Financial Management Committee to propose adoption of state retirement plan, freeze Nationwide contributions

The Financial Management Committee will bring a proposal to the county commission in two weeks to formally adopt the state’s retirement plan, but those under the current Nationwide plan will not lose access to that, either.

Finance Director Brad Burke said the proposal was months in the making.

“The state plan offers more choices, lower fees and a lot more education,” Burke said.

The decision comes after months of possible plans from several different companies, including John Hancock, Edward Jones and even Nationwide.

“We are trying to help the employees,” he said. “We care about them.”

Under the state plan, participants will have access to both 457 and 401k investment options and will generally pay lower fees in the process.

For Carter County, the plan is employee-funded, so implementing the state plan will not provide another cost to add to the budget.

However, one of the biggest reasons for the switch, he said, was the lack of knowledge of how the Nationwide plan even worked in the first place.

“I had issues getting information from Nationwide,” Burke said.

The committee even invited a representative from Nationwide to one of their meetings in an attempt to explain what was going on, but commissioners left the meeting feeling less than satisfied.

“We are going to have some good education [with the state plan],” Burke said. “They do this all across the state.”

However, the investments employees have already made with Nationwide are complicated, and the county cannot simply withdraw everything all at once without incurring over $20,000 in fines.

“I would recommend not paying that fee,” Burke said.

Instead, the committee said it would freeze all new participants and current contributions into the Nationwide plan as it worked to set up the state plan instead.

He said the next step, once the commission approves the decision, would be to meet with the Tennessee Department of Treasury to work out the details of the new retirement plan. The county would then slowly chip away at contributions within the Nationwide plan.

“I cannot wait for the state program to start,” Burke said.

He said current projections say the new plan would start most likely in September, August at the earliest.

SportsPlus

Local news

A Life Lived: Bobby Townsend’s smile was his trademark

Local news

Emmanuel, Langston Centre welcome storyteller Sheila Arnold

Local news

Happy Valley High student to compete in Quiz Bowl national tournament

Local news

Two Elizabethton police officers complete certified crash reconstructionist training

Local news

Research explores impact of artificial intelligence on instructional design

Local news

Tennessee gas prices rise 10 cents; state average hits $2.80

Local news

ETSU hosting variety of events for the community in April

Local news

Emmanuel’s Edwin K. Hayden Lectureship focuses on Paul’s letter to the Romans

Community

Elizabethton Senior Center weekly activities schedule

Local news

ETSU experts forecast warm Appalachian spring

Local news

Free Bluegrass Jamboree set for June 14 at Covered Bridge Park

Local news

SBA disaster recovery assistance extended for Hurricane Helene victims

Local news

Women make up 36.9 percent of farmers in Carter County

Local news

Happy Valley Elementary releases third nine weeks honor roll

Local news

The 200th Peters Hollow Egg Fight: A cracking good time in the Hollow

Local news

‘Rockin’ on the Doe’ to feature Chicago Rewired Aug. 16 in downtown Elizabethton

Church News

Joyful Hearts Trio will sing Sunday

Local news

Gene Watson to bring his timeless hits to NPAC

Local news

Milligan senior graphic design exhibit, ‘Zephyr,’ opens Sunday

Church News

Church Briefs

Church News

What if Adam and Eve hadn’t eaten the forbidden fruit?

Local news

State finds ‘significant improvements’ in Carter County financial management

Local news

UETHDA announces energy assistance outreach for April

Local news

Milligan faculty lecture focuses on reading development for students with dyslexia