State pension board prohibits using funds for political donations

The Missouri State Employees Retirement System board has voted to prohibit the use of pension funds for political contributions following donations made by two smaller systems this year. State Rep. Dirk Deaton intends to introduce legislation to ban political contributions by all pension systems, mirroring the policy adopted by the trustees. The MOSERS fund covers 56,205 retirees and beneficiaries and has $8.7 billion in net assets. The fund has never made political contributions and the new policy ensures it won’t in the future, to the benefit of state employees covered by MOSERS. The vote comes in response to contributions made by the Missouri Sheriffs’ Retirement System and Prosecuting Attorneys and Circuit Attorneys Retirement System to support a failed ballot measure. If retirement funds became involved regularly in politics, the donations could be larger than any seen in state history. MOSERS is not the only system for state workers, with other funds covering transportation workers, education employees, and local government employees. The Amendment 6 campaign, which would have imposed fees on criminal cases to fund pensions for sheriffs and prosecutors, was rejected by voters. Lawmakers this year appropriated $5 million in general revenue to the sheriffs fund to address financial issues. The treasurer of the Amendment 6 campaign committee, who is also the executive director of the sheriffs’ retirement system, did not respond to requests for comment. Other lawmakers have raised questions about the responsible use of pension funds for political purposes.

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