The LAGERS Board of Trustees convened for their quarterly board meeting on Friday, June 13, 2025, at the LAGERS office in Jefferson City. Board Chair Joan Leary called the meeting to order, after which a motion to approve the consent agenda was unanimously approved. Of note, the following new employers have joined the system since the last board meeting:
Lone Jack Fire Protection District
Stone County
Morgan County Library
Concordia Fire Protection District
Next, Chairperson Leary turned the meeting over to the LAGERS staff for their investment and management reports.
Investment Report
LAGERS’ Chief Investment Officer Scott Day presented the system’s quarterly market update, and LAGERS’ board investment consultant gave the investment performance report. When discussing the current market environment, Day emphasized the importance of separating media noise from material data-driven information. Day noted that despite the media’s focus on current market volatility, LAGERS remains steadfast in its neutral equity market outlook because while equity market valuations remain historically high, price trends have yet to signal a turn lower in the market.
Day also noted that while most have been focused on tariffs and taxes, LAGERS continues to monitor a potentially more secular shift in interest rates with long-term implications for not just fixed-income investments but also equities. The LAGERS investment team believes that interest rates may rise not just because of inflation but also because of the rising level of government debt, which is not just a U.S. phenomenon, but a global one.
LAGERS’ investment performance as of 3/31/2025 is as follows:
One-year: 3.0%
Five-year: 9.6%
Ten-year: 7.3%
Twenty-year: 7.6%
Next, the board also unanimously approved the system’s new Strategic Asset Allocation, which is used to establish the mix of different asset classes in the LAGERS portfolio. The Strategic Asset Allocation is reviewed at least once every five years to ensure the LAGERS portfolio remains aligned with the system’s investment objectives.
Management Report
Finance Report:
Chief Financial Officer Melissa Rackers presented the Fiscal Year 2026 Annual Operating Budget, emphasizing its alignment with LAGERS’ strategic plan, Vision 2030, and its focus on positioning LAGERS for long-term strength and sustainability. Rackers highlighted several new key areas of focus, which include targeted investments in emerging technology aimed at enhancing the security of member data and digital experiences, as well as the system’s efforts to reduce investment management fees. The presentation underscored a forward-looking approach that balances innovation, fiscal responsibility, and the evolving needs of LAGERS and our members.
The board unanimously approved the FY 2026 budget.
Next, the board approved the FY 2025 Interest Resolution, setting the interest credit for Member Deposit accounts at 2% for the year. Interest credits are the amount of interest paid on member accounts for members who contribute a portion of their paycheck to LAGERS. Not all employers require member contributions. The LAGERS board approves LAGERS interest credits annually.
Finally, the board reviewed and unanimously approved the Post Retirement Resolution authorizing post-retirement benefit increases effective Oct. 1, 2025. Individual cost-of-living adjustments (COLAs) will be based on the Consumer Price Index (CPI) as of June 2025, with a maximum increase of 4%. Click here to learn more about COLAs.
Legislative Report:
Director of Legislation Elizabeth Althoff gave an update on the 2025 legislative session, reporting that LAGERS’ clean-up package, which included eight provisions, was Truly Agreed To and Finally Passed (TAFP) in both House Bill 147 and Senate Bill 71. She noted that while the provision won’t have any direct impact on member benefits, the legislation is essential for keeping LAGERS’ governing statutes updated. The updated statutes will continue to help the system fulfill its mission of supporting a secure retirement for Missouri’s local government workers.
Visit our Advocacy and Policy page for more information on LAGERS’ legislative initiatives and other issues we are tracking.
Strategic Plan Update:
Chief Strategy and External Affairs Officer Jeff Kempker updated the board on the status of LAGERS’ strategic plan, Vision 2030. Vision 2030 aims to transform the organization to a state of continuous improvement in customer experience, sustainability, technology, and organizational excellence. Kempker reported that significant progress has been made since the board adopted Vision 2030 one year ago, primarily with data collection and the measurement of key performance indicators (KPIs). The KPIs measure LAGERS’ progress on Vision 2030’s twelve objectives and help guide organizational decision-making. Kempker highlighted several key KPIs, including Net Promoter Scores (NPS), customer satisfaction ratings, plan funding progress, and the utilization of LAGERS’ online member portal. The board approved a recommendation to amend the strategic objectives of Vision 2030, reducing the number of strategic objectives from 12 to 10. This amendment will streamline the strategic plan by consolidating similar objectives and enhancing KPI measurements to ensure LAGERS remains on the path to continuous improvement.
Proposed Administrative Rules:
Next, staff reviewed two proposed administrative rule packages that were introduced for discussion at the March board meeting. LAGERS uses administrative rules to provide details on how our enabling statutes should be applied in practice. The board unanimously approved to file the following rules:
Cadet Eligibility as a Police Officer in LAGERS: This proposal amends LAGERS’ administrative rule to clarify that a police cadet is eligible to be enrolled as a “police officer” in LAGERS prior to becoming POST certified. Currently, cadets must be enrolled as “general” employees. Changing this rule will enhance member benefits, simplify the enrollment process, and reduce reporting errors.
LAGERS Disability Process Enhancements: The LAGERS team recently completed a review of our disability process and identified several opportunities to streamline the process and eliminate bottlenecks. Changes include gathering more information up front to eliminate delays in the application review, a better process for keeping all parties informed of application status, and process improvements to expedite the decision-making process.
The approved rules will be filed and published in the Missouri Register, which will start a 30-day public comment period. For more information on the rule-making process, click here.
Actuary’s Report:
LAGERS’ actuary, Mita Drazilov with GRS, previewed the initial results of the system’s consolidated annual valuation, reporting that the system’s financial health remains strong at 92.3% funded. He notes that although the funding level represents a slight decrease from last year, it is primarily due to higher-than-normal pay increases, adding that, “while the last five years have been a very unusual time, we are unsure to what extent recent experience is an indicator of the future.” Drazilov also reported that all actuarial assumptions are reviewed every five years, with LAGERS’ next study set to begin later this year.
Employer valuations will be completed and available by July 1. For more information on annual valuations, click here.
Next, the board moved into closed session pursuant to § 610.021(1), (3), (5), (13), and/or (14) (2006).
