Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
Council reviews options to increase retirement benefits; payroll impact estimated at 5.82%
Summary
Staff outlined two options for municipal retirement benefits — increase the multiplier from 1.5% to 2% or adopt a Rule of 75 — and said implementing both would raise payroll costs 5.82%; employees indicated preferences and council requested more time to consider comparables.
City Manager Mark Musselwhite reviewed proposed changes to the Georgia Municipal Employee Benefit System options for Demorest employees. The current plan uses a 1.5% multiplier with normal retirement at 65 after five years and reduced early retirement at 55. Staff presented two options: raise the multiplier to 2.0% or adopt a Rule of 75 allowing unreduced retirement at age 55 when age plus years of service equals 75.
Mr. Musselwhite explained that combining both changes would raise annual payroll costs by about 5.82 percent. He reported employee selections: 18 employees chose the multiplier increase and 14 chose the Rule of 75.
Councilman Shawn Allen requested additional time to review the comparables presented for nearby counties before making a final decision. The work session did not include a formal vote; staff indicated that GMA would draft an adoption amendment if the council chooses to proceed.
