Agenda - Council - 01/25/1983 - Laserfiche WebLink

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ASSETS--OVER 81.5 BILLION,.. ~,~ "k:~.CEIVED ,~J \V., 100,000 OFFICERS: Donald J. Sandeen, Chairperson Clifford Dahl, Vice Chairperson James F. Lord, Treasurer C. Mike McLaren, Executive Di'r~cior )yees retirement association, TO: ALL GOVERNMENTAL UNITS · DATE: December 21, 1982 SUBJECT: PASSAGE OF H.F. 4 DURING THE TItIRD SPECIAL SESSION OF 1982 I am sure that by now you have been exposed to the recent legislation passed to solve the state's budget problems. This legislation impacts PE.RA, as well as other state and local pension funds, in various ways. It is our understanding after reading the bill, that the change in the law applies ' to all PERA members, commencing with the first full pay period after December 28, 1982, and ending with the last full pay period before January 1, 1984. Each employee's deductions will increase by 2 percent, as shown below: From To Coordinated Fund 4% Basic Fund 8% Police and Fire. Fund 8% 10% The EMPLOYER'S CONTRIBUTION REMAINS UNCHANGED; that is, you should continue to send in 5~ percent of payroll for the Coordinated Fund, 10~ percent of payroll for the Basic Fund, and 12 percent of payroll for the Police and Fire Fund. I am sure that you are aware of the short time frame we have to implement the changes. Like yourself, I am concerned about how all the changes ~ill be implemented in a timely manner. Be assured that'the administrative staff of PERA will keep you. advised of all aspects of the bill as we become fully apprised of them. The bill also addresses the area of federal taxability of employee contributions We are having our legal counsel review this provision and will contact you in the near future regarding this proposal. For your information, we were not consulted on the bill nor did we have input into or approve the solution involving public pensions. The PERA Board remains united in opposition to any additional increases in contributions required to fund the ~ program, or any other provision that allows public pensions to be used'in a bail-out scheme for state budget problems. Attached is an explanation of how you should report the additional contributions on the Salary Deduction'Report(s); Do not report the addit{onal 2 percent as a only one employee deduction should be listed for each member. The entire amount will be placed in each individual's account and is refundable If you have any questions concerning'this new reporting or any other questions concerning legislation, please do not hesitate to contact tile PERA Field Service Department at 296-7493. to PERA. yo in t At ached ~n the S separate figure; The enti e amou~ upon termination. procedure, or any to contact tile Sincerely, C. Mike McLaren Executive Director 203 capitol square building 550 cedar street st, paul, minnesota 55101 ,,29 (612) 296-7460 ~