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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal>Hello,<o:p></o:p></p><p class=MsoNormal>I am posting responses to a question I asked some time ago regarding employer contribution rates to retirement plans. There is a wide range, even considering that these responses come from libraries with similar service populations. Thank you, everyone, for sharing with me. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>•From a Class IV library with 5 FT employees: All full-time regular employees shall be covered under the MERS Defined Contribution Benefit Program with an employer contribution of 7% of base compensation. Employees covered under the defined contribution program shall be fully vested after three (3) years full-time service credit. There shall be no partial vesting for any employee leaving Library employment before completing three (3) years’ service. The Library provides an option to any regular employee to invest a portion of their present earnings in a deferred compensation plan.<o:p></o:p></p><p class=MsoNormal>•We contribute to a MERS Defined Contribution plan. We are also getting ready to open a 457 plan for our employees that they can contribute to on their own without a matching contribution. We use MERS because they are a not for profit organization so their fees are much lower than other DC plans. We contribute 8% and our employees contribute 3%. We also contribute to a 401K plan that we are grandfathered into. We contribute more than normal because we do not participate in Social Security though.<o:p></o:p></p><p class=MsoNormal>•We adopted a MERS Defined Contribution Plan. No new employees are being enrolled in the DB plan (also through MERS). We pay 9% into the Defined Contribution plan and employees have an option of contributing into a 457 plan as well. <o:p></o:p></p><p class=MsoNormal>•We are a Class IV library. We have a defined contribution plan covering 6 full-time employees. The employer contribution to our defined contribution plan is 6%.<o:p></o:p></p><p class=MsoNormal>•From a Class V district library with 9 full time employees. We have a defined contribution retirement plan (through MERS) that covers the full time employees as well as 11 part time employees who work 20+ hours a week. Anyone working 20+ hours a week is required to participate in the plan once they have been employed for one year (and not allowed to participate earlier than that). Each covered employee must contribute 5% of earnings, and the library matches that amount. We also have a voluntary deferred compensation plan through MERS that is open to all employees working 20+ hours a week as soon as they begin employment. The library does not match any funds for that plan.<o:p></o:p></p><p class=MsoNormal>•We have a defined contribution plan through TIAA-CREF. Every employee with a regular schedule, full and part time, is eligible after two years of employment. The library contributes 12.16% of wages earned during the pay period to the plan. The plan belongs to the employee, they can make investment decisions and move money within their plan. The plan goes with them when they leave or retire.<o:p></o:p></p><p class=MsoNormal>•We are a class IV library with five full time employees and we have a defined contribution retirement plan that covers those five employees plus two other employees that work 30 hours per week but aren't full time. In regards to the contribution amount, it is 8% of annual pay no match required. The two 30% a week employees receive a pro-rated amount based upon the 30 hour work week.<o:p></o:p></p><p class=MsoNormal>•We are a class V library. We have seven full-time employees who receive 10% of salary to a defined contribution plan. No match is required primarily due to the low wages of Library workers.<o:p></o:p></p><p class=MsoNormal>•We have a defined contribution plan with 10% of gross paid in annually rounded up to the nearest$100. The Library also picks up the fee for annual management of the fund. Our annual cost is $500. Currently, 7 staff are in the plan. No match allowed under our plan...this is straight in paid every January.<o:p></o:p></p><p class=MsoNormal>•I'm in a township class 4 library with 4 full time employees. We have a defined contribution plan covering 4 employees. We cover 5% of the employee's yearly salary, paid every quarter.<o:p></o:p></p><p class=MsoNormal>•We have a 457 plan for all FT employees. It is managed by ICMARC. The library contributes 7% of salary and matches an additional 2% if the employee contributes 2%. The director has a little better percentage and match.<o:p></o:p></p><p class=MsoNormal>•We are a Class IV library with a Defined Contribution; 6% of salary/wages of full-time employees; 8 full-time employees<o:p></o:p></p><p class=MsoNormal>•I am a Class IV, no benefits, no retirement. <o:p></o:p></p><p class=MsoNormal>•We currently have 9 employees who work fulltime and are covered by our retirement benefit. We are a Class V, but our service population is 26,178, so we are barely a class V and may not be after the Census. We have a mix of defined contribution and defined benefit as we closed our defined benefit plan in 2016 and all new hires are now on a defined contribution plan. The required contribution for the employee is the same with both plans (ours is 2%) and the employer contribution for the defined contribution plan is, I believe, 8%. There are 3 employees on the DC plan but, as currently employees retire, that number will increase. <o:p></o:p></p><p class=MsoNormal>•We are a Class 4 district library with only 1 FT employee -- me. My retirement plan is a hybrid of defined benefit (6% ER) and defined contribution (4% ERE/5% EE); it was a compromise that MERS came up with that gave me more security with a defined benefit plan and managed the exposure for the library better. We also offer a 1% 457 match to all employees FT and PT.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Our Board decided to freeze its MERS Defined Benefit plans for our 5 full-time employees. All current and new full-time employees will be enrolled in a MERS Defined Contribution plan with a 3% direct employer contribution and match of up to 5%. We will continue to offer our Nationwide 457 to all employees, full- or part-time.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Maureen<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Maureen Derenzy, Library Director<o:p></o:p></p><p class=MsoNormal>Otsego County Library<o:p></o:p></p><p class=MsoNormal>700 S. Otsego Avenue<o:p></o:p></p><p class=MsoNormal>Gaylord, MI 49735<o:p></o:p></p><p class=MsoNormal>(989) 732-5841 x15<o:p></o:p></p><p class=MsoNormal>mderenzy@otsego.org<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>