Agenda - Council - 01/22/1991 - Laserfiche WebLink

Home

CASE PERA FOR ELECTED OFFICIALS By: Kay McAIoney, Personnel Coordinator Background: Legislation passed in the last session of the Minnesota Legislature permits elected officials in Minnesota to participate in the Public Employees Retirement Association's (PERA) Defined Contribution Plan, or DCP. The DCP is exclusively for elected officials and basic and advanced life support emergency medical service personnel. Elected officials must exercise an option by submitting a membership form to participate in the DCP. The election to participate in the plan is irrevocable during incumbency in office. The contribution rate for an elected official is: Member Share Employer Share 5% of salary 5% of salary As always, elected officials who earn more than $425 a month may enroll in the PERA Coordinated Plan. A Coordinated Plan member is a public employee who earned over $425 in any given month and is not a full-time police officer or fire fighter. The contribution rate is as follows: Member Share Employer Share 4.23% of salary 4.48 % of salary In short, the Mayor of Ramsey may belong to either the DCP or the Coordinated Plan due to the monthly salary exceeding $425 per month. The cost to the City would be $300 annually for the DCP or $269 for the Coordinated Plan. Each Councilmember of Ramsey may elect to participate only in the DCP, due to the monthly salary being below $425 per month. The cost to the City would be $202 annually for each of the four Councilmembers. City cost has not been specifically funded in the 1991 budget. If any elected official requests participation in either plan, the City, by Statute, is required to pay the employers' share. City Attorney Bill Goodrich was asked to research State Statutes to determine if this would constitute an increase in salary. In his opinion, it does not. Recommendation: Based on discussion. Council Action: Based on discussion Review Checklist: Finance Officer Personnel Coordinator City Attorney CC:1/22/91