Benefits December 7, 2007
GA County Goes from DC to Hybrid Pension Setup
December 7, 2007 (PLANSPONSOR.COM) - Government
officials in Fayette County, Georgia, have decided to convert
the defined contribution plan for county employees into a
hybrid plan design.
Reported by Fred Schneyer
A news report in The Citizen newspaper said County Commissioners approved the move on a 4-1 vote.
Starting July 1, 2008, according to the report, the plan will have a defined benefit component, but will mandate a 2% of salary employee contribution.
According to the report, Commissioner Peter Pfeifer cast the lone dissenting vote, asserting that too many unanswered questions remained about switching to the plan.
Numerous state and local governments around the country are moving in the other direction – converting DB plans into DC or cash balance programs.
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