Dear Hamilton County Commissioners,
I hope you are all doing well. I have been reading about the State of Tennessee’s new hybrid 401K pension plan that is being proposed for new Hamilton County government hires.
Please vote yes to adopt the hybrid retirement plan for new hires for Hamilton County government. As a former state employee, I have always liked Tennessee Consolidated Retirement System. The hybrid plan is much improved for portability and taxpayer liability.
The new hybrid retirement 401k is a win-win for all concerned from what I am reading.
1) Hamilton County taxpayers will benefit by removing their liability for market fluctuations. This will also improve Hamilton County’s bond rating, which is already great due to consistent and responsible bond issue management.
2) Hamilton County employees will not feel obligated to pass up better opportunities due to TCRS participation. With a 401k that includes the employee and Hamilton County contribution, the pension or retirement plan become portable to new jobs. An employee can continue to grow their nest egg and grow professionally stepping up to better opportunity. Under the current TCRS retirement plan, an employee may not contribute to the plan after they leave employment, unless the new employers are a TCRS participant. This greatly narrows the field of employment opportunity and professional growth for existing employees.
3) It is unethical and underhanded to strip employer commitments to employees currently retired or vested. Hamilton County’s proposal absolutely protects the rights of existing employees and retirees, and is applying the new hybrid retirement to new hires. Hats off to Hamilton County for keeping their word and legal obligation.
4) Hamilton County will attract a larger pool of experienced employees with a portable hybrid 401K
5) The proposed taxpayer contribution to the new hybrid 401k is very generous with taxpayer funding. If employees match that contribution, they will be saving 18 percent of their gross income annually. That is great.
I am a fan of the very large and successful TCRS plan used by the State of Tennessee, Hamilton County, and most municipal governments. However, this hybrid 401k plan is a better option for all concerned.
Great work, Hamilton County government is proposing something that makes sense for the taxpayers and employees.
April Eidson