Meeting Type: BCC Regular Meeting
Meeting Date: 6/7/2022
Item Status: New
From: Deidra Hanak, Personnel Director
Ron Cink, Budget Director
Submitted by: Deidra Hanak, Personnel Director
______________________________________________________________________
ITEM TITLE
Title
One-time Lump Sum Payment for Baldwin County Commission Retirees
Recommendation
STAFF RECOMMENDATION
Recommendation
Take the following actions:
1) Adopt Resolution #2022-100 of the Baldwin County Commission which elects to come under provisions of Act No. 2022-229 of the Regular Session of the Alabama Legislatures and, furthermore, agrees to provide all funds necessary to the Employees' Retirement Systems of Alabama to cover the cost of the one-time lump sum payment as provided for by said Act No. 2022-229 for those eligible retired members and beneficiaries of deceased retirees who retired from the Baldwin County Commission prior to March 1, 2022, with the aforementioned to be paid in October 2022; and
2) Authorize payment to the Retirement Systems of Alabama in the amount of $149,552.00 for the one-time lump sum payout to eligible retired members, and beneficiaries of deceased retirees, retired from the Baldwin County Commission, to be submitted in October 2022.
End
BACKGROUND INFORMATION
Previous Commission action/date: N/A
Background: Act No. 2022-229, adopted by the Alabama Legislature during their recent session, allows for a one-time lump sum payment to the retirement benefits of certain retirees and beneficiaries of the Employees' Retirement System of Alabama if approved by the applicable local governing body, in this case the Baldwin County Commission. The Act provides for the retiree, or beneficiary of deceased retiree, to receive a one-time lump sum payment of $2.00 per month of each year of service credited to the retiree's account.
The above staff recommendation allows the Baldwin County Commission to choose either to elect or decline coming under the provisions of Act No. 2022-229.
If the Baldwin County Commission elects to approve the one-time lump sum payment, the estimated cost is $149,552.00 which will require 0.53% to be added to the Baldwin County's employer contribution rate effective for the one-year period from October 1, 2023 - September 30, 2024, or the Commission could pay a lump sum total of $149,552.00, which will be submitted in October 2022, separate from the monthly retirement direct deposit.
FINANCIAL IMPACT
Total cost of recommendation: $149,552.00 - for FY2022 / 2023
Budget line item(s) to be used: various this will be comprehended in the FY 23 budget either as cash payout or included in the actuarial computation determined in budget deliberations
If this is not a budgeted expenditure, does the recommendation create a need for funding? N/A
LEGAL IMPACT
Is legal review necessary for this staff recommendation and related documents?
N/A
Reviewed/approved by: N/A
Additional comments: N/A
ADVERTISING REQUIREMENTS
Is advertising required for this recommendation? N/A
If the proof of publication affidavit is not attached, list the reason: N/A
FOLLOW UP IMPLEMENTATION
For time-sensitive follow up, select deadline date for follow up: N/A
Individual(s) responsible for follow up: Administration - have resolution executed and courier original to personnel; Personnel - mail resolution to RSA; Accounting - pay in October, Budget
Action required (list contact persons/addresses if documents are to be mailed or emailed): N/A
Additional instructions/notes: Administration - upload resolution to BCAP