Missouri Pension System Bans Political Contributions Following Controversy
JEFFERSON CITY, MO – The Missouri State Employees Retirement System (MOSERS) board unanimously voted on Thursday to ban the use of pension funds for political contributions, marking a significant policy change aimed at protecting employee retirement benefits from political processes. This decision comes in response to recent donations made by other state retirement systems to political campaigns, igniting concerns among legislators.
State Representative Dirk Deaton, a Republican board member, firmly stated, “Missouri pension systems funds should never be used to make contributions to political campaigns.” Deaton also plans to introduce legislation in the upcoming session mirroring this policy, which would apply to all state pension systems. The new guidelines place responsibility on the system’s executive director to ensure that no MOSERS funds will be allocated to support or oppose ballot measures or political candidates.
The MOSERS fund serves over 56,000 retirees and beneficiaries, supported by approximately $700 million in annual contributions from the state and employees. The retirement system currently holds $8.7 billion in net assets, and historically, it has never made political donations. Deaton emphasized that state employees can trust their retirement funds will be strictly utilized for their intended purpose and pensions.
The policy shift follows a controversy stemming from political donations made by the Missouri Sheriffs’ Retirement System and the Prosecuting Attorneys and Circuit Attorneys Retirement System, which contributed $30,000 and $50,000, respectively, to support Amendment 6—an initiative ultimately rejected by voters. The change aims to prevent further politicization of retirement funds, ensuring that public money remains focused on the financial security of state employees.
As the implementation of this policy unfolds, many are monitoring its impact on Missouri’s pension systems and their governance.
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