The LAGERS Board of Trustees convened for its quarterly board meeting on Friday, June 12, 2026 at the LAGERS office in Jefferson City. Board Chair Joan Leary called the meeting to order.
Investment Report
LAGERS’ Chief Investment Officer Scott Day presented the system’s quarterly market update and investment performance report. Albourne, LAGERS’ private market consultant, next discussed the investment plan for the private market portfolio.
LAGERS’ investment performance as of 3/31/2026 is as follows:
- One-year: 10%
- Five-year: 6.2%
Next, Day reviewed and presented amendments to the system’s Investment Policy Statement (IPS). The IPS is the board’s governance document that provides the guardrails for how LAGERS’ investment portfolio is managed. Revisions included updates to the board investment consultant’s roles and responsibilities, general portfolio guidelines reflecting new statutory requirements, and compliance reporting.
Management Report
Board Approves FY 27 Budget
Chief Financial Officer Melissa Rackers reviewed the system’s proposed annual budget, highlighting administrative expenditures that support staffing resources and software implementations as well as investment expenditures supporting investment operations and increased emphasis on private market investment activities. The board unanimously approved the FY 27 Budget.
Interest Credits Remain Unchanged
The board approved the FY 26 Interest Resolution, which directs how the past year’s investment earnings are credited to the system, members, and employers. Of note, the interest credit for the Member Deposit Fund remains unchanged at 2%. Any member with member contributions or a service purchase receives this credit annually on their contribution balance.
Maximum Cost of Living Adjustment Approved
The board reviewed and approved the 2026 Post Retirement Resolution authorizing 2026 cost-of-living adjustments for retirees. Adjustments will be applied to October 1 benefit payments and will be cumulative based on the CPI. No adjustment will exceed 4%.
Changes to Staff Retirement Plan Bring Cost Efficiencies
The board unanimously adopted a pooling agreement authorizing assets from the LAGERS staff retirement plan to be combined with system assets for investment purposes. Historically, the staff retirement plan was administered separately, and due to its smaller size, investment options were more limited. Legislation enacted in 2025 permits this pooling arrangement, expanding investment opportunities and improving long-term efficiency for the plan.
Session Concludes with No Impact to LAGERS
Director of Legislation and Communications Elizabeth Althoff presented an end-of-session report. The 2026 Missouri legislative session concluded on May 15, 2026 with a single pension proposal reaching the governor’s desk. HB 1572 includes pension provisions focusing primarily on operational and governance updates to various systems and has no direct impact to LAGERS.
Key Performance Indicators Support Strategic Growth
LAGERS Chief External Affairs and Strategy Officer Jeff Kempker reviewed the system’s strategic plan, Vision 2030, which was adopted by the board in 2024. The plan identifies strategic objectives within the themes of:
- Exceptional Customer Experience
- Plan Sustainability
- Emerging Technology
- Organizational Excellence and Growth
The board approved new organizational KPIs to help measure growth in each of these strategic areas.
Actuary’s Report
Mita Drazilov, with Gabriel, Roeder, Smith, and Co (GRS), presented the preliminary actuarial valuation for the system as of Feb. 28, 2026. An actuarial valuation is a comprehensive analysis used to measure LAGERS’ financial health, estimate the cost of future benefits, determine employer contribution rates, and assess whether the plan has sufficient assets to meet its long-term obligations to members. It serves as the board’s primary tool for ensuring the plan remains sustainable and properly funded. Final results will be presented at the September board meeting, but notably, Drazilov reported that LAGERS funding is expected to remain strong at 91.2% prefunded.
