The Center for State and Local Government Excellence puts forward the following ”need” assessment, “It is vital to democracy that we have a public service dedicated to excellence. Today, as the baby boomers age and retire, state and local governments are facing the largest exodus of talent and skills ever. In a highly competitive employment market, Governments must become employers of choice, while finding innovative ways to meet their financial obligations and contain costs.”

 

When I was actively recruiting to fill individual positions with the County every so often I would come across a candidate who was very interested (obsessed actually) with the comparison of our County government benefits with those of the private sector. This actually turned out to be a good thing for us, because private employer salaries can sometimes seem distortedly high before you examine the total compensation package. In particular, retirement benefit is one area that would otherwise seem pretty murky to the average person, but this is where government employers like Riverside County often excel. 

 

It’s reported from a number of sources that HR managers in the private sector are exasperated when it comes to trying to convince employees to prepare for retirement. Despite all of the press and attention failed corporate employer pension plans are getting, people are not waking up to the fact that even healthy plans can no longer be looked to as the sole or primary source of income for retirees. An alarming trend is said to persist among a percentage of American workers: failure to plan for retirement.

 

Retirement benefits hold a particularly important key to why someone today accepts a job with one employer versus another. Even Generation Y shares many of the employment values of the boomers, and retirement security is one of them. A poll conducted by the Center for State and Local Government Excellence, found that retirement benefits ranked among the top four things that matter most to respondents, following health insurance, job security and clear policies and procedures. 

 

The County of Riverside offers a defined benefit plan through The California Public Employees' Retirement System (CalPERS).  CalPERS is the largest pension fund in the nation offering benefits to 1.4 million public employees, retirees, and their families.  This benefit has a vesting period consisting of 5 years of qualifying experience.  CalPERS offers reciprocity for service time in some other public agencies.  This plan is designed to provide participants with the security of a lifetime pension benefit.  Participation in this plan is mandatory if you are employed by state or local CalPERS government like the County.

 

The CalPERS retirement formula for Riverside County employees is generally "3% at 60," which provides for a benefit of 3% of salary at age 60 (age 50 for Safety members) for each year of service. Individual benefits will vary, based on employee’s age, years of service, and final compensation at time of retirement. (If you came to work for the County say at age 35, when you reached 60 you could retire at 75% of your highest salary. If you waited until 65, it would be 90% of your highest salary.)

 

Also, the County of Riverside provides a voluntary 457 Deferred Compensation Plan to assist employees in meeting their financial goals in retirement.  Employees may choose to contribute to Deferred Compensation Plans through Nationwide Retirement Solutions and/or AIG Retirement.  Contributions go into their account on a tax deferred basis, so they will not pay taxes on them until the retirement funds are withdrawn.  While their funds are within this account, they will not pay taxes on their gains.  When the employee separate from the County, they are eligible to withdraw their funds or roll them over.  An employee’s decision to begin benefits from either of these plans is separate from CalPERS. 

 

The401(a) Money Purchase Program was developed by the County to supplement employees’ retirement plans.  This program is funded by the County at no cost to the employee, but the employee must enroll and select their investment elections to participate.  These are qualified funds which can be rolled into another qualified plan upon retirement or the employee’s departure from the County.  Most county employee bargaining units eligible for this program.

 

Riverside County’s Post Employment Program (PEP) provides employees who are ending employment with the County the opportunity to save money on taxes. To qualify for this program, the employee must have at least 5 years of service in a regular position and be a member of one of the designated bargaining units. When that person separates from the County, their leave balances are contributed to the Post Employment Program.  Instead of having the amounts paid directly to you and taxed at the higher supplemental rate, these funds are deposited into a tax-deferred account for you.  
 

When you look up an individual job description on the main County web site, to see the benefits which go with a particular job like Accountant I, simply click on the Benefits tab to bring up that page. (Look in the gray shaded area for Benefits tab to the right of Description at the top left of the text area.)  

I was at a job fair last month here in the Desert and I was chatting with one lady about retirement. Conspiratorially, she whispered her age to me; as if to make the point that she was interested in the subject. 

Somewhat dramatically, I swept my arm around 180 degrees and said, “See all of the other government agency tables around me (noting in that example the State Employment Development Department across from me on the right and the Office of Education at the table to my left) Riverside County government has a better retirement program  for its employees than anyone represented here today.  

The Indian Casinos, I am told, have opted for a traditional tribal retirement plan. When you are too old to work they take you up into the hills, and leave you for the wolves eat. 

Just kidding… the Indian Casinos don’t have an employee retirement plan. So, I guess you get left for the wolves to eat either way.