Madison City employees to receive equal retirement benefits


MADISON, Ala. – The Madison City Council unanimously passed ‘Tier 1 Conversion’ making all city employees eligible for the same benefits. This is something that officials say will help them in the long run with recruitment and retention.

“Tier 1 employees were hired before 2013. So if you were hired after that point you’re considered Tier 2,” says Samantha Magnuson.

The city says they have been looking into the Tier 1 Conversion program for a while and ultimately this will lead to better benefits for city employees. Before now, the different tiers mattered for employees because the benefits were different.

“As far as what you pay in, what you get out and also when you can retire,” says Magnuson.

Tier 1 employees can retire and draw benefits after 25 years. Tier 2 could only draw benefits at the age of 62, but with the new conversion plan that’s no longer the case.

“As a young employee myself, I’m looking forward to retiring a little earlier and be able to draw those benefits at a younger age,” says Magnuson.

The city hopes this will help with recruitment and retention. Madison Police Chief David Jernigan says this will be especially helpful for law enforcement and fire.

“For police and fire the recruiting aspect and retention is going to be good. I’ve actually had officers leave Madison to go to smaller communities that have already converted. So it’s really a win-win for us,” says Madison Police Chief David Jernigan.

Chief Jernigan is a Tier 2 employee and he says like many other employees, this conversion will help him maximize his retirement benefits.

“There’s some things a city can do to invest in their folks and that’s what Madison City Council did. I’m very appreciative. It affects me on a personal level,” says Chief Jernigan.

The City of Madison has around 400 employees and calls this conversion plan a huge win for future recruitment.

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