By COLE REIF
Great Bend Post
Every firefighter and police officer in Great Bend is now heavily rooting for increased sales in town. The money going into their new retirement plan is attached to how much the city generates with the recently-approved .20% sales tax increase.
The sales tax bump will create a 401a Profit-Sharing retirement plan, in addition to their normal 401K-styled plan, for all uniformed police and fire personnel. Each firefighter and police officer will receive a portion of the sales tax revenue based on a percentage of their base salary.
Councilmember Natalie Towns questioned if the plan gave first responders too
much, and councilmember Alan Moeder disagreed.
"The employees are almost getting $4 to every $1 of their contribution," said Moeder. "That's probably a retirement that everyone wants. If the sales tax happens to go in the other direction, it can be revaluated here in the city council. I believe the full percentage of the sales tax needs to go to them...that's what the city voted on."
After five years of service, the employee will be 50% invested in the plan and
eventually fully invested after 10 years. The contribution rate for uniformed
personnel will increase from 4.5% to 7.15% for the retirement plan. The
employer contribution will decrease from 9.5% to 8.5% to match the rates for
all other city employees.
Mayor Cody Schmidt said all these numbers can be
reviewed in the future, but hopefully the new Profit-Sharing plan provides a
good recruiting edge for a sometimes, difficult profession to hire staff.
"Everyone and their dog would want this job," said Schmidt. "When we started this thing, this was a recruiting tool. We have the ultimate say. In a year, we can come back and look at this. Those guys (fire and police) are a little worried, because you never know what group is going to sit up here. Let's hope there are 50 people beating on their door tomorrow wanting a job."
The plan will also include a long-term disability insurance. If an employee becomes permanently disabled, whether work-related or not, the worker automatically becomes 100% vested.
The start of the new Profit-Sharing plan will begin Oct. 1.
The .20% sales tax is projected to generate $735,000 a year, which would then
be divvied up among fire and police personnel.