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12. B. 6.
Policy #340 - Employee Benefits
Kim Archambault, HR Director, Human Resources
Resolved, the Board of Commissioners does hereby approve the changes to Policy #340 - Employee Benefits as presented.
It is recommended that the Board of Commissioners approve changes to Policy #340 - Employee Benefits as presented.
As communicated to the Board previously, the County has been working on solutions to recent pension issues related to increased contribution rates/cost and employee recruitment/retention. The County non-union employee's are in Division 1 of the MERS pension program, along with six union groups (AFSCME, APAA, and 4 TPOAM units), Dept Heads, Elected Officials and Court Non-Union. We were successful in finding a mutually agreeable solution that includes closure of the pension plan to new hires and the County will proceed with pension bonding to pay off the unfunded liability. The plan is for new hires to be offered the County 401(k) plan with the same match provision that was already provided for in the County non-union policy for those that were not participants in the pension program and the active employee contribution to the pension plan be capped at 7% beginning in 2020. All of these items should have a positive impact on recruitment and retention efforts. All six unions have signed letters of understanding (LOU) with these terms, which will be presented to you at a later date when the MERS plan closure requirements are brought forward for board approval as well.
The request for your approval tonight is to update the County non-union policy with the exact same terms as the union LOU's, as MERS requires that all employees within a division have the same contribution rates and rules. The specific changes have been red-lined/marked for your review in the attachment.
Pension bonding to pay of the unfunded liability on this plan will be a cost savings to the County. The exact amount will depend on factors yet to be determined (interest rates, etc...).
Policy #340 Employee Benefits 1-16-20
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