Agenda Packets - 2025/05/11 - Laserfiche WebLink

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NOTE 10—DEFINED CONTRIBUTION PLAN Councilmembers of the City are covered by the Public Employees Defined Contribution Plan(PEDCP), a multiple-employer deferred compensation plan administered by the PERA. The PEDCP is a tax qualified plan under Section 401(a) of the IRC, and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings,less administrative expenses. Minnesota Statutes, Chapters 353D and 356, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5.00 percent of their salary,which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees, contributions must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, the PERA receives 2.00 percent of employer contributions and 25 hundredths of 1.00 percent(0.25 percent) of the assets in each member's account annually. Total contributions made by the City during fiscal year 2025 were: Required Rate Contribution Amount Percentage of Covered Payroll for Employees Employee Employer Employee Employer and Employers $ 1,526 $ 1,526 5.00% 5.00% 5.00% -59-