Employees in local government units that require gubernatorial advice and consent must become members of which retirement program?

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Improve your knowledge of the Municipal Budget Process. Familiarize yourself with key concepts and terminology through multiple choice questions and detailed explanations. Prepare effectively for your exam!

The correct answer pertains to local government employees who require gubernatorial advice and consent and are typically enrolled in a Defined Contribution Retirement Program. This type of retirement plan is characterized by the fact that the contributions are defined and fixed, whereas the retirement benefits are based on the amount contributed and the performance of the investment choices made by the employee.

Local government employees, especially those whose positions require such oversight, often fall under specific retirement systems within their state's framework. In many jurisdictions, this requires them to participate in a Defined Contribution plan rather than defined benefit systems, as these plans may offer greater flexibility and portability for employees in roles influenced by gubernatorial oversight.

This structure allows for a more direct relationship between employee contributions and their ultimate retirement compensation, as opposed to the traditional pension plans linked to salary and years of service, commonly encountered in defined benefit plans. Therefore, enlisting into a Defined Contribution Retirement Program aligns with the administrative and legislative guidelines set for employees who operate within this particular framework of state oversight.

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