HomeMy WebLinkAbout2010-04-21 PACKET 04.B.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #
DATE 04/21/201
PREPARED BY Administration Ryan Schroeder
ORIGINATING DEPARTMENT DEPARTMENT HEAD
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COUNCIL ACTION REQUEST
Consider approving the amendments to the ICMA City Administrator Pension Plan.
STAFF RECOMMENDATION
Approve the amendments to the ICMA City Administrator Pension Plan.
BUDGET IMPLICATION
BUDGETED AMOUNT
ACTUAL AMOUNT
ADVISORY COMMISSION ACTION
DATE
REVIEWED
APPROVED
DENIED
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PLANNING
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PUBLIC SAFETY
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PUBLIC WORKS
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PARKS AND RECREATION
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HUMAN SERVICES /RIGHTS
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ECONOMIC DEV. AUTHORITY
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SUPPORTING DOCUMENTS
® MEMO /LETTER: Memo from Joe Fischbach dated 4/14/10.
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
ADMINISTRATORS COMMENTS
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COUNCIL ACTION TAKEN: APPROVED ❑ DENIED ❑ OTHER
H: \Memos & Resolutions \042110- CC Action Form- CA Pension.doc
CITY OF COTTAGE GROVE
MINNESOTA
To: Honorable Mayor and City Council
From: Joe Fischbach, Human Resources Coordinator#
Date: 4/14/2010
Subject: City Administrator Pension Plan Amendment to Contract
Background
In November of 1997, City Administrator Ryan Schroeder elected to opt out of the Public
Employee 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 a new contribution level.
The State Legislature required PERA to increase the employer contribution rates in 2010. The
employer contribution rate went from 6.75% of gross wages to 7.00% of gross wages. The City
approach for the 401 plan has been parity with the required PERA contribution level. IMCA -RC
requires confirmation of that agreement each calendar year. Therefore, staff is recommending
Council increase the contribution to the City Administrator Pension Plan to 7.00% of gross
wages from 6.75% of gross wages as well.
Recommendation
Approve the amendments to the ICMA City Administrator Pension Plan.