Dalton City Council bolsters retirement plan in effort to attract and keep workers

Dec. 8--About 300 city of Dalton employees are eligible for a big boost to their retirement plan after the City Council voted Monday night 4-0 to create a "core benefit." The city will contribute an amount equal to 5% of an employee's salary to the retirement plan of those taking part in the city's defined contribution plan, starting Jan. 1.

A defined contribution plan is similar to a 401(k) in which an employee places a specified amount of money into the plan each pay period.

In addition, the city will match an employee's contribution up to 5% of his or her salary, so potentially, the city could place an amount equal to 10% of an employee's salary into his or her retirement account.

Previously, the city matched up to 5% of the employee's contributions but did not provide a "core benefit." The change is expected to cost about $424,000 a year.

"We want to take care of our employees," said City Council member Tyree Goodlett. "They are the ones out there doing the work."

City Council member Gary Crews said he hopes the change will make it easier for the city to attract and retain good employees.

"We weren't as competitive as we wanted to be," he said. "We are competing not only against other governments but private industry."

The city closed its pension plan in July 2002. All employees hired since then have been eligible for the defined contribution plan.

Dalton Director of Human Resources Greg Batts said about 75% of the city's employees are eligible for the defined contribution plan, or about 300 workers.

"This will make the city (government) a much more attractive place to work, especially in Public Works where we have a lot of blue collar positions," said Public Works Director Andrew Parker. "We are competing with the private sector for equipment operators, positions that require a CDL (commercial driver's license). And the private sector has a pay scale that is in some cases a little bit ahead of the city, especially on entry-level positions. But I believe this will make us more competitive."

Parker said starting wages in Public Works are about $12 an hour for someone without a CDL and about $13 for someone with a CDL.

Council members also voted 4-0 to pay dues to the Peace Officers' Annuity and Benefit Fund and to the Georgia Firefighters' Pension Fund for city police officers and firefighters. Both organizations offer pensions for law enforcement officers and firefighters. The Peace Officers' Annuity and Benefit Fund also offers a death benefit for police officers.

Council members again said the move is aimed at helping the city attract and retain employees.

The projected cost is $58,000 annually.

Mayor David Pennington typically votes only in the event of a tie.

___

(c)2020 The Daily Citizen (Dalton, Ga.)

Visit The Daily Citizen (Dalton, Ga.) at daltondailycitizen.com

Distributed by Tribune Content Agency, LLC.