July 14, 2020, For Immediate Release
Jefferson City, MO – Governor Parson has signed LAGERS’ employee contribution expansion bill, meaning that LAGERS employers will soon have more flexibility with their local benefit elections. House bill 1467, which the Governor signed on July 13, will extend the options for the employee contribution election from the current 0% or 4% to a 0%, 2%, 4%, or 6% employee contribution election.
LAGERS sought the change following years of discussion with members, employers, and other stakeholder partners all who expressed a desire for greater flexibility with the employee contribution election similar to the flexibility employers have with their benefit program election. “We are excited to be able to further enhance the flexibility of the LAGERS system so that every local government employer has the best tools possible to attract and retain the best public servants to serve in our communities,” says LAGERS’ Executive Director Bob Wilson.
The law will go into effect on August 28, 2020 after which LAGERS will be able to begin accepting requests from employers for actuarial valuations detailing the costs for changing their employee contribution election. As with all benefit changes in LAGERS, the new options can be voluntarily elected by each employer’s governing body following a 45-day public information period.