LAGERS June 2020 Board Meeting Recap
The LAGERS Board of Trustees has a fiduciary duty to you and all members of LAGERS to ensure your retirement system is administered in a fiscally sound manner. We are committed to delivering peace of mind, so that you know your financial future is well in hand. The LAGERS board meets at least quarterly to make sure your retirement system continues to deliver on that commitment to you.
At the June 22, 2020 meeting, the board met in Jefferson City for the first time this year following a virtual board meeting in March.  Here are a few highlights from the meeting.
Approval of FY 2021 Budget
The meeting began with a discussion of and approval of LAGERS fiscal year 2021 budget. LAGERS annual budget is approved each year at the June board meeting and stems from LAGERS Business Plan. Some of the key initiatives in the upcoming business plan for LAGERS include:

· Implementation of expansion of employee contribution option bill.
· Enhancements to LAGERS virtual pre-retirement seminars, including live-streaming.
· Creation of a retiree experience survey program to help insure LAGERS continues to deliver a top-notch retirement experience to our members.
Legislative Update
LAGERS legislative team presented their final report on the 2020 session, noting that while it was an abbreviated session due to COVID-19, LAGERS House Bill 1467 (expansion of employee contribution bill) was truly agreed to and finally passed. LAGERS has begun preliminary work on the implementation of the language in anticipation of the governor’s signature, and the team expressed gratitude toward the bill sponsors and all of LAGERS advocates.

Investment Update
LAGERS investment team reviewed the impacts of the COVID-19 outbreak on the LAGERS portfolio, noting they remain steadfast in LAGERS’ investment strategy while taking advantage of new opportunities. The team also discussed the investment activity from the last quarter, which included $358.9 million in commitments to the following asset classes:

  • $241 million Equity
  • $15.6 million Fixed Income
  • $82.3 million Real Assets/Real Return
  • $20 million Strategic

LAGERS' portfolio has $7.5 billion in assets under management as of March 31, 2020.

Preliminary Actuarial Report
LAGERS' Actuary, Mita Drazilov of GRS Consulting, presented what he characterized as a very encouraging preliminary report of the upcoming employer annual valuations. Of note, he anticipates a very slight drop in the system’s overall funding, but expects the funding to remain strong. He attributes a part of the decline to the higher than usual amount of new employers who joined the system last year. When a new member joins the LAGERS system, they typically bring in new liabilities, but no assets. While this has a modest short-term impact on LAGERS funding, there are mechanisms in place to get these new members fully funded. He also noted that the benefit reserve fund (the fund from which all retirement benefits are paid) is still expected to remain just over 107%.
Administrative Update
LAGERS’ assistant directors gave a report on the system’s operational response to the COVID-19 outbreak. In summary, they shared that just like LAGERS' employers, the system continued to deliver all essential services to members and retirees uninterrupted throughout the statewide stay-at-home order. They were pleased to report that all of LAGERS employers were fantastic to work with throughout the unusual circumstances, and that every employer is current in their monthly reports and contributions. While there was a slight dip in retirement applications in May, everything appears to be returning to normal for July.

They also reported on the success of LAGERS’ virtual Pre-Retirement Seminars and shared they are looking for ways to include them as a permanent option in the future.
Local Government Hero Award Finalists Announced
LAGERS' staff presented the three finalists for the 2020 Local Government Hero award and the Board selected a winner. The three nominees are: David Dunn, City of Monett; Carol Rhodes, City of Columbia; and Darold Donathan, City of Branson. The winner will be announced at LAGERS’ Annual Meeting in October.


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.