The LAGERS Board of Trustees has a fiduciary duty to its membership to ensure the system is administered in a fiscally sound manner. The board meets at least quarterly to make sure LAGERS continues to deliver on its commitments of strength and security. Below is a summary of the meeting. For more information on LAGERS Board of Trustees or official meeting minutes, please visit our Board of Trustees page.
System Operations Report
The LAGERS Board of Trustees convened for their quarterly board meeting on Friday, Sept. 20, 2024, at the LAGERS office building 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 LAGERS system since the last board meeting:
- Cameron Public Library, July 2024
- City of Warson Woods, Aug. 2024
- Taney County Library, Sept. 2024
Investment Report
LAGERS board investment consultants Marcia Beard and Ryan Sullivan with RVK Advisors presented the quarterly investment report. LAGERS’ investment performance as of 6/30/2024 is as follows:
- One year: 5.4%
- Five years: 7.6%
- Ten years: 7.2%
- Twenty years: 7.9%
Next, RVK and LAGERS CIO Scott Day updated the board on the implementation of the system’s new investment process. The evolving process focuses on the principle that it is nearly impossible to manage return, but it is possible to manage risk. Once fully implemented, the enhanced process will be able to target when, where, and why the portfolio takes risk relative to the investment policy approved by the board, making the portfolio more resilient in any market environment.
Actuary Report
LAGERS actuary Mita Drazilov of Gabriel, Roeder, Smith & Co (GRS) presented the results of the 56th Annual Actuarial Valuation. Each year, LAGERS performs this valuation across all 851 LAGERS employers with over 1,317 departments to ensure appropriate contribution rates are set for each employer and to examine the financial strength of the system. In total, the following is expected for employers’ FY 2025 contribution rates:
- Unchanged: 96
- Decreases: 292
- Increases: 929
Despite modest investment gains for the actuarial year, Mita noted that a primary driver of contribution rate increases continues to be higher than expected salary increases across all LAGERS employers.
Mita concluded stating, “The reason a retirement system exists is to reward local government employees with a retirement that they’ve been promised through the retirement system. LAGERS is one of the best systems in the country to fulfill that obligation.” LAGERS’ funding remains strong at 93.4% prefunded.
Management Report
Financial Report
LAGERS CFO Melissa Rackers presented a budget update, noting that the system’s total spending remains under budget for FY 2024.
Legislative Update
LAGERS Director of Legislation, Elizabeth Althoff, reviewed the system’s legislative priorities from the previous session and discussed the timeline for moving the initiatives forward in the future. The board expressed a desire to allow the membership a final opportunity to weigh in on the proposals during the system’s Annual Meeting in October.
For more information on past initiatives, visit our Advocacy and Policy page.
LAGERS Board of Trustees is a seven-member volunteer board comprised of member and employer representatives. This summary is not the official minutes of the meeting. Visit our website to learn more about LAGERS’ Trustees or to view official minutes.
