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HomeMy WebLinkAboutITEM V-A AGENDA BILL APPROVAL FORM Agenda Subject:Date: Resolution No. 4644 September 21, 2010 Attachments: Department:Budget Impact: Resolution No. 4644 Human Resources Administrative Recommendation: City Council adopt Resolution No. 4644. Background Summary: Resolution authorizing the city council to pay the employer’s portion of past retirement credits for council members plus interest. When council members are elected to the office of City Council, they are entitled, by state law, to participate in the public employment retirement system which would entail contributions by the employee as well as contributions by the employer. Many times council members have chosen not to participate in the system at the time that they first could, and the law does allow Councilmembers to later join, including catching up for prior service credits. However, unless the City Council, by a majority vote, approves payment of the employer contribution and interest, those costs, on top of the employee contribution, would fall on the shoulders of the City Councilmembers. State law does allow the City to pay its portion of those past retirement credits plus interest for the employer contribution amounts, if approved by a majority of the City Council. That would leave only the employee contribution amounts for the Councilmembers to pay to be fully funded on the retirement system. Initially, a proposal was developed which would authorize the City to pay the past employer contributions plus interest for all current Councilmembers. However, staff was requested to develop two options, one of which would result in the back-payments by the City for past retirement credits for City Councilmembers of employer contribution amounts plus interest, and another one of which would result in the back-payments by the City for past retirement credits for City Councilmembers of employer contribution amounts but not including interest. Under the first proposal the Councilmember would be responsible for employee contribution amounts for those past retirement credits, and under the second proposal, the Councilmember would be responsible for employee contribution amounts for those past retirement credits plus interest. A1004-1 Reviewed by Council & Committees:Reviewed by Departments & Divisions: Arts Commission COUNCIL COMMITTEES: Building M&O Airport Finance Cemetery Mayor Hearing Examiner Municipal Serv. Finance Parks Human Services Planning & CD Fire Planning Park Board Public Works LegalPolice Planning Comm. OtherPublic Works Human Resources Action: Committee Approval: Yes No Council Approval: Yes NoCall for Public Hearing___/___/____ Referred to _________________________________ Until ____/___/____ Tabled ______________________________________ Until___/___/____ Councilmember:Staff: Backus Heineman Meeting Date:ItemNumber: RESOLUTION NO. 4 6 4 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE CITY TO PAY THE EMPLOYER BACK-CONTRIBUTIONS OF EMPLOYER CONTRIBUTIONS FOR THE WASHINGTON STATE DEPARTMENT OF RETIREMENT SYSTEMS BENEFITS FOR COUNCILMEMBERS WHEREAS, elected councilmembers are entitled to participate in the retirement programs for public employees of the Washington State Department of Retirement Systems; and WHEREAS, participation in the retirement program involves an employer contribution as well as an employee contribution; and WHEREAS, participation in the retirement system by councilmembers is not required; and WHEREAS, if, after-the-fact, the members of the City Council wish to participate in the retirement system, the councilmember would have to pay back-contribution amounts for both the employer and the employee, plus interest; and WHEREAS, the regulations of the Washington State Department of Retirement Systems allow a City Council to approve, by a majority vote, payment of back- contribution amounts for the employer’s share and interest; and WHEREAS, in recognition of the contribution that councilmembers make for the City and acknowledging, as well, that participation in the retirement system is a right of the councilmember, it is in the best interests of the City to pay the back-contributions of the employer contribution amounts and interest. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. That if currently serving councilmembers for the City of Auburn, Washington, choose to participate in the retirement programs for public employees of the Washington State Department of Retirement Systems, the City shall pay back- contributions of the employer contributions and interest, as provided for in the rules for local officials of the Washington State Department of Retirement Systems. - - - - - - - - - - - - - - - - Resolution No. 4644 September 14, 2010 Page 1 of 2 Section 2. That this Resolution shall authorize the City’s payment of back- contribution amounts for both the employer contribution and interest, as determined by the Washington State Department of Retirement Systems, as set forth on the document listing such amounts attached hereto, marked as Exhibit “A” and incorporated herein by this reference, with the councilmember paying his or her employee contribution amounts. Henceforth, effective January 1, 2011, any new councilmembers or councilmember not previously participating in the retirement programs for public employees of the Washington State Department of Retirement Systems who wish to participate in the retirement programs shall be responsible for payment of back- contribution amounts for the employer contributions, employee contributions and interest. For the purposes of this Resolution “back-contribution amounts” refers to the retirement program contributions for past elective service. Section 3. That the Mayor is authorized to take such administrative steps as are necessary to implement the directives of this legislation, including development of a standardized reporting form to accommodate tracking of elected city councilmember service hours used to calculate retirement credits, which standardized reporting form shall be approved by the City Council. Section 4. That this Resolution shall be effective upon passage and signatures hereon. Passed by the City Council this ______ day of ____________, 2010. ________________________________ PETER B. LEWIS, MAYOR ATTEST: __________________________ Danielle E. Daskam, City Clerk APPROVED AS TO FORM: __________________________ Daniel B. Heid, City Attorney - - - - - - - - - - - - - - - - Resolution No. 4644 September 14, 2010 Page 2 of 2