3.1. SR 08-08-2005
*Item 3.1.*
MEMORANDUM
TO:
Mayor and City Council
i
Bruce A. West, Fire Chief ($ ~i
FROM:
DA TE:
August 8, 2005
SUBJECT:
Resolution Accepting Cliff Anderson as a Member of the Public
Employees Police and Fire Plan
The Public Employees Retirement Association (PERA) is accepting fire inspector's as eligible
participants in PERA's Police and Fire Pension Plan. I have been in contact with Scott McLeod
from the Public Employee Retirement Association to discuss the issue of what is needed from the
City of Elk Ri,rer for Fire Inspector Cliff Anderson to be accepted as a member of the Public
Employees Police and Fire Plan.
There are many other communities, both metro and greater Minnesota, that are now switching their
fire inspector and/or fire marshal employees from the PERA Coordinated Plan into the PERA
Police and Fire Pension Plan. Information recei'Ted from PERA is that due to policy changes at
PERA, the City of Elk River must submit a resolution adopted by the City of Elk River City Council
and a letter formalizing the request to change Cliff Anderson from PERA Coordinated to PERA
Police and Fire.
I have met wth both Human Resources Representative Lauren Wipper and Finance and
Administrative Services Director Lori Johnson to discuss this potential change and any financial
implications it may have. Attached is a memo from !vIs. Johnson addressing this issue of changing
from PERA Coordinated to PERA Police and Fire Pension Plan and the short-term and long-term
budget implications.
If you ha,re any questions please feel free to call me at the Elk River Fire Department, 763-635-1105.
Action Requested
Mayor and Council apprO\Tal of the attached resolution accepting Cliff Anderson as a member of the
Public Employees Police and Fire Plan.
*3.1.*
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, Finance and Administrative Services Director
DATE: August 8, 2005
SUBJECT: Cliff Anderson PERA Financial Impact
Fire Clllef Bruce \Vest is requesting tllat Cliff .t\nderson change from PE~\ Coordinated to
PERl"\. Police and Fire pension plan. 1:vfr. West asked tllat I pro\lide information on the
financial impact of dus change.
Belo\v is a table sho"\ving the employer contribution rates for bodl tlle PE~\ Coordinated
and Police and Fire pension plans. These rates were adopted as part of tlle pension bill
approy-ed by tlle legislature dus past special session. .i\S you can see from tlle far rigllt
colmnn of tlle table, SR\TingS in the first t\vo years offset the increases in tlle next tluee years
so there is no lnaterial cllange in the amount of the City's contribution o\Ter the first five
years. Thereafter, assmning tile contribution rates do not change, tllere is a small increase in
the City's annual cost.
Year
2005
2006
2007
2008
2009
2010
Employer Contribution
Police &
Fire
9.300/0
10.500/0
11.700/0
12.900/0
14.100/0
14.100/0
Coordinated
5.530/0
6. OO~/o
6.250/0
6.500/0
6. 7 5~/0
7.000/0
Social
Securitv
6.200/0
6.200/0
6.200/0
6.20~/0
6.200/0
6 .20~/0
Coord. &
s. s.
11.730/0
12.200/0
12.450/0
12.70~/0
12.950/0
13.20~/o
.L\nnual Cost Difference
Coordinated To Police &
Fire
(1,037)
( 458)
122
701
549
Notes. 1. Cost difference based on 2006 estimated pay of 61,000; no COL'\ applied to
future years.
2. PERi\. may adjust tlle contribution rates beginning in 2011.
3. Social Security tax is not paid under the Police & Fire plan.
4. Tvledicare tax of 1.450/0 applies under Coordinated or Police & Fire pension
plan.
s: \ Council \Lori \ 2005 \ PERA CIi ff Anderson. doc
RESOLUTION #05-
RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION ACCEPTING CLIFF ANDERSON AS A MEMBER OF THE
PUBLIC EMPLOYEES POLICE AND FIRE PLAN
WH EREAS, dle policy of the State of Ivlinnesota as declared in Tvlinnesota Statutes 353.63 is to
gi\Te special consideration to employees \vho perform hazardous \vork and devote tlleir time and
skills to protecting the property and personal safety of others; and
WHEREAS, IYfinnesota Statutes Section 353.64 permits gO\Ternmental subdivisions to request
cov.erage in dle Public Employees Police and Fire plan for non-full-time fire fighter prov-ided dle fire
service position regularly engages dle employee in the hazards of fire fighting.
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Elk Ri\Ter llereby
declares tllat the position titled Fire Inspector/Fire Fighter, currently lleld by Cliff -L\nderson is, for
prunary sel~yices pro\Tided, that of a firefighter engaged in the hazards of fire fighting.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that dus gO\Telning body llereby
requests that dle abo\Te-named employee be accepted as a member of the Public Employee Police
and Fire Plan effecti,Te the date of this employee's initial Police and Fire salal~Y deduction by dle
gO\lernmental subcli"\Tision.
Passed and adopted by the City Council of the City of Elk Ri,Ter on this 8th day of -L~ugust 2005.
Stephanie I<Jinzing, Ivlayor
~\ TIEST:
Joan Schmidt, City Clerk