Council approves amendment to GMEBS contract allowing employees to buy preservice credit
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Summary
The council approved Amendment No. 1 to the GMEBS defined benefit contract to permit employees to use their 401(a) defined‑contribution funds to purchase preservice credit; actuarial results will determine individual buyback costs and the purchase window is Jan. 1–Feb. 28.
The Lilburn City Council approved Amendment No. 1 to the city’s contract with GMEBS for the defined‑benefit pension program, authorizing a purchase option that allows employees to use 401(a) funds to buy preservice credit.
Roy, a city staff presenter, told the council that after signing the contract the city noted the agreement did not include language enabling employees to use their defined‑contribution 401(a) accounts to purchase preservice credit. GMEBS sought tax counsel and contacted the IRS; staff reported that the IRS has approved that mechanism. Roy said once actuarial results are completed for each employee, employees will have a window from Jan. 1 to Feb. 28 to purchase preservice credit and buyback costs will be determined individually.
Staff recommended approval of Amendment No. 1, and the council approved the amendment on a motion by Council member Coelho, second by Council member Baderton (voice vote recorded as 4‑0). The amendment is intended to allow eligible employees to consolidate service credit options under the new defined‑benefit program.
