LAGERS employers will soon have more flexibility with their employee contribution election thanks to legislation signed by Governor Parson this week.
House Bill 1467, which the Governor signed on July 13, will extend LAGERS employers' options for the employee contribution election from the current 0% or 4% employee contribution to a 0%, 2%, 4%, or 6% employee contribution election.
“We are excited to be able to further enhance the flexibility of the LAGERS system so that every local government employer has the best tools possible to attract and retain the best public servants to serve in our communities,” says LAGERS Executive Director Bob Wilson.
The new law will also permit governing bodies to make a separate employee contribution election if their employer has non-social security-covered employees who are covered under a different multiplier than their social security-covered employees.
LAGERS sought the change following years of discussion with members, employers, and other stakeholder partners all who expressed a desire for greater flexibility with the employee contribution election, similar to the flexibility offered with their benefit program election.
“We appreciate all of the discussions and feedback from our stakeholders over past several years, and we are confident that these new options will make LAGERS even better!” says Director Wilson. "We also want to thank our House sponsor, Representative Pike, and Senate sponsor, Senator Onder, for their tremendous work in not only getting this bill across the finish line, but also for their tireless support of Missouri's local government workers!"
The new law will go into effect on August 28, 2020 after which LAGERS will be able to begin accepting requests for actuarial valuations. The new law does not automatically change anything for LAGERS members- it simply adds two new options that any employer can elect in the future. As with any benefit change, an employer can adopt a new election only after they have received a cost study, and submitted it to a 45-day public information period.
Still have questions about the new law? Click here to read more about the top 5 FAQ with LAGERS Employee Contribution Expansion Bill.
Photo Credit: Office of Missouri Governor