Potential $25 Incentive for State Employees
On January 18, 2022, the Governor of the State of Missouri – Governor Mike Parson – announced he had included funding in his annual recommended budget for a $25 monthly incentive (match) for state employees who contribute at least $25 a month to the State of Missouri Deferred Compensation Plan (MO Deferred Comp). The budget must be reviewed and would not be fully passed by the state legislature until early May 2022. If approved, the incentive would not be effective until July 1, 2022.
MO Deferred Comp Facts:
- The money you save with deferred comp, plus your social security and defined benefit pension from MOSERS or MPERS, will make up your income in retirement. The vast majority of state employees need all three income sources to completely cover their expenses in retirement.
- Approximately 80% of state employees already save with MO Deferred Comp.
- 60% of those savers contribute using a percentage-based contribution. Unlike contributing a flat-dollar amount, saving a percent of pay allows your contribution to grow with you as your career progresses and ultimately helps you save more for retirement.
- The average state employee saves 4.8% or $164 with deferred comp each month. This number continues to rise helping State of Missouri employees prepare for their future.
- To determine how much you need to be saving, use the Grow Your Retirement Savings calculator or schedule a 1-on-1 meeting with your local financial education professional.