Schuylkill delays retirement switch
Schuylkill County has extended to March 1, 2015 the date it will switch to an updated mortality table, used to determine future retiree's pension payments based on expected lifespans.
The delay gives employees who are eligible for retirement more time to decide whether to retire before or after the switch, which may have small impacts on monthly pension payments.The change was initially to have occurred by year's end.The extension "will give them more time to make sure they make a good decision," said Controller Christy Joy.The county has been using a 1983 table. The switch will be to one created in 2013, which reflects the general trend toward increased longevity.If the table under-represents the likely length of the benefit payment period, the county may not be properly funding its obligations.The table is one factor. The projected amount of an employee's monthly pension is based on his or her individual profile, which includes age, gender, years of employment, salary and retirement date."Because of the change, there are some who would get a little less per month," said Commissioner George F. Halcovage Jr.The change in the amount of monthly pension would be small, he said."It's not a significant difference. But some people need to make a decision, do I want to retire now or next year?" Halcovage said.Because the controller's office was inundated with questions by employees who are of retirement age, commissioners on Wednesday agreed to push back the switch, at Joy's request.His office has had a flood of inquiries.Deputy Controller Ron Zimmerman said he even received two requests that morning.Commissioners Chairman Frank J. Staudenmeier said it makes senses to give employees "more time to make an informed decision.""We've been inundated with requests. Employees are wondering, how will this impact my retirement? We needed to create the window to allow them to do that," he said."We want to make sure they have all the facts," Joy said."We figured if we could extend it for another 60 days, it would allow them to think about it clearly, that's the key," Halcovage said"There were some who asked why didn't we just keep the old mortality table. We have a fiduciary responsibility to make sure that that money is going to last for the time that person is expected to live."Schuylkill was among six counties still using the old table. Carbon County made the switch last year.In other matters Wednesday, commissioners approved a resolution that modified West Penn Township's 2012 Community Development Block Grant program by canceling a demolition project and putting the grant instead toward making municipal buildings handicapped accessible.In a related move, commissioners also approved a resolution to submit an application to the state Department of Community and Economic Development for $282,604 in 2014 CDBG money for West Penn and Pine Grove townships and Tamaqua borough.All three municipalities have agreed to have the county administer the grants for them.DCED anticipates moving toward having all entitlement communities, with some exceptions, have counties administer the grants next year.Also on Wednesday, commissioners approved renewing an insurance policy with Midwest Casualty for excess Workers Compensation costs from Jan. 1, 2015 to Jan. 1, 2016.The annual premium cost is $107,514. That's a savings of $5,552 over last year's cost.