The Board approved the minutes of the November 21, 2024 meeting. These minutes, as well as those from prior meetings, can be found on MPERS’ website. Minutes from the current meeting will be posted after they are adopted at the Board’s next regular meeting.

The Board held elections for Chair and Vice Chair. Mr. Todd Tyler will serve as Chair and Master Sergeant Wallace Ahrens will serve as Vice Chair.

Mr. Simon highlighted a few pension-related bills that have been filed. HB 196 prohibits public pension plans from holding investments connected with foreign adversaries. MPERS’ staff will continue to monitor this bill and its potential effects on the System if it is passed.

The Board endorsed HB 657 and its companion bill SB 389, which relates to environmental, social, and governance (ESG) matters and proxy voting. This bill is consistent with MPERS’ existing policy to discharge duties in the best financial interest of plan beneficiaries.

HB 686 relates to a permanent buyout option for vested former employees and explicity prohibits any pension system from making political contributions or funding ballot measures.

For additional information regarding the status of current legislation, please visit the Joint Committee on Public Employee Retirement (JCPER) website at www.jcper.org 

The Governance Committee met on December 9, 2024, to consider a board rule update regarding voting options for board elections and several governance policy changes. The Committee voted to recommend the updates to the Board for approval.

Markets were mixed in the 4^th quarter of 2024 as the Federal Reserve followed up its 50-basis point rate cut (1/2 of 1%) in September with additional 25-basis point cuts in November and December. The equity and bond markets were down during the quarter due to concerns that inflation would remain elevated in this environment. Gains in MPERS’ alternatives portfolio helped to offset losses in traditional stocks and bonds, resulting in an overall gain of 0.2% in the quarter. The modest gains in the quarter pushed the calendar year 2024 return up to nearly 12% and sets a new all-time high fund balance of $3.82 billion.

MPERS’ long-term returns continue to look strong relative to any metric. MPERS’ 5-, 10-, and 20-year returns all rank among the top of the public fund peer universe and exceed both the actuarial hurdle and policy benchmark returns.  

Rick Funston, Funston Advisory Services, provided an overview of Board Smart. Board Smart is an online tool available to Board members that provides educational opportunities related to various Board-related topics.

Mr. Simon thanked Ms. Sue Cox, the outgoing Board Chair, and Mr. Todd Tyler, outgoing Board Vice Chair for their service. He also congratulated Mr. Todd Tyler and Msgt. Wallace Ahrens on their recent appointments as Chair and Vice Chair. Mr. Simon welcomed Colonel Michael Turner to his first board meeting. Colonel Turner was appointed Superintendent of the Missouri State Highway Patrol on February 1, 2025.

Mr. Simon also informed the Board that MPERS has closed on a new office building. Bids for renovations are being received, and renovations should begin in the near future.