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Employee Benefits

Retirement Information

Retirement for the City of Smithville is provided through the Missouri Local Government Employees Retirement System (LAGERS).  LAGERS is a defined benefit retirement plan. Defined benefit plans are also referred to as pensions. The benefits from these plans are “defined” because they pay a pre-determined amount for a person’s remaining life after work. Individuals participating in the plan do not direct their own investments; rather, the funds in the plan are pooled together and invested in one portfolio that is managed by professionals. Returns from the investments are used to help pay for the benefits. Defined benefit plans are the preferred retirement plan in the public sector where 75% of state and local government workers in the U.S. participate in these plans.

A new employee with the City, who has not previously been employed by an approved LAGERS employer, will have a six month waiting period before any deductions will begin from their paychecks.  They do however receive service credit for those six months.  If a new City employee has previously worked for an approved LAGERS employer their deductions will begin immediately, UNLESS they have forfeited their service through a refund or lump sum payout of their deductions with the previous employer. Employee contributions are post-tax, and are 2% of an employees gross monthly wages. Vesting occurs after 5 years of employment with a LAGERS employer. Retirement payments are based on length of service with a LAGERS employer, final average salary and the benefit level set by the City.  Normal retirement for general employees is at age 60 and at age 55 for Police Officers.  LAGERS members are covered by disability benefits, if an employee were to become permanently disabled they would be able to apply for retirement due to the disability.  In the event that an employee should pass away prior to their retirement there is an additional monthly survivors' benefits that may be payable to eligible beneficiaries. 

Employees may set up their personal LAGERS navigator to see their retirement account at any time, receive assistance directly from a LAGERS representative, update beneficiary information, etc by following this link: http://www.molagers.org/