Laserfiche WebLink
<br /> <br />*3.1.* <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Lori Johnson, Finance and Administrative Services Director <br /> <br />DATE: August 8, 2005 <br /> <br />SUBJECT: Cliff Anderson PERA Financial Impact <br /> <br />Fire Clllef Bruce \Vest is requesting tllat Cliff .t\nderson change from PE~\ Coordinated to <br />PERl"\. Police and Fire pension plan. 1:vfr. West asked tllat I pro\lide information on the <br />financial impact of dus change. <br /> <br />Belo\v is a table sho"\ving the employer contribution rates for bodl tlle PE~\ Coordinated <br />and Police and Fire pension plans. These rates were adopted as part of tlle pension bill <br />approy-ed by tlle legislature dus past special session. .i\S you can see from tlle far rigllt <br />colmnn of tlle table, SR\TingS in the first t\vo years offset the increases in tlle next tluee years <br />so there is no lnaterial cllange in the amount of the City's contribution o\Ter the first five <br />years. Thereafter, assmning tile contribution rates do not change, tllere is a small increase in <br />the City's annual cost. <br /> <br />Year <br />2005 <br />2006 <br />2007 <br />2008 <br />2009 <br />2010 <br /> <br />Employer Contribution <br />Police & <br />Fire <br />9.300/0 <br />10.500/0 <br />11.700/0 <br />12.900/0 <br />14.100/0 <br />14.100/0 <br /> <br />Coordinated <br />5.530/0 <br />6. OO~/o <br />6.250/0 <br />6.500/0 <br />6. 7 5~/0 <br />7.000/0 <br /> <br />Social <br />Securitv <br />6.200/0 <br />6.200/0 <br />6.200/0 <br />6.20~/0 <br />6.200/0 <br />6 .20~/0 <br /> <br />Coord. & <br />s. s. <br />11.730/0 <br />12.200/0 <br />12.450/0 <br />12.70~/0 <br />12.950/0 <br />13.20~/o <br /> <br />.L\nnual Cost Difference <br />Coordinated To Police & <br />Fire <br /> <br />(1,037) <br />( 458) <br />122 <br />701 <br />549 <br /> <br />Notes. 1. Cost difference based on 2006 estimated pay of 61,000; no COL'\ applied to <br />future years. <br />2. PERi\. may adjust tlle contribution rates beginning in 2011. <br />3. Social Security tax is not paid under the Police & Fire plan. <br />4. Tvledicare tax of 1.450/0 applies under Coordinated or Police & Fire pension <br /> <br />plan. <br /> <br />s: \ Council \Lori \ 2005 \ PERA CIi ff Anderson. doc <br />