Let’s face it, no one goes into local government work for the money, and working for a municipal entity is not always the sexiest or most thrilling work. While there are advantages and disadvantages to every job, there are certain benefits that make a career in municipal work desirable. Retirement benefits are a leading reason that employees work for local governments, and that puts a great deal of pressure on the payroll and pension staff to make sure the pension contributions are accurate and on time. Your city’s pension department must be able to calculate all employee pension benefits easily.
In addition to health insurance and paid time off, a comprehensive benefits package should include a pension and retirement plan. These benefits are extremely attractive to today’s workforce as they provide a layer of security for employees and their families. As more and more Americans reach retirement age, an increasing number of people are using their pensions as their main source of income.
Municipal employees want to be kept up to date and informed on the pension plan. It is critical to their financial well and planning. Sharing information with employees is key, as an engaged employee is 87% more likely to stay.
In June, the New Jersey State Legislature passed a historic $6.9 billion contribution to the public pension fund, up about 44% over the previous year. This marks the first time in more than 25 years that New Jersey is making the full Actuarially Determined Contribution to the Pension Fund. The increased pension payment will save taxpayers a total of $2.2 billion over 30 years.
As the pension funding gap begins to narrow, it’s the perfect time for employers to adopt a more integrated benefits administration strategy. Pension calculations and reporting are becoming increasingly complex to manage, especially for county and municipal governments. However, human capital management (HCM) solutions can streamline pension payment reporting and create a more designated path to retirement for employees.
Tim Diassi, Senior Vice President at Unicorn HRO, discussed how to streamline pension benefit calculations in NJAC County Biz Magazine. Read the full article here.