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Home My WebLink AboutItem 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 ~~~,~.~_..h~_\~ ,.9,Iq'- J.Q~.__._. RESOLUTION NO. 2007- -"! " r. , ; ".; , ~\i ~:~ \' 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