HomeMy WebLinkAbout03/11/1991 Council Minutes1
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COUNCIL WORK SESSION MARCH 11, 1991
A work session of the Lino Lakes City Council was called to order
by Mayor Bisel at 5:30 P.M., Monday, March 11, 1991. Council
Members present: Neal, Kuether, Bisel, Reinert, Bohjanen.
Council Members absent: none. City Accountant, Paula Schloer;
Administrator, Randy Schumacher and Clerk- Treasurer Marilyn
Anderson were also present.
The purpose of the work session was to discuss elected officials
retirement plan alternatives and in particular the Defined
Contribution Plan. John Paulson from PERA was present to outline
the plan for the Council and to answer questions.
Mr. Paulson gave a brief background on how and why the
legislature decided to offer this particular plan to elected
officials. Mr. Paulson noted that if Council Members decide not
to enroll in the elected officials PERA plan, social security
will be deducted from their salaries beginning July 1, 1991. The
Defined Contribution Plan is administered by PERA and is a
retirement program for elected officials and public ambulance
service personnel where participants determine how employee and
employer contributions are to be invested through the purchase of
shares in accounts of the Minnesota Supplemental Investment Fund.
Total contributions plus investment performance determine the
ultimate benefit, which is paid as a lump sum upon withdrawal.
The rate of contribution to this plan is five (5%) per cent for
the elected official and this amount will be matched by the
employer.
Mr. Paulson handed out several booklets to the Council Members.
He outlined the Defined Contribution Plan and noted that it is
actually a deferred tax plan. He noted that elected officials
may make contributions to the plan for past uncovered elective
service. In this case the employer will match these
contributions according to the rate that was in effect at the
time the public official was in office.
Mr. Paulson explained that if a public official decides to enroll
in the Defined Contribution Plan, the public official can
determine how he wants his contributions to be invested. He also
explained that the contributions to this plan must remain in the
fund until the participant is no longer in elective office, is
disabled or dies. At either of these events, the total amount is
withdrawn in a lump fund.
Mr. Paulson explained the form that must be completed by the
elected official if he /she wishes to make contributions to the
plan for past uncovered elective service. He noted that in some
cases it may take several years to purchase back uncovered
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COUNCIL WORK SESSION MARCH 11, 1991
service.
Council Member Reinert asked what kinds of service are covered.
Mr. Paulson explained that only service as an elected public
official qualify under this plan. If an elected public official
is not now a member of PERA there is no time limit for enrolling
in this plan. However, if the elected official is a member of
PERA, he /she must enroll in this plan before June 30, 1991 or
remain in the normal PERA plan.
Mr. Schumacher asked if the Defined Contribution Plan was a
mandate by Governor Carlson? Mr. Paulson said not at this time.
Mr. Paulson told the Council that Ms. Schloer has all the
necessary forms for enrolling in this plan. He also noted that
she has the forms to be completed to make contributions to the
plan for past uncovered elective service.
Mayor Bisel thanked Mr. Paulson for coming before the Council
this evening.
The work session adjourned at 6:25 P.M.
These minutes were considered, corrected and approved at a
regular Council meeting held on March 25, 1991.
M r}ly G. Anderson,
Cle ±k- Treasurer
Harold L. Bi ,
Mayor
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