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Glenarden council declines proposal to adopt elected-official retirement plan now; members ask for more information
Summary
Councilman Williams asked the City Council to consider providing an elected-official retirement benefit; the HR specialist briefed the council on municipal practice and the city's current 457(b) arrangement.
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Councilman Williams asked the Glenarden City Council to consider whether elected officials should have access to a retirement benefit similar to those offered in some neighboring municipalities.
Karen Schultz, the city's HR specialist, told the council she surveyed municipal practice and said most municipalities in the county that participate in the Maryland state retirement system make that retirement available to elected officials "by mandate," though elected officials often do not participate because it is not cost-effective. Schultz explained the city currently uses a Mutual of America 457(b) plan for employees; under the city’s arrangement the city pays 3 percent as a base contribution and will match employee contributions up to a limit (the HR specialist described a city match up to 4 percent, yielding total employer contribution of up to about 7 percent in some cases).
Council discussion focused on timing, equity, and budget. Several councilmembers said the proposal is a recognition of long service rather than a large financial benefit; others said the city currently faces budget pressures and should not add a new recurring obligation. Council members asked for formal calculations and legal clarification, and asked whether switching to the Maryland state retirement system (which would carry a mandate to offer retirement to elected officials) was feasible. Several councilmembers said they already have retirement from other employment and did not favor adding a new municipal obligation at this time.
The clerk took a voice consensus. Multiple councilmembers recorded "no" or "not at this time" when asked whether the council should pursue instituting an elected-official retirement benefit now. The administration and HR specialist were asked to provide more detailed cost estimates and the statutory implications of changing retirement systems if the council wishes to revisit the issue.
Why it matters: adding an elected-official retirement benefit would create a new recurring liability for the city and would require a funding and policy decision; the council chose not to pursue it now but asked for data if members want to consider it later.
Ending: Administration and HR will prepare a follow-up briefing with cost estimates and legal options if the council wishes to reschedule the topic for a future meeting.

