County Discusses Retirement Plan Options
The Glasscock County Commissioners’ Court, at its regular session Aug. 8, discussed whether to raise the county’s matching rate in its retirement plan. Currently, an employee contributes seven percent of his/her salary to the plan, and if he retires, the county matches his contributions at a rate of 125 percent, or $1.25 for every $1 the employee has contributed. An employee gets the matching funds only with retirement. In order to retire with full benefits, an employee must be vested for eight years and meet the Rule of 75 (his age plus service time must equal at least 75).
The court discussed raising the matching rate to 150 percent, or $1.50 for every $1 the employee contributes. County Treasurer Alan Dierschke said that with the county’s $672,000 annual payroll, the county’s matching costs now are $77,000 annually, and changing to 150 percent matching would cost the county an additional $1,125 total for the next fiscal year. But he said the annual cost could rise or fall in subsequent years.
Dierschke said under current regulations, the county can increase matching amounts only in 25 percent increments. Next year, he said there will be more options available. No action was taken regarding the retirement plan, and the court will address it again at a special budget meeting Aug. 17 at 9 a.m.
The court approved new rates for employees’ health and life insurance benefits which are paid by the county. Effective Oct. 1, an employee’s medical and prescription plan will cost $496 and term life and disability insurance will cost $12, making the total almost $18 less than the current amount. Optional, employee-paid coverage is available for spouses and children.