HomeMy WebLinkAboutRes2004-036
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Sponsored by: Shealy
CITY OF SEWARD, ALASKA
RESOLUTION 2004-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, OPPOSING HOUSE BILL 91 ("HB 91 If) WHICH WOULD
INCREASE COST-OF-LIVING ALLOWANCE AND MEDICAL BENEFITS
FOR RETIRED PEACE OFFICERS AFTER 20 RATHER THAN 25 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, such as the
increase in cost-of-living allowance and medical benefits proposed by HB 91; and
WHEREAS, HB 91 proposes to improve the Alaska Cost of Living Allowance retirement
benefit and the retirement system paid medical coverage for peace officers by reducing the required
years of service to be eligible for such services from 25 to 20 years; and
WHEREAS, State of Alaska actuarial consultants have estimated that these benefit increases
will result in an increase in the PERS calculated contribution rate by .97% of peace officer/firefighter
payroll, and based on an estimated annual peace officer payroll of$746, 193, the annual cost increase
to the City of Seward is approximately $7,238; 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.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council opposes House Bill 91 which would increase cost-of-living
allowance and medical benefits for retired peace officers after 20 rather than 25 years of service
under the State of Alaska Public Employees Retirement System.
Section 2, This resolution shall take effect immediately.
CITY OF SEWARD, ALASKA
RESOLUTION 2004-36
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd
day bfMarch, 2004.
THE CITY OF SEWARD, ALASKA
c:;,al.~~
C, David Brossow, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Shafer, Branson, Clark, Valdatta, Amber,
Dunham
None
Brossow
ATTEST:
Je Lewis
Cit Clerk 1111'
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