Pictured: Lloyd Gillmore City of Springfield, Dickerson Park Zoo. Title. Retiree Resource S I. Missouri LAGERS. A secure retirement for all L A

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1 Pictured: Lloyd Gillmore City of Springfield, Dickerson Park Zoo Title SOU S I RI L A Missouri LAGERS A secure retirement for all S M Retiree Resource GER

2 Contact Us 701 West Main St., PO Box 1665 Jefferson City, MO (Local) Fax: Follow Us! Table of Contents Payment Schedule 2018 Payment Schedule 2018 Legislative Session A Secure Retirement for All, Not Just a Cool Vision Statement! Your Cost of Living Adjustment Explained 2018 Retiree Link Meetings July 2, 2018 August 1, 2018 September 4, 2018 October 1, 2018 November 1, 2018 December 3, 2018 Direct deposits are made on the first banking day of each month, as above. If you receive a paper check, they are mailed on the last mailing day of the previous month. However, due to the postal service, you may not receive your paper check on the first banking day. One way to guarantee you will receive your payment by the first banking day of the month is to sign up for direct deposit. If you currently receive a paper check and would like to sign up for direct deposit, you can download the request for direct deposit form on our website or contact our office to have a form sent to you.

3 2018 Legislative Session End of Session Marks a Productive Year The 2018 Regular legislative session concluded in May with several pension bills crossing the finish line. While LAGERS did not sponsor any legislation this year, two groups, Soil and Water Conservation Districts and Metro Planning Organizations, filed bills to allow them to pursue LAGERS membership. Members speak with Speaker Todd Richardson about the value of LAGERS. The final weeks of session proved quite interesting. Several omnibus pension bills emerged out of committee, House Bill 1329, House Bill 2044, and Senate Bill 628. Each of these vehicles contained LAGERS-enabling language for Soil and Water Conservation Districts and Metro Planning Organizations. The bills also contained additional provisions relating to a funding fix for the Kansas City Teachers Retirement system, modification of the return to work policy for certain members of the Public School Retirement System, and several plan modifications to the Prosecuting Attorney s system. All of these provisions were vetted in committee and overwhelmingly passed. Although most felt confident that one of these bills would reach the finish line, all met death on the floor as an additional amendment killed the debate in the Senate. Fortunately, another vehicle which had already passed the Senate emerged in the House. Senate Bill 892, handled by Senator Walsh and Representative Walker, was amended on the floor to mirror the other pension bills, including the LAGERS-enabling language. This bill, following a Conference, was Truly Agreed and Finally Passed. In closing, the 2018 session was a great one for the LAGERS system and all of our members. We continued to build some great partnerships with our policy makers, saw enabling language passed into law that will allow even more local public servants to pursue a secure retirement, and hosted a very successful first LAGERS Advocacy Day at the Capitol where our members got some awesome face-time with their legislators! We continue to work hard every day for our members and appreciate your continued involvement in your retirement system! Out of 45 pension bills introduced, Senate Bill 892 was one of six to pass. LAGERS is grateful to the bill handlers and the Pension Committees for their diligent work on all the important pension language this session. Elizabeth Althoff Legislative & Communications Coordinator

4 A Secure Retirement for All Not Just a Cool Vision Statement A little over a year ago, LAGERS board and staff established A Secure Retirement for All as our new vision statement. By their nature, vision statements are meant to be lofty, inspiring and something on the edge of being unobtainable. However, every goal, strategy, and decision made at LAGERS is driven by this statement. While this vision statement is something we utilize to better our organization and help us set our goals, there is more substance to the importance of all Americans having the ability to earn secure retirement benefits. In our country, the savings rates are lower than they need to be, especially with the dissolution of many pension plans across the country. A 2015 National Institute on Retirement Security study found the median working-age household has just $14,500 in retirement savings. This is far from the amount these households will need to achieve a secure retirement. Another study by the Center for Retirement Research at Boston College shows retiree s financial fragility will likely be on the rise in the future. Financial Fragility is your ability to withstand a financial shock or hardship. The elderly have long been viewed as being at higher risk of not being able to withstand a financial hardship because they are on a limited amount of income as compared to working households. The study further states that current retirees have less risk of a change in their standard VISION A Secure Retirement for All MISSION To provide secure retirement, survivors and disability benefits in the most efficient and economical manner possible, while providing superior and fulfilling our fiduciary obligations VALUES Read this blog post and many others at blog.molagers.org of living during a financial hardship. However, the study also concludes that future retirees will likely have an increase in financial fragility because of the decline of income replacement due to inadequate savings. What the study fails to mention is the decline of employers providing a way to access secure income. According to a study by the Employee Benefit Research Institute, the number of private employers providing defined benefit plans has decreased since the creation of the 401(k) plan in the 1970 s. In 1979, 38% of private employers were providing defined benefit plans as all or part of their retirement benefits, and in 2014 only 13% of private employers were providing such benefits. Also worth mentioning is that 34% of employers were providing only a defined contribution (401k) plan. Therefore, only 47% of private employers were providing retirement benefits; the rest of private employers aren t providing ANY retirement benefits. We believe the limited access to defined benefit plans and the overall lack of providing any retirement benefits are at the root of the potential increase in financial fragility among retirees. The best way to address the increasing retirement fragility is for every American to have the ability to earn secure retirement income. The Dedication Respect Teamwork Integrity cellence Communication Accountability

5 first step towards American s earning secure income is giving employers an efficient way of providing retirement benefits, and it also gives them a tool to recruit and retain quality workers. A system that will reward longevity and give senior employees the ability to leave the workforce with secure income, and thereby, keeping the lines of promotion open. When an organization has the ability to reward longevity and have healthy movement within the organization, this will give them the ability to recruit and retain quality workers. A system designed to do all of these functions is a defined benefit plan, like LAGERS. So, while it may seem like our vision statement is just an inspirational statement, there s more to it than that. We at LAGERS work hard to provide our employers with a strong and efficient system for recruitment and retention of their employees. We also know our secure retirement income is extremely important to our members and retirees future financial security. While our membership is a small portion of all Americans, we are working towards our vision, one employer, one member and one retiree at a time. Missouri LAGERS is Good for All Missourians. To find out more visit: showmesecurity.molagers.org

6 Your Cost of Living Adjustment Explained LAGERS by the Numbers LAGERS Pre-Funded Percentage 95.6% Annual Dollars Paid to Retirees Last Year $283 Million One of the most common questions members and retirees ask is what is the average cost of living adjustment LAGERS retirees receive each year? This is a tricky question to answer because while we can historically look back at the average annual adjustment to retiree benefits, it doesn t really tell us much about what retirees can expect (or should plan for) in the future. In fact, it would be a mistake to think of your cost of living adjustment as an annual raise you plan for each year. Your LAGERS COLA isn t a raise, because it s not designed to just put more money in your pocket from year to year. Rather, it is meant to help the benefit you retire with maintain its purchasing power over a long period of time. Your COLA helps you maintain your current standard of living throughout retirement by ensuring that as the cost of goods and services increase, your LAGERS benefit can continue to purchase the same basket of goods, even as they continue to get more expensive. Just keep in mind, the cost of living doesn t always increase at a steady rate (sometimes it even goes down), and these fluctuations mean that your COLA will vary from year to year. But no matter what, LAGERS retirees know their benefit will always keep pace with inflation, enabling them to comfortably maintain their standard of living well into a twenty or thirty year retirement. Quick Refresher: 1. When approved by LAGERS Board, your Cost of Living Adjustment is payable on October 1st of every year. 2. The adjustment amount is based on the Consumer Price Index (a measure of the cost of goods). 3. The maximum adjustment you can receive in one year is 4%. However, the adjustments are designed to catch you up in future years if the cost of living is higher than 4%. 4. You must be retired for 12 consecutive months including an October 1st to receive your 1st adjustment. So, your first adjustment may also catch you up if you have been retired for more than 12 months without a cost of living adjustment.

7 87% of attendees rate Retiree Link Meetings Good or Excellent. Survey Says! Why retirees attend: 45% 19% 36% Topics Meet Other Retirees Meet LAGERS STAFF Retiree LINK Meetings Casual, relaxed, and very informative. - Link Meeting Attendee Register to attend a Retiree LINK Meeting near you. Go to to view the calendar. Well presented, and information was extremely helpful. - Link Meeting Attendee Remaining 2018 Retiree Link Meetings July 19, :00 a.m. - 11:00 a.m. Stoney Creek Inn Independence, MO August 15, :00 a.m. - 11:00 a.m. Stoney Creek Inn St. Joseph, MO August 23, :00 a.m. - 11:00 a.m. Drury Plaza Hotel Cape Girardeau, MO September 13, :00 a.m. - 11:00 a.m. Double Tree Hotel Springfield, MO

8 Missouri Local Government Employees Retirement System 701 West Main St., PO Box 1665, Jefferson City, MO Retiree Resource Is your address up to date? Make sure your address is updated by logging in to your mylagers account or sending written notice to our office. Lose a loved one? Make sure you contact LAGERS if your beneficiary passes away. You may be eligible for the Pop-Up Provision.