Missouri political subdivisions that are running their own pension plans have another option for plan administration.
LAGERS can provide professional pension plan administration for Missouri's local governments that are currently running their own plans. How we can help:
For an employer to become eligible to transfer their plan administration, they must first have frozen their pension plan and elected to cover future employee service in the LAGERS system. A vote of the active employees of the frozen plan must, by a simple majority, approve the transfer of the plan’s administration, followed by a concurring resolution from the pension plan’s board of trustees. Once approval of the transfer has been locally obtained, an employer may then petition LAGERS to accept the plan’s administration. In short, all stakeholders must agree that this is a win-win before moving forward.
In order for a local government to choose LAGERS as its plan administrator, the local pension plan must be frozen, meaning no further plan provisions changes can be made, and no new employees will be enrolled in the local plan. All new employees would be enrolled into LAGERS.
If employees are not currently covered by LAGERS, the local government must elect to cover the future service of all employees or cover new hires under LAGERS.
In some instances, a local government may be able to convert all employee service, past and present, into LAGERS-covered service. This is only an option if LAGERS can offer substantially similar benefits so that employees are not disadvantaged in any way.
Each local pension plan is unique and will require special care and attention. LAGERS anticipates each plan conversion process to take several months to complete.
How Much Will it Cost?
We at LAGERS believe we can provide high quality pension plan administration at a lower cost. We plan to utilize our scale and expertise to keep costs as low as possible.