As the person responsible for administration of your LAGERS benefit, this page will help you better understand some of the monthly reporting basics.
LAGERS is a non-profit public pension system that provides secure retirement benefits to local government subdivisions in Missouri.
LAGERS is a defined benefit plan providing its members with secure monthly income during retirement. LAGERS benefits are calculated based on your salary, length of service and a set of benefits elected by their employer. In general, the longer a person works for a LAGERS employer, the larger their pension benefit will be.
Your monthly reporting responsibility is extremely important because your LAGERS benefit is based on months of service credit and an average monthly salary. Your monthly reporting responsibilities have a direct impact on your employees' benefits.
When your employer joined LAGERS, they elected an "Annual Hours for Coverage." Any employee who is working the annual hours elected by your employer, must be enrolled and covered under LAGERS. Employees cannot individually opt out of LAGERS coverage. You can locate your employer's Annual Hours for Coverage in the "Profile" section of Agency Details on LAGERS' on-line administration system - ECLIPSE.
All enrollments must be completed on the ECLIPSE system as soon as possible. You should not have to make employer or employee contributions (where applicable) until your employees have been employed for 6 full months. However, if an employee has completed 6 or more months a different LAGERS employer, contributions will be due from the beginning of their employment.
Enrolling in the Correct Departments
Your employer also dictates which departments will be covered in LAGERS. The three departments that LAGERS categorizes are General, Police, and Fire. These departments are treated differently when calculating your contribution rates. So, it is crucial that your employees are enrolled in the correct department.
For example, if your employer has only elected to cover your General Department and recently established a Police Department, the employer must elect to cover a Police Department for police officers to be eligible for LAGERS. You cannot simply enroll the new police officer(s) in to your General Department. Once the Police Department is established with LAGERS, you will enroll the new police officer(s) in the Police Department on ECLIPSE.
Your employer will make monthly contributions to LAGERS to fund your pension benefits. These contributions will be based on your covered employees' gross payroll including overtime and recurring bonuses. Employer contributions to LAGERS are required and are due by 12th of the month following the reporting month.
Are employees required to contribute? If so, 4% must be withheld from each covered employee's gross salary and submitted to LAGERS along with the employer's contributions. Employee contributions are after tax contributions. Read more about employee and employer contributions.
The process of reporting wages to LAGERS is simple. Employers submit a monthly report to LAGERS that contains all covered employees’ compensation via the on-line reporting system called ECLIPSE.
Wages are reported on a when paid, not when earned basis. Below are the types of compensation reportable for LAGERS purposes:
Below are some items that are NOT reportable as compensation for LAGERS purposes:
You will need to complete your statement of account and make your payment to complete the payment process.
The Statement of Account is where you will indicate your full payment amount and allocate the amount to individual line items. These line items will include your monthly wage report, corrections, adjustments and more. Keep in mind, you must complete your Monthly Wage Report before you can complete your Statement of Account.
After completion of your Statement of Account, you will need to make your payment. Payments can be processed on-line through ECLIPSE.