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.
- About half of Americans age 55 and older have nothing saved for retirement. However, 20% of these do have access to a defined benefit pension plan.
- Defined benefit pensions are the preferred retirement plan for state and local government employers.
- 39 employers have chosen LAGERS defined benefit plan for their employees within the last year. Almost all switched from a 401(k)-type plan.
- Defined benefit plans, like LAGERS, help government employers attract and retain good workers to serve the community.
A new study by the National Institute on Retirement Security (NIRS) shows that income retirees receive from public pension plans, like LAGERS, produce positive economic impacts across the nation. The study, using 2016 data, reports public pensions are responsible for $1.2 trillion in total economic output in the U.S. and added $202.6 billion in government revenue from retiree income taxes and spending.
We all want to live in communities that are safe, stable and vibrant. This means we need to create towns with solid infrastructure, strong police protection, responsive fire and EMS services, great schools, good parks, and successful businesses. But the essential ingredient to produce great communities is so often overlooked. People make it happen!
The recently released 2018 Economic Impact Report from Missouri LAGERS shows the pension fund paid $308 million to retired local government workers and their loved ones last year with ninety-three cents of every dollar ($286 million) staying in Missouri.
People don't always know the answer to the question,"Who can participate in LAGERS?" Since LAGERS is a defined benefit pension plan and not based on an account balance, certain criteria have to be met in order for you to be able to participate in the plan.
There are so many reasons not to care about retirement. It's so far away. We have student loans to pay off. We are building a house. We just had a(nother) baby. We want to take a vacation. We want to buy a truck/boat/camper/iPhone, etc. It is so easy for the financial pressures of today to overshadow the financial necessities of tomorrow.