Agenda - 05-30-2013 - 2 - Laserfiche WebLink

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County Contributions to Retirement Benefits Background Local Governmental Employees' Retirement System (LGERS) Both employer and employees make contributions based on employee earnings to this retirement plan. While employer contributions have varied over the past few years (see chart below), the employee contribution has consistently been 6.0% of salary. History of County Retirement Contributions Supplemental Retirement Benefits The Board has set the County's contribution from an initial contribution of $15.00 per pay period in FY 1998 -99 ($375 annually) to the current $27.50 per pay period ($715 annually). After a suspension of County contributions In FY 2009 -10, the Board re- instated the contribution at the rate of $27.50 per pay period into one of three deferred compensation plan options. The County's contribution is into a pre -tax fund, which means the County does not pay Social Security taxes on the amount contributed. Employees direct the County to invest its contribution to one of the following: • Prudential 401(k) plan (pre -tax) administered by the North Carolina Retirement System; • ICMA -RC 457 plan (pre -tax); • Nationwide (NACo) 457 (pre -tax). Employees may elect to contribute an amount, within federal guidelines, to any of plan(s) listed above as well as a post -tax (Roth) Prudential 401(k) plan administered by the North Carolina Retirement System. The County is required by State law to make a contribution of five percent of salary to the 401(k) plan for each sworn law enforcement officer. The County may determine the amount of its contributions for general County (non -sworn law enforcement) employees. Me% LGERS Supplemental Retirement Fiscal Year(s) Law Enforcement Officers (LEO's) General Employees Law Enforcement Officers (LEO's) General Employees % of Salary % of Salary % of Salary Annual Contribution 2001 -2005 4.78 4.88 5.00 $520 2005 -2007 4.78 4.88 5.00 $650 2007 -2009 4.86 4.88 5.00 $715 2009 -2010 4.86 4.88 5.00 Suspended 2010 -2011 6.41 6.43 5.00 Suspended until January 2011, then $715 2011 -2012 7.04 6.96 5.00 $715 2012 -2013 6.77 6.74 5.00 $715 2013 -2014 (recommended) 7.28 7.07 5.00 $715 (up to $1,200 matching contribution) Supplemental Retirement Benefits The Board has set the County's contribution from an initial contribution of $15.00 per pay period in FY 1998 -99 ($375 annually) to the current $27.50 per pay period ($715 annually). After a suspension of County contributions In FY 2009 -10, the Board re- instated the contribution at the rate of $27.50 per pay period into one of three deferred compensation plan options. The County's contribution is into a pre -tax fund, which means the County does not pay Social Security taxes on the amount contributed. Employees direct the County to invest its contribution to one of the following: • Prudential 401(k) plan (pre -tax) administered by the North Carolina Retirement System; • ICMA -RC 457 plan (pre -tax); • Nationwide (NACo) 457 (pre -tax). Employees may elect to contribute an amount, within federal guidelines, to any of plan(s) listed above as well as a post -tax (Roth) Prudential 401(k) plan administered by the North Carolina Retirement System. The County is required by State law to make a contribution of five percent of salary to the 401(k) plan for each sworn law enforcement officer. The County may determine the amount of its contributions for general County (non -sworn law enforcement) employees. Me%