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 this quarter’s meeting. For more information on LAGERS Board of Trustees or official meeting minutes, please visit our Board of Trustees page.
The LAGERS Board of Trustees convened for their quarterly board meeting on Friday, Dec. 6, 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:
- North Jefferson Co Ambulance Dist. – Nov-24
- City of Greenwood – Nov-24
Next, Chairperson Leary turned the meeting over to Vice Chair Frank Buck to allow for a reorganization of board leadership for 2025. Chairperson Leary was unanimously reelected as chair, and trustee Tony Kelley was unanimously elected as vice chair.
Investment Report
LAGERS’ board investment consultants Marcia Beard and Ryan Sullivan with RVK, Inc. presented the quarterly investment report. They noted that the system’s portfolio has eclipsed $11 billion for the first time.
During their report, RVK also noted that although the system’s absolute performance was positive for the quarter, returns relatively lagged their benchmarks primarily due to the systems’ smaller allocation to public equity.
LAGERS’ investment performance as of 9/30/2024 is as follows:
- One year: 11.2%
- Five year: 8.2%
- Ten year: 7.7%
- Twenty-year: 8.0%
Next, RVK and LAGERS CIO Scott Day presented options for retaining a proxy advising firm in follow-up to the recommendations made by the State Auditor’s office. RVK noted that with LAGERS’ move to passive management within the public side of the system’s portfolio, there are not currently any proxies to vote. However, future investment opportunities could create the potential to have some in the future.
Following a discussion, staff recommended that the board proceed with entering into a retainer with proxy advising firm Egan Jones to vote on any future proxies using a wealth-focus policy. The board approved the recommendation, reaffirming their commitment to managing system assets in the best financial interest of the LAGERS membership.
Management Report
Auditor’s report:
LAGERS’ third-party audit firm, Williams Keepers, presented the findings of its annual system audit, noting that the system received an unmodified, or clean, opinion.
Finance report:
LAGERS CFO Melissa Rackers presented the system’s Annual Comprehensive Financial Report, which provides an overview of the system’s financial, investment, and actuarial activities for the fiscal year ending June 30, 2024. Of note, Rackers reported that the decrease in the system’s overall funding to 93.4% is primarily due to larger-than-expected pay increases amongst LAGERS employers but that the plan overall remains extremely well positioned.
Chairperson Leary expressed her appreciation for the staff’s strong commitment to financial integrity and accountability of the system through its financial reporting.
Legislative report:
LAGERS Director of Legislation, Elizabeth Althoff, reviewed the proposed legislative package for the upcoming session, which included multiple clean-up provisions and the addition of a retiree trustee to the board. Following some discussion, the board moved to approve the clean-up package. They additionally moved to table the retiree trustee language to allow more time to address additional stakeholder feedback.
LAGERS plans to prefile the clean-up package in December in anticipation of the start of the session on Jan. 8.
Other:
The following regular meeting dates were approved for 2025:
- March 21, 2025
- June 13, 2025
- September 19, 2025
- Annual Meeting: October 30-31, 2025
- December 5, 2025
LAGERS Chairperson Leary and Executive Director Betts acknowledged outgoing board members Frank Buck and Sandy Walker, thanking them for their many years of service to the LAGERS membership.
For more information on LAGERS’ legislative 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.
