On Tuesday night in a 4-3 vote, the Steering Committee of the Rutherford County Commission delivered what Property Assessor Rob Mitchell described as a "Body blow to Rutherford County employees and by extension to a significant portion of the middle class in our County," by endorsing a major change to the Tennessee Consolidated Retirement System.
The Steering Committee voted to change the system from a defined benefit program (Legacy Plan) to the hybrid defined benefit contribution for new employees against the recommendations of the County Mayor and the Human Resource Director. Mitchell told WGNS in an email, "This program will result in a 30% reduction in benefits for anyone hired after April 1, 2016."
The idea behind the vote is to save money thirty or more years out. Mitchell said, "The county does not have to do this. Our current system is one of the strongest in the Country and has the best investment policy in the Country. It is fully funded for the long term future."
Mitchell further suggested that the hybrid plan will eventually mean a large number of Rutherford County citizens will have less money for retirement which will significantly impact the economy and everyone's standard of living.
The Steering Committee's recommendation is going before the Budget Committee this Thursday, January 7, 2016, at 5:30 PM in Room 205 of the Historic Court House.
The Members of the Budget Committee are Will Jordan, Charlie Baum, Shawn Kaplan, Joe Frank Jernigan, Robert Peay, Rhonda Allen, and Doug Shafer.
Rutherford Co. Property Assessor Rob Mitchell