The Winnetka Park Board approved a plan during its Feb. 22 meeting that would contribute a match of $25 per paycheck up to $650 a year into each employee’s retirement fund.
Human Resources Director Beth Dostert said she brought the idea to the board to encourage Park District employees to think ahead and save for retirement. She said plans offered by the Illinois Municipal Retirement Fund aren’t adequate for all employees even if employees reach the number of years required to have full benefits.
“As much as I educate staff on the importance of retirement savings and contributing to a 457 plan, it’s hard for some people to come up with extra,” Dostert said. “I know many staff have mentioned that if there was a $25 match, they would contribute.”
According to a memo from Dostert, only 11 of the Park District’s 34 employees working over 30 hours a week are enrolled in the available 457 plans. For employees to receive full IMRF pensions, they would have to be employed with the district for at least 35 years. For Tier 2 employees, they would also have to be at least 62 years old meaning many employees won’t be able to retire at age 65 with full pensions, according to the memo.
Commissioners Colleen Root and Cynthia Rapp opposed the idea with Rapp saying the Park District giving retirement advice could become a slippery slope. Root, who wasn’t in attendance for the Feb. 22 meeting, said in her comments read by Board President Christina Codo that no other Illinois park district matches retirement contributions.
Root calculated the contribution would equate to an additional $22,100 a year in costs to the Park District, a burden she said would be passed on to taxpayers.
“It seems like we’re kind of starting to swim outside our lane,” Rapp said.
The Park District is required to pay into the IMRF and are told each year what amount needs to be contributed, according to Codo. She said it’s great to have state sanctioned pension plans but it’s also great to give employees options especially if it can help retain employees.
“Employees have to put their money down too and have skin in the game,” Codo said. “We have had substantial turnover among senior staff and I think anything that makes it stickier … it’s a great investment.”
The Park District’s new Executive Director Shannon Nazzal emphasized the importance of sticking out when looking for new talent.
“Anything that we can do as a district to keep those amazing employees, I’m always going to be supportive of,” she said. “Employees are our most important assets because without our employees, nothing gets done.”
The motion passed with Rapp voting no. Vice President Eric Lussen was also absent and unable to vote.
Alex Hulvalchick , 2024-03-22 01:53:10
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