During a recent government meeting, the Benefits Committee presented significant recommendations regarding retirement benefits for county retirees, focusing on the monthly stipend and contributions to the Texas County District Retirement System (TCDRS).

Currently, 95 retirees receive a monthly stipend of $300, originally designed to assist with healthcare costs. The committee proposed reducing this stipend to $200 starting January 1, 2025, which would lower the annual expenditure from $342,000 to $228,000, assuming no changes in the number of recipients. The court will need to decide whether to grandfather current recipients or allow future retirees to receive the reduced stipend.

In addition to the stipend adjustments, the committee discussed the TCDRS contributions. The county currently contributes 9.21% of salaries for 367 employees and elected officials. Without action, this rate would increase to 9.36%, potentially reducing the funding ratio from 92.3% to 91.7%. The committee recommended increasing the contribution rate to 10% to maintain a healthier funding ratio and to provide a 2% cost-of-living adjustment (COLA) for retirees and beneficiaries. This adjustment would be funded through a lump sum payment rather than over 15 years, with an estimated total cost of $716,218.

The discussions highlighted the complexity of the decisions at hand, with four independent yet interrelated choices: reducing the stipend, adjusting the contribution rate, and implementing the COLA. The court emphasized the importance of making these decisions now to avoid more difficult choices in the future. The recommendations aim to create a more sustainable financial plan for the county's retirement benefits while addressing the needs of current and future retirees.