduct business, we are able to identify best practices or other alternatives to enhance the operation of our organization.

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■ Retirement & You

The National Institute on Retirement Security (NIRS) released a new report in February 2013 called Pensions & Retirement Security 2013: A Roadmap for Policy Makers. This report is based on a nationwide public opinion poll of 800 Americans conducted by telephone in December 2012.

In the press release, NIRS Executive Director Diane Oakley said, “An overwhelming majority of Americans agree that the Great Recession exposed the risks of the nation’s retirement system—87%, up from 81% in 2011. Across generations, Millennials (those born after 1976) are most in tune with the risks of the system—some 96% agree that the downturn exposed risks inherent in the system. It seems today’s younger workers want the security of their grandparents’ pension, not the do-it-yourself retirement accounts of their parents.”

Key Findings• Over half of Americans (55%) are very anxious about retiring, particularly women

(90%). A large majority (81%) agree that the average American can’t adequately save for retirement on their own, and the Great Recession exposed many of the weaknesses in our retirement system.

• Americans are in favor of pensions (83%) and believe we should all have access to a pension for retirement security (84%). Individuals surveyed would be nearly twice as likely to choose an employer offering a pension over one offering a 401(k) plan.

• Three-quarters (75%) of Americans would support Congressional action to create a privately run pension plan available to everyone, that would be portable, that would have a guaranteed payment throughout retirement, is professionally managed, and simple to administer. This is similar to the USA Retirement Funds idea proposed in the U.S. Senate.

• Millennials are very dissatisfied with the current retirement system and believe retirement reform should be a priority.

• Americans believe social security benefits should be protected. Most disagree that government spending on social security should be cut, regardless of whether benefits for current or future retirees would be affected.

• There is support by nearly three-quarters (73%) of Americans for pension benefits for public employees. Since most plans require them to contribute towards their pension, they typically have lower pay, and some have high-risk jobs.

• Nearly 90% believe that Baby Boomers retiring without pensions or having enough saved for retirement is going to negatively affect the entire economy, as well as their own families. For example, there is more reliance on the government for public assistance in retirement for households without pension income.

Research ReportPensions & Retirement Security 2013: A Roadmap for Policy Makers

The report is available online: www.nirsonline.org/storage/nirs/documents/2013%20Opinion%20Study/final_2013restricted_opinion_research.pdf

What are the major factors making retirement more difficult?

• Salaries - 83%

• Fewer pensions - 68%

• Longer lives - 63%

• Volatile stocks - 59%

• Do-it-yourself retirement - 57%

• Higher social security retirement age - 49%

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Retirement & You ■

Keys to Securing MOSERS Long-Term Benefits Even though the survey participants are nervous about retirement, if you retire under a MOSERS defined benefit plan, you don't need to be anxious because you are guaranteed a lifetime benefit. As a reminder, the Missouri legislature made changes to state retirement plan provisions in 2010 in order to provide for the long-term sustainability of these benefits for all state employees:

The changes to the plan for new employees (as of 1/1/2011) will help the state of Missouri continue to provide financial security for all members by maintaining the defined benefit plan structure. It is important to point out that the state's defined benefit plan was preserved for all state employees, current and future.

As of May 2013, there are around 9,200 active members of the MSEP 2011. These members represent about 17.5% of the state workforce.

A defined benefit (DB) plan is one that requires a member to be vested (work a set number of years in a benefit-eligible position) and it provides a set benefit (based on salary and credited service) for life once a member meets the age and service requirements for retirement. In other words, the “benefit” is “defined” by the law.

A DB plan can be either contributory or non-contributory. MOSERS is a non-contributory DB plan for employees who worked in a benefit-eligible position prior to 01/01/2011, but is a contributory DB plan for employees hired on or after 01/01/2011.

The MOSERS trust fund is professionally managed by our Investments staff, who act in the exclusive interest of the members of the system. Our board of trustees and staff work together to ensure that every action taken serves the long-term interests of the members and the system.

MOSERS has a solid track record of excellent investment returns, outstanding customer service and efficient administration. While we cannot control what changes are made to retirement plan provisions, we can assure members that their retirement system is stable and promised retirement benefits are secure.

System funding comes from state contributions and investment earnings. For MOSERS, employer contributions account for approximately one-third of system funding. The rest comes from investment earnings.

PO Box 209Jefferson City MO 65102-0209

PRSRT STDU.S. Postage

PAIDJefferson City, MO

Permit No. 327

PensionsPlus Newsletter

■ Retirement & You

We Are Here for Your BenefitBenefit ServicesBenefit Services staff:

• Answerphonecalls,respondtoemails,andserveourmembers who come into our Jefferson City office.

• Processretirementapplicationsandverifyproofdocuments.

• WorkwithTheStandardInsuranceCompanyonlifeinsurance claims and long-term disability applications.

• Assisteligiblemembersintheprocessofpurchasingortransferring prior creditable service.

• Providememberswithretirementbenefitestimatesandcalculate COLA projections so members understand what options are available to them at retirement.

All benefit counselors are here for your benefit, no matter who you have spoken to in the past. They are all knowledgeable and have been through extensive training on your benefits.