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<br />prior to July 1,2002 and who earned more than $425 have always been able to participate <br />in both plans, those individuals (e.g., Mayor Gamec) are not eligible to participate in the <br />divided vote referendum. <br /> <br />At its September 11, 2007 meeting, the Ramsey City Council directed staff to prepare a <br />resolution requesting a modification to Minnesota's 218 Agreement. The modification <br />would give current elected officials the option of participating in the mandatory Social <br />Security plan or the Section 218 Social Security Plan and it would require future elected <br />officials to participate in the Section 218 Social Security Plan. A divided vote Social <br />Security referendum will be conducted not less than 90 days after the adoption of said <br />resolution. <br /> <br />Funding <br /> <br />Other than the standard (and existing) 6.2% employer Social Security obligation, there are no <br />funding implications if the City Council adopts a resolution giving current City Council <br />members the option of participating in the mandatory Social Security plan or the Section 218 <br />Social Security plan. <br /> <br />There are fimding implications if City Council members individually elect to participate in <br />PERA's Defined Contribution Plan. The City of Ramsey would be required to match City <br />Council members' DCP contributions at an annual cost of $2,200 (based on 2007 salaries) if <br />all seven elected officials participate in the DCP and continue social security contributions. <br />These funds have been included in the 2008 budget. <br /> <br />Recommendation <br />Adopt the attached resolution which does the following: <br /> <br />· Requests that a divided vote referendum be conducted for the City of Ramsey; <br />· Authorizes the City Clerk to conduct the referendum; . <br />· Establishes the effective date of coverage as January 1, 2008, or as soon thereafter as <br />practicall; and <br />· Requests a modification to Minnesota's 218 Agreement to provide full Social Security <br />coverage to local elected positions covered by the Defined Contribution Plan. <br /> <br />Reviewed By: <br />City Administrator <br /> <br /> <br />Consent: September 25, 2007 <br /> <br />-76- <br /> <br />G:lAdministrationlHumal1ReseurceslBenefitslDCP Elected Officialslstaff repen 9-25-07.DOC <br />