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Houston County approves limited TCRS buyback; county to cover roughly $83,006 lump sum
Summary
The Houston County legislative body voted to approve a three-year buyback option under the state retirement system, a move county staff said will cost the employer about $83,005.94 and raise the employer contribution rate from 2.97% to 3.0%.
Houston County commissioners voted to approve a three-year buyback option under the Tennessee Consolidated Retirement System (TCRS), a measure county staff said will require a one-time employer lump-sum payment of about $83,005.94 and would raise the county's employer contribution rate from 2.97% to 3.0%.
Dan Garmsstead, identified in the meeting as representing the county's emergency charging department, explained the buyback would let eligible employees purchase prior service years so more workers can reach the five years needed to vest in TCRS benefits. "This will allow some of your employees to get to that 5 years," Garmsstead said during his presentation.
Garmsstead described two buyback options the county had studied: a three-year purchase scenario and a five-year purchase scenario. He said the three-year scenario would add about $83,005.94 to the county's plan assets and would move the employer rate from 2.97% to 3.0%. He also said a five-year scenario would cost more (the figure mentioned was about $90,001.43), but the commission voted on the three-year option.
Garmsstead stressed that employees who elect to buy service years must apply and that employee costs vary by individual. He also said employees already contribute 5% of pay toward the pension plan and that the county must pay the lump-sum liability regardless of whether every eligible employee purchases service.
Commissioners took a roll-call vote after discussion and approved the three-year buyback option. The meeting record shows the motion passed on a recorded roll call.
The approval authorizes county staff to proceed with the three-year buyback option and to account for the employer lump-sum payment in county financial planning. The meeting did not set a specific schedule for employee applications or a detailed implementation timeline in the public record.
Commissioners and staff said the county actuarial and auditor work informed the figures presented; the meeting transcript names an estimate of roughly 17 eligible employees but does not confirm a final count of who will apply.
The action carries direct budgetary implications for the county pension fund and for future payroll accounting. The county will record the additional employer liability and will adjust the employer contribution rate in its payroll accounting as described in the presentation.
