Tag Archives: news

June Article Roundup

What To Do When You Haven’t Saved Enough For Retirement

The good news is that a portion of your retirement income will be covered by protected, monthly, lifetime payments you earned from your LAGERS service. The bad news is that your LAGERS benefit likely won’t be enough to produce the lifestyle you want in retirement. This article gives some helpful tips on catching up on retirement savings.

Read the article here.

 

Here’s how thieves use your data after a breach

Hearing LAGERS IT guy talk about all of the cyber security threats we face today is enough to make you never want to use the internet again. This article breaks down how cyber criminals use your information if they are able to hack into an online database and how to protect yourself against these threats.

Read the article here.

 

How to Spot the Lies Financial Advisors Tell

I am a huge proponent of seeking financial advice to help you navigate retirement savings and other investments. However, I am just as passionate about warning people to be very careful on who they choose as their financial advisor. This article will give you some ammo for selecting and advisor or to identify when you’re current advisor is not working in your best interest.

Read the article here.

 

Jeff Kempker
Asst. Director, Member Services

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Top LAGERS News of 2016

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It’s hard to believe 2016 is coming to an end and 2017 is closing in on us like a blustery Missouri cold front. In case you missed it, a lot happened with your retirement system over the last 12 months! Here is a brief compilation of the top news-worthy events.

Important Legislation was Passed

The 2016 Missouri Legislative Session saw the passage of HB 1443, a bill that LAGERS proposed. This important legislation allows local governments in Missouri who are running their own pension plan to choose LAGERS as the administrator of that plan. This will permit these smaller plans to take advantage of LAGERS’ expertise and economies of scale, resulting in lower administrative costs for the local entity and ensuring that these plans maintain financial stability. LAGERS staff has been working diligently to begin accepting these new plans since Governor Nixon signed the bill. Read more.

LAGERS Members are Living Longer

Every five years, LAGERS takes an in-depth look at our membership to take stock of changing demographics and other trends. One of the key findings from the 2016 study was that LAGERS members are living longer, which is great news! A 60-year-old male is now expected to live to age 84 and a 60-year-old female to age 88! Because of this, LAGERS’ Board updated the mortality tables we use to reflect the longer lifespans in order to ensure benefits will be properly funded. Read more.

LAGERS Funding Level Reaches 94.7%

Pension funds often measure their financial stability using a “funded ratio.” This is simply a measure of the fund’s ability to meet all of its obligations to members and retirees now and into the future. All pension plans strive for a 100% funding ratio. At 100% funded, a pension plan has all the assets it needs on hand to meet all of its liabilities. This is kind of like being fully paid up on your mortgage. If you paid off your mortgage, you could say your home is 100% funded. Being under 100% funded as a pension plan is not necessarily a problem because all of the participants in the plan won’t need to be paid on the same day. What is important is that there is a dedicated method to pay the liabilities and that the plan is moving toward 100%. A pension plan that is above 80% funded is normally considered to be on stable financial ground. Read more.

12 New Employers Joined LAGERS in 2016

LAGERS continues to be an attractive option for local government employers looking for ways to recruit and retain high-quality workers to serve their communities. Seventy-five local governments have joined LAGERS in the last five years and half of these switched from 401(k)-type plans to the stability and security of LAGERS’ defined benefit approach. Why the switch? We are increasingly hearing from government officials the need to enhance the services of their communities by hiring and keeping the best people to fill those jobs. I attended a city council meeting recently and heard from one official, “We are a service-based industry and to provide the best service to the citizens of this city, we do that through the people we hire.”

The last year was an exciting one for LAGERS and as we look forward to 2017 and LAGERS’ 50-year anniversary we expect nothing but continued success in helping Missouri’s communities accomplish great things!

Jeff Kempker Manager of Member Services

Jeff Kempker
Manager of Member Services

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September Article Roundup

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It seems like we are constantly hearing things like, “age 60 is the new 40,” and “age is just a number.” There is also a changing view of retirement from a period of leisure to more of a phased approach, where people aren’t stopping work altogether, but just scaling back or starting something new. Does this mean retirement is now a dirty word? Are the days of celebrating retirement over?

Read “When did retirement become a dirty word?”

 

Talking to a financial advisor is a great way to stay on track with your goals. Wading through the investment and benefits waters can be overwhelming if you try to go-it-alone. Financial advisors can be great resources, but there are some things you need to know before deciding who to trust with your fiscal future.

Read “10 Questions to Ask Before You Hire a Financial Advisor”

 

The American retirement savings crisis is well documented. About half of US workers don’t have access to employer-sponsored retirement plans and those that do, for the most part, are not saving enough. The Americans who have the steepest hill to climb are those that probably need the most help – those with lower levels of education.

Read “Workers without college degrees fare worse with 401(k)s”

 

The National Institute on Retirement Security released a report last week that shows the profound economic impact of public pensions in the U.S. Public pensions, like LAGERS, pay retirees steady monthly income. That income is not stuffed under mattresses, but put to use purchasing local goods and services. LAGERS, for example, pays over $250 million per year to retirees – $230 million stays in Missouri! The full report and state-by-state information can be viewed here.

Read “Pension Spending 7.1 million jobs, $1.2 Trillion Economic Output across the U.S.”

 

Jeff Kempker Manager of Member Services

Jeff Kempker
Manager of Member Services

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This Month’s Top Retirement Story Picks

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Every month, we see hundreds of retirement articles hit the news ranging from pension issues, to retirement plan design, to personal finance. Here are a few of my favorite headlines from this past month.

5 Financial Concepts To Teach Your Teen Before High School Graduation

I can’t remember how many times I listened to my parents lecture about financial responsibility when I was in high school, and now looking back, I am so grateful for their wisdom. As an adult, having the ability to understand and manage my personal finances, limit unnecessary debt, and make smart savings and investment choices not only allows me a more stress-free outlook on my family’s finances, but also gives me the ability to plan for my future retirement security in ways I may have otherwise not been able to. This article captures five great concepts that every young American should master in order to improve their future financial outlook.

http://www.forbes.com/sites/markavallone/2016/06/07/five-financial-concepts-your-teens-should-understand-before-high-school-graduation/#3281347c69c2

 

Employees Willing to Pay More for Retirement Benefits

With many Americans feeling unsure or unprepared for their retirement future, nearly 62% of employees in this survey said that they would be willing to pay more out their paychecks for more generous employer-sponsored retirement benefits. I hear very similar comments from many of our LAGERS members who say they would be willing to go from a 0% to a 4% personal contribution to LAGERS in exchange for a higher benefit multiplier.  The good news here is that employees are recognizing the need to save often and early.  Employers can use these conversations to help tailor a retirement plan that helps their employees feel like they are able to achieve their retirement goals.

http://www.plansponsor.com/Employees-Willing-to-Pay-More-for-Retirement-Benefits/

 

401(k)s ‘Not Suitable’ Retirement Income Vehicles

I recently read a survey that found many retirees prefer a guaranteed retirement income option over spending down assets. The great news when it comes to LAGERS is that all benefits at retirement provide a guaranteed lifetime income stream.  This article talks about some of the challenges traditional DC account holders face when trying to figure out their de-cumulation stagey while ensuring they don’t outlive their retirement savings.

http://www.plansponsor.com/401ks-Not-Suitable-Retirement-Income-Vehicles/

 

Teamster Retirees Win Surprise Victory, Force Government Not To Slash Their Pensions

This is a story that I have personally been following for some time now, as I’m sure many of our members have as well. It is scary to think that someone could work their entire career with the promise of pension income at the end, only to get there and have the terms of that agreement changed on you.  I believe that every hard working employee who dedicates their career to an employer should be able to retire with the peace of mind in knowing that their retirement benefit will always be there for them.  I am proud to work for LAGERS where our members and retirees know that their benefits are safeguarded by great plan design and strong funding policies.  I will continue to watch this story with interest and certainly hope for retirement security for every hardworking American today and into the future.

http://inthesetimes.com/working/entry/19179/teamster_retirees_win_surprise_victory_force_government_not_to_slash_their

 

10 Expensive Habits You Can, And Should, Break Today

I guarantee that you will find at least one habit on this fun list that you probably are guilty of. I think I found four or five that I know I should be better about.  I love these little reality checks because it helps me to hold myself accountable for every single financial choice that I make each day…often ones that I otherwise make without thinking, and certainly choices that can add up big over time.

http://www.forbes.com/sites/nancyanderson/2016/06/22/10-money-habits-you-need-to-break-today/2/#4c1261001ef6

 

Elizabeth Althoff Communications Specialist

Elizabeth Althoff
Communications Specialist

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