[Michlib-l] responses to question about defined contribution plans

[Maureen Derenzy]

Hello,

I am posting responses to a question I asked some time ago regarding
employer contribution rates to retirement plans.  There is a wide range,
even considering that these responses come from libraries with similar
service populations. Thank you, everyone, for sharing with me.  

 

.From a Class IV library with 5 FT employees: All full-time regular
employees shall be covered under the MERS Defined Contribution Benefit
Program with an employer contribution of 7% of base compensation. Employees
covered under the defined contribution program shall be fully vested after
three (3) years full-time service credit. There shall be no partial vesting
for any employee leaving Library employment before completing three (3)
years' service.  The Library provides an option to any regular employee to
invest a portion of their present earnings in a deferred compensation plan.

.We contribute to a MERS Defined Contribution plan.  We are also getting
ready to open a 457 plan for our employees that they can contribute to on
their own without a matching contribution.  We use MERS because they are a
not for profit organization so their fees are much lower than other DC
plans.  We contribute 8% and our employees contribute 3%.  We also
contribute to a 401K plan that we are grandfathered into.  We contribute
more than normal because we do not participate in Social Security though.

.We adopted a MERS Defined Contribution Plan.  No new employees are being
enrolled in the DB plan (also through MERS).  We pay 9% into the Defined
Contribution plan and employees have an option of contributing into a 457
plan as well.  

.We are a Class IV library.  We have a defined contribution plan covering 6
full-time employees.  The employer contribution to our defined contribution
plan is 6%.

.From a Class V district library with 9 full time employees.  We have a
defined contribution retirement plan (through MERS) that covers the full
time employees as well as 11 part time employees who work 20+ hours a week.
Anyone working 20+ hours a week is required to participate in the plan once
they have been employed for one year (and not allowed to participate earlier
than that).  Each covered employee must contribute 5% of earnings, and the
library matches that amount.  We also have a voluntary deferred compensation
plan through MERS that is open to all employees working 20+ hours a week as
soon as they begin employment.  The library does not match any funds for
that plan.

.We have a defined contribution plan through TIAA-CREF.  Every employee with
a regular schedule, full and part time, is eligible after two years of
employment.  The library contributes 12.16% of wages earned during the pay
period to the plan.  The plan belongs to the employee, they can make
investment decisions and move money within their plan.  The plan goes with
them when they leave or retire.

.We are a class IV library with five full time employees and we have a
defined contribution retirement plan that covers those five employees plus
two other employees that work 30 hours per week but aren't full time. In
regards to the contribution amount, it is 8% of annual pay no match
required. The two 30% a week employees receive a pro-rated amount based upon
the 30 hour work week.

.We are a class V library.  We have seven full-time employees who receive
10% of salary to a defined contribution plan.   No match is required
primarily due to the low wages of Library workers.

.We have a defined contribution plan with 10% of gross paid in annually
rounded up to the nearest$100. The Library also picks up the fee for annual
management of the fund. Our annual cost is $500.  Currently, 7 staff are in
the plan. No match allowed under our plan...this is straight in paid every
January.

.I'm in a township class 4 library with 4 full time employees. We have a
defined contribution plan covering 4 employees.  We cover 5% of the
employee's yearly salary, paid every quarter.

.We have a 457 plan for all FT employees. It is managed by ICMARC.  The
library contributes 7% of salary and matches an additional 2% if the
employee contributes 2%.  The director has a little better percentage and
match.

.We are a Class IV library with a Defined Contribution; 6% of salary/wages
of full-time employees; 8 full-time employees

.I am a Class IV, no benefits, no retirement. 

.We currently have 9 employees who work fulltime and are covered by our
retirement benefit.  We are a Class V, but our service population is 26,178,
so we are barely a class V and may not be after the Census.  We have a mix
of defined contribution and defined benefit as we closed our defined benefit
plan in 2016 and all new hires are now on a defined contribution plan.  The
required contribution for the employee is the same with both plans (ours is
2%) and the employer contribution for the defined contribution plan is, I
believe, 8%.  There are 3 employees on the DC plan but, as currently
employees retire, that number will increase. 

.We are a Class 4 district library with only 1 FT employee -- me.  My
retirement plan is a hybrid of defined benefit (6% ER) and defined
contribution (4% ERE/5% EE); it was a compromise that MERS came up with that
gave me more security with a defined benefit plan and managed the exposure
for the library better.  We also offer a 1% 457 match to all employees FT
and PT.

 

Our Board decided to freeze its MERS Defined Benefit plans for our 5
full-time employees.  All current and new full-time employees will be
enrolled in a MERS Defined Contribution plan with a 3% direct employer
contribution and match of up to 5%.  We will continue to offer our
Nationwide 457 to all employees, full- or part-time.

 

Maureen

 

Maureen Derenzy, Library Director

Otsego County Library

700 S. Otsego Avenue

Gaylord, MI  49735

(989) 732-5841 x15

mderenzy at otsego.org

 

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