By Elliott Brack
Editor and Publisher, GwinnettForum
MARCH 3, 2023 | An action taken by Gwinnett County government back in 2006 may be creating problems in retaining county employees.
On Dec. 31, 2006, the county’s defined benefit plan (read as “pension”) was closed to all new employees of the county. Those employed at that time had the option of remaining in the pension plan or being included in either a 401 (a) or 457 (b) retirement plan. This happened during the Charles Bannister administration.
As of Dec. 31, 2022, Gwinnett County has 731 employees in the defined benefit pension plan and 4,196 employees in the defined contribution pension plan.
The county is required to contribute 11.5 percent of pensionable earnings (for employees hired prior to January 1, 2007) or 7.0 percent of pensionable earnings (for employees hired after January 1, 2007) to the defined contribution pension plan. Effective January 1, 2007, a one percent match of pensionable earnings for each employee who contributes at least 3.0 percent to their 457(b) account is made by the county to the defined contribution pension plan.
There are 100 percent of employees contributing to the pension plan, and it is a mandatory plan for full-time employees. On Dec. 31, 2022, under either the 401 or 457 plans, 94 percent of employees were contributing to this plan. Six percent of these employees make no matching contribution.
The upshot of these changes means that county employees take their long-term savings plan with them when they go to a new job. Previously, if the employee left employment by the county, he forfeited his pension savings. That helped retain employees.
McClure
In today’s world, finding employees is difficult, especially in the police department, where significant dangers are involved in the job. Police Chief J.M. McClure says that the department “has always been lean. I don’t remember ever being at full staff. But the county has been fully funded and given additional positions.”
At present, the police have an authorized strength at the end of January of 938 positions, with 690 employed. That’s a 26 percent vacancy rate. McClure says that the good news is that his officers work closely together as a team, and hold their own. “We haven’t had to cut service delivery, and we have seen a drop in people leaving the force in the last two years.”
During Covid, back in 2021, the police department lost 104 officers, but in 2022, the force gained six employees. “That was really big,” McClure says. “And help is on the way, as we have 44 starting in the Police Academy on March 13, and 68 more already going through the hiring process.”
Not only that, but over the last two years, officers have received a combined 26 percent in raises (2021-2022), which McClure says is “much more competitive” than some neighboring jurisdictions. “The money’s there. We are making headway, but would a hybrid pension plan help? It would benefit the young officers.”
Defined benefit plans (pensions) in other parts of the country have run into problems in recent years, as more retirees take benefits, and those still earning in the plan help pay the higher retiree benefits.
Gwinnett’s 2006 administration may have switched from a pension plan to the 401 and 457 savings systems to save money. This move could be part of the reason it’s becoming more difficult to hire employees, especially policemen.
- Have a comment? Send to: elliott@brack.net
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