HomeMy WebLinkAbout4.k. Adopt Resolution Approving Early Retirement Incentive Program (PERA) .
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CITY OF ROSEM4IINT
EX£CIITIVE SIIMMAAY FOR ACTION
CITY COUNCIL MEETING DATE: JULY 6, 1993
AGENDA ITEM: ADOPT RES�LUTION APPROVING EARLY AGENDA SECTION: CONSENT
RETIREMENT INCENTIVE PRaGRAM FOR PERA
PREPARED BYs SUSAN WALSH AGENDA NO. ,
ADMINISTRATIVE ASSISTANT
ATTACHMENTS: RESOLUTIQN 1�pp Y
The legislature passed a lara this year that permits employer of employees
who belong to the Public Employees Retirement Association (PERA} , at its
discretion, to offer an increase in the FERA pension formula of 1/4 percent
( .25�) for each year of service up to the first 30 years. Another option
of this law is that employers may pay for health insurance for employees
who retire between the ages of 55 and 65.
I would like to recommend that Council approve the .25� increase of the
PERA pension for each year of service. The window for this increase is for
public employees who retire an or after May 17, 1993 and before January 31,
1994. Further eligibility requirements are:
(1) be a contributing member of PERA's basic or coordinated pension
plan;
(2) be immediately eligible to draw a PERA pension upon termination;
(3) be age 55 or older with at least 25 years of service; or
(4) be age 65 and have at least one year of service credit.
There is na cost to either the City or the employee for this option.
A PERA coordinated member would normally receive 1.5� of his/her high-five
average; but during this windaw periad of time, retiring employees will
receive an additional .25$ or 1.75�.
George Romo who is retiring July 31, 1993 would benefit by this new law if
Council would approve the increased annuity option,
Attached for your review and consideration is a resolution which would
authorize me to notify Public Employees Retirement Association (PERA) that
the Rosemount City Council agress to offer the increased PERA pensian.
Defined PERA members are not eligible.
RECOMMENDED ACTION: MOTION TQ ADOPT A RESOLUTION APPROVING THE
INCREASED PERA PENSIf?N FORMULA FOR QUALIFIED EMPLOYEES
COUNCIL ACTION:
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Ci't'Y OF ROSEMQUNT
DAKOTA COUNTY, MINNESOTA
RESQLUTION i993-
A RESOLUTION APPROVfNG THE INCREASED PERA PENSION
OPTION UNDER THE 1993 EARLY RETIREMENT 1NGENTIVE PR�GRAM
NOW, THEREFORE, BE IT RESOLVED, that the City Councii of the City of
Rosemount agrees the one-fourth percent (.25�oJ of each year of service up to the first
30 years of service shouid be offered to eligible City of Rosemount employees, and
BE IT FURTHER RESOLVED, that the Administration Department should process and
execute on behalf of the City any Certificate of Early Retirement #orms presented by
eligibie City of Rasemount employees who retire on or after May 17, 1993 and before
January 31, 1994; and
BE 1T FURTHER RESOLVED, that the Administration Department is directed to send
a copy of this Resolution to the Public Employees Retirement Associated.
DATED this 6th day of July, 1993.
E. B. McMenomy, Mayor
ATTEST: '
Susan M. Walsh, City Clerk
Motion by: Seconded by:
Voted in favor:
Voted against: