UCCF 10/20/16: More Pensions

2016-849: Authorizing the County Manager to award a contract to Mutual of America, Parsippany, New Jersey, in an amount not to exceed $111,903.97 for the period of July 1, 2016 through June 30, 2017 to implement an employee 401(a) benefits plan for county employees not covered under the Public Employee Retirement System (PERS).

2016-850: Authorizing the County Manager to award a contract to Mutual of America, Parsippany, New Jersey, in an amount not to exceed $20,424.00 for the period of January 1, 2017 through December 31, 2017 for the provision of Group Life Insurance with Group Accidental Death and Dismemberment Plan for employees not covered under the Public Employee Retirement System (PERS).

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For more on this plan:

2015-1052: Authorizing the County Manager to award a contract to Mutual of America, Parsippany, New Jersey, in an amount not to exceed $114,449 for the period of July 1, 2015 through June 30, 2016 to implement an employee 401(a) benefits plan for county employees not covered under the Public Employee Retirement System (PERS).

2014-955: Authorizing the County Manager to award a contract to Mutual of America, Parsippany, New Jersey, in an amount not to exceed $121,010.94 for the period of July 1, 2014 through June 30, 2015 to implement an employee 401(a) benefits plan for county employees not covered under the Public Employee Retirement System (PERS).

It is a Profit Sharing Plan that according to its Plan Document provides for discretionary contributions to be allocated among eligible participants based on a point-allocation system using Years of Service and Salaries (1 point for each Year of Service and 1 point for each $1,000 of Salary).

A spreadsheet lists 40 participants in the Plan (20 of whom are still working with almost all in Human Services) with total account balances of $3,287,204 as of 11/30/14.

According to employee list data the 20 active participants in the 401a plan are part of the 141 county employees reported to be paid with grant money.  None of these 20 are in PERS but of the 121 other employees paid with grant money, according to datauniverse, some are in and some are not in the PERS plan.

The irony of all this is that the employees paid with grant money and not covered by PERS are put in a Defined Contribution Plan where they get their own accounts and have an excellent chance of getting all their money at retirement while the PERS people, subject to the funding whims of their employers, are in a severely underfunded Defined Benefit Plan that is going bankrupt leaving most of them with a slim chance of even recouping their own contributions.

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2 responses to this post.

  1. Posted by bpaterson on October 24, 2016 at 1:26 pm

    JB1-what are all those that are terminated leaving only 21 plan participants? Are they employees dismissed from emplyment from the Runnels hospital sale.

    Reply

    • Probably not related to Runnells. This plan has been around for a while so it is natural for people to leave and not take their benefits until retirement.

      Reply

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