HomeMy WebLinkAbout5.E.3. Social Security and PERA Options for Elected Officials-Res. No. 6564
5. E. 3>.
City of Shakopee
Memorandum
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TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Kris Wilson, Assistant City AdministratorjJJD
SUBJECT: Social Security and PERA Options for Elected Officials
DATE: January 11, 2007
Introduction/Background ,
At the January 2 City Council meeting, staff provided an overview of a new state law that allows
local elected officials the option of participating in both Social Security and PERA. Currently,
those elected after June of2002 are required to choose between the two. The Council voted to
proceed with the change, and directed staff to return with the necessary resolution, which is the
subject of this agenda item.
Requested Action
The Council is asked to offer Resolution No. 6564, a resolution requesting a modification to
Minnesota's Section 218 Agreement and authorizing a divided vote referendum, and move its
adoption.
RESOLUTION NO. 6564
ARESOLUTION REQUESTING A MODIFICATION TO MINNESOTA'S SECTION
218 AGREEMENT AND AUTHORIZING A DIVIDED VOTE REFERENDUM
WHEREAS, legislative changes made in 2006 to Minnesota Statutes Section 355
establish procedures that allow a governmental subdivision to. extend Social Security coverage to
, certain local elected officials who are members of, or are eligible for membership in, the Defined
Contribution Plan administered by the Public Employees Retirement Association; and
WHEREAS, the City of Shakopee desires to offer Social Security coverage to its eligible
elected officials.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SHAKOPEE, MINNESOTA, that:
SECTION 1. It is hereby declared to be the policy ofthis governing body to extend the
provisions of Minnesota Statutes Section 355, as amended by Chapter 271 or 2006, providing
Social Security coverage to eligible elected officials ofthe City.
SECTION 2. In pursuance of said policy the City of Shakopee hereby requests and
authorizes the execution of a divided vote referendum under Section 218( d)(6) of the Social
Security Act for the purpose of allowing current eligible elected officials the option of paying the
Social Security tax. The coverage of current local elected officials shall be effective as of July 1,
2007 for those eligible officials who vote "Yes" in the divided vote Social Security referendum.
The referendum will be conducted pursuant to applicable state and federal laws and regulations
by a designee of this entity under the supervision of a representative of the Public Employees
Retirement Association acting as the designated State Social Security Administrator.
SECTION 3. The Public Employees Retirement Association is hereby directed to
execute a modification to the section 218 Agreement between the State of Minnesota and the
Secretary of Health and Human Services to secure Social Security coverage of the eligible
elected officials who vote "Yes" in the referendum and all local newly-elected officials of this
governmental subdivision.
SECTION 4. Withholdings from the salaries of elected officials for the purposes
provided in this resolution are hereby authorized to be made in the amounts and at such times as
may be required by applicable federal and state laws and regulations.
SECTION 5. Employer contributions shall be paid from amounts appropriated for such
purposes and payment of employee and employer contributions shall be paid to the Internal
Rcvcnue Service in such amounts and at such times as. are designated in Internal Revenue Code.
SECTION 6. The City of Shakopee shall maintain such records and submit such reports
as may be required by the Public Employees Retirement Association or the Social Security
Administration.
SECTION 7. This resolution shall take effect and be in full force from and after its
passage.
Adopted in adjourned regular session of the City Council of the City of Shakopee,
Minnesota held this 16th day of January, 2007.
Mayor of the City of Shakopee
ATTEST:
City Clerk