Comments on: New Washtenaw County Labor Deals Approved

By: Mary K

Mary K — Thu, 21 Mar 2013 19:38:49 +0000

I should say – it’s the Employer contributions I was talking about as far as vesting is concerned – employees can take their contributions as always.

The new schedule is asfollows: Vesting for Employer contributions: 0-3 years: 0%, 4-5 years: 25%, 6-7 years: 50%, 8-9 years: 75%, 10+ years 100%

By: Vivienne Armentrout

Vivienne Armentrout — Thu, 21 Mar 2013 18:14:58 +0000

Yikes, no immediate vesting? I assume employees can take their own contributions out if they leave. The portability was a big feature.

By: Mary K

Mary K — Thu, 21 Mar 2013 16:30:33 +0000

It is not the same defined contribution plan as previously – that had immediate vesting and this does not. The whole thing seems like a decently fair deal all around.

By: John D.

John D. — Thu, 21 Mar 2013 16:26:08 +0000

Commissioner Dan Smith should just move to Livingston county already. He’s always out of step with the mores and values of Washtenaw County. I’m in his District, unfortunately, and he will never get my vote. Heck, I might run against him someday.

By: Vivienne Armentrout

Vivienne Armentrout — Thu, 21 Mar 2013 10:11:00 +0000

It looks to me as though these are fair to both labor and management, giving the employees some certainty for the future while also removing future liability for the County. It is my understanding that the GASB requirements will make municipalities account for future retirement costs in their present accounting, and changing back to a defined contribution plan will help.

I say “back” because this appears to be identical to the MPPP plan that current employees were participating in at the time I was on the BOC. The plan became very unpopular because the stock market went through a number of upsets and some people had subscribed to riskier stock plans as part or all of their portfolios. Nothing like seeing your retirement fund go down instead of up. But I was frankly shocked when the BOC moved all employees to a defined payment plan. Never did figure out how they paid for that.

I hope and expect that the County will offer some reliably safe funds for future employees.