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<br />Tax Implications <br /> <br />Council members who are interested in participating in the Social Security and DCP plans are <br />encouraged to contact their tax professionals regarding the benefits and drawbacks of <br />participating in either or both plans. <br /> <br />Funding <br /> <br />If the City Council desires to offer both plans to current and future council members, the City <br />of Ramsey would be required to match DCP contributions at an additional annual cost of <br />$2,200 (based on 2007 salaries) if all seven elected officials participate in the DCP and <br />continue social security contributions. These funds have been included in the 2008 budget <br />just in case the City Council elects offer both plans in 2008. <br /> <br />Recommendation <br /> <br />Based on the discussion, choose one of the following courses of action: <br /> <br />1. Do nothing which would allow current and future council members to choose to <br />participate in Social Security or PERA's Defmed Contribution Plan <br />2. Direct staff to prepare a resolution offering participation in Social Security and <br />PERA's Defined Contribution Plan to current and future council members <br /> <br />If the City Council elects to not take action at this time, future City Councils may request that <br />this topic be brought back for discussion. <br /> <br />Attachments: <br /> <br />. Detailed description of the Defmed Contribution Plan. <br /> <br />Reviewed by: <br /> <br />Interim City Administrator <br />Finance Officer <br /> <br />pc: September 11,2007 <br /> <br />G:\AdministrationlHumanResourceslBenefitsIDCP Elected Officialslstaffreport 9-II-07.DOC <br /> <br />-240- <br />