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Retirement Benefits
Welcome to the Cobb County Government
Employees' Pension Plan.
As a new employee to Cobb County government, the foundation
of your benefit package is the Cobb County Government Employees' Pension
Plan. All full-time employees
joining the Cobb team will be enrolled in the Pension Plan.
Your pre-tax contribution will lower your tax liability while you work and will
enhance your pension benefit when you retire.
The good news is that you can never lose your investment. If
you remain employed with the County until you retire or if you leave after becoming
vested your benefit will be calculated based upon a benefit formula. If you
leave the county’s employment prior to becoming vested, your
contribution will be returned to you plus interest (an approved amount of
annually compounded interest).
The plan provisions are:
- The benefit formula is to 2.5 percent for
each year of service.
- The "Rule of 80" (Service + Age = 80) unreduced
retirement benefit.
- A 5.00 percent pre-tax employee contribution.
Active military duty up to a
maximum of 4 years will be counted as Service for retirement of employees.
This credit for military service will be recognized upon completion of
eight (8) years of service with Cobb County. Credited military
service will not increase the retirement benefit calculation, but will qualify
as service for the Rule of 80 retirement. This means that you will meet
the Rule of 80 earlier. If you receive the maximum number of years credit
(4 years) you would be able to retire two (2) years earlier.
Frequently Asked Questions
What is the Cobb
County
Government Employee’s Pension Plan?
-
The County maintains a single-employer, contributory, defined benefit
pension plan. The authority for the Plan, benefits, vesting and
contributions is established by the Board of Commissioners.
When was the Cobb
County
Government Employee’s Pension Plan created?
-
The original plan was established January 1, 1971. An enhanced plan,
which provided a “Rule of 80” was adopted April 1, 1998.
Who
oversees the Plan?
-
The Board of Commissioners appoints a five member Board of Trustees to
oversee the Plan. The Board of Trustees provides an annual report to
the BOC.
- The overall performance of the investment managers is closely monitored
by the Board of Trustees and changes are made as they become
appropriate.
2006 Board of Trustees
J. Virgil Moon, CPA,
Chairman
Support Services Agency, Cobb County Government
Bill Hutson, Vice-Chairman and Cobb County Retiree
Retired Sheriff, Cobb County, Georgia
Brad Bowers, CPA,
Finance Director, Cobb County Government
Tony Hagler
Human Resources Director, Cobb County Government
Ken Thigpen
Chairman, Georgia State Bank
Other Management Staff and Consultants
John Bergey, CPA, Finance
Division Manager, Cobb County
Government
Susan Prout, Benefits
Consultant, Wachovia
Tracy Minjauw, Human
Resources Manager, Cobb County
Government
Arlene Whitley, VP, Wealth
and Investment Management, SunTrust Bank
John Small, Managing
Director, Southeastern Advisory Services, Inc.
What are the requirements to join the Plan?
-
All full-time employees who were employed on April 1, 1998, when the
plan was enhanced, were given the opportunity to choose
to
either:
1. Remain in the prior, non-contributory plan, or
2. Join the enhanced, contributory plan
-
All full-time Cobb County employees who were employed after April 1,
1998, are automatically enrolled in the
Contributory Plan.
-
Note: Certain full-time employees who are covered under a State pension
plan are not eligible to participate in the Cobb County plan.
Do
employees make a contribution to the Plan?
-
Yes. An employee’s pre-tax contribution is a percentage of the
employee’s gross pay. Currently, the percentage is 5.00%. This
contribution amount is subject to change.
Does the County make a contribution to the Plan?
-
Yes. The County’s contribution is a percentage of the employee’s gross
pay. Currently, the percentage paid by the County is 10.5%. This
contribution amount is subject to change.
Has
the amount of the employee’s contribution and the County’s contribution
changed over the past several years?
-
Yes. The cost to the County and to the employee since 1998 is shown
below.
Year
County’s Share
Employee’s Share
1998
7.50% 4.00%
1999 7.50% 4.00%
2000 7.75% 4.00%
2001 7.75% 4.00%
2002 8.25% 4.00%
2003 9.31% 4.00%
2004 9.57% 4.25%
2005 9.57% 4.25%
2006 10.00% 4.50%
2007 10.25% 4.75%
2008 10.50% 5.00%
When is an employee vested in the Plan?
-
Employees are vested with seven (7) years of full-time service; or at
age 65 with five (5) years of full-time service.
What happens to the employee’s contribution if they leave the County before
vesting?
-
If an employee leaves the County before they are vested, they will not
lose their contribution. Instead, their contribution will be returned to
them along with an approved amount of annually compounded interest. The
employee may have these funds paid directly to them; or choose a direct
rollover into an approved Individual Retirement Account.
How
is the annual retirement benefit calculated in the Enhanced Plan?
-
The annual retirement benefit calculation formula uses the Final Average
Earnings (defined as the average of the
highest three (3) consecutive years, within the seven (7) years prior to
the employee’s termination of employment) times a multiplier of 2.5%
times the number of years and months of credited service.
-
Note: Prior service which has been restored to the employee may be
calculated at a different percentage rate.
Example: Final Average Earnings = $45,000 X 2.5% = $1,125 X 30 years of
service = $33,750 Annual Benefit
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