News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
The Jackson County Commission set a contribution rate of seven percent to the employee retirement fund.
The Tennessee Consolidated Retirement System is a retirement plan available to state, county, and city governments. County Mayor Randy Heady said that county’s contribution rate remains the same from several previous years. But he adds as the county begins to have more retirements, that number may have to go up.
“For years, we’ve not had a whole lot of retirements,” Heady said. “Our employees have not averaged a lot over the years, but as that number goes up, you will have to adjust for that.”
Heady said the minimum the state asks Jackson County to contribute is 6.55 percent. Heady said the county’s contribution is a huge expense.
“It’s 7 percent of all wages and salaries,” Heady said. “For us, that’s a big lick. We pay in over $200,000 dollars just in the county general.”
In addition to the county government, the rate is also set for both schools and the road department. At the county commission meeting last week Road Supervisor Edward “Preacher” Anderson brought up the future need to increase the rate to over 7.3 percent.
“I’m in agreement with that, at some point, we are probably going to have to increase,” Heady said. “If you go up on that you are going to have to recalculate all wages, and if you give raises, that also raises your TCRS investments.”
With the COVID-19 pandemic creating difficult budget decisions, Heady said he does not think now is the time to raise the contribution.
“The revenues kind of have everyone concerned,” Heady said. “So, we’re good at seven, and we’re going to go 2020-2021 with seven percent. We may have to re-look at that next year.”
