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HomeMy WebLinkAboutRes2006-021 I I Sponsored by: Clerk CITY OF SEWARD, ALASKA RESOLUTION 2006-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING RULE 22 OF THE CITY COUNCIL RULES OF PROCEDURES TO REFLECT EXCLUSION OF ELECTED OFFICIALS FROM THE PUBLIC EMPLOYEES RETIREMENT SYSTEM OF ALASKA (PERS) WHEREAS, prior to August 20, 2000, all compensated elected officials were automatically included in the Public Employees' Retirement System (PERS), per Alaska Statute; and WHEREAS, during the 2000 legislative session, House Bill 335 was passed and signed into law, amending AS 39.35.125 (a), giving political subdivisions the right to determine whether or not to include elected officials in the PERS system; and WHEREAS, on March 22, 2004, the Seward City Council approved Resolution 2004-37, excluding elected officials from the Public Employees' Retirement System of Alaska; and I WHEREAS, Rule 22 of the City Council Rules of Procedures Manual needs to be updated to reflect that resolution change made in 2004; and WHEREAS, the Clerk's office wishes to amend the City Council Rules of Procedure to appear as follows (strike O\:1t - deletions, bold italics = additions): RETIREMENT BENEFITS I RULE 22 A. Public Employees Retirement System (PERS). As an elected official, YO\:1 have the option of being eoyered by the state of Alaska Ptiblic Employees Retirement System (PERS). Yoar eontribwiofl, totaling 6.75%, of )'Oar pay, will be taken from your quarterly compensation checks. The City's eontrib\:1tion portion depends on the rate set annually by the state. Carrently, the City's rate of eontrib\:1tion is 9 .52~<'. Y 0\:1 will be vested in PERS after five years of serviee. If yoar service with the City ends prior to ,<,esting, )'Oar contributions to PERS will be refunded to )'0\:1. The minimUfl'l benefit for a retired eleeted offieial who is fully yested in PERS is $25 per month for each year of serviee; i.e., if)'Ou serve taree terms (6 years), yom- monthly retirement benefit will be $150. In addition, vested retirees will reeeive health benefits from the state of ,^..laska. If you ehoose to enroll in PERS, )'OU will reeei';e a PERS booklet from the state. Ref-er to this booklet for more information regarding )'Oar retirement plan. Effective 2004, City Council members are not eligible to participate in the Public Employees' Retirement System of Alaska (PERS). ..... CITY OF SEWARD, ALASKA RESOLUTION 2006-21 I B. Social Security and Medicare. The City opted out of the Social Security Program in 1981. In April 1986, changes in Social Security regulations required employees of the City to participate in the Social Security Medicare Tax at a rate of 1.45%. In April 1991, additional changes to Social Security regulations required employees not currently enrolled in an approved retirement system (such as PERS) to pay the full Social Security Tax rate of 7.65%. Thcrefore, if you waivc enrollm.em in PERS, 7.65~<' Soeial See1:1rity Tax will be withheld from yaW" eompensation. ShO\:1ld yoM enroll in PERS, 1.45% Soeial Seeooty Medieare Tax will be withheld from yoMr pay (in addition to the 6.75% PERS eontribution.) NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Seward City Council amends Rule 22 of the City Council Rules of Procedures to appear as follows: RETIREMENT BENEFITS I RULE 22. A. Public Emplovees Retirement System (PERS). Effective 2004, City Council members are not eligible to participate in the Public Employees' Retirement System of Alaska (PERS). B. Social Security and Medicare. The City opted out of the Social Security Program in 1981. In April 1986, changes in Social Security regulations required employees of the City to participate in the Social Security Medicare Tax at a rate of 1.45%. In April 1991, additional changes to Social Security regulations required employees not currently enrolled in an approved retirement system (such as PERS) to pay the full Social Security Tax rate of7.65%. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of March, 2006. THE CITY OF SEWARD, ALASKA --I~ J~~ Vanta Shafer, Mayor I I I I CITY OF SEWARD, ALASKA RESOLUTION 2006-21 AYES: NOES: ABSENT: ABSTAIN: ATTEST: r // ......... f /} J~an Lewis" ___ tity Clerk Valdatta, Dunham, Lorenz, Schafer, Thomas, Bardarson, Shafer None None None (City Seal) /'~6j~;if.:;;:~;.:';::,,:, ... . ....~. ~,....,.. \",.." \' '1 : ~ '.~ ;; G i c~~;,..' ~\ ~ E j~:J :.; '.'~ ~ : l. rl iii ~ "l..- \'~ ('4-.. 1,,41', '1.. ':Jo._... ,:.'6 \\ ,~, >...""(>.,..~:,,,~~ "(':'~~".. r :~:~' /' -C::,: "~'J~....O,"t..."", (l1~.;.....~ . " "':... 4 ~,~ ,'" (' "".' . . fl.:::: . Agenda Statement Meeting Date: March 13, 2006 To: Mayor, City Council From: Jean Lewis, City Clerk Thru Agenda Item: Amend Rule 22 of City Council Rules of Procedure BACKGROUND & JUSTIFICATION: Periodically the City Clerk’s office finds conflicts between the Seward city code and this City Council Rules of Procedures booklet that did not get amended as codes change. Some of the City Council Rules of Procedures were amended in 2003, making them coincide with changes that had been made to the Seward City Code. This change to Rule 22 merely reflects changes that occurred by the March 22, 2004 passing of Resolution 2004-37 (attached). INTENT: To update and keep the City Council Rules of Procedures current with changes previously made. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: _______________________________________________________________________ FISCAL NOTE: None Approved by Finance Department: RECOMMENDATION: Pass and approve Resolution 2006-21, which amends City Council Rules of Procedure, Rule 22, to reflect past changes that were made in 2004.