Missouri Gov. Jay Nixon signed pension reform legislation Monday, according to the governor’s website.
State employees hired after Jan. 1, 2011, will have to contribute 4% of their pay to their retirement plan. The state now pays the entire contribution for state employees in the two affected systems — the $7 billion Missouri State Employees’ Retirement System and the $1.3 billion Missouri Department of Transportation and Patrol Employees’ Retirement System, both in Jefferson City.
The state contribution for fiscal year 2011, which will end June 30, 2011, is 13.81% for MOSERS and 41.27% for MPERS.
Workers hired after Jan. 1 also must work 10 years before becoming vested.
The new law, approved July 14 by the General Assembly during a special session, is projected to save the state $662 million over 10 years, according to the governor’s office.