HomeMy WebLinkAboutRes2004-033
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Sponsored by: Shealy
CITY OF SEWARD, ALASKA
RESOLUTION 2004-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, OPPOSING SENATE BILL 245 ("SB 245") WHICH WOULD
MAKE HARBOR OFFICERS ELIGIBLE FOR RETIREMENT AFTER 20
RATHER THAN 30 YEARS OF SERVICE UNDER THE STATE OF
ALASKA PUBLIC EMPLOYEES RETIREMENT SYSTEM
WHEREAS, the September, 2002 actuarial valuation report published by the State of Alaska
Public Employees Retirement System (PERS) states that the City of Seward has an overfunded
balance with PERS of$622,287, but the subsequent actuarial report dated August, 2003 depicts an
unfunded liability with PERS of $5,077,954; and
WHEREAS, over the years, a significant portion of the increase in costs associated with
PERS is the result of benefit increases approved by the State for municipal employees, and in the
case of SB245, only municipalities will be impacted by added retirement-related costs; and
WHEREAS, currently the only PERS employees eligible for retirement after 20 years of
service are peace officers and fire fighters, jobs which are considered hazardous by nature, and
SB245 would enable harbor officers to retire after 20 years of service rather than the current
requirement of 30 years of service; and
WHEREAS, SB245 is based on the premise that the job of a harbor officer is similar to that
of a police officer or fire fighter and therefore justifies a "20 year and out" retirement program, but
the administration feels that harbor officers are like other municipal employees who may be first
responders to facility emergencies, and may enforce laws and regulations, but will then call police or
fire crews when facing substantial risk of injury or danger; and
WHEREAS, the State of Alaska Department of Retirement and Benefits estimates that the
annual cost of increasing PERS benefits to harbor officers will be approximately $2,963 per
employee, although that figure is arguably low given the actuarial projections for health care and
retirement costs; and
WHEREAS, the administration does not support SB245 even it were amended to allow each
municipality to make its own decision as to whether or not to offer harbor officers a 20 year
retirement plan because that would create disparate competition among municipalities, as well as
unfair and unjustified advantages for harbor officers over other municipal employees; and
WHEREAS, the administration is opposed to changes in the PERS system that increase costs
to employers through added employee benefits, at a time when municipalities have been told to
expect 5% annual increases in PERS rates over the next five years, resulting in an expected annual
increase in costs to the City of Seward of approximately $186,025 in the first year, and up to
$930,000 in increased costs by the fifth year.
CITY OF SEWARD, ALASKA
RESOLUTION 2004-33
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council opposes Senate Bill 245 which would make harbor officers
eligible for retirement after 20 years rather than 30 years of service under the State of Alaska Public
Employees Retirement System.
Section 2, This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska, this 22nd
day of March, 2004.
THE CITY OF SEWARD, ALASKA
C .zv~~
C. David Brossow, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Shafer, Branson, Dunham, Clark, Valdatta, Amberg, Brossow
None
None
None
ATTEST:
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