Benefit Multiplier

There are various benefit multipliers within the LAGERS system called Benefit Programs. Below are examples of each benefit program and the multiplier they provide. The higher the multiplier, the higher your retirement benefits will be. What does my employer have?

 

Life programs provide a permanent benefit each month for your lifetime.

 

Examples of each life program with income replacement percentages as well as monthly benefit amounts are below.

 

L-1

1% x 10 Years = 10% of income replaced

1% x 20 Years = 20%

 

.01 x $3,000 x 10 = $300 per month

.01 x $3,000 x 20 = $600

 

L-3

1.25% x 10 Years = 12.5% of income replaced

1.25% x 20 Years = 25%

 

.0125 x $3,000 x 10 = $375 per month

.0125 x $3,000 x 20 = $750

 

L-7

1.5% x 10 Years = 15% of income replaced

1.5% x 20 Years = 30%

 

.015 x $3,000 x 10 = $450 per month

.015 x $3,000 x 20 = $900

 

L-9*

1.6% x 10 Years = 16% of income replaced

1.6% x 20 Years = 32%

 

.016 x $3,000 x 10 = $480 per month

.016 x $3,000 x 20 = $960

 

L-12

1.75% x 10 Years = 17.5% of income replaced

1.75% x 20 Years = 35%

 

.0175 x $3,000 x 10 = $525 per month

.0175 x $3,000 x 20 = $1,050

 

L-6

2% x 10 Years = 20% of income replaced

2% x 20 Years = 40%

 

.02 x $3,000 x 10 = $600 per month

.02 x $3,000 x 20 = $1,200

 

L-11**

2.5% x 10 Years = 25% of income replaced

2.5% x 20 Years = 35%

 

.025 x $3,000 x 10 = $750 per month

.025 x $3,000 x 20 = $1,500

 

*The L-9 is no longer open for new elections.

**The L-11 is only available for non Social Security participating departments.

 

 

Life and Temporary provide a permanent base benefit to you every month for your lifetime, plus an additional monthly benefit payable until age 65 or 62

 

LT-4(65)

2% x 20 Years = 40% income replaced until age 65

1% x 20 Years = 20% income replaced after age 60

 

.02 x 3,000 x 20 = $1,500 per month until age 65

.01 x $3,000 x 20 = $600 per month at age 65

 

LT-5(65)

2% x 20 Years = 40% income replaced until age 65

1.25% x 20 Years = 25% income replaced at age 65

 

.02 x 3,000 x 20 = $1,500 per month until age 65

.0125 x $3,000 x 20 = $750 per month at age 65

 

LT-8(65)

2% x 20 Years = 40% income replaced until age 65

1.5% x 20 Years = 30% income replaced at age 65

 

.02 x 3,000 x 20 = $1,500 per month until age 65

.015 x $3,000 x 20 = $900 per month at age 65

 

LT-14(65)

2% x 20 Years = 40% income replaced until age 65

1.75% x 20 Years = 35% income replaced at age 65

 

.02 x 3,000 x 20 = $1,500 per month until age 65

.0175 x $3,000 x 20 = $1,050 per month at age 65

 

 

LT Plans Notes:

  • The temporary benefit portion is only payable to the member.
  • The temporary benefit portion will stop at 65 or 62.
  • You must go directly from working to drawing your benefit to receive the. temporary portion of your benefit.
  • The temporary benefit portion is not payable on disability or survivor benefits.

 

How Much You Make

Your “final average salary” is taken in to consideration when calculating your benefit. LAGERS will use the average of either your highest consecutive 36 months (3-Years) or 60 months (5-years) of salary from your last 120 months (10-years) of LAGERS credited service. Your employer determines whether your benefit will be calculated using a 3-year or a 5-year final average salary.

 

For most of you, your final average salary may be your last 36 or 60 months; however, the highest consecutive month period may fall anywhere within your last 120 months of credited service.

How Long You Work

Your LAGERS benefit is designed to reward longevity. You earn one month of “Credited Service” for each month you work in a LAGERS-covered job. The more service credits you earn, the higher your benefits will be. The time you worked for your employer before it joined LAGERS may also count toward your credited service.

Credited service is broken into two types of service: Prior Service and Membership Service.

 

  • Prior Service is credited service you earned prior to your employer joining the LAGERS system. When an employer joins the LAGERS system, they can choose to cover 100%, 75%, 50%, or 25% of their employees’ prior service. If your employer had a retirement plan in place before joining LAGERS, it may not have the option of covering your prior service. If there are portions of your prior service that are not covered by your employer, you may be eligible to purchase that service on your own.

 

  • Membership Service is credited service you earn with your LAGERS employer after it has already joined the LAGERS system. If you have only worked for your employer after it joined the LAGERS system, you will only have membership service.

 

Below is an example of how credited service is calculated.

Missouri Local Government Employees Retirement System
Missouri Local Government Employees Retirement System
Missouri Local Government Employees Retirement System