MEMBER CONTRIBUTIONS. . .

LAGERS can be either a mutually contributory retirement system where both the employee and the employer are required by law to contribute or a non-contributory system where the employer elects to pay the entire cost.

If your subdivision has elected the contributory plan, each eligible employee must contribute 4% of gross salary after completion of six months of service within the LAGERS system. If the member terminates LAGERS covered employment before any benefits are payable, his or her accumulated contributions plus interest may be payable upon request.  Under no circumstances could an employee receive less than what he or she had contributed to the system.

Employee contributions are made to LAGERS on an after tax basis.  Contributions withheld from employees are not tax deferred.  The interest portion of an employee's account will be taxed when an employee receives his or her contributions either through refund or retirement benefit. 

The governing body of a LAGERS political subdivision can elect to pay their employees' LAGERS contributions. If such an election is made, it must be for all the employees' contributions and can later be changed, but not more often than once every two years. All contributions made under this arrangement are deposited to the credit of the employer and are not refundable to the member upon termination prior to retirement.

Local governments participating in LAGERS are permitted, if the governing body elects, to grant refunds of members' contributions after two years of participation in the system under the non-contributory option. The Non-Contributory Refund or the Active Member Refund does not result in a forfeiture of credited service with the system. The cost of this option is paid by the employer.

To be eligible for the active member refund, a member must be actively employed by the subdivision on or after the date that it elects this option. Retirees and terminated members eligible for a deferred benefit are not eligible for this refund, due to a provision in the Missouri Constitution which prevents additional or retroactive compensation to former employees of political subdivisions.

Learn more about member contributions . . .