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Public Retirement: ‘The job we saved might have been your own’
Directors of AAC. After serving for more than 20 years as County Judge in Johnson County, it is absolutely amazing to me at the qual- ity of the great work the Association of Arkansas Counties staff has produced over the years. Te board also has a good track record of hiring excellent execu-
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tive directors. Jim Baker was in charge in 1991, then Brenda Pruitt, Eddie Jones, and now Chris Villines – what a group of leaders! Tey have had the insight to keep our organization growing in the direc- tion it needed to grow to keep us competitive and trained in modern trends and technology. Just in my time on the board, I have seen the AAC grow from the small original building to the wonderful facility we now own – and it is debt-free. Our facility is available not only for our use, but for many organizations located both in Little Rock and throughout the state. We have also acquired three adjacent properties over the years for future growth and expansion. All of these properties are immedi- ately in front of our state capitol. None of the improvements and successes would be possible without the unwavering support of the local elected officials in all 75 counties. Tis is especially true when it comes to the legislative session. Speaking of the session, it is also my pleasure to serve on the APERS (Arkansas Public Employees Retirement System) board. Although my service began less than one year ago, what a year it has bee! As many of you are aware, the projected increase over the next two years would have been 3.31 percent in employer contributions. Te size of this increase would have increased the contributions on July 1, 2013 by a total of $11,467,000 for county government alone. Tis increase in contributions does not take into account any raises or new employees. As is apparent, this would be a killer for many counties in terms of raises, other benefits such as health care, and very possibly the loss of jobs. Te APERS board has worked hard these past few months to help to offset some of the projected increases in the contribution rate for county government. Although there were 10 retirement bills passed into law affecting
APERS, only a few had a major impact on cost and savings to the system. Act 558 (SB 127 J. Key) requires that employers contribute for
retirees that have come back to work as well as those in the Drop program. It is anticipated that this act alone will bring in a minimum of $11.6 million per year in additional revenue. Act 563 (SB 1146 A. Kerr) requires an additional contribution
COUNTY LINES, SUMMER 2011 Te Honorable Mike Jacobs, Johnson County Judge / AAC Board President 9
reetings to all elected officials and county employees throughout the great state of Arkansas. I can’t begin to tell you just how grateful I am to serve on the Board of
of 5 percent (2.5 percent employer/2.5 percent member) on those first elected to city or county public office on or after July 1, 2011. Tis is anticipated to bring in additional revenues ultimately of $1.5 million per year. APERS board action to lower the
President’s Perspective
Hon. Mike Jacobs AAC Board President; Johnson County Judge
interest rate credited to Drop accounts from 6 percent to 3 percent will save the system $3.4 million in FY 2012 and approximately $12 million-$17 million over the subsequent four years, depending on whether Drop participation holds steady or falls. Act 774 (SB 41 J. Key) extends the termination period required
for retirement purposes for individuals who receive at least two-for- one service credit under APERS (elected officials) from six months to one year of the person’s effective date of retirement. Act 40 (HB 1018) actually defines “terminate” as that term applies to eligibility for retirement under APERS. Tere were many pressures on the APERS board during the leg-
islative session, especially concerning the two-for-one credit for city and county officials. You will be pleased to learn, the APERS board voted unanimously to oppose efforts to discontinue this benefit for county elected officials. All decisions by the board and the legislature were the result of many hours of education by not only our AAC staff but many of our elected county officials. Some tough decisions were made during the past several months that were not well- received by all our county officials. You must remember, the APERS board is tasked with keeping the retirement system fiscally respon- sible, while at the same time representing our public employers in a manner responsible to them (state, county, city). To quote the APERS director, Gail Stone, the APERS motto should become “Te job we have saved might be your own.”
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