The Hybrid Defined Benefit/Defined Contribution Plan has two components:
- Defined Benefit
- Defined Contribution
All full-time employees employed on or after January 1, 2010, are automatically enrolled in the Defined Benefit component of the plan.
The Defined Contribution component of the plan is voluntary. Employees are automatically enrolled in the Defined Contribution at 4% unless opting out of the contribution.
Defined Benefit: An employee's pre-tax contribution is a percentage of the employee's base pay. The Defined Benefit component is mandatory and the contribution amount is determined by the county. Currently, the employee contribution rate is 3% and should not increase over time, although this can’t be guaranteed.
Defined Contribution: In addition to the 3% mandatory contribution of their salary to the Defined Benefit Plan, employees may contribute a portion of their salary each year to the Defined Contribution plan up to 4%. The employee’s contribution will be incorporated into the current 457 plan.
Defined Benefit: The county's contribution is a percentage of the employee's base pay. The county will contribute 23.59% in FY24.
Defined Contribution: The county will make a 100% matching contribution up to 4%. The county’s contribution will go to a 401a plan per IRS rules.
For the mandatory Defined Benefit: Effective January 1, 2024, the vesting for certain employees hired after January 1, 2009 in the Hybrid Pension Plan moved from ten (10) to seven (7) years .
If an employee leaves the county before they are vested, they will not lose their contribution. Instead, their contribution will be returned to them along with an approved amount of annually compounded interest. The employee may have these funds paid directly to them, or choose a direct rollover into an approved Individual retirement account.
For the voluntary Defined Contribution: The county's match contribution vesting will be a graduated schedule at 20% vesting per year of service with 100% vesting after five years of service.
For the voluntary Defined Contribution: The employee's contribution vesting will be immediate.
If an employee leaves the county before they are vested, cumulative dollar amounts can either be distributed in a lump sum subject to IRS rules, or converted to a monthly income annuity, or transferred to the employee’s new company’s plan, or transferred to the employee’s individual retirement account. All options are subject to IRS rules.
Annual Retirement Benefit
For the Defined Benefit: The annual retirement benefit calculation formula uses the Final Average Earnings (defined as the average of the highest five (5) consecutive years, within the ten (10) years prior to the employee’s termination of employment) times a multiplier of 1% times the number of years and months of credited service.
Example: Final Average Earnings = $45,000 X 1.0% = $450 X 30 years of service = $13,500 Annual Benefit.
For the voluntary Defined Contribution: The value is the amount of funds in the Defined Contribution component at the time of retirement.
Overtime pay, if any, is not included in an employee’s Final Average Earnings. Employee contributions to the plan are calculated on regular pay only.