The Commissioners Court of Galveston County is an elected body of the county consisting of a County Judge and four Commissioners.
The Commissioners Court contracted with First Financial Capital of Houston to present an alternate proposal to the county, should the employees elect to change from the United States Government program to a full private plan.
Public hearings were held with employees to compare the alternate plan with the existing Social Security program, both plans were presented in detail by the private company (First Financial) and representatives from Social Security.
The employees voted 77% in favor of the private plans - Commission Court then authorized First Financial private company to proceed to implement the program and for the county to finalize the withdrawal from Social Security.
First Financial Capital Corporation was commissioned to replace an existing plan sponsored by the Federal Government. We were to offer the same type of benefit using the same contributions but with better results.
The Alternate Plan consists of Disability, Survivorship and Retirement Benefits. The plan is based on contributions made by the participating employee and the employer (County of Galveston).
The employee's contribution to the plan is 6.13% of eligible gross annual compensation. The employer (County) will contribute 7.785% of compensation.
An employee is eligible for enrollment in TheAltemate Plan when the employee is actively at work, and scheduled to work 20 or more hours per week on a permanent basis (unless otherwise noted for individual benefits).
The Plan's disability and survivorship benefits are provided to the eligible employee at no cost to the employee. The premium cost of this coverage will be paid by the employer.
Disability and Life Insurance coverage for the eligible employee will begin on the first day the employee is actively at work. Accumulations of the retirement benefits under THE ALTERNATE PLAN BEGIN with the first deposit to the Deferred Compensation Plan Account.
The Plan's retirement benefit is funded through tax-deferred contributions made by the employee and the employer. The required employee's contribution is 6.13% of eligible gross annual compensation which is deposited into the employee's Retirement Annuity Account. The employer also contributes an amount to the Retirement Annuity Account. The amount of the employer's contribution will be 7.785%, less the cost of the employee's Life and Disability Insurance premiums. (Approximately 3% to the retirement plan from the employer)
The Group Term Life and Accidental Death and Dismemberment Policy provides benefits under the following programs:
Schedule of Life Insurance and Members regularly scheduled to work 40 hours each week:
Under Age 70 | 300% of employee's ANNUAL EARNINGS with a minimum | ||
benefit of $50,000 and a maximum benefit of $150,000. | |||
Age 70 - 74 | 200% of employee's ANNUAL EARNINGS with a minimum | ||
benefit of $33,330* and a maximum benefit of $100,000. | |||
Age 75 or older | 130% of employee's ANNUAL EARNINGS with a minimum | ||
benefit of $21,665* and a maximum benefit of $65,000. |
* If a FULL-TIME MEMBER who has 10 years service prior to attaining age 70, the LIEFE INSURANCE will be a minimum of $50,000. If a FULL-TIME MEMBER who attains 10 years of service after age 70, the LIFE INSURANCE will have no further reduction.
Schedule of LIFE INSURANCE for MEMBERS regularly scheduled to work 20 but less than
40 hours each week:
Under Age 70 | 150% of employee's ANNUAL EARNINGS with a minimum | ||
benefit of $25,000 and a maximum benefit of $75,000. | |||
Age 70 - 74 | 100% of employee's ANNUAL EARNINGS with a minimum | ||
benefit of $16,665 and a maximum benefit of $50,000. | |||
Age 75 or older | 65% of employee's ANNUAL EARNINGS with a minimum | ||
benefit of $10,832and a maximum benefit of $65,000. |
After a 180-Day elimination period, the totally disabled insured will receive 60% of base pay up to a maximum benefit of $5,000 per month. There is a minimum benefit payable of $100 per month.
Post Retirement Death Benefit for Active, Full-time Employees (2080 hours per year), who have accrued a minimum of eight years of service to the employer.
The Plan provides a Paid-up Death Benefit to employees who retire after reaching the earlier of:
Age 55 and Younger | $25,000 | ||
Age 56 | $27,500 | ||
Age 57 | $30,000 | ||
Age 58 | $32,500 | ||
Age 59 | $35,000 | ||
Age 60 | $37,500 | ||
Age 61 | $40,000 | ||
Age 62 | $42,500 | ||
Age 63 | $45,000 | ||
Age 64 | $47,500 | ||
Age 65 or Older | $50,000 |
Employees retiring at normal, late or early retirement will receive their retirement income from their Deferred Compensation Plan Account. All contributions, plus interest earned, will accumulate to provide this retirement benefit.
Average Annual Income | $20,000 | $30,000 | $40,000 | $50,000 |
Accumulated value at Retirement | $383,032 | $573,782 | $765,042 | $956,303 |
Lifetime Monthly Benefit at Retirement | $ 2,740 | $ 4,106 | $ 5,474 | $ 6,843 |
*Above assumed interest rate of 6.50% (no Equity Investment)
(Note: Social Security maximum is $1,280 per month)
The employee who is retiring from service or terminating employment may choose from several payment options available. These include, but are not limited to, monthly distributions of lifetime payout. The departing employee should consult with the Plan Administrator prior to electing any distribution option.
Social Security | Alternate Plan | |
---|---|---|
Death | $253.00 Lump Sum | $50,000 Minimum |
$150,000 Maximum | ||
$75,000 Average | ||
Disability | $1,240 Per Month | $2,749 Average |
(If Qualified) | ||
Retirement | $1,280 (1996) | $4790 Average |
Subject to Cost of Living | ||
Adjustment | ||
* Additional Benefits May Be | Alternate Program | |
Paid to Spouse & Children | Vested Each Employee's | |
(If Qualified) | Spouse & Children |
Home | Menu | Links | Info | Chairman's Page