2016-849: Authorizing the County Manager to award a contract to Mutual of America, Parsippany, New Jersey, in an amount not to exceed $111,903.97 for the period of July 1, 2016 through June 30, 2017 to implement an employee 401(a) benefits plan for county employees not covered under the Public Employee Retirement System (PERS).
As explained, this plan covers county employees who were at one time not eligible to enter the state plan:
But aren’t those employees much better off since the plan they were not allowed to enter is one that New Jersey is responsible for funding?
Those non-PERS employees get a Defined Contribution Plan that according to its Plan Document provides for discretionary contributions to be allocated among eligible participants based on a point-allocation system using Years of Service and Salaries (1 point for each Year of Service and 1 point for each $1,000 of Salary).
The irony of all this is that the employees paid with grant money and not covered by PERS are put in a Defined Contribution Plan with individual accounts and have an excellent chance of getting all their money at retirement while the PERS people, subject to the funding whims of their employers, are in a severely underfunded Defined Benefit Plan that is going bankrupt leaving most of them with a slim chance of even recouping their own contributions.