Agenda Packets - 1985/01/02 - Laserfiche WebLink

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111'S-1. PERA BENEFITS, FINANCINC, AND ADMINISTRATION (A) (cont'd) J has now essentially achieved lull funding, em loyer' and employees' contributions should he reduced to an amount sul'firient to pay normal costs. The PERA police and fire fund is now essentially fully funded. Furthermore, the employer (taxpayers) through payment of more than 50 percent of contributions to this fund is creating a surplus not needed for pension purposes. 8 The LMC requests the legislature to defer state rnnrrihu[innn until benefits are received and to ex Recently, the Internal Revenue Service ruled that employee contributions to PERA and similar public pension systems are not subject to federal income tax contribution during the year in which they are contributed to the system, but rather are taxable in the year in which the employee actually receives the benefit. This ruling is consistent with the manner in which municipal employer contributions are taxed. Since the employee does not have use of the contribution in the year it is made and the Federal government has deferred taxation until the benefits are received. The selection process for the PERA Board should be a single weir ilnanceu d include appointment of additional Board members by employers to mployers heavy contribution to financing. Selectinn of a successor ive Director should occur only after an open selection process to 10 Local police and fire associations should be merged into the PERA police and fire Eunds only if: 1) savings will accrue to the city, in the opinion of the Mate actuary as well as in the opinion of the affected municipality and 2) all actual funding liabilities as calculated by a state actuary which are transferred to or assumed by PF.RA are immediately reimbursed to PERA by the transferring city. PPS-2. RESIDENCY REQUIREMENTS (A) The PPS-3. VOLUNTEER AMBULANCE RETIREMENT (B) to H.S. 356.24 should be amended to permit cities to contribute to defined contribution or deferred compensation plans for city volunteers and employees so long as no public or non-profit administrative apparatus separate from the cities themselves are created. The authority should permit vesting periods not to exceed five years and special levies should he available to finance ambulance retirement programs.