How Retirement Benefits are Funded
PEERS' funding comes from three sources: member contributions, employer contributions and investment earnings. Investment earnings are the primary source of funding for PEERS benefits. On average, 62 cents of every dollar paid to PSRS/PEERS retirees comes from investment earnings.
Missouri law requires the System to maintain a funding level that covers current and anticipated future benefit promises. This guarantees availability of funds to pay benefits as prescribed by law.
PEERS contributions are automatically deducted from your pay, pre-tax, to help fund your benefits. Your employer contributes an equal amount. Employer contributions are paid into a general fund used to pay benefits for retirees and beneficiaries.
The contribution rate is set each school year by the PSRS/PEERS Board of Trustees. It is based on the recommendation of the Systems' actuary after the annual actuarial valuation has been completed.
As a member, you have this guarantee: your contributions and the accrued interest are always returned to you or your beneficiary in the form of monthly benefits or a lump-sum payment.
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