Cairo manager seeks amendment to bar in-service retirement payouts; council approves request to contact GMA/GMEBS

The Cairo City Council voted to allow the city manager to request an amendment to the city60s defined benefit retirement plan to prohibit in-service distributions, the council was told.

The interim city manager said the city60s plan is administered through the Georgia Municipal Employees Benefit System and currently permits some employees to receive retirement benefits while continuing to work. "Currently, there are 11 employees receiving in service retirement benefits under the existing provision," the interim city manager said. The manager told the council the proposal would not affect those 11 employees and would apply only to future retirements.

The manager said allowing employees to draw a retirement benefit while remaining full-time can increase the city60s costs because salary and benefit obligations continue. The proposal would require a bona fide separation from service before benefit disbursement for future retirees. "This proposed change would not apply to those individuals as they are already retired under the terms in place at this time," the manager said.

Council members discussed succession planning and the city60s aging workforce; the manager said the average employee age is 48 and the city projects additional retirements within five years.

The motion to authorize the city manager to contact Georgia Municipal Association and GMEBS to request the amendment was approved by the council. The manager said GMA/GMEBS would update the plan and return any final documentation for council approval.