Pension committee supports switch to combined defined-contribution plan; council to consider in December

The pension committee reported a unanimous recommendation to move Milledgeville’s retirement plan from the current 100% city-funded model to a combined defined-contribution plan. Committee discussion outlined two options and selected option 2: a mandatory 5% employee contribution matched by 5% from the city, with the option for employees to contribute up to an additional 5% and receive a matching city contribution up to that additional 5%.

Councilmember Chambers, reporting the pension committee finding, said the committee voted unanimously for the 5% mandatory contribution and described a four-year vesting schedule: employees can take their own contributions if they leave before vesting, but cannot take the city's matched contribution until vesting is complete. Chambers said the plan would involve a deferred-compensation (457) option for employees and a 401(a) account funded by the city.

Chambers said the committee’s choice was made in part to remain competitive with neighboring counties and to preserve benefits while moving to a model that shares contribution responsibility. The item is expected to be brought to the full council for formal consideration at the December meeting.

Next steps: staff will prepare the formal proposal, implementation mechanics (including vesting rules), and potential ordinance or resolution language for council review in December.