June 2013 DC Update
Adding It Up: Small Change, Big Savings Calculator
Believe it or not, eating out less and making fewer trips to the vending machine can actually improve your savings strategy. Unlike major purchases, it's easy to overlook these small, seemingly innocent transactions. To help you better understand how your spending habits can impact your savings goals, we've partnered with our recordkeeper, ICMA-RC, to bring you the Small Change, Big Savings calculator. This interactive tool illustrates how giving up a few everyday items can help you save big over time.
To get started, visit the Small Change, Big Savings calculator at www.modeferredcomp.org. Choose the items from the menu to give up, then pick a time frame and an expected rate of return on your savings. The results may surprise you. Consider this: If you eliminated a $2 trip to the vending machine every day and then cut out a $7 lunch and $25 worth of entertainment each week, you could save more than $156,000 over a 25-year working career*.
We know it's not always easy saving for long-term goals like retirement, so don't be discouraged if you slip up from time to time. Just keep in mind that taking control of your spending habits now will prepare you to make informed financial decisions in the future, which could lead to some pretty big savings over time.
*Assumes a 7% annual rate of return
Understanding Annuities
You work hard for your money, and so should any professional you might hire to manage it. That's why it's important as a consumer to do your homework before selecting a financial advisor or a product sold to you by a financial professional. One such product gaining popularity in today's market is an annuity. On a basic level, annuities are investment products sold by insurance companies. As an investor, you pay a lump sum or make periodic payments to the insurance company offering the annuity. In exchange, the annuity provides periodic payments to the consumer.
While it's certainly your choice, we encourage you to fully understand annuities before you choose to invest in one. Luckily, Missouri's Department of Insurance provides a numbers of tools to educate savers on annuities and the companies selling them in Missouri. Their Annuities FAQs page explains the various types of annuities available to consumers and the sometimes confusing rules associated with each. The department also provides a Consumer Complaint Index that stores information on Missouri insurance providers.
If you feel like you've been misled or deceived by an insurance provider, the department also maintains an insurance complaint hotline at 800-726-7390. You can also file your complaint online using their consumer complaint form. Visit their Insurance Complaints page for general information on the complaint services available to Missourians.
While everyone's financial situation is different, it's crucial that you ask questions and thoroughly research any financial product or service you are considering. After all, your hard-earned money is on the line.
Managing Fund Options
The Missouri Target Date Funds are a popular choice in our customized investment lineup because they offer a professionally-managed solution that automatically adjusts your investment allocation over time. While each fund is named for a “target” retirement year in the future, please keep in mind that you are not required to choose the fund closest to your anticipated retirement date. In fact, you can choose to invest in any of the 13 target date funds, regardless of your age or retirement date.
In addition to the target date funds, our investment lineup includes the ING Stable Income fund, the actively managed, diversified MIP fund, or the self-directed brokerage account where you’ll have access to most individual stocks and bonds and more than 13,000 mutual funds. View our Fund Information and Fees page for more on our custom investment lineup, or call 800-392-0925 to speak with a participant service representative about your investment options.
Auto Enrollment Statistics
The table below displays cumulative auto enrollment participation statistics by department as of May 1, 2013.
Please note: Detailed data for agencies with 10 or fewer hires is omitted in this report.
| Department |
Total AE | Opt out | Net AE | Automatic Enrollment Success Rate |
| Office of Administration | 58 | 5 |
53 |
91.4% |
| Dept. of Labor & Industrial Relations | 33 | 3 | 30 | 90.9% |
| Dept. of Corrections | 789 | 72 | 717 | 90.9% |
| Dept. of Elem & Sec Ed | 65 | 6 | 59 | 90.8% |
| Attorney General | 29 | 3 | 26 | 89.7% |
| Dept. of Health & Senior Services | 95 | 13 | 82 | 86.3% |
| Dept. of Social Services | 560 | 66 | 494 | 88.2% |
| Dept. of Revenue | 91 | 11 | 80 | 87.9% |
| Dept. of Conservation | 15 | 2 | 13 | 86.7% |
| Dept. of Health & Senior Services | 95 | 13 | 82 | 86.3% |
| Judiciary | 228 | 32 | 196 | 86.0% |
| Public Safety | 345 | 51 | 294 | 85.2% |
| Dept. of Mental Health | 743 | 127 | 616 | 82.9% |
| Dept. of Transportation | 104 | 27 | 77 | 74.0% |
| Dept. of Natural Resources | 38 | 10 | 28 | 73.7% |
| Dept. of Ins, Fin Inst., Prof Reg. | 19 | 5 | 14 |
73.7% |
| State Public Defender | 47 | 13 | 34 | 72.3% |
| Dept. of Econ Development | 14 | 4 | 10 | 71.4% |
| Legislature | 76 |
24 |
52 |
68.4% |
| Secretary of State | 15 | 5 | 10 | 66.7% |
| Dept. of Agriculture | -- | -- | -- | -- |
| Dept. of Higher Education | -- | -- | -- | -- |
| Highway & Highway Patrol | -- | -- | -- | -- |
| Lt. Governor | -- | -- | -- | -- |
| Missouri Consolidated Healthcare | -- | -- | -- | -- |
| MO Housing Development Commission | -- | -- | -- | -- |
| State Auditor | -- | -- | -- | -- |
| State Treasurer | -- | -- | -- | -- |
| Totals | 3394 | 481 | 2913 | 85.8% |
Above data does not include 378 employees that have adjusted their contribution to higher than 1%. By including this population, the actual total automatic enrollment success rate is 87.2%.
Stay Connected
You can find the State of Missouri Deferred Compensation Plan on Facebook, Twitter and YouTube. Whichever you prefer, staying connected with the Plan is a great way to receive timely plan news, valuable savings tips and more.