Missouri Lagers 2019 Handbook

Member Handbook

Watch Your Financial
Independence Grow

Missouri LAGERS
A Secure Retirement for All
 Table of Contents
Contact Us......................................................................................................... 4

LAGERS Benefits. .............................................................................................. 5
Welcome to LAGERS. ................................................................................................................5
About LAGERS. ...........................................................................................................................6
When Am I Eligible?..................................................................................................................7
Monthly Payment Calculation. .......................................................................................... 10
Employer Choices................................................................................................................... 12
Calculating Your Monthly Payment. ................................................................................ 16
How Long You Work (Credited Service).......................................................................... 20
Increase Your Monthly Payment. ...................................................................................... 21
Can My Benefit Multiplier Change?. ................................................................................ 24
Funding Your LAGERS Benefit............................................................................................ 25

Life Events....................................................................................................... 26
Designating Beneficiaries.................................................................................................... 26
What Happens if I Leave Employment?.......................................................................... 28
Returning to LAGERS Covered Employment................................................................ 29
Disability Benefits................................................................................................................... 30
Survivor Benefits..................................................................................................................... 31
What Happens if I am Divorced?....................................................................................... 32
Resources for Planning Your Future Retirement. ........................................................ 34

Near Retirement. ............................................................................................ 36
Applying for LAGERS Retirement...................................................................................... 36
Retirement Payment Options. ........................................................................................... 38
Partial Lump Sum. .................................................................................................................. 42

After Retirement............................................................................................. 44
Taxes and Your LAGERS Benefit. ........................................................................................ 44
Cost of Living Adjustments................................................................................................. 46
Loss of a Loved One............................................................................................................... 47
Employment After Retirement. ......................................................................................... 48

Glossary........................................................................................................... 50
LAGERS Benefits
Contact Us:

LAGERS benefit specialists are a valuable source for information or
assistance regarding your benefits. They can assist you by explaining
your benefit plan, provide you with a benefit estimate and explain
how each payment option works.

Call, email, or stop by in person. Our business hours are 8:00 a.m. -
5:00 p.m, Monday - Friday.

Website: Email:
www.molagers.org info@molagers.org

Telephone: Office Location:
(573) 636-9455 701 W. Main St.
(800) 447-4334 Jefferson City, MO 65101

Social Media: Mailing Address:
P.O. Box 1665
Jefferson City, MO 65102

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Member Handbook
Welcome to LAGERS:

LAGERS Benefits
Your Protected Lifetime Payment Awaits
As a LAGERS member, you join nearly 40,000 Missouri local
government employees across the State of Missouri serving
their local communities.

With your LAGERS Defined Benefit Plan, you have a valuable
tool in helping you plan and reach financity security with a
protected lifetime benefit from your employer.

How it Works
Your LAGERS benefit provides protected monthly payments
reflecting your working career. The payments begin at
retirement and continue until death. The amount of your
monthly payment is calculated using these three factors:

• Benefit Multiplier (Benefit Program)

• How much you make (Final Average Salary)

• How long you work (Credited Service)

Your monthly benefit payment is

• not affected by swings in the market

• protected without you having to make investment
decisions

• payable every month for as long as you live.

With your LAGERS benefit, you have peace of mind knowing you
are working toward financial independence in retirement with
every month you work in public service for your community.

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LAGERS Benefits
About LAGERS:
The Missouri Local Government Employees Retirement
System (LAGERS) was created by the 74th Missouri General
Assembly in October 1967 and officially opened its doors in
April 1968. During its first year of existence, the young system
was administered through a contractual agreement with the
Missouri Municipal League and added its first full time staff
member in 1969.

By June 1969, 70 Missouri local government employers had
joined LAGERS with a total of 4,600 member employees and
$2.1 million in assets. LAGERS is now the largest pension
system for local government employees in the state of Missouri,
covering over 720 employers, over 36,000 active members,
23,000 retirees, with around $8 billion in assets and an overall
funding level over that of the national average. It’s safe to say
the growth of the system has been anything but sluggish, and
LAGERS continues to provide a strong, secure platform for local
government communities throughout the state of Missouri.

Not only has the growth of LAGERS membership been rapid,
but also the expansion of benefit options available to member
subdivisions. LAGERS was created with one benefit structure
which applied to all members. Today, the system offers close
to 100 different combinations of benefit options employers
choose at the local level.

LAGERS continues steady membership growth each year while
maintaining a financially sound system and expects nothing
but continued stability in providing a protected, defined
retirement benefit for all its members and beneficiaries.

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When Am I Eligible?

LAGERS Benefits
To be eligible to begin receiving a monthly retirement payment,
you must have worked the required number of annual hours
your employer elects for coverage (see “covered employement” on
page 20), and you must be vested and have reached retirement
age.

Vesting
To become vested, you must work 60 months (5 years) within
the LAGERS system. These 60 months may be earned with one
LAGERS employer or multiple employers. (Once you have 60
months of credited service, you will receive benefit payments,
regardless of whether you continue to work in the LAGERS
system or leave LAGERS covered employment before reaching
retirement age.)

Normal Retirement
General Employees...........................................................Age 60
Police Officers.....................................................................Age 55
Fire Fighters........................................................................Age 55
Public Safety Personnel ...................................... Age 55 or 60

This represents the age a vested member is eligible to retire
with a full, unreduced benefit. If you are no longer working for
a LAGERS employer, delaying your retirement date beyond your
normal retirement age will not increase the amount of your monthly
benefit payment.

Public Safety Classification Option
As of August 28, 2019, LAGERS employers in 3rd class counties
have the option to classify EMS personnel, Emergency
Telecommunicators, and Jailors who are currently classified
as General Employees as Public Safety Personnel for purposes
of determining an age 55 normal retirement in LAGERS. Each
employer must elect to cover their public safety personnel
under this option. It will NOT automatically change.

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LAGERS Benefits
When Am I Eligible? continued

Early Retirement
General Employees:.......................... Any age between 55-60
Police Officers:.................................... Any age between 50-55
Fire Fighters:....................................... Any age between 50-55
Public Safety Personnel ............... Between 50-55 or 55-60
Your monthly benefit payment will be reduced by a half percent
for each month you are younger than your normal retirement age.
This equals a 6% reduction for each year you are younger than your
normal retirement age.

Rule of 80
Some employers have chosen to provide an early retirement
option called the Rule of 80. The Rule of 80 allows eligible
members to retire earlier than normal retirement age with no
reduction in their monthly payment.
If your employer provides the Rule of 80 retirement provision,
you may be eligible to retire with unreduced benefits when
your years of credited service plus your age total the number
80.
For Example:
Age at Hire Credited Service Rule of 80 Age
20 30 + 50 = 80
25 27.5 + 52.5 = 80
30 25 + 55 = 80

If you permanently leave LAGERS covered employment before
reaching your Rule of 80 age, you will not be able to receive
your benefit at your Rule of 80 age.

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 LAGERS Benefits
What if I worked for more than one employer, one with
and one without the Rule of 80?
If you have worked for more than one LAGERS employer
and one has the Rule of 80 and one does not, you may use
all of your LAGERS credited service towards eligibility for
the Rule of 80. However, you will need to delay your non-
Rule of 80 benefit until early or normal retirement age.

Exceptions to the Rule of 80
If your employer has chosen the Rule of 80, your age at hire will
determine if you qualify for a Rule of 80 retirement age.

If you are a general employee who begins LAGERS covered
employment at age 40 or older, you will reach normal retirement
age before your Rule of 80 age. The same is true if you are a
police officer or fire fighter who begins covered employment
at age 30 or older. If your Rule of 80 age is greater than your
normal retirement age, you are still eligible to start receiving
your monthly benefit at normal retirement age.

Even though you may qualify for a Rule of 80 retirement, this
does not mean you must retire when your age + credited service
= 80. You may work past your Rule of 80 age and continue to
earn credited service to increase your monthly payment.

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LAGERS Benefits Monthly Payment Calculation

Defined Benefit Plan
Defined benefit plans, like LAGERS, pay permanent, protected
lifetime benefit payments throughout retirement.

Your LAGERS monthly benefit payment is based on a specific
calculation, not an account balance. It is not affected by the
amount you or your employer contributes, changes in the
market, or economic conditions.

Once you are eligible to begin receiving your monthly benefit
payment, it is permanent and protected. You will receive a
payment each month for as long as you live.

Monthly Payment Calculation
Your monthly benefit is figured
using a calculation designed
to directly reflect your working Benefit Multiplier
career. The longer you work and (Benefit Program)
the more you earn, the greater x
your monthly payment will be How Much You Make
(Final Average Salary)
at retirement. Although each
x
LAGERS employer chooses
How Long You Work
their own benefit plan for their (Credited Service)
employees, all monthly payments =
are figured using the same Monthly Payment
calculation. for Life
You can easily estimate your
monthly retirement payment using this calculation.

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 LAGERS Benefits
The Benefit Multiplier, or Benefit Program, is a percent chosen
by your employer ranging from 1% to 2.5%.

How Much You Make, or your Final Average Salary, is an
average, chosen by your employer, of either your highest
consecutive 60 or 36 months of wages within your last 120
months of LAGERS credited service.

How Long You Work, or your Years of Credited Service, are the
years and months you work in a covered position for a LAGERS
employer. This may also include service you earned before
your employer joined the system.

The Monthly Benefit is a protected benefit that is payable
every month for as long as you live. At retirement, you may
also choose to take a reduction in your monthly payment so
that a monthly payment will continue to a beneficiary.

A benefit calculation might look like this:

.015 x 25 Years x $3,000 = $1,125 per month for life

The following pages contain a more detailed explanation of
each part of the monthly payment calculation.

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LAGERS Benefits
Employer Choices
Each LAGERS employer chooses their own kind of benefit plan
for their employees. Knowing your employer’s chosen benefit
plan will help you understand how your monthly payment is
calculated and grows throughout your career.

Benefit Multipliers (Benefit Programs)
The first part of your benefit calculation is the Benefit Multiplier.
An employer may choose a benefit multiplier ranging from
1.0% - 2.5%. The higher the multiplier, the larger the benefit.

After you have left LAGERS-covered employment, any
changes made to your former employer’s LAGERS benefit
program will not affect your future monthly payment.

Employers’ Benefit Choices
Life Programs - same multiplier for your lifetime
L-1 1.00%
L-3 1.25%
L-7 1.50%
L-9 1.60%*
L-12 1.75%
L-6 2.00%
L-11 2.50%**

* No longer available for employers who are new to the system.
**Only available to groups that do not contribute to Social Security.

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 LAGERS Benefits
Life and Temporary Programs - One base, monthly
payment, plus an additional temporary monthly payment until
age 65 or 62.

LT-4(65) 1.00% for Life
+ 1.00% to age 65
LT-5(65) 1.25% for Life
+ 0.75% to age 65
LT-8(65) 1.50% for Life
+ 0.50% to age 65
LT-10(65)* 1.60% for Life
+ 0.40% to age 65
LT-14(65) 1.75% for Life
+ 0.25% to age 65
* No longer available for employers who are new to the system.

Issues to Remember if Your Employer Chose an LT Program

1. The temporary payment, plus any applicable cost of living
adjustment, stops the month after you turn age 65 for LT-
65 programs (or 62 for LT-62 programs).

2. The temporary payment will be paid until age 65 (or 62),
regardless of when you begin to receive benefits from
Social Security.

3. The temporary payment is only payable to you, not your
beneficiary.

4. Leaving LAGERS covered employment before you are age
eligible to retire will result in forfeiture of your temporary
payment.

5. The temporary payment is not payable on disability or
survivor benefits.

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LAGERS Benefits
Employer Choices continued

How Much You Make
(Final Average Salary)
The second part of your benefit calculation is the Final Average
Salary. Your employer may choose either a 36 month or 60
month average of your gross monthly wages to be used in your
benefit calculation. The higher your final average salary, the
greater the monthly payment.

LAGERS Considers Your Final 120 Months
of Wages
When you apply for your monthly benefit, you will select a
retirement effective date. From that date, LAGERS will count
backward 120 consecutive months (10 years) of LAGERS
credited service. From this time period, the average of either
your highest consecutive 60 or 36 months of gross wages will
be used to calculate your monthly payments.

One time lump sum payouts of vacation and/or sick leave are
not included in this calculation.
Example: An employee retires on March 1st, 2020
March 1st 2020 5,543
2019 33,260
2018 $ 36,720 36 Month Final Average Salary
2017 36,000 $108,000 / 36 Months = $3,000
2016 35,280
2015 34,602 60 Month Final Average Salary
2014 33,923 $176,525 / 60 Months = $2,942
2013 33,260
2012 32,606
2011 31,700
March 1st 2010 30,600

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 LAGERS Benefits
Working for More Than One
LAGERS Employer
Because each LAGERS employer chooses their own benefit
levels, LAGERS must calculate benefits separately for each of
the employers for which you work. The benefit program and
your service will be separated by employer.

However, LAGERS only uses one final average salary period
to calculate your monthly payments – the last 120 months
of LAGERS credited service. This may be with one LAGERS
employer or several.

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LAGERS Benefits
Calculating Your Monthly Payment
The following information will give you a general idea of how to
calculate your LAGERS monthly payment. Below is an example
of the LAGERS Life Program payment calculation.

Monthly Payment Calculation Example: L-1
1.00% x $3,000 x 25 Years = $750.00 per month for life

Estimating Your Future Benefit
The table below represents the percentage of your final
average salary that will be replaced by your LAGERS monthly
payment upon retirement. Salary Replacement is calculated by
multiplying your employer’s chosen multiplier by your credited
service.

Examples are based on $3,000 Final Average Salary and 25 Years of Service.
These numbers will vary depending on your individual Credited Service and
Salary.
Life Program Multiplier Salary Monthly
Replacement Benefit
Percentage* Example
L-1 1.00% 25% $750
L-3 1.25% 31% $938
L-7 1.50% 38% $1,125
L-9 1.60% 40% $1,200
L-12 1.75% 44% $1,313
L-6 2.00% 50% $1,500
L-11** 2.50% 63% $1,875
* Salary Replacement was calculated by multiplying the multiplier by
the years of service.
**Only available to groups that do not contribute to Social Security.

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nt

LAGERS Benefits
Below is an example of a LAGERS Life & Temporary Program
monthly payment calculation.

Monthly Payment Calculation Example: LT-4(65)
2.00% x $3,000 x 25 Years = $1,500 per month until age 65

1.00% x $3,000 x 25 Years = $ 750 per month from age 65 to death

Estimating Your Future Monthly Payment:
Examples are based on $3,000 Final Average Salary and 25 Years of
Service. These numbers will vary depending on your individual Credited
Service and Salary.

Life & Multiplier* Salary Monthly
Temporary Replacement Benefit
Program Percentage** Example
All LT Programs 2.00% to 65 50% $1,500
LT-4(65) 1.00% after 65 25% $750
LT-5(65) 1.25% after 65 31% $938
LT-8(65) 1.50% after 65 38% $1,125
LT-10(65 1.60% after 65 40% $1,200
LT-14(65) 1.75% after 65 44% $1,313
*All LT(65) programs have a 2% multiplier until age 65. After 65, the
multiplier changes to a base multiplier (displayed in the table).
**Salary Replacement was calculated by multiplying the multiplier
by the years of service.

These examples only reflect a basic Life Option calculation and do
not account for any adjustments that may be made for an alternate
payment election or cost of living increase that may affect the amount
of your monthly retirement payment. See page 38 for more information
on payment options.

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 continued

LAGERS Benefits
Calculating Your Monthly Payment
Benefit Multiplier Examples
The following examples help demonstrate how the Benefit
Multiplier your employer chooses can impact your monthly
payment amount. For these examples, we assume a $3,000
Final Average Salary and 25 Years of Credited Service.

Life Programs:

L-1:
1.00% x 25 Years x $3,000 = $ 750.00 per month for life

L-3:
1.25% x 25 Years x $3,000 = $ 937.50

L-7:
1.50% x 25 Years x $3,000 = $1,125.00

L-9*:
1.60% x 25 Years x $3,000 = $1,200.00

L-12:
1.75% x 25 Years x $3,000 = $1,312.50

L-6:
2.00% x 25 Years x $3,000 = $1,500.00

L-11*:
2.50% x 25 Years x $3,000 = $1,875.00

* No longer available for employers who are new to the system.
**Only available to groups that do not contribute to Social Security.

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nt

LAGERS Benefits
Life & Temporary Programs:

LT-4(65)
2.00% x 25 Years x $3,000 = $ 1,500.00 until 65
1.00% x 25 Years x $3,000 = $ 750.00 after 65

LT-5(65)
2.00% x 25 Years x $3,000 = $ 1,500.00 until 65
1.25% x 25 Years x $3,000 = $ 937.50 after 65

LT-8(65)
2.00% x 25 Years x $3,000 = $ 1,500.00 until 65
1.50% x 25 Years x $3,000 = $ 1,125.00 after 65

LT-10(65)*
2.00% x 25 Years x $3,000 = $ 1,500.00 until 65
1.60% x 25 Years x $3,000 = $ 1,200.00 after 65

LT-14(65)
2.00% x 25 Years x $3,000 = $ 1,500.00 until 65
1.75% x 25 Years x $3,000 = $ 1312.50 after 65

*Employers who are new to the system may not choose this
option.

The above examples only reflect a basic Life Option calculation and do
not account for any adjustments that may be made for an alternate
payment election or cost of living increase that may affect the amount
of your monthly retirement payment. See “Near Retirement” and “After
Retirement” sections for explanations of payment options and COLAs.

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LAGERS Benefits
How Long You Work (Credited Service)
The third part of your benefit calculation is Credited Service.
Credited Service is calculated as the total number of months
and years you work in a LAGERS covered position, which may
include a combination of time worked before your employer
joined LAGERS and current membership service.

Your employer may choose to cover 100%, 75%, 50%, or 25%
of your time worked before they joined LAGERS. To receive
any coverage of your work prior to your employer joining, you
must have been an active employee on the date your employer
joined LAGERS and continuously for one year after the joining
date.

If your employer chooses less than 100% prior service, only the
portion chosen to be covered shall be considered when calculating
credited service and final average salary, unless purchased
individually. See more about purchasing service on page 21.

Membership Service is time worked for a LAGERS employer
while the employer is covered by LAGERS.

Covered employment is chosen by your employer upon joining
the system. Your employer may choose to only cover positions
requiring either 1,500, 1,250, or 1,000 hours on an annual basis.

Working for an Employer with a Prior Retirement Plan

Some employers already have a retirement plan in place when
they choose to join LAGERS. LAGERS evaluates each of these plans
individually to determine if the plan is similar to LAGERS coverage.
If the prior retirement plan is found to be similar to LAGERS, the
employer may not have the option to give credit for all or a portion
of employees’ prior service. Because each plan is different, it is best
to call the LAGERS office if you have specific questions about how
your prior service is handled and how it may affect your benefit.

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 Increase Your Monthly Payment

LAGERS Benefits
)
The LAGERS benefit calculation is designed to reward long term
employees. The longer you work, the greater your monthly
payment will be. There is no limit to the amount of credited
service you can earn, and every additional month you work in
a LAGERS covered position increases your monthly payment.

Because your benefit is based on a specific calculation, and not
an account balance, your normal monthly contributions, if any,
do not affect the amount of your monthly retirement payment.

Aside from working longer, some members may be eligible to
increase their monthly payment amount by either purchasing
or transferring service from a previous employer.

Purchasing Service
Before you leave your LAGERS covered employment, you may
be eligible to add additional time toward your benefit in order
to increase it.

Military Service
If you are an active LAGERS member who had previous active
duty service in the United States military, you may purchase
up to four years of that service to be used in your monthly
payment calculation. To initiate this purchase, you must
complete a purchase of military service form (available on our
website) and submit your honorary discharge papers (DD 214)
to LAGERS. You cannot be eligible to receive a benefit from any
other retirement plan except for benefits from the US military
for the period of time you are purchasing.

You can also estimate the cost of purchasing service on your
myLAGERS account.

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LAGERS Benefits
Increase Your Monthly Payment

Non-Federal Public Employment in Missouri
If you are an active member and have 60 or more months of
service, you may purchase service toward your LAGERS benefit
for any time you were employed in a non-Federal public
position within the state of Missouri.

To be eligible for this type of purchase, you must have either
not been covered by a retirement plan from your former
employer, or you were covered by a plan, but are not eligible
for benefits from that plan.

Other Employer Sponsored Retirement
Plans
Prior Service Not Covered By LAGERS
If your employer elected to cover less than 100% of your
prior service OR if your employer had a retirement plan in
place before it joined LAGERS that was considered “similar in
purpose” to LAGERS, some or all of your prior employment
may not be credited toward your LAGERS benefit. Contact
LAGERS if you would like more information about how it
impacts your monthly payment calculation. You may be able
to purchase this service.

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 LAGERS Benefits
Transferring from Another MO Public Pension
If you are an active member and have 60 or more months of
service, you may also be eligible to transfer service from a
different Missouri public pension plan if you are vested in the
other retirement system and LAGERS has an agreement with
the other system.
You may contact the LAGERS office to see if you are eligible to transfer
service and if your prior retirement plan has an agreement with LAGERS.

All service purchases must be completed before your last day of
LAGERS covered employment. To initiate a purchase, you should
complete a Purchase of Service form (available on our website) and
submit it to the LAGERS office.

Once LAGERS receives your application, we will calculate the cost
of the purchase and send you a form indicating the cost and your
options for payment. You may choose to pay for the purchase in
a lump sum, or in 12 or 24 monthly installments. You may also use
funds from another retirement account using a direct roll over.

All funds used to purchase service WILL be returned to you in
a manner consistent with your particular situation. If you leave
LAGERS covered employment before you are vested, you may
request a refund of these funds. If you retire and you pass away
before you received all of these funds back in the form of monthly
benefits, your benficiary will receive the remainder of the funds.

You can estimate the cost of purchasing military service online
using your myLAGERS account.

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LAGERS Benefits
Can My Benefit Multiplier Change?
Your employer determines the LAGERS benefit multiplier used
at your employer. Employers have the ability to change their
benefit multipliers and can do so once every two years.
Upgrades
If your employer increases your benefit multiplier, it will
not only increase your service going forward, but it will also
upgrade your previous service retroactively.

You must be an active, covered employee on the effective date
of the upgrade in order to be eligible for the upgrade.

For example: If the effective date of the upgrade is July 1st,
you must receive a month of credited service for June or after
in order for the benefit change to affect you.

Downgrades
Your employer also has the ability to reduce your benefit
multiplier for active employees.

Downgrades are not retroactive and will only apply to any
credited service you earn after the effective date of the change
in benefit multiplier.

If you are covered by the Rule of 80 and your employer later
chooses to remove it, you will still be eligible for the Rule of 80.
Only employees hired after the effective date of the removal
will not be covered under the Rule of 80.

Benefit changes only apply to active employees. Once
you retire, benefit upgrades or downgrades WILL NOT
affect your monthly payments.

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Funding Your LAGERS Benefit

LAGERS Benefits
Your LAGERS employer chooses to pay for your benefits in one
of two ways:

Employee Contributory
Though employee contributions do not affect the amount
of your monthly payment, they do help pay for it. If your
employer is contributory, you are required to contribute 4% of
gross wages to help fund a portion of the payments you will
receive at retirement.

Important Notes About Employee Contributions:
• You or your beneficiary will never receive back less than
you paid in, plus interest
• Contributions are made after-tax (will not reduce your
taxable income today)

• A portion of your retirement benefit will not be taxable

You can view your accumulated contribution balance online
through your myLAGERS account 24/7.

Employee Non-Contributory
If you are not required to make contributions to LAGERS, your
employer has chosen to fully pay the cost of your retirement
benefit.

Non-Contributory Refund

If your employer required you to contribute in the past and has
been non-contributory for at least two years, they may choose
to refund your previous contributions. You will receive all of
your previous contributions, plus the interest earned, back
with no reduction to your monthly payment.

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 Designating Beneficiaries
If an active LAGERS member were to pass away before
retirement, LAGERS will look first to pay a monthly survivor
benefit to any eligible spouse or dependent children. (See
Survivor’s Benefits on Page 31) If no monthly survivor benefit
is payable, LAGERS will pay a refund of your accumulated
member contributions (if any) to your designated beneficiary
of record.
Life Events

Who May I List as a Beneficiary for a Refund of My
Contributions?
You may designate an individual, legal entity (such as a charity),
trust, or your estate as a beneficiary. You may designate more
than one primary and/or contingent beneficiary to share
equally in your accumulated contributions.

Why Should I List a Contingent Beneficiary?
A contingent beneficiary will only be eligible to receive
your accumulated contributions should all your primary
beneficiaries pass away before your contingent beneficiaries.
Without a contingent beneficiary, your estate would determine
how your contributions are disbursed should your primary
beneficiary pass away before you.

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Retirement Handbook
My Employer is Currently Non-Contributory, Do I
Still Need to Designate Beneficiaries?
It is always a best practice to keep current beneficiaries on file
with the LAGERS office. LAGERS employers have the option to
change their ‘Contributory Status’ once every two years. Even

Life Events
if you are not contributing toward your LAGERS retirement
today, there is always the possibility you may in the future. If
you worked for a LAGERS employer who was contributory, or
you made contributions in the past with your current employer
(and you have not taken a refund of those contributions), your
contributions will still be accumulating interest in your LAGERS
account and would be payable to your beneficiaries should no
monthly survivor benefit be payable at the time of your death.

Where Can I View my Current Designations and
Account Balances?
You can view your current beneficiary designations by
logging on to your myLAGERS account. There, you may view
your account information as well as make updates to your
beneficiary designations. You may also contact the LAGERS
office to obtain this information.

What Does My Eligible Beneficiary Need to Do in
the Event of My Death?
In the event of your death, it is solely the beneficiary’s
responsibility to notify the LAGERS system and submit the
required Application for Survivor’s Benefit Form or Request for
Refund of Employee’s Contributions by Beneficiary Form to the
LAGERS office. These forms can be found on our website.

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Retirement Handbook
 What Happens If I Leave Employment?
If you are considering leaving LAGERS covered employment
before retirement age, you may have several different options
for handling your benefit. Your options will depend on your
credited service and your age.
Less than 5 Years of Service, Regardless of Age:

• Take a refund of accumulated contributions (if applicable)
Life Events

**Taking a refund will forfeit any future monthly benefit you
would have received on this credited service period.
• Leave accumulated contributions in the system
** If you plan to re-employ with a LAGERS employer within the
next ten (10) years, this option allows you to preserve your
earned credited service for a future monthly benefit should you
become vested.
More than 5 Years of Service, Under Early Retirement Age:

• Wait to draw your monthly benefit to early or normal
retirement age
• Take a refund of accumulated contributions (if applicable)
• Take a Lump Sum Payment
***A member may only use this option if they have less than 10
years of service and is more than 10 years from retirement
age. This option permanently forfeits any possible future
monthly payments on this credited service.
More than 5 Years of Service, Over Early Retirement Age, but
Under Normal Retirement Age:

• Wait to draw your monthly benefit to normal retirement
age
• Take an Early Retirement (see page 5)
Once you reach Normal Retirement Age and are no longer
working, there is no advantage to delaying your monthly
payments.

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Retirement Handbook
Returning To Covered Employment
I was not eligible for future monthly payments
when I left LAGERS Employment
If you are re-employing within the LAGERS system and you
had less than 60 months of service when you left employment
previously, you may still be eligible for a monthly benefit based
on your previous service should you accumulate more than 60

Life Events
months of LAGERS service credit.

In order to receive credit for your previous service, you must:

1. Have not taken a refund of contributions. Taking a refund
of your member contributions forfeits any credited
service on that account. If you took a refund, you may still
be eligible to redeposit those funds plus interest to reinstate
previous service.

2. Be re-employing with a LAGERS employer within 10 years
from when you left your previous LAGERS employer. A
non-vested member must re-employ within 10 years of
their termination date in order to be eligible to receive
credited service for their previous LAGERS employment.

I was vested when I left LAGERS Employment
If you’re already eligible to receive future monthly payments,
you may return to LAGERS covered employment while
continuing to grow your monthly payments unless:

You took a refund - Taking a refund of your member
contributions forfeits any credited service on that account. If
you took a refund, you may still be eligible to redeposit those funds plus
to reinstate previous service.

You took a lump sum - the lump sum is payment in full of
your earned benefit. If you took a lump sum, you have already
received the full amount for your previous employment.

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Retirement Handbook
 Disability Benefits
Every LAGERS member is covered by disability benefits. This
means that if you were to become permanently disabled and
could no longer perform your current job, you may be eligible
for monthly benefits.

The amount of monthly payments, if any, will depend on the
nature of the disability. LAGERS has two different types of
Life Events

disability: Duty-Related and Non-Duty Related.

Duty Disability Non-Duty Disability
Disability caused by work- Disability caused by non-work
related injury or illness. related injury or illness.
No vesting requirement Must be vested to be eligible
Credited service is added as if Gained credited service
you would have worked until earned up to date of disability
age 60 for the monthly benefit is used in the monthly benefit
calculation. calculation.
Monthly benefit is payable for Monthly benefit is payable for
life. life.

How Do I Apply?
1. Complete an Application for Retirement form (LRS-8). This
form must be submitted within one year of the disability.

2. A medical committee of 3 doctors (including your physician)
reviews your disability claim and makes a recommendation
for or against permanent disability.

3. LAGERS disability committee reviews the application and
doctors’ recommendations then approves or denies the
benefit.

4. LAGERS Board of Trustees grants final approval.

*Once approved, periodic medical examinations are required
to recertify the disability.

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Retirement Handbook
Survivor Benefits
In the event a member should pass away before retiring,
additional monthly survivors’ benefits may be payable to your
eligible beneficiaries. Survivors’ benefits are payable on vested
and non-vested accounts for Duty-Related deaths and are
payable only on vested accounts for Non-Duty related deaths.

Who is Eligible?

Life Events
LAGERS will pay a survivor benefit firstly to an eligible spouse**.
If no eligible spouse exists, a benefit may be payable to any
dependent children.

** An eligible spouse must have been married to the member for at least
two years unless the death was accidental. If the death was duty-related,
the spouse must have been married to the member at the onset of injury
or illness that caused the death.

What is Payable?
An eligible spouse would receive a lifetime monthly payment
based on Option A payment option (See page 38).

If no spousal benefit is payable, any dependent children would
receive an equal share of 60% of the member’s benefit.

How is the Benefit Calculated?
Similar to LAGERS disability benefits, the amount of credited
service used in the calculation depends on whether the death
was duty or non-duty related. Duty related deaths add credited
service as if the member would have worked until age 60.

If you have no eligible spouse or dependent children, no monthly
benefit is payable. Remaining member contributions, if any,
would be refunded to your beneficiary of record or estate.

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Retirement Handbook
 What Happens If I am Divorced?
Is a LAGERS monthly benefit divisible as marital
assets?
Currently, there is no Missouri statute addressing whether or not
a LAGERS monthly payment is divisible as a marital asset. That
determination is made by the family court in each case.
Life Events

Can an ex-spouse receive a monthly payment
directly from LAGERS?
Under applicable law including Missouri State Statute RSMo
70.695, a LAGERS accrued benefit is not subject to garnishment,
attachment, execution, or bankruptcy proceedings. This means
that LAGERS is also not subject to Qualified Domestic Relations
Orders (QDRO’s). If family court determines that the member’s
LAGERS benefit is divisible as a marital asset, it is solely the
member’s responsibility to forward the portion determined by
the family court to his or her former spouse. The former spouse
cannot begin receiving his or her portion until the member
begins to draw his or her monthly payments. In any case, LAGERS
will only pay to a member. The only exception to this is that a
member receiving a monthly benefit payment is subject to child
support deductions as ordered by a Court.

How is the value of a LAGERS benefit determined?
LAGERS benefits are not based on an account balance, rather,
they are based on a member’s earned wages and the time they
have worked for a LAGERS member employer. The amount the
ex-spouse is eligible to receive is determined by family court
and could be a dollar amount, percentage, or some other figure.
LAGERS can provide a benefit estimate* and / or an annual benefit
statement* upon request to assist in calculating the value of the
member’s monthly benefit, but LAGERS does not provide present
value calculations.
*A benefit estimate or benefit statement are only available for LAGERS members or
via appropriate Court order.

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Retirement Handbook
What happens if I elect a spousal retirement
payment option, and then I get a divorce?
When a LAGERS member elects a payment option for retirement,
the payment option that is selected is irrevocable and cannot
be changed. The spouse who is elected under Options A or B
will always remain the beneficiary, even if a divorce occurs. If

Life Events
the member retires, chooses Option A or B, divorces, and re-
marries, the previous spouse will still be the beneficiary under
Option A or B.
**Unlike Option A or B, Option C allows the member (retiree) to change the
beneficiary throughout retirement.

Do I need to submit any forms to LAGERS after the
divorce is final?
LAGERS does not require that you submit any forms.

Do I need to update my beneficiaries after the
divorce is final?
It is not a requirement to update your beneficiaries, but it is
strongly recommended that you do. You can change your
beneficiaries at any time by downloading the “Change of
Beneficiary” form from the LAGERS website and sending it to
the LAGERS office – Fax 573-636-9671 or mail 701 W. Main St.
Jefferson City, MO 65102 or by using the myLAGERS web portal.

The contents of this page are not intended to and should not be considered
legal advice. This information does not amend or overrule any applicable
statute or administrative rule. In the event of conflict, the applicable statute or
administrative rule will prevail. If you have questions regarding your specific
legal situation, please contact your personal legal counsel.

33
Retirement Handbook
 Planning for Your Future
It’s never too early to begin planning for your future financial
security. Your LAGERS benefit is not intended to be your sole
source of retirement income, but rather one of several income
streams. Understanding how your LAGERS monthly payment
is going to fit into your larger retirement picture can help you
develop a plan to help reach your retirement goals.
Life Events

Resources
Website - www.molagers.org

myLAGERS - Log in to your unique myLAGERS account and
view your credited service, wages, benefit programs, and
more. You can also generate benefit estimates, change
beneficiaries, and apply for retirement!

Webinars - Want to learn more about payment options,
disability and survivor’s benefits, or what happens to your
benefit if you leave before retirement age? LAGERS offers
many live and recorded webinars on a variety of topics. Visit
our website to learn more!

On-site Meetings - A LAGERS representative would be
happy to visit your employer and give a presentation on
how your benefit works. Ask your employer to arrange a
meeting today!

Pre-Retirement Seminars - Members who are within
five years of retirement should consider attending a pre-
retirement seminar. These seminars include in-depth
discussions of the retirement process, your payment
options, taxes, COLAs, Social Security, and many other issues
affecting retirees.

34
Retirement Handbook
Notes:
____________________________________________
____________________________________________
____________________________________________
____________________________________________

Life Events
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________

35
Retirement Handbook
 Applying for LAGERS Retirement
You may apply for your LAGERS Retirement in
one of two ways:
1. Online using your myLAGERS account
2. Completing the application form (LRS-8)

Step 1: Apply for Your Monthly Payments
Complete the application process online using myLAGERS or
submit the paper Application for Retirement (LRS-8). LAGERS
must have your application 30-90 days before when you would
like to receive your first payment. (LAGERS pays on the first of
the month). You can find the paper application online at www.
molagers.org.
Near Retirement

You must submit a photo copy of your birth certificate with
the application. If you do not have a birth certificate, you may
submit a baptismal record, school or college record, military
discharge paper, or passport.

Step 2: Choose Your Payment Option
Once we recieve your application, we will verify your wages
and employment history with your employer and calculate
monthly payment amounts for each of the payment options.
Approximately 2-3 weeks before you receive your first monthly
payment, you will receive your retirement options packet.
Once you receive this packet, please submit the following to
our office:
• Election of Allowance Option Form (LRS-9)
• Missouri & Federal Tax Withholding Forms (MO-W-4P & W-4P)
• Direct Deposit Form (LRS-6, optional)
• If you elect Option A or B, please also submit:
• Copy of your spouse’s Birth Certificate
• Copy of your Marriage Certificate

36
Retirement Handbook
Step 3: ONLY if you choose the Partial Lump
Sum
If you choose to receive the Partial Lump Sum, LAGERS will
send you a Lump Sum / Distribution form. By submitting this
form you are instructing LAGERS to either roll the PLUS into an
eligible retirement account or pay the PLUS directly to you and
gain the tax liability.

When Monthly Payments are Paid
LAGERS monthly payments are paid on the first of the month
for that month. You will receive your first monthly payment on
your chosen effective date as long as the application process

Near Retirement
has been completed before your effective date.

Direct deposit electronic payments are made on the first
banking day of each month. Paper checks are mailed the last
mailing day of the prior month. Although direct deposit is
highly encouraged, it is not mandatory.

37
Retirement Handbook
 Retirement Payment Options
LAGERS offers different ways you can choose to receive your
monthly payment.
IMPORTANT: You will receive a payment per month for life no
matter which of the below options you choose. Once monthly
payments begin, the payment option cannot be changed by
the member or beneficiary.
Beneficiary
Payment Retiree
Monthly Eligible Beneficiary
Option Benefit
Benefit
Any person(s) or legal entity can be named
as a beneficiary but would only receive a
Life 100% None refund of remaining retiree contribution
account balance, if any, upon the death of
the retiree.
Near Retirement

Spouse that was married to the member
no less than two years immediately
75% of preceding retirement OR a person 40
Option A 85%* member’s years of age or older that has been
payment receiving more than half support from
the member for at least the two years
immediately preceding retirement.
Spouse that was married to the member
no less than two years immediately
50% of preceding retirement OR a person 40
Option B 90%* member’s years of age or older that has been
payment receiving more than half support from
the member for at least the two years
immediately preceding retirement.
100% of the
member’s
payment
Any person(s) or legal entity can be
Option C 95% (excluding named as a beneficiary for Option C.
the
temporary
portion)
Option D is a lump sum distribution of the
Lump entire benefit to the member. This option
Option D None
Sum is only available to members whose
benefit reserve value is less than $10,000.

*The benefit amount is adjusted for the age difference between the member and member’s
beneficiary for Option A and B. For Option A, 0.75% is subtracted from the member’s
85% benefit for each year the beneficiary is younger than the member. For each year the
beneficiary is older than the member, 0.75% is added to the member’s 85% benefit. The
same is true for Option B, except the adjustment is 0.50% for each year of age difference.

38
Retirement Handbook
Some Issues to Remember

Option A & B
1. The beneficiary cannot be changed after retirement.
2. Beneficiary will receive a payment each month for his or
her lifetime after the death of the member.
3. Pop-up Provision: If the beneficiary passes away before
the member, the member’s monthly payment would be
adjusted to the full 100% monthly amount upon written
notification to LAGERS.
4. Age Difference Adjustment: For each option, a specific
percentage is subtracted from your benefit payment for

Near Retirement
each year your beneficiary is younger than you or added
for each year your beneficiary is older than you. For Option
A, it is 0.75%, and for Option B, it is 0.50%. The maximum
adjustment upward for the age difference between the you
and your beneficiary is 5%.
5. Beneficiary - spouse of at least 2 years or person 40 or older
who has been receiving more than half support from you for
at least two years immediately preceding your retirement.

Option C
1. Your monthly payment will continue for your lifetime.
2. Your beneficiary will only receive a monthly payment if you
pass away within 10 years of your retirement date.
3. The beneficiary’s monthly payment will stop after LAGERS
has paid 120 payments to the member and beneficiary
combined.
4. You may change beneficiaries after retirement and may
designate multiple beneficiaries.
5. The beneficiary can be a person, legal entity such as a trust,
church, or charity.

39
Retirement Handbook
 Retirement Payment Options continued

Partial Lump Sum (PLUS)
You may choose a Partial Lump Sum (PLUS) distribution of your
benefit. A monthly payment would still be payable for your
lifetime, but would be reduced for receiving the PLUS up front.

A Partial Lump Sum can be added to any one of LAGERS
payment options.

The PLUS is equal to 24 Monthly Payments

The partial lump sum equals two years worth of payments of
the Life Allowance Option. The temporary benefit payable
under an LT program is not factored into the amount of the
Near Retirement

PLUS.

PLUS paid 90-150 days after Retirement

The earliest LAGERS will pay the PLUS to you is 90 days after
your first monthly payment date, but you may choose to delay
payment up to 150 days after retirement. If you pass away
after monthly payments begin but before receiving the PLUS,
the PLUS would be paid to your primary beneficiary.

Partial Lump Sum reduces your Monthly Benefit
Choosing to receive the PLUS along with any of the monthly
payment options will reduce your monthly payment by 16% if
you are age 60 at retirement. The reduction is adjusted by 0.4%
for each year you are younger or older than 60. For example,
you would subtract 0.4% from 16% for each year you are
younger than age 60 at retirement. You would add 0.4% to the
16% for each year you are older than age 60 when you retire.

40
Retirement Handbook
PLUS is subject to Taxes, Unless Directly Rolled Over
The PLUS is subject to income taxes and may be subject to
early distribution penalties. If you receive the partial lump sum
directly instead of rolling it into another eligible retirement
account, LAGERS must withhold 20% and forward to the
IRS. This is the standard withholding amount for all retirees;
however, you may owe more or less depending on your tax
status.
A 10% early distribution penalty for general employees
younger than 55 and public safety employees younger than 50
will be due when you file your annual income taxes.
The PLUS cannot be divided into smaller amounts. The entire

Near Retirement
lump sum must either be distributed or rolled over.
To delay paying taxes and avoid the early distribution penalties,
you may choose to roll your PLUS into an eligible retirement
account. Eligible retirement accounts include:
• 408(a) Individual Retirement Account (IRA)
• 408(a) Roth IRA (taxes withheld)
• 408(b) Individual Retirement Annuity
• 401(a) Qualified Retirement Plan
• 401(k) Defined Contribution Plan
• 457(b) Deferred Compensation Account
• 403(b) Annuity Contract

41
Retirement Handbook
 Retirement Payment Options continued

Life Allowance
Example:
Assume L-7(1.50%), $3000 Final Average Salary, 25 Years of Credited Service

Member’s
Benefit Credited Final Average Monthly
Multiplier x Service x Salary = Payment
1.50% x 25 x $3,000 = $1,125

Option A
Example:
Near Retirement

Spouse Same Age

Life Allowance x 85% = Member’s Payment
$1,125 x 85% = $956.25

Member’s Payment x 75% = Spouse’s Payment
$956.25 x 75% = $717.19

Option B
Example
Spouse Same Age

Life Allowance x 90% = Member’s Payment
$1,125 x 90% = $1,012.50

Member’s Payment x 50% = Spouse’s Payment
$1,012.50 x 50% = $506.25

42
Retirement Handbook
 Option C
Example

Life Allowance x 95% = Member’s Payment
$1,125 x 95% = $1,068.75

Life Allowance x 95% = Beneficiary’s Payment
$1,125 x 95% = $1,068.75

3/1/2019 Member’s Death 3/1/2029

Beneficiary’s
Member’s Payment

Near Retirement
Payment
$1,068.75
$1068.75

Benefit is payable for If member passes
member’s lifetime. away before 120
payments have been
made, the remaining
payments will be made
to the beneficiary.

Life (PLUS)
Example:
Member retires at age 60

Life Allowance x 84% = Member’s Payment
$1,125 x 84% = $945
Partial Lump Sum Calculation
Partial Lump Sum
Member’s Payment x 24 = Payment
$1,125 x 24 = $27,000

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Retirement Handbook
 Taxes and Your LAGERS Benefit
Your monthly LAGERS payment is considered taxable income
and will be subject to all applicable state and federal taxes.
LAGERS will withhold for Missouri and Federal income taxes at
your request.

Employee Contributions
The only portion of your monthly payment that is not taxable
are your actual employee contributions that were withheld
from your pay during your career. You have already paid
taxes on these funds; however, the interest earned on your
contributions is still subject to tax. If you never contributed to
LAGERS or have had your employee contributions refunded to
you, your entire benefit is subject to income taxes.

Just like when you are working and receiving a paycheck,
you are responsible for having the appropriate amounts
withheld from your benefit.

1099-R
LAGERS will send you a 1099-R form each year that details the
After Retirement

amount of taxable retirement income you received and the
amount of taxes paid. You may adjust your withholding as
desired by filing the appropriate forms with the LAGERS office
or by using the myLAGERS web portal.

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Retirement Handbook
Missouri Public Pension Exemption
If your total Missouri adjusted gross income is less than
$100,000 if married or $85,000 if single, you may meet eligibility
requirements for a Missouri Public Pension tax exemption. Up
to 100% of your taxable public pension may be exempt (total
not to exceed your maximum social security benefit).
LAGERS staff is not authorized or qualified to provide advice on taxation
issues. Please contact the Missouri Department of Revenue (dor.mo.gov)
or a trusted tax advisor for advice on your withholding.

Public safety retirees may elect to have health and long
term care premiums withheld from their monthly benefit.

In order to qualify, you must have retired under the normal
retirement provision of the system (meaning that you did not
take an early retirement) or you must have taken a disability
retirement. Rule of 80 retirement does qualify.

This works in connection with premiums for applicable
qualified health insurance. LAGERS can now withhold those
amounts from monthly retirement payments and pay directly

After Retirement
to a qualified provider. Up to $3,000 of what LAGERS withholds
may be excluded from your Federal taxable income.

The definition of eligible public safety officers, as included
in federal law (42 U.S.C. 3796b(9)), is generally individuals
who served a public agency in the capacity of a professional
firefighter, chaplains serving in a police or fire department,
officially designated public employee members of a rescue
squad or ambulance crew, or an individual involved in crime
and juvenile delinquency control or reduction, or enforcement
of the criminal laws (including juvenile delinquency), including,
but not limited to police, corrections, probation, parole, and
judicial officers.

45
Retirement Handbook
 Cost of Living Adjustment
LAGERS Board of Trustees may award eligible retirees an annual
Cost of Living Adjustment (COLA).

Cost of living adjustments are designed to help your benefit
keep pace with inflation. The amount of the adjustment is
based on the Consumer Price Index (CPI) and cannot exceed
4% in a year.

When are the adjustments made?
The adjustment is payable each October 1st and will be applied
to your current monthly payment amount.

When will I get my first adjustment?
In order to be eligible for your first adjustment, you must
be retired for 12 consecutive months including an October
1st. For example, if you retire October 1, 2019, you would be
eligible for your first adjustment on October 1, 2020. If you
retired on November 1, 2019, you would be eligible for your
first adjustment on October 1, 2021.
After Retirement

If you are not eligible for an adjustment during your first year
of retirement because of your retirement date, LAGERS will
ensure you are caught up with future adjustments.

Will my monthly payment ever decrease?
During times of deflation when the CPI is negative, retirees’
benefits will remain level for the year.

The LAGERS Board is not required by law to give a post
retirement increase and first must take into account the
financial stability of the system.

46
Retirement Handbook
Loss of a Loved One
I Elected the Life Option...
Under the Life Payment Option, your beneficiary will only
receive payment should you pass away and still have member
contributions remaining in the system. This beneficiary can be
changed at any time during your retirement.

I Elected Option A or Option B...
If you retired after September 1, 1992 and elected either Option
A or B, you are covered under LAGERS Pop-Up Provision. In the
event your beneficiary passes away before you, this provision
allows you to remove the Option A or B reduction you are
taking in your monthly payments and ‘pop up’ to 100% of your
Life Option amount. You must notify the LAGERS office upon
the death of your beneficiary to enact the Pop-Up Provision.

Once enacted, you are locked into the Life Option and may
not designate a new beneficiary under Option A or B. You may
designate a new beneficiary for any remaining contributions
you may still have remaining in the system (if applicable).

I Elected Option C...

After Retirement
If you elected Option C, you may designate a new
beneficiary(ies) at any time. Should your beneficiary pass away
before you, you may designate a new primary beneficiary. If
no new designation is made, in the event of your death, any
remaining payments would be made to your contingent
beneficiary.

If you have no living beneficiaries at the time of your death,
remaining payments (if any) would be made to your estate.

47
Retirement Handbook
 Employment After Retirement
As a LAGERS retiree, you always have the option to return to
work. In many circumstances, a retiree may seek employment
after retirement and continue to draw their LAGERS benefit
unaffected.

If I Employ with a Non-LAGERS Employer:
You are allowed to work full time or part time for any non-
LAGERS employer and continue to receive your monthly
LAGERS benefit.

If I Employ Part-Time with a LAGERS Employer:
You may re-employ part time with any LAGERS employer
and continue to receive your LAGERS monthly benefit. Each
employer elects to define part time as either less than 1,500,
1,250 or 1,000 hours per year. Check with the employer to
ensure you will be working less than the full time definition.
Part-time employees are not eligible to accrue additional LAGERS
benefits.

If I Employ Full-Time with a Different LAGERS
After Retirement

Employer:
You may re-employ full time after retiring with any LAGERS
employer other than one from which you are receiving a
benefit. In order to avoid disruption of your benefit, you must
have a full calendar month break in employment between
employers.

For example, if you retired and your last day of employment with City A
is September 30th and your retirement effective date is October 1st, you
cannot re-employ full time with City B before November 1st. If your last
day with City A is October 10th with an October 1st retirement effective
date, you cannot re-employ with City B before November 10th.

48
Retirement Handbook
If you re-employ full time with a different employer from which
you are receiving a benefit, provided you have a one calendar
month break in employment, you will begin to accrue service
toward an additional benefit from your new employer. You will
become vested with the new employer after 12 consecutive
months of service and eligible for an additional monthly
payment.

If I Re-Employ Full-Time with the Same Employer
from Which I Am Receiving a Monthly Payment:
You may not be earning a benefit from the same employer
you are currently drawing a benefit from. If you re-employ in
a LAGERS covered position with your former employer, your
original benefit will be suspended for each month you are
employed. You will begin to earn service toward an additional
benefit and would be vested after 12 consecutive months of
employment.

When you retire for the second time, your original benefit

After Retirement
will be reinstated plus the additional benefit, if any, that you
earned.

49
Retirement Handbook
 Glossary
Beneficiary – Any person or entity entitled to or designated
by a member who may be legally eligible for either a monthly
benefit or one time refund/lump sum.

Benefit Program – A multiplier that is chosen by each
employer to be used in the benefit calculation.

Cost of Living Adjustments – Protects a member’s
monthly payment from losing purchasing power as the cost of
living (inflation) rises from year to year. COLAs are given at the
discretion of the LAGERS board.

CPI (Consumer Price Index) – A measure of inflation, as
calculated by the United States Department of Labor, which
LAGERS’ Board uses to determine how much, if any, of a Cost of
Living Adjustment to award retirees each year.

Credited Service - The sum of membership service and
time worked before employer joined LAGERS.

Defined Benefit - LAGERS is considered a defined benefit
plan, meaning members receive a guaranteed and protected
lifetime benefit that is figured by a specific calculation, not an
account balance.

Disability – A total and permanent physical or mental
disability that permanently prevents a member from
preforming his current LAGERS covered job.

Contributions (Member) – Some LAGERS employers
require LAGERS eligible employees to contribute 4% of their
gross wages to help fund their benefits. Member contributions
Glossary

are credited to each individual’s account; they earn interest
and they are guaranteed to the member or beneficiary.

50
Retirement Handbook
Final Average Salary - An average used in the monthly
payment calculation of a member’s highest consecutive 36
or 60 months of wages from the last 120 months of LAGERS
credited service.

Membership Service – All full-time employment after an
employer joins LAGERS.

Payment Option – When applying for retirement, each
member chooses a payment option. LAGERS provides different
payment options which allow each member to draw their
monthly payments in a manner that best suits their needs.

Purchased Service – Service a member individually
purchases toward their monthly payment calculation.
Purchased service is included in the montly payment
calculation, but is not considered ‘credited service’. Therefore,
salary earned during the period of purchased serviced would
not count toward the final average salary calculation.

Prior Service – Employment with an employer before the
date an employer joins LAGERS. Each employer handles their
prior service election differently.

Retirement Age – The age at which a vested member
becomes age eligible to begin drawing a monthly payment.

Retirement Effective Date – Effective dates are always
the 1st of a month and represent that date on which a member’s
monthly payments will begin. Effective dates may be different
from a member’s last day of work.

Termination Date – Last day a member is covered in a
Glossary

LAGERS covered position.

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Retirement Handbook
 Glossary

Vested - Vested members are those who are eligible for
a retirement benefit once they have attained a LAGERS
retirement age. Vesting for LAGERS occurs once a member
earns 60 months of service in the system.

1099-R - The tax document issued to individuals who received
a LAGERS distribution in a given tax year.
Glossary

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Retirement Handbook
Notes:
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Retirement Handbook
 Notes:
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Retirement Handbook
Notes:
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Retirement Handbook
This booklet provides an abbreviated explanation of the statutes
governing the LAGERS system and does not amend or overrule RSMo
70.600 – 70.755 or Administrative Rules, Title 16, Division 20.

Member Handbook 3rd Ed. Reprint 2019