CONCORD TWP — Township supervisors approved a contract giving its employees access to pension plans at Tuesday's meeting.

Board President Kandi Nassy said the supervisors approved the contract they received by bid from the Pennsylvania State Association of Township Supervisors at their August meeting.

Three retirement services options are available through the PSATS:

-The Defined Benefit Plan bases the benefit at retirement age on the years of service, along with the earnings averaged over a designated period.

This type of plan qualifies for Act 205 state aid funding, for employees who work a minimum of 35 hours per week, to help offset the cost of offering a pension benefit.

Nassy said from her understanding, the employee would benefit retroactively for years of service.

“So that they will have some benefits available based on the time they have been employees of the township,” she said.

-Deferred Compensation Plan (457-B) allows the employee to elect to make pretax deferral contributions of up to 100 percent of their compensation.

The deferred compensation plan also is open to part-time employees.

-The Defined Contribution Plan (401-a) allows employer contributions.

Nassy said the 401-a plan allows qualified employees to use the Minimal Municipal Obligation program from the state, which after three years of participation, offers state contributions at a percentage of the person's wages.

“This particular program was offered (by the state) back in 2007 to full-time local government employees without a waiting period for state funding,” Nassy said. “Our township did not utilize the opportunity at that time.”

At August's meeting, the thought of pensions received ill favor from some residents in attendance due to concerns about a tight budget.

Some suggested that a 401k plan would have been a better option.