County may be approving guarantee to employees of up to 100% of full-time pay as retirement income

Fayette County’s bid to convert its employees retirement package to a defined benefits plan could come up for a vote by the end of the year.

Last Wednesday, the county commissioners heard another presentation from consultant Steve Vaughn, who has tried to assist the county in making its decision.

“This is part of having a competitive benefit to help aid recruitment and provide a livable retirement,” Vaughn said.

He added the county’s current retirement plan, which is based on contributing to a 401K and 457 plan, does not meet the goal of providing a quality of life upon retirement.

If the county decides to go to a defined benefits proposal that would provide retirees with a guaranteed income of 90 percent or 100 percent of their current income, employees would be mandated to contribute to the plan.

The county’s portion of the retirement income would amount to 50 or 60 percent, while Social Security would provide 40 percent and the individual’s saving would cover the remaining 15 percent.

The county is currently paying just over 6 percent in matching funds towards an employee’s retirement plan, and Vaughn said a defined benefits would not cost the county any additional funding.

But some of the commissioners were not convinced.

“I’m not interested in placing any risk on the taxpayers,” said Commissioner Peter Pfeifer.

Commissioner Herb Frady also wanted to see a comparison of how an individual employee would fare under the new plan, compared to the old plan.

But Chairman Jack Smith was not sure how much more information the commissioners needed.

“This plan has no additional cost,” he said.

The commissioners are set to discuss the issue further Dec. 5.

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