HomeMy WebLinkAboutItem 08 Retirement Plan Resolution Ratifying the City Manager's Amendment of the City of Springfield, Oregon Retirement Plan
AGENDA ITEM SUMMARY
Meeting Date:
Meeting Type:
Department:
Staff Contact:
Staff Phone No:
Estimated Time:
September 17,2007
Regular :;
Human Resources .
Ardis Belknap
726-3786
Consent Calendar
SPRINGFIELD
CITY COUNCIL
ITEM TITLE:
RETIREMENT PLAN RESOLUTION RATIFYING THE CITY
MANAGER'S AMENDMENT OF THE CITY OF SPRINGFIELD, OREGON
RETIREMENT PLAN
ACTION REQUESTED: Adoption of the following resolution:
ISSUE STATEMENT:
A RESOLUTION OF THE CITY OF SPRINGFIELD RATIFYING THE
CITY MANAGER'S AMENDMENT OF THE CITY OF SPRINGFIELD,
OREGON RETIREMENT PLAN.
Whether the City Manager's Amendment of the City of Springfield, Oregon
Retirement Plan to implement Resolution 2007-27 should be ratified.
ATTACHMENTS:
Attachment A - Resolution to be Adopted
Attachment B - First Amendment to the 2007 Restatement of the City of
Springfield, Oregon Retirement Plan
Attachment C - Resolution 2007-27
DISCUSSION:
The decision to pick up the 6% employee PERS contribution for employees represented by OPEU and
AFSCME was made in 2006. The terms of those collective bargaining agreements provide that the PERS
pickup is to be implemented over the course of a two year period with a reduced COLA of 2% applied
for FY2007 (rather than 3.5%), with pickup applied effective 7/1/07, in lieu of any COLA for FY2008
(3% would otherwise have been recommended). Currently the City already assumes the 6% employee
contribution to retirement for Police employees covered under the collective bargaining agreement with
the Springfield Police Association.
The City currently employs 88 non-represented regular employees. General non-union employees also
received a reduced 2% COLA for FY2007 like OPEU and AFSCME, based on a two year pickup
implementation plan. As with represented employees, this recommended 6% pickup for non-represented
General employees effective 7/1/07, will be in lieu of any COLA for FY2008.
By adopting Resolution 2007-27, City of Springfield assumed the 6% employee retirement contribution
to the Retirement Plan paid by nonrepresented employees, effective July 1,2007, and authorized the City
Manager to amend the pay plans to reflect Resolution 2007-27. On July 17,2007, the City Manager
adopted the First Amendment to the 2007 Restatement of the Retirement Plan, to reflect Resolution
2007-27. The attached Resolution ratifies 'the City Manager's Amendment.
FINANCIAL
IMPACT:
Actual cost of implementing a 6% PERS pickup in FY 2008 is $357,700. By Implementing this 6%
retirement pickup in combination with a reduced COLA in FY2007, the City realizes a cumulative two
year cost reduction of $53,400, when compared to the cost of recommended COLAs for the same period.
The City is obligated to the above change based on Resolution 2007-27.
SPRINGFIELD
NO. 2007-
A RESOLUTION OF THE CITY OF SPRINGFIELD RATIFYING THE CITY MANAGER'S
AMENDMENT OF THE CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN.
WHEREAS, the City of Springfield adopted the 2007 Restatement of the City of
Springfield, Oregon Retirement Plan (the Retirement Plan);
WHEREAS, in Resolution 2007-27 the City of Springfield assumed the 6% employee
retirement contribution to the Retirement Plan paid by nonrepresented employees, effective
July 1, 2007, and authorized the City Manager to. amend the Retirement Plan to reflect
Resolution 2007-27;
WHEREAS, on July 17, 2007, the City Manager adopted the First Amendment to the
2007 Restatement of the Retirement Plan, to reflect Resolution 2007-27; and
WHEREAS, the City of Springfield desires to ratify the City Manager's adoption of the
First Amendment;
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Springfield
that the City ratifies the City Manager's adoption on July 17, 2007, of the First Amendment to
the 2007 Restatement of the City of Springfield, Oregon Retirement Plan.
ADOPTED by the Common Council and approved by the Mayor of the City of
Springfield this 17th day of September, 2007.
ADOPTED by a vote of
for and
against.
Mayor
ArrEST:
City Recorder
Reviewed and Approved as to Form:
c;-~. rM if'.1i
Office of City Attorney
August 13, 2007
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RESOLUTION NO. 2007-
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ATTACHMENT A
FIRST AMENDMENT TO THE 2007 RESTATEMENT OF
THE CITY OF SPRINGFIELD, OREGON RETIREMENT PLAN
RECITALS:
A. July 2, 2007, the Common Council of the City of Springfield adopted the 2007
Restatement (the "2007 Restatement") of the CITY OF SPRINGFIELD, OREGON RETIREMENT
PLAN (the "Retirement Plan"), effective July 1,2007.
B. June 18,2007, in Resolution 2007-27, the Common Council ofthe City of Springfield
assumed the 6% employee retirement contribution to the Retirement Plan paid by nonrepresented
employees, effective July 1, 2007, and authorized the City Manager to amend the Retirement Plan
to reflect Resolution 2007-27.
C. The City Manager desires to so amend the Retirement Plan.
AMENDMENT:
The 2007 Restatement is amended as follows effective July 1,2007:
1. Section 4.2.a. is amended to add the following sentence immediately before the first
sentence thereof:
"This Section 4.2.a. does not apply to Monthly Earnings earned after June 30, 2007."
2. Sections 5.1.a.(4), 5.1.a.(5), and 5.1.a.(6) are renumbered as Sections 5.1.a.(5),
5.l.a.(6), and 5.1.a.(7), respectively, and the following Section 5.l.a.( 4) is added immediately after
Section 5.1.a.(3):
"(4) FOR MONTHLY EARNINGS AFTER JUNE 2007.
For each calendar month after June 30, 2007, there shall be credited to each
Participant's Employer Contribution Account and Employer Additional Contribution
Page I--FIRST AMENDMENT TO 2007 RESTATEMENT
ATTACHMENT B
Account the following percentages of the Participant's Monthly Earnings for that
month.
"If the Participant is
described in a row in
this column:
Credit to the
Participant's Employer
Contribution Account
the percentage stated in
the corresponding row
in this column:
Credit to the
Participant's Employer
Additional Contribution
Account the percentage
stated in the
corresponding row in
this column:
"A full-time Public
Safety Employee who is
eligible to participate in
the Plan by reason of
Section 3 .1.a.( I ) (about
SPA Members) or
3.l.a.(2) (about non-
union police officers):
"A full-time Employee
who is a Police
Dispatcher or Property
Controller
"A full-time Employee
who is not a Public
Safety Employee,
Police Dispatcher, or
Property Controller
12.8%
6%
10%
6%
7% .
6%
"The Employer reserves the right to require that the amount to be credited to any
Participant's Employer Additional Contribution Account be funded pursuant to a
salary reduction arrangement, and the amount shall be so funded to the extent
required in such an arrangement."
3. To conform the 2007 Restatement to the amendments in 2. above:
5.1.(a)(7)".
a. In the last sentence of Section 2.2., "Section 5. I . (a)(6) " is changed to "Section
b. In the caption of Section 5.l.a.(3), "FOR MONTHLY EARNINGS AFTER
JULY 200S" is changed to "FOR MONTHLY EARNINGS AFTER JULY 200S AND BEFORE
JULY 2007",
c. In Section 5.1.a.(3), "For each calendar month after July 31,2005" is changed
to "For each calendar month after July 31, 2005, and before July 1, 2007".
Page 2--FIRST AMENDMENT TO 2007 RESTATEMENT
d. In Section 5.l.a.(6)(c)(i) (which was Section 5.l.a.(5)(c)(i) before being
renumbered in 2. above), "Section 5.l.a.(2) or 5.l.a.(3)" is changed to "Section 5.l.a.(2), 5.l.a.(3),
or 5.l.a.(4)".
e. In Section 5.l.(6)(d) (which was Section 5.l.a.(5)(d) before being
renumbered in 2. above), "5.l.a.(5)(d)" is changed to "5.1.a.(6)(d)".
4. The following Section 5.1.(6)(e) is added immediately after Section 5.1.(6)(d) (which
was Section 5.1.a.(5)(d) before being renumbered in 2. above):
"(e) MONTHLY EARNINGS FOR JUNE AND
JuLY 2007. This 5.1.a.(6)(e) applies to any Participant who is entitled to credits
under Section 5.1.a.(3) for the Participant'sJune 2007 Monthly Earnings or under
Section 5.l.a.( 4) for the Participant's July 2007 Monthly Earnings. The Participant's
Monthly Earnings for June 2007 are the Participant's Monthly Earnings earned for
the payroll period June 1,2007, through June 30, 2007 (with a regular payday of
July 5,2007). The Participant's Monthly Earnings for July 2007 are the Participant's
Monthly Earnings earned for the payroll period July 1, 2007, through July 31, 2007
(with a regular payday of August 3, 2007)."
DATED July 17,2007.
< G?[l;
Gino ,Grimaldi, City Manager
By:
Page 3--FIRST AMENDMENT TO 2007 REST A TEMENT
CITY OF SPRINGFIELD, OREGON
RESOLUTION NO. 2007--1:..7
A RESOLUTION AUTHORIZING A 6% RETIREMENT contribution PICKUP,
FOR CITY NON-REPRESENTED EMPLOYEES.
WHEREAS, City non-represented employees received a 2% COLA on 7/1/06 which was
1.5% lower than would otherwise have been recommended; and,
WHEREAS, said 2% COLA was given in anticipation of a 6% retirement contribution
pickup by the City effective July 1, 2007; and
WHEREAS, City non-represented employees will receive no COLA on 7/1/07; and,
WHEREAS, the City of Springfield desires to assume the 6% employee retirement
contribution currently paid by non-union employees to the Public Employees Retirement System
PERS or City Retirement Plan as applicable,
NOW THEREFORE BE IT RESOLVED, by the Common Council of the City of Springfield
that the City authorizes the City Manager to execute City assumption of the 6% employee
retirement contribution to the Public Employees Retirement System PERS or City Retirement
Plan as applicable, currently paid by City non-represented employees effective July 1, 2007.
ADOPTED by the Common Council and approved by the Mayor of the City of Springfield,
Oregon this 18th day of June 2007 adopted by a vote of ~ for and ~ against.
C~~~~
Mayor
ATTEST:
(]tul~ ~V-
--I\m'y' SO'Nu, Eity Recorder
Reviewed and Approved as to Form:
j I:> ~~\,~
j '- ~A\-\-\
Office of City Attorney
June 12, 2007
ATTACH MENT C