HomeMy WebLinkAbout2000 07 24 Consent Item C Pension Changes
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COMMISSION AGENDA
ITEM C
Consent X
Informational
Public Hearing
Regular
July 24, 2000
Meeting
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Mgr, I
Authorization
REQUEST:
The General Services Department requests that the City Commission move to
accept the results of an employee election regarding changes to the pension
program, endorse recommendations of the Board of Trustees regarding
employee contributions to the defined contribution plan, and authorize the city's
pension attorney to proceed with amendments to the plan documents"to
incorporate these changes.
PURPOSE:
The purpose of this agenda item is to formally accept the results of an election by
city employees regarding certain changes to the pension program, and to move
forward with formal plan document amendments that incorporate the wishes of
the employees and recommendations of the Board of Trustees.
APPLICABLE LAW AND PUBLIC POLICY:
Official Pension Plan Documents
City Charter
City Administrative Code
CONSIDERATIONS:
- As a result of employee requests to improve the benefit level in the employee
pension plan, the Commission conducted a workshop on May 15, 2000, to
consider several options, and to hear presentations and recommendations by
staff, the Board of Trustees, and individual employees.
,
July 24, 2000
City Commission Consent Agenda
Item "C"
- The Commission reached consensus that employee informational meetings
would be held to advise employees of two available options, and to have
employees vote their preference.
- The Commission also reached consensus on a recommendation of the Board
of Trustees that the 2% of salary contributed by employees to the defined
contribution/money purchase plan until October 1, 2000, will remain in
individual employee accounts and, at the employee's option, be available for
disbursement upon pre-retirement termination, or used as an additional
retirement annuity.
- The Commission also agreed that further employer contributions to fund
any pension plan improvements would not be warranted.
- Informational meetings and elections were held each day between June 5
and June 9, 2000, with employees voting by a 103 to 65 margin to increase
the benefit level from 2% to 3% for each year of service, effective October 1,
2000, and going forward only, with a corresponding increase in employee
contributions from 2% to 3% of compensation.
FUNDING:
None required.
STAFF RECOMMENDATION:
Staff recommends the Commission move to accept the election results, and
authorize the pension attorney to amend the pension plan documents according
to the election results. In addition, staff also recommends that the amended plan
documents allow for the employee options of using employee contributions until
October 1, 2000, as an additional retirement annuity, or to receive those funds
upon pre-retirement termination.
ATTACHMENTS:
Transmittal memorandum from City Manager, dated June 12,2000, with
attached election results
COMMISSION ACTION:
MEMORANDUM
DATE: June 12,2000
FROM: Gene DeMarie, Director of General Services
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TO: Ron McLemore, City Manager
SUBJECT: Results of Employee Pension Plan Election
Pursuant to instructions by the City Commission at their Workshop
on May 8t,\ informational meetings - eight in all - were held each day
between June 5th and June 9th to discuss potential changes in the
employee pension plan. Seven meetings were held in the Commission
Chambers, and on Tuesday when the Chambers were not available,one
was held in the Emergency Operation Center of the Police Department.
At each meeting, anywhere from about 10 to 40 employees were in
attendance. I began by presenting a brief explana tion of the purpose of
the meeting, followed by some historical data and an outline of our
current pension plan. I then went into some detail about the options to
be voted upon, and how each would impact the plan. Thereafter,
attendees were asked to vote on their preference between the two
options under consideration.
In total, 750/0 of the workforce attended these meetings, and 168
employees voted. The results of that vote are attached. As requested by
the Commission, the tally was compiled by department. A notation of
"no vote(s)" means the ballot was returned without a preference
selected.
By an ovenvhelming margin, the option to begin a 30/0 per year of
service benefit on October 1,2000, going forwar-d only, with a
corresponding 1 % increase in employee contribution, was the choice.
Please let me know if I can expand on this information or answer
questions about the entire process.
PENSION POLL RESULTS
Department
Option A (1% add'l) Option 8 (5% add'l)
City Clerk
City Manager
Community Development
General Services
Finance
Parks and Recreation
Fire (1 no vote)
Public Works/Utility (3 no votes)
Police (1 no vote)
2
1
8
4
2
15
7
28
36
103
o
2
3
2
4
3
28
21
2
65
06/12/00