The Missouri Department of Transportation is laying off 100 people statewide to boost its contribution to the retirement system covering its employees.
Agency Director Pete Rahn said last week that some of the agency’s 10 district offices would have to cut staff so the agency could increase its contribution to the Missouri Department of Transportation and Highway Patrol Employees’ Retirement System. This area’s district office is situated at Willow Springs.
“This is very unfortunate. We don’t like doing this,” Rahn said.
Rahn said the retirement system has an unfunded liability of about $1.6 billion caused by the shaken financial markets.
Already facing serious declines in state revenue, the department will have to increase its contribution to the retirement system by about $5.3 million a year for 15 years, he said.
Overall, the department employs about 6,600 people, he said.
Rahn said each district office had to cut by a certain amount.