Sept. 18, 2026
The LAGERS Board of Trustees convened for its quarterly board meeting on Friday, Sept. 18, 2026, at the LAGERS office in Jefferson City. Board Chair Joan Leary called the meeting to order.
Investment Report
CIO Scott Day reviewed the system’s quarterly investment performance report.
LAGERS’ investment performance as of 6/30/2026 is as follows:
- One-year: 10.6%
- Three-year: 7.6%
- Five-year: 5.2%
Next, board investment consultants provided the annual Investment Oversight Report which provides the board with an opportunity to assess both recent and longer-term investment results, consider strategic issues affecting the portfolio, and evaluate the continued effectiveness of the investment program. RVK highlighted a strong absolute return for the fiscal year ending June 30, 2026, noting the system’s investment program is performing as expected.
Actuarial Report
LAGERS funding remains strong, dips slightly
LAGERS’ actuary, Mita Drazilov and Jeff Tebeau with GRS, presented the results of the compiled annual actuarial valuation. The annual valuation is used to determine the overall financial condition of the system. Additionally, each of LAGERS’ 870 individual employers are evaluated to determine their unique employer contribution rates and funding statuses for the coming fiscal year.
Of note, Mita reported the system’s overall funding remained healthy, but decreased slightly to 91.2%. The decline is primarily due to system experience related to higher-than-expected salary growth across employers and recent increases in wage inflation and merit and seniority wage assumptions. Drazilov noted that as a result, a majority of employers should expect to see increases in their contribution rates in the coming fiscal year.
COLAs continue to drive retirees back to full purchasing power
CFO Melissa Rackers reported that staff has completed processing the Oct. 1, 2026 cost-of-living adjustments (COLAs) for eligible retirees and beneficiaries, which were approved by the board in June. Rackers noted that because of high inflation over the past several years, most LAGERS retires have not yet fully returned to 100% purchasing power, but as of October 1, the average purchasing power has increased to 97.75%, reflecting continued progress toward full restoration.
Uncapped rate communication protocol focuses on awareness
Next Rackers reviewed the procedures for how LAGERS communicates with employers when an employer has an uncapped rate. An uncapped rate occurs when an employer’s actuarially determined contribution rate increases beyond the 1% statutory cap. Rackers notes that staff has been working to enhance employer awareness and understanding of contributions rates and the impact of the statutory cap on funding.
Management Report
FY 2026 budget remains within the approved budget
CFO Rackers provided an update on the FY 2026 noting no board reallocations were required due to total expenditures remaining within the approved budget.
ECLIPSE modernization evaluation begins
CITO Ciara Bauer presented preliminary findings of staff’s ECLIPSE modernization research. ECLIPSE is LAGERS’ line of business pension administration system. The system has been in place for many years, and staff is evaluating options to modernize the technology to better support the organization’s long-term needs. Staff continues to work on plans to modernize the system and will present additional information to the board in March.
LAGERS Annual Meeting set for October with two uncontested elections
Chief Strategy and External Affairs Officer Jeff Kempker reviewed the agenda for the 59th LAGERS Annual Meeting on Oct. 29-30. The primary purpose of the meeting is for the delegates in attendance to elect trustees to LAGERS’ board, which will take place during the business meeting on Friday, Oct. 30 at 8:30 a.m. This year, there is one employer trustee nominee, Tony Kelley, Central Jackson County Fire Protection District, and one member trustee nominee, Joan Leary, City of Creve Coeur.
LAGERS’ annual Legislative Advisory Committee meeting will be held on Thursday, Oct. 29 at 10:30 a.m. Discussion will include a review of the 2026 legislative session, a preview of the 2027 legislative session, and potential legislative initiatives beyond 2027.
