Some City of Dothan employees may retire earlier under expanded benefits

The signed resolution allows Tier II employees access to Tier I benefits, which require less service to become retirement eligible.

“This is an amazing benefit to recruiting and retaining employees and to public service,” Personnel Director Delvick McKay said. “So not only do we all want to have a competitive wage, but we also want to provide great benefits so that employees can appreciate the work that they do in providing great service to our citizens, so it’s an amazing opportunity for employees to have this benefit.”

In 2019, the Alabama legislature passed an act that gave municipalities the option to provide Tier I retirement benefits to its Tier II employees, characterized as employees without prior service in the teachers retirement system or employee retirement system before Jan. 1, 2013.

Tier II employees currently have a reduced retirement benefit, having to work until age 62 to receive benefits. Under Tier 1 benefits, employees will be eligible to retire after 25 years of service, regardless of age, or retire at age 60 with 10 years of service.

The resolution still needs to be approved by the Retirement Systems of Alabama after review, but McKay expects it to be green-lit without a problem.

Expanded benefits will take effect on the first day of the new fiscal year on Oct. 1, 2021. At that time, Tier II employees will see an increase in their retirement benefits contributions and the city of Dothan will have to pay increased employer-side contributions as well.

McKay said a cost analysis shows the city will have to spend an average of $150,000 a year to expand coverage for its employees.

In other business, on Tuesday:

• Dothan Mayor Mark Saliba proclaimed March 1 “COVID-19 Victims and Survivors Memorial Day,” recognized Dothan Pediatric Clinic for providing COVID-19 vaccinations as a public service, and proclaimed “Arbor Day” alongside Dan Williams, the City of Dothan’s horticulturist.

Williams said Dothan Leisure Services plants a tree every year to observe the national holiday. This year, a tree will be planted at Eastgate Park to honor frontline healthcare workers and their service during the COVID-19 pandemic on Thursday, Feb. 25, at 10 a.m.

• Awarded the bid, entered into a contract, and issued a notice to proceed to Wiregrass Construction Company, Inc. for the Walton Park Trail Paving Project for the sum of $201,670.

• Awarded the base bid and entered into an agreement with Cox Pools of the Southeast, Inc. for the Walton Park Filter Replacement Project for the sum of $83,750.

• Executed the Dothan Utilities Water Supply Permit Application and issued a check to Alabama Department of Environmental Management in the amount of $3,715 for the renewal fee.

• Approved the final summary change order with L&K Contracting, Inc. for improvements to the Lakewood Pump Station, which results in a cost decrease for the total contract bid in the amount of $40,255, resulting in the final contract price of $639,420 and an increase of 115 days to the contract time.

• Approved Amendment No. 1 to the contractual agreement with Barge Design Solutions, Inc. for the required administrative order on consent additional program management and engineering services in an amount not to exceed $215,000, making the adjusted contract price $2,805,000.

• Authorized the mayor to execute the Fiscal Year 2021 Certifications and Assurances required for the Leisure Services Department to operate buses obtained by a Federal Transportation Administration grant.

• Filed an application with the State of Alabama Department of Education for participation in the COVID-19 Summer Food Service Program for Children, entered into an agreement with the United States Department of Agriculture for administration of the program, and entered into an agreement with the Dothan City Board of Education for providing food services for the program.

• Declared certain property as obsolete and no longer needed for public or municipal purposes and authorized the disposal of said property by whatever means is determined to be in the best interest of the city.