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HomeMy WebLinkAbout02082021 City Council LAYDOWN - Regis re HR Position210208 LAYDOWN (Regis re: HR Position) The study would be based on the person currently occupying the position. The following information is provided to help you determine the feasibility of terminating participation from the Public Employees Retirement System (PERS) and initiating the termination process if this is the course of action approved via resolution by the governing body of the City of Seward. An employer requesting termination from PERS shall pay the cost associated with obtaining the required termination study. The associated cost is generally between $4,00048,000. Please note, this is an estimate, the actual cost may vary. This termination study is the first step and afterwards the City of Seward will need to determine whether to proceed. In order to request a termination study contact: David Kershner Principal, Consulting Actuary 10633 Otter Key Lane Estero, FL 33928 Telephone: 602-803-6174 Email: david.kershner&buck.com As part of this process a spreadsheet or report will need to be submitted to both the actuary and the Division of Retirement and Benefits identifying the following information for all impacted employees: • Name • SSN • Date of birth • Contact information (Current mailing address, and if possible, phone and email) • Current position • Current salary This information will be used to complete the study, and educate the identified members of their rights in the event a decision is made to stop participation in PERS. Please bear in mind the completed study is valid for the termination date identified and provided to the actuary. Any changes or delays may result in additional costs associated with the need to have an amended termination study completed. In addition to the one-time termination cost identified in the termination study there are also ongoing costs. Alaska Statute 39.35.625 requires employers to pay continuing contributions to the plan each payroll period until the past service liability of the plan is extinguished. The contributions will be the greater of the total base salaries paid: 1. During the payroll period to employees in positions for which coverage has been terminated; 2. At the time of termination to employees in positions for which coverage has been terminate; or 3. During the corresponding payroll period for the fiscal year ending June 30, 2008, to employees in positions for which coverage has been terminated. Salaries used to calculate continuing contributions become part of the total employer salary base paid to the plan when determining salary floor affects. The current past service cost rate is found at http://doa.alaska.gov/drb/employ. e�ployer_contribution_rates (select the applicable year). If upon review of the termination study it is decided to move forward with separation from PERS, written notice requesting termination of participation from PERS must be provided in the form of a resolution approved by the governing body. The termination date must provide at least 90 days' notice from the date the resolution is submitted to the Division. Language that will be helpful to draft the resolution can be found in the attached sample termination amendment. It must be tailored to the specifics of your situation, and the language in the resolution needs to support and coincide with the language of the amendment. We require two signed originals of the amendment and one signed original of the approved resolution. Additionally, we need a list of all impacted active employees, along with their associated Social Security numbers, job titles, salaries, and current contact information (both at work and at home) in order to provide the necessary education regarding the impact to their retirement benefits and their options moving forward. Additional information regarding the process can be found in the PERS Employer Manual pages 4-6, and the termination flyer found at the following links: • http://doa.alaska.gov/drb/pdf/employ e�ployer_manuals/PERS_Employer_Manual.pdf • hops://doa.alaska.gov/drb/employer/resources/pers-termination-studies.html Respectfully, Brandon Roomsburg Regional Senior Benefits Counselor Division of Retirement and Benefits Phone: (907) 465-1153 FAX: (907) 465-3086 Toll -Free: 1-800-821-2251 A A A. CONFIDENTIALITY NOTICE: This email and any attachments are for the sole use of the intended recipient(s) and may contain information that is confidential and protected from disclosure under the law, including attorney -client communications. Any unauthorized review, use, disclosure, or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply email and delete/destroy all copies of the original message and attachments. DISCLAIMER: The information contained in this email is based on the specific facts and circumstances presented and cannot be applied to other facts and circumstances. This email may contain a summary description of benefits, costs, rates, valuations, other calculations, policies or procedures for one or more pension or benefit plans administered by the Division of Retirement and Benefits, including but not limited to, the Public Employees' Retirement System, the Teachers' Retirement System, the Judicial Retirement System, the Supplemental Annuity Plan, the Deferred Compensation Plan, the AlaskaCare Employee Health Plan, or the AlaskaCare Retiree Benefit Plan. The Division of Retirement and Benefits has made every effort to ensure, but does not guarantee that the information provided is accurate and up to date. Where this email conflicts with the relevant Plan Document, the Plan Document controls. AThink green before you print.