Anne Arundel County Executive Steve Schuh has introduced an ordinance to create a defined contribution retirement savings plan.
The ordinance was heard by the County Council on December 18. The idea of creating voluntary retirement options to the traditional pension benefits is a subject of discussion among county human resources officers, and has been the subject of state legislation.
In early December, the Maryland Association of County Human Resources Officers sponsored a session at MACo’s Winter Conference on the subject of sustaining and marketing pension plan. That session was part of an ongoing discussion of the Association as to whether and how defined contribution options might help the county bottom-line, while responding to the interests of the workforce in portable, flexible retirement planning options.
As described in the fiscal note of the Anne Arundel County ordinance, it would create a Retirement Savings Plan as an optional retirement benefit choice for those county employees eligible to participate in the county’s existing Employees’ Retirement Plan.
The new savings plan would be a defined contribution retirement plan. The employee contribution would be 4% and the county contribution would be 8% of salary. The employee may then direct how the money is invested among a spectrum of investment vehicles selected by the county.
For more information see Shifting risk: County proposes new, optional retirement plan where employees drive investment from The Capital.
To read the ordinance, see the Anne Arundel County Council website.