The LAGERS Board of Trustees convened for their quarterly board meeting on Friday, March 20, 2026, at the LAGERS office in Jefferson City. Board Chair Joan Leary called the meeting to order.
System Operations
Hearing Officer Roster Approved to Expedite Disability Process
As part of the recent changes to LAGERS’ disability process (16 CSR 20-3.020), the board unanimously approved a new roster of hearing officers to be used when a formal disability hearing is requested. Hearing officers from the roster will be automatically appointed on a rotating basis. This new, automatic appointment process will help expedite the disability hearing proceedings. Previously, when a member requested a hearing, a hearing officer could not be appointed until the board’s next regularly scheduled quarterly meeting.
Investment Report
LAGERS’ Chief Investment Officer Scott Day presented the system’s quarterly market update and investment performance report, noting the portfolio is performing as expected.
LAGERS’ investment performance as of 12/31/2025 is as follows:
One-year: 9.8%
Five-year: 7%
Actuary’s Report
Board Adopts Slight Adjustments to Actuarial Assumptions
Following a presentation of preliminary findings at their December meeting, the board reviewed LAGERS’ actuarial experience study and adopted the following actuarial assumptions:
Investment assumption: 7% (no change)
Wage inflation assumption: 3% (increase from 2.75%)
COLA increase assumption: 2% (no change)
Adjustments to demographic assumptions, including merit and longevity, withdrawal rates, and retirement and disability rates, as recommended by LAGERS’ actuary, were also unanimously approved.
The actuarial experience study reviews how the plan’s recent demographic and economic experience compares to the assumptions used in the annual valuation. This process ensures that key assumptions, such as retirement patterns, mortality rates, and salary growth, accurately reflect observed trends, ultimately ensuring LAGERS’ funding remains strong.
The adopted changes will be incorporated into the actuarial valuations prepared as of Feb. 28, 2026, and may create a slight upward effect on some employer contribution rates.
Management Report
FY 2026 Budget On Track
Chief Financial Officer, Melissa Rackers, reviewed the system’s annual budget, noting it is on track within its major spending categories.
Staff Reports Healthy Legacy Plan Program
In 2016, the General Assembly approved legislation allowing LAGERS to administer prior non-LAGERS retirement plans for participating employers. LAGERS currently administers 10 legacy plans, with LAGERS’ board serving as trustee for each plan. When LAGERS assumes administration of a legacy plan, the plan’s provisions are frozen and continue to be administered separately according to the terms already in effect at the time of transfer.
Currently, four of LAGERS’ 10 legacy plans are fully funded, with the other six plans paying their remaining liabilities on a 15-year schedule. All legacy plans are current in their payments.
Quiet Legislative Session for Pensions
LAGERS’ government affairs team gave an informational update on the 2026 legislative session, noting LAGERS does not have any initiatives this session. Top themes among the nearly 3,000 bills filed this session include: tax reform, shrinking revenues, and an upcoming election cycle with less than 1% of bills directly impacting public pension plans.
Direct legislation of note includes HB 2884, limiting political contributions by pension systems. LAGERS’ current board-adopted policy already prohibits political expenditures.
Membership Stats Highlight Long-Term Membership
LAGERS Chief Benefits Officer, Tami Jaegers, reported on key membership statistics for calendar year 2025. Some highlights include:
LAGERS’ oldest retiree: 104 years old
Active member with the most service credit: 54.75 years of service
Longest retirement: 51 years
AI Readiness Focuses on Strong Governance
LAGERS Chief Technology Officer Ciara Bauer provided an overview of the findings of LAGERS’ AI readiness assessment. The presentation outlined LAGERS’ strategic AI roadmap, which focuses on governance, risk mitigation, and staff training to ensure any future organizational AI adoption is deliberate, measured, and aligned with our organizational strategy.
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 molagers.org to learn more about LAGERS’ Trustees or to view official minutes.
