From the get-go in Bill Prim’s campaign for McHenry County Sheriff, he promised to set himself aside from most public officials by not participating in the pension program to which he would be entitled.
Recently, State Rep. David McSweeney has gotten significant publicity for not taking part in the General Assembly Retirement System pension program.
And newly-elected McHenry County Board member Andrew Gasser wrote on his blog (go to the second page) about his not participating in the Illinois Municipal Retirement Fund pension program.
Prim’s primary opponent, Undersheriff Andy Zinke was, of course, in IRMF and had been since he served briefly with the Algonquin Police Department in 1987.
General election opponent Jim Harrison did not say that he would not seek a pension, if elected.
Prim does, however, defer some of his income for retirement purposes.
The plan allows people to defer their income tax-free until it is withdrawn in retirement.
McHenry County has what is called a 457 Plan. It is administered by Nationwide Insurance.
There is no county match of an employee’s deferred income.
267 county employees deferring $31,687.46 into the plan during the last half of January.
McHenry County has 1,386 current active employees of which 1,229 are eligible to participate in the 457 plan.
At the end of last year, $17,938,780.82 in income had been deferred.
Under the same program, state employees–including legislators–may have part of their paychecks deducted and invested for later use.
About age 70, IRS requires mandatory withdrawal, similar to rules for 401(k)’s.
When I worked for the Department of Central Management Services as Benefits Manager, its deferred comp plan–a 457 plan–was in my bureau.