Public pension plans that are well-funded share some common characteristics, according to the National Association of State Retirement Administrators (NASRA). And since LAGERS ranks in the top ten in terms of funding among U.S. plans, you may guess that these characteristics would be found in our practices. And you would be right.
I spend a lot of time traveling the state and I get to hear a lot of great questions from our members. Some of you love to get into the details of your benefit and probably revel in the thought of reading a 1000 word blog on LAGERS’ funding policy; but I’ve found there are an equal number of you who’d rather skip over all those details for just a basic understanding of how your benefit works. We live in a world of information overload, so I am totally sympathetic to those of you out there who just want a quick answer. So this week, instead of looking at one topic in depth, I thought I’d hit briefly on the top five questions I get from members. Don’t see the question you want a quick answer to on my list? Leave a comment and I’ll be happy to respond! Make sure you stay tuned for parts 2 and 3 of this blog which will address top pre-retiree and retiree questions!
If you have recently logged in to your myLAGERS account or reviewed your Member Annual Statement, you might notice that you have an account balance. What is the account balance exactly? In short, it is the 4% in member contributions that you have paid into the LAGERS system. Don’t have an account balance? Not to worry. This simply means that your employer pays in the entire cost of your LAGERS benefit.