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

Browse Search

County Contributions to Retirement Benefits- continued Of the 54 North Carolina counties that contribute to the NC Supplemental Retirement Plans through Prudential, only McDowell and Orange counties contribute a flat dollar amount (see attachment). An average 3.6% contribution is made by the remaining 52 counties, while an average 4.15% contribution is made by Orange County's neighboring jurisdictions. The annual County contribution of $715 is equivalent to 1.57% of the average annual Orange County employee salary of $45,500. While the $715 flat dollar amount provides all employees, regardless of salary, with an identical benefit, it does not provide any recruitment or retention incentive and is consistently identified by County employees as a benefit that can be improved. County Costs The Manager recommends keeping the $27.50 pay period County minimum contribution to the employee's choice of supplemental retirement plan(s) and matching employees' contributions up to $46.15 per pay period for all general (non -sworn law enforcement officer) employees. $46.15 per pay period ($1,200 annually) is equivalent to 2.64% of the average annual Orange County employee salary of $45,500. By continuing the minimum County contribution of $715 and matching up to $1,200 of employee contributions, the County's costs would increase a minimum of $87,000 and a maximum of $363,000 per year. Current County contributions are $535,000; if employees continued to contribute at current levels, the total County costs would be approximately $622,000. If all employees contributed at least $1,200 per year, the total County costs would be approximately $898,000. Employee Participation in Supplemental Retirement Benefits Currently, 57.6% of general employees contribute to a supplemental retirement plan, but only 16.5% of general employees contribute 3% of salary or greater. One of the Board's objectives in initiating an employer contribution was to encourage each employee to make a voluntary contribution to build his or her retirement security. The chart below shows employee (law enforcement and general) participation in the supplemental retirement plans. The recent drop in the number of contributors is likely due to increased health care costs and stagnant salaries. *This drop occurred during the year the County suspended its contribution to the supplemental retirement benefit. WIN Employees Contributing Percentage May 2009 500 65% May 2010* 433 57% May 2011 560 70% May 2012 533 65% April 2013 545 66% *This drop occurred during the year the County suspended its contribution to the supplemental retirement benefit. WIN