As many as 19,000 former state workers could cash in their future pension payments as part of a proposal designed to shore up Missouri’s employee retirement system.
Under the proposed change in law, former state government employees who will qualify for a pension but are not currently collecting a monthly benefit could be offered a lump sum payment from the Missouri State Employees’ Retirement System.
State Treasurer Eric Schmitt, a member of the MOSERS board of directors, said the plan would help a system that is operating at about 65 percent of full funding.
For the state, the savings would come because MOSERS would pay out a percentage of what a regular pension would be worth over time and would no longer have to pay the administrative fees associated with tracking 19,000 beneficiaries, executive director John Watson said Monday.
Exactly how the lump sum would be calculated hasn’t been finalized. A package would be put together if the measure wins approval in the House and Senate.
Read more: St. Louis Post-Dispatch