Agenda Packets - 1989/02/06 - Laserfiche WebLink

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,1EMO TU: MAYOR AND CITY COUN' L FROM: CLERK-ADN,INISTRAT� DATE: JANUARY 20, 1989 �f SUBJECT: JIM TOBIAS PERA CONTRIBUTION Public Works Director/City Engineer Ric Minetor and I have recently been approached by Jim Tobias regarding the fact that the City does not pay a contribution to PERA for Jim's retirement program and requesting that the City take this money and give it to him as additional wage compensation. The reason the City is not making a PERA contribution for Jim is that he had previously retired from Public Service and commenced drawing his retirment. Upon returning to work with the City of Mounds View PERA advised the City that we would not be expected to make a contribution to his retire- ment program as he had already implemented that withdrawal. The savings to the City of Mounds View is 4% of Jim's gross wages. Upon receiving this request, I discussed the matter with the City's Management Team and tnere is a division as to the advisability of complying with Jim's request. In discussing the matter, we further identified that there are three options available to us. The first is to do nothing and advise Jim that we will not comply with his request. The second is to comply with his request and give him an additicnal 4% adjustment to his wages to reflect the fact that we are not contributing to PERK and the final option is to take the 4% contribution and place it in a deferred compensation program such as the ICMA Retirement Corporation account which the City is a member of which he may draw on upon his retirement from the City's employment. The Management Team was divided between complying with Jim's request either by giving him a wage adjustment or contributing it to a deferred compensation program and doing nothing. Those who suggested doing nothing felt that Jim was fully aware of the fact that we would not be making a PERA contribution at the time he was employed by the City and, therefore, it is inappropriate for him to be making this request at this time. The other position, to comply with Jim's request, is based on the fact that the City is providing a PERA contribution to all of our other employees and Jim should be able to expect equal treatment irrespective of what previous actions had occurred with respect to his PERA account. With that in mind, you are not receiving a recommendation from staff on this item but simply a request that you provide us with direction in order that we can respond to pr. Tobias' request. Should you require any additional information, please do not hesitate to let me know. DFP/MJS