Dec. 19, 2024
The Missouri Local Government Employees Retirement System (LAGERS) has released its 2024 Annual Comprehensive Financial Report. Despite a slight dip in its funded ratio due to higher-than-expected salary increases for active members, LAGERS continues to provide secure benefits for thousands of local government workers and retirees.
Financial report highlights
LAGERS benefits are supported through three main sources: investment income, employer contributions, and member contributions. Over the past five years, investment earnings have accounted for 68 cents of every dollar paid out in benefits.
Highlights from the FY 24 Financial Report:
- 72% of LAGERS members are covered by a 0% contribution rate, meaning that employer contributions and LAGERS investments serve as the primary benefit funding sources.
- In 2024, LAGERS reported a 93.4% funded ratio, down 1.7% from the previous year. The decline was largely attributed to higher-than-anticipated salary increases for active members, which, while improving future retirement benefits, also increased plan liabilities.
- Employer contribution rates rose slightly, with the average total rate reaching 16.4%, compared to 15.4% the previous year. This uptick reflects the system’s effort to maintain financial stability amid rising costs.
Additionally, LAGERS paid out over $492 million in retirement benefits in 2024, a 7.3% increase from the prior year. Of that amount, $455 million went to retirees living in Missouri, reinforcing the positive economic impact defined benefit plans continue to have on local communities.
In addition to supporting local economies, LAGERS continues to grow its membership, adding 16 new political subdivisions in 2024.
Investment performance
The system’s investment portfolio posted a 5.8% money-weighted return, falling short of the assumed 7% rate of return. However, long-term performance remains strong, with returns over the 5-, 10-, 15-, and 20-year periods exceeding the assumed rates.
For further details on funding, investments, and LAGERS membership, view the complete 2024 Annual Comprehensive Financial Report online.
