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Pension Committee Approves 5% Mandatory Contribution Plan for City Employees

November 27, 2024 | City Council , Milledgeville City, Baldwin County, Georgia


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Pension Committee Approves 5% Mandatory Contribution Plan for City Employees
The Milledgeville City Council convened on November 26, 2024, to discuss several key agenda items, primarily focusing on employee pension contributions and the continuation of a council member's position on the regional commission.

The meeting began with a detailed presentation regarding a new pension contribution program. The council reviewed two options for employee contributions. The first option proposed a mandatory 4% contribution from employees, matched by the city at the same rate, allowing employees to contribute an additional 4% with a city match. The second option, which was ultimately chosen unanimously by the pension committee, involved a mandatory 5% contribution from employees, also matched by the city at 5%. This option allows employees to contribute up to an additional 5%, resulting in a potential total contribution of 20% when combining employee and city contributions.

The council noted that employees would have a four-year vesting period, meaning they could take their contributions if they left before three years but would need to remain employed for three years to take the city’s contributions with them. Additionally, the city will implement a 457 deferred compensation plan alongside a 401(a) plan.

Following the pension discussion, a recommendation was made to retain Council Member Schinholz in her position on the regional commission due to her valuable contributions. The council agreed to keep members in their current roles during this interaction season, emphasizing the importance of stability in leadership.

The meeting concluded with a commitment to revisit the pension program at the first December meeting, marking a significant step forward in employee benefits for the city. The council remains focused on ensuring competitive wages and benefits to attract and retain talent within the city workforce.

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Scribe from Workplace AI
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