Agenda Packets - 1986/11/03 - Laserfiche WebLink

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_- __ ___ ..-... .........,.o....�.. t+�j -- oenerius rinancin , and Administration (cont'd) (B) Since the PERA police and fire fund has now essentially achieved full funding, employers' and employees' contributions should be reduced to an amount sufficient to pay normal costs. 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. Individual local police and fire relief associations, with city consent, should be allowed to merge into the PERA police and fire funds only if all active members are brought under the PERA benefit structure and if: a) savings will accrue to the city in the opinion of the stare actuary as well as in the opinion of the affected municipality; and b) all actual funding liabilities as calculated by a state actuary which are transferred to or assumed by the post -retirement fund are immediately reiai,ursed to the fund by the transferring city; and c) all actual funding liabilities as calculated by a state actuary which are transferred to the PERA active fund shall he reimbursed to PERA at either the percentage that the PERA police and fire active member fund is funded in the year of consolidation or the percentage that fund was funded on the date of the Moorhead local fund consolidation, whichever is greater; and d) transferring employees shall draw benefits at the PERA level based upon the salary level upon which pension contributions were made. 9. A new defined contribution pension plan for municipal first responderh� •,••a municipal ambulance volunteers who do not receive credit for their ambulance its under any other pension program should be created by legislation. This 1u.:d should be administered by PERA or another administrator on a statewide basis but with full power of the respective local governmental units to chose whether to participate, the level of contribution each year, the source of funding, and the minimum service period to vest benefits. 10. The League opposes any change in the PERA Rule of 90 or the current early -retirement reduction factor. PERA is the only statewide pension fund with members eligible for the Rule of 90 and with a one-fourth percent pension reduction per month under age 65 early -retirement reduction factor. Members have provided substantial service in reliance on these beneficial and purportedly permanent fund features. 11. if the federal government should require all newly hired police and fire personnel to participate in Social Security, current PERA contributions rates and benefits should be halved for affected new hires. 12. The league does not oppose an extension of the "Rule of 85" window to June 15, 1987 to allow teachers to finish their school year. If any extension is granted, all public employees should be treated similarly. Any extension beyond June 15, 1987, should be preceded by an audit of the program to determine the costs and benefits. -48-