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HomeMy WebLinkAbout2008-02-06 PACKET 04.J.REQUEST OF CITY COUNCI� ACTION COUNCIL MEETING DATE 2/6/08 PREPARED BY: Finance and Administrative Services ORlGINATING DEPARTMENT AGENDA ITEM # Q Ron Nedberg STAFFRJTHOR ����.���������������,���������.���,�����,��������� COUNCIL ACTION REQUEST: Consider approving the amendments to the ICMA City Administrator Pension Plan. STAFF RECOMMENDATBON: Approve the amendments to the ICMA City Administrator Pension Plan. BUDGET IMP�ICATION: $ BUDGETED AMOUNT � ACTUA�AMOUNT FUNDINGSOURCE ADVISORY COMMISSION ACTION: DATE ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES/RIGHTS ❑ ECONOMIC DEV. AUTHORITY ❑ SUPPORTING DOCUMENTS: REVIEWED ❑ ❑ ❑ ❑ ❑ ❑ ❑ � MEMO/�ETTER: Memo from Joe Fischbach dated 1/28/O8 ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS: APPROVED ❑ ❑ ❑ ❑ ❑ ❑ ❑ DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ // �d/C)f i y Administrator Date ����,�,��������������,���������������.,������������ COUNCIL ACTION TAKEN: ��APPROVED ❑ DENIED ❑ OTHER CITY OF COTTAGE GROVE MINNESOTA To: Honorable Mayor anc� City Council From: Joe Fischbach, Management Analyst �{ Date: 1 /28/2008 Subject: City Administrator Pension Plan Amendment to Contract Backqround in November of 1997, City Administrator Ryan Schroeder elected to opt out of the Pubiic Empioyee Retirement Association (PERA) Pension Plan. He elected to contribute to the ICMA Retirement Corporation's Money Purchase Plan & Trust or the City Administrator Pension Plan instead. The City agreed to contribute the same amount as it would for PERA to the ICMA Pension in lieu of the City's contribution to the PERA pension. In order to establish this plan, City Council adopted a Trust Adoption Resolution on November 19, 1997. The action requested is to amend this Trust Adoption Agreement for the new contribution. The State Legislature required PERA to increase both employee and empioyer contribution rates in 2008. The employer contribution rate went from 6.25% of gross wages to 6.50% of gross wages. Staff is recommending Council increase the contribution to the City Administrator Pension Plan to 6.50% of gross wages from 6.25% of gross wages as well. Recommendatian Approve the amendments to the ICMA City Administrator Pension Plan.