1. Subdivision must receive an Initial Actuarial Valuation (Cost Study) from LAGERS actuary.
2. The valuation must be public information for at least 45 calendar days.
3. The subdivision's governing body may then pass an ordinance / resolution to become a member.
4. LAGERS must receive a copy of the ordinance / resolution within 10 days after it has passed.
Begin the membership process . . .
Prospective Member FAQ
What is LAGERS?
Non-Profit public pension system available to Missouri local government employers. LAGERS currently covers almost 600 employers, over 30,000 active members, and approximatley 14,000 retirees.
What benefits does LAGERS offer?
LAGERS is a defined benefit retirement plan that provides retirement, disability, and survivor benefits. All benefits are calculated using a simple formula. Each employer's governing body elects the benefit options it wishes to provide to its employees. The options can be changed once every two years, but only through an election by the employer's governing body.
Who is covered under LAGERS?
All full time employees of a member subdivision must be covered under LAGERS. Each employer's governing body elects full time as either 1500, 1250 or 1000 hours per year.
How are LAGERS benefits calculated?
All LAGERS benefits are calcuated using the following formula:
Benefit Factor X Final Average Salary X Years of Service Credit = Monthly Benefit for Life
What does it cost to join LAGERS?
There is no up-front lump sum or start up fee required. Each employer has a unique contribution rate based on its employee group and the benefits that are elected. Employees' prior service cost is amortized over a 30-year period. The higher the elected benefits, the higher the cost to the employer. Employees contribute either 4% or 0%, per an election by the governing body.
How is LAGERS funded?
The LAGERS system is funded through employer contributions, employee contributions, and the investment return of the system. Investment return accounts for about 65% of the system's funding.
Can a member subdivision later elect to eliminate LAGERS coverage?
LAGERS benefits are protected by Missouri state law and cannot be taken away. As such, there is no exit provision under law, thereby guaranteeing eligible employees a monthly benefit for their lifetime.
What are the steps in the membership process?
A prospective employer must receive a cost study of all LAGERS benefit programs. The cost study must be made public information for 45 calendar days. The subdivision's governing body may then pass an ordinance / resolution to formally become a member of LAGERS.
What about the 45 day public information period?
The cost study must be public information for 45 calendar days before a governing body may take action on LAGERS membership. Most employers utilize board minutes / discussion to disclose public information.
Are there any elections the governing body may never change?
The following elections, once made, can never be changed.
Hourly standard for full time employee (1500, 1250, 1000)
Amount of employees' prior service granted (100%, 75%, 50%, 25%)
Election to become a LAGERS member.
What is the cost study?
The cost study (Initial Actuarial Valuation) is a 35-40 page booklet that shows employer contribution rates for all LAGERS programs. The figures in the cost study are unique to each employer because they are based on that employer's personnel. Beginning the membership process by getting the cost study DOES NOT obligate the employer to join LAGERS.