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The National Association of Counties, Nationwide Retirement Solutions and state associations of counties have partnered to provide county employees with a wide variety of retirement programs.

Deferred Compensation
Since its inception in 1980, NACo's Deferred Compensation Program has grown to become the largest supplemental retirement income program available to county employees. More than 380,000 county employees from over 1,900 counties currently participate in the Program, with accumulated assets of more than $6.0 billion.

The NACo Deferred Compensation Program offers county employees a way to augment retirement savings while postponing the payment of federal, and in many cases, state income taxes. The NACo Deferred Compensation Program allows county employees the opportunity to voluntarily contribute a portion of their wages to a special account and to direct these contributions to one or more investment options. Thus, the Program offers county employees a valuable savings alternative that can be used to supplement their retirement income. The Program also provides county governments an additional benefit option to offer to their employees.

For more information on NACo's Deferred Compensation Program contact Lisa Cole at 202.942.4270 or lcole@naco.org. 

Defined Contribution Retirement Programs
Section 401(a) Defined Contribution Retirement Programs. These programs allow a county to provide employees with a retirement program that guarantees a specific contribution from the employer each pay period while allowing the employee to manage the investment of those contributions. Defined contribution retirement programs are often used when a county is transitioning from a defined benefit retirement program.   

The NACo FSC Defined Contribution Retirement Program also includes an option to create a matching funds incentive for deferred compensation. In a match program, the county sets up a 401 (a) account for employees and agrees to contribute a specific amount to this account each year as long as the employee contributes at least a like amount to the deferred compensation program, thus helping county employees save for their own retirement. The program also gives county governments an additional benefit option to offer to their employees.

For more information on NACo’s Defined Contribution Retirement Program, please contact Lisa Cole at 202.942.4270 or lcole@naco.org. 

Post Employment Health Plans
This program allows a county to create a tax-free trust fund for employees that can be used to pay for health-related costs after the employee retires or leaves employment. Employers can use paid time off, a percentage of payroll, a constant dollar contribution or a combination of these options to fund the plans.  Employers may offer this benefit to all employees or to employees in similar classifications in states that sanction collective bargaining. In states that do not have collective bargaining, the county must offer the plan to all employees.

The county does not pay FICA taxes and the employees do not pay income taxes on these funds. The employee may only use these funds to pay for qualified medical costs, such as health insurance premiums, hospitalization, prescription drugs, and skilled nursing care. Dependents of the employee may also qualify to use the funds. The program also gives county governments an additional benefit to offer to their employees.

For more information on Post Employment Health Plans, please contact Lisa Cole at 202.942.4270 or lcole@naco.org.