HomeMy WebLinkAbout15.E.4. City Administrator PERA Opt-In-Res. No. 5929
IS E .1.
CITY OF SHAKOPEE
Memorandum COf~SENT
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: City Administrator PERA Opt-In
DATE: July 31,2003
INTRODUCTION:
The City Council is asked to adopt a resolution allowing Mark McNeill to "opt-in" to
participation in the Public Employees Retirement Association (PERA).
BACKGROUND:
For many years, City Administrators and Managers were the only non-school public
employees in Minnesota who were allowed to "opt-out" of participation in PERA, the
retirement system for all public employees. The reason for that for the opt-out option
was that, until recently, it took ten years to "vest" (to become eligible for participation).
Being somewhat nomadic by nature, city administrators and managers often did not have
sufficient time earned to receive credit for their contributions.
However, in recent years, the vesting time for participation in PERA has been reduced to
three years. In 2003, the legislature took action which allows City Administrators and
Managers a one time opportunity to "opt-in", with the understanding that this action is
irrevocable, and that no "buy-in" of credit for previous years served will be allowed.
After reviewing the options available, I am requesting that the Council allow me to opt
back in to PERA.
BUDGET IMPACT:
There is no change in the dollar impact on the City. Previously, the City has been
providing a 5.53% contribution to go to my individual account with the International City
Management Association Retirement Corporation. Instead, contributions previously
going to ICMA - RC, will now go to PERA.
RECOMMENDATION:
I ask that the Council favorably consider my request to opt-in to PERA, by adopting an
enabling resolution.
ACTION REQUIRED:
If the Council concurs, it should, by motion, adopt the following resolution:
RESOLUTION NO. 5929
A RESOLUTION APPROVING THE REQUEST OF
MARK MCNEILL TO P ARTICIP ATE
IN THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
Mark McNeill
City Administrator
MM:th 1/U\~~
JUL. 30. 2003 1: 46PM PERA NO. 324 P. 2
City Managers - PERA Election Option (2003 law change)
City managers who previously elected not to participate in PERA's Coordinated Plan
are allowed to elect whether to begin participation in the Coordinated Plan.
)- Currently, city managers are allowed to elect to be excluded from the Coordinated
Plan within 6 months of the start of employment as a city manager, this law does not
alter that option other than to make the oIig:ina1 election out of the plan revocable.
)- As is the law currently, city managers automatically become Coordinated Plan
members (when they meet the earnings threshold) unless they elect/opt-out of
participation.
)- The original election to opt out, as well as the election to opt in under new law, to the
Coordinated Plan must be approved by the governing body of the employer city.
>>- The right to opt back in after opting out is an ongoing option for city managers -
there is no deadline for the election to be made or sunset of these provisions.
~ Once the election to participate is made, it is irrevocable.
)> Membership is prospective only.
)- There is a specific statutory prohibition on individuals seeking authorization to
purchase past service for which they had opted out.
)1> Effective August 1,2003. (Laws of2003, First Special Session, Chapter 12, Art.
4, ~3)
RESOLUTION NO. 5929
A RESOLUTION APPROVING THE REQUEST OF
MARK. MCNEILL TO P ARTICIP ATE
IN THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
WHEREAS, the 2003 session of the Minnesota State Legislature amended MSA
Chapter 353, which had previously allowed City Managers and City Administrators to be
excluded from membership in the Public Employee Retirement Association; and,
WHEREAS, said legislative action now allows City Administrators and Managers
who had previously opted out ofPERA, an opportunity to "opt-in", with the
understanding that said decision is irrevocable, and that no credit maybe purchased for
previous years of service.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Shakopee as follows:
1. City Council makes the following findings:
a. Mark McNeill is the City Administrator of the City of Shakopee,
Minnesota.
b. Said position is provided for in the ordinances of the City of
Shakopee.
c. He was duly appointed to serve in that position effective July 22,
1996.
d. The City Administrator is the Chief Administrative Officer of the
City of Shakopee.
e. On August 20, 1996, he elected to be excluded from membership
in the Public Employees Retirement Association.
f. Because of changes in State law and PERA vesting requirements,
he now wishes to now participate in PERA, and as such, will make
application to the Executive Director of that Association for
membership.
g. Hereafter, all contributions by the City of Shakopee for the
retirement purposes of Mark McNeill shall change from being
directed to ICMA-RC, and instead shall go to PERA, and that no
City funds shall be designated to alternate investment options.
2. A certified copy of this Resolution shall be provided to the Executive
Director of said Association.
Adopted in regular session of the City Council of the City of Shakopee,
Minnesota this _dayof ,2003.
Mayor ofthe City of Shakopee
ATTEST:
Judith S. Cox, City Clerk