Bulloch County Commissioners completed the final step to implement the new Defined Benefit Retirement Plan at their regular morning bi-monthly meeting on Tuesday, May 16, 2023.
The Commissioners approved resolutions and documents necessary to end the current Employee Retirement Plan replacing it with the new pension plan. The new Defined Benefit pension retirement plan will go into effect on July 1, 2023.
In late 2021, the Board of Commissioners approved a feasibility study to examine the possibility of changing the retirement plan for County employees. In February 2022, at the request of the employee study group, the Board of Commissioners authorized ACCG Retirement Services to initiate a cost analysis. Following the completion of that analysis, the study group presented several options, with a preference for moving away from the County’s current defined contribution plan and, instead, offering a defined benefit plan.
In August 2022 a due diligence period commenced to allow for further evaluation of the proposal, identification of plan structure options, employee communication, and employee feedback. During the due diligence period, county staff (with the assistance of ACCG Retirement Services) further defined the
recommended parameters of the proposed defined benefit plan. Next, specific details of the potential plan - including plan multiplier, retirement age, status of the 401(a) plan, and other variables - were presented to employees.
The study group shared the Due Diligence Report with the Board of Commissioners in October 2022, summarizing the project and associated activities. In a meeting held on November 1, 2022, the Board of Commissioners voted to begin the process to move from the current defined contribution plan to a defined
benefit plan and directed staff to begin the necessary steps to do so.
Over the next few months, staff worked closely with ACCG Retirement Services who drafted the documents necessary to enact this change. Several rounds of review and edits were conducted until both organizations were satisfied that the documents properly captured the intent of the switch.
As a reminder, the recommended plan structure is:
- 1.5% multiplier
- 5-year vesting
- Normal retirement 65 with 5 years of service (options for retirement as early as age 60)
- This conversion would discontinue the existing 401a plan, including the match, as well as the county funding for POAB/Firefighter pension, but would replace those with a defined benefit based on years of service and pay
- Existing employees will be presented with two options:
- Relinquish existing 401a balance in exchange for service credit for years already worked; OR
- Keep existing 401a balance intact and enter the DB plan with zero years of service credit
- A blackout period (6 or 12 months, depending on employee’s age)
Chairman Thompson recognized and thanked Bulloch County Sheriff's Captain Marcus Nesmith and his committee of County employees who led this effort. Nesmith was in attendance to see the final vote.
Continue reading for a full report on all the business covered by the Commission.
All APPROVED - CONSENT AGENDA
1. Minutes Approval: Tuesday May 2nd, 2023 05:30 PM
2. Executive Session Minutes of May 2, 2023 5:30 PM
3. Approve the annual contract for service and support with Vertiv Corporation in the amount of $21,076.00
This is the yearly contract for the UPS units at the 4 radio tower sites and 911.
4. Authorize a letter of transmittal for nominees to Seat 2-A and Seat 2-B to be appointed by the Hospital Authority Board of Directors. Seat 2-A Nominees: Brannen Smith, Gary Mikell and Paula Mooney. Seat 2-B Patricia Hunter, Brannen Smith, Gary Mikell and Paula Mooney
5. Approve the re-appointments of Billy Allen, Paul Roesel and Greg Proctor to the Development Authority of Bulloch County to serve terms beginning July 1, 2023 through June 30, 2027.
6. Approve the re-appointment of John Cheek to the Coastal Workforce Development Board to serve a term beginning July 1, 2023 through June 30, 2026.
PRESENTATION
1. Proclamation Presentation to Public Works as First Responders
Public Works requested on March 21, 2023 that the Board of Commissioners approve their office staff be recognized in Bulloch County as First Responders due to their involvement in emergency response situations and assistance provided to Law Enforcement, Fire Department and EMS.
APPROVED: 2. Presentation and report to Commissioners on recent demonstration of Crafco Mastic street repair. After hearing the presentation, the commissioners decided to go ahead an approve the temporary rental of the machine to test the equipment.
Proposed renting the equipment for a cost of $6,500 for the machine rental plus materials. Two to three months material cost would be approximately $30K, Dink Butler estimated three month costs of $50 to $55k total. This would allow them to test this process. The cost of machine is $85k to purchase. The difference in this process versus cold patch material currently in use is the sealant in the new material. The sealant prevents water leakage.
The cost to resurface a road per mile is $160k per mile for a two lane road. Patching would preserve the need to pave the road and give the road five to seven more years of life.
NEW BUSINESS
APPROVED: 1. Motion to Submit Notice of Non-Renewal to Benefits Planning Consultants, Inc.
Since 2020, Benefits Planning Consultants, Inc. (BPC) has served as the County's vendor for the administration of employee Flexible Spending Accounts. The "Provider Services Agreement" with BPC renews on July 1st each year, unless written notice of non-renewal is delivered to the vendor at least 30 days in
advance. Because staff is recommending a change in vendors for the upcoming plan year, the Board's authorization to prepare and submit a notice of non-renewal is requested.
APPROVED: 2. Motion to Approve Resolutions and Documents Necessary to End the Current Employee Retirement Plan and Replace with a Defined Benefit Plan Effective July 1, 2023
PUBLIC COMMENTS
Sean Davis with Assured Partners addressed the Commission on a recent bid that awarded the brokerage services for Bulloch County Employee Health Benefits. Davis explained that their bid came in high because it included the maximum variable costs. This amount covered all tools available per employee on the front end which inflated the administrative fee. The County would then have the ability to back out tools they did not want, lowering cost, rather than going with a lower cost brokerage then adding costs for additional tools that will be needed.
Davis's firm represents the most accounts of any broker with Industry Buying Group (IBG), which is a Statesboro based micro health insurance network. The county uses IBG to negotiate medical fees because the County has a partially self funded health program which does not come with a proprietary network.
Davis used as an example Candler County Commission, who his company provides brokerage services for and who also uses IBG. Candler chose to implement the full suite of tools that Assured proposed to Bulloch County which resulted in a direct saving of $750,000 in excess claims reserve.
Davis also pointed out that the full contract cost equated to less than 2% of the $6 million Bulloch County Budgets for healthcare.
"In the future we will take great pride in the opportunity to represent our home county and make sure to clarify that we were not inflating our fees, but providing a higher level offering by presenting additional tools for cost containment proven to save Counties money and improve the the process for the Counties employees," said Sean Davis.
Al Rawls addressed the commission to discuss the paving of Old Happy Road in South Bulloch County. Their family has lived on that road for over 100 years. The road is only 2.5 miles and is an access road from Mudd Road to Hwy. 46. Without this access road travelers would have to travel 5.2 miles to get to Hwy. 46 from Mudd Road. They would like for the commissioners to understand how bad this road has been for so long.
Clara Eason also addressed the commission regarding Old Happy Road paving. She asked that preference to be considered because it is an access road and a heavily populated road. Of the 32 property owners 22 have signed the petition agreeing to have the road paved. This totals 63% who have agreed. The current requirement is an 80% threshold of property owners who have to agree in order to the County to move forward with paving a road. She asked them to se consider lowering the percentage so we can move forward to paving this road.
Cynthia Rawls has lived on this road for 59 years. She said the traffic on this road is much different than when she grew up there. She has seen this area change from agriculture to residential. This increased their concerned for pubic safety access with the dirt road after after heavy rains. According to a traffic county 250 to 300 cars per day travel on this dirt road.
Brad Deal, County Engineer said this road has been targeted to be repaved in two years.
COMMISSION AND STAFF COMMENTS
County Manager, Tom Couch told the commissioners that they will hold a budget workshop at 9:00 AM next Thursday at the Sheriff's training center.
Commissioner Timmy Rushing thanked all the staff for working on the retirement plan.
Commissioner Ray Mosley thanked the Rawls and Eason family for coming forward today. Dirt roads are an issue all over the county. We are working diligently to find solutions to them.
Chairman Thompson said that he get more calls on dirt roads than anything else. We are the dirt road capital of Georgia. Over 700 miles of dirt roads. People are buying large acres of land and putting housing on it and this is creating more pressure and demand on roads.
CLICK HERE for to view the agenda and supporting documents
Watch the live stream of the meeting below
