Retirement Programs Study Committee (J)

Charge

1. A modern effective retirement system constitutes a positive approach to providing deferred compensation in order to implement
personnel policies necessary for efficient and effective operation and meeting desirable social needs. Such a policy must be expressed in terms of retirement income adequate in real purchasing power to maintain an adequate standard of living relative to an employee's achievements during the years of employment.
2. The achievement of a benefit income level adequate to maintain the system's objectives, based on trends and programs in both private industry and government, should require a retirement income level of not less than fifty percent of compensation during the last five years of service, after having completed thirty-five years of employment. The number of years of employment (thirty-five) required to achieve full benefit should appropriately be adjusted for certain special classes of employment, such as public safety. In order to effectively achieve the retirement system's objectives, it is necessary to provide for the protection of the purchasing power of retirement income. This can most appropriately be done through a process of adjusting retirement income in accordance with local cost-of-living indexes. Consistent with the objectives of deferred compensation and social desirability, retirement income should take into account Federal Social Security program benefits
determining total cost requirements.
3. The retirement system should be soundly funded. Resources to accomplish this purpose should be derived from employer and
employee contributions and investment earnings.
4. The administration of the individual retirement systems should be combined in a federated system to secure the benefits that can be expected to result from more efficient operations. Unified administration should extend to investment policies and management.
5. Local retirement system trustees should maintain authority over the establishment of local policies and local systems should
provide the resources necessary to fully fund these policies.