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274177 WHI7E - CITV CLERK �1� 1111��� /_ A LR PINK - FINANCE GITY OF SAINT PALTL Council rrrr i� CANARV - DEPARTM T BLUE - MAVOR File NO. o nci esolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS, representatives of the City of Saint Paul, the Saint Paul Police Relief Association, and the Fire Department Relief Association have participated in a series of ineetings where legislative changes in the city' s fire and police pension programs have been discussed; and WHEREAS, the objective of these meetings was to develop a joint legislative position for presentation to the 1980 legislature; and WHEREAS, all three parties have presented their concerns over financing, employee security, benefit levels, employee contribution rates, and benefits for new employees; therefore BE IT RESOLVED, that the City Council hereby approves the provisions contained in the attached memorandum of agreement; and be it FURTHER RESOLVED, that the City Council will support the 1980 state legislation necessary to carry out the changes outlined in the � attached memorandum of agreement. COUNCILMEN Yeas Nays Requested by Department of: =$er�k�McMahon � �n Favor Hozza Hunt L.evine __ Against BY — Madd alter TedesCO Form pprove y A me Ad ted by Coun � : Date _�_2 7 1979 r ertified �.sed by ou il SecJ�tary BY c Appr e by lVtavor. D Appr ve y Mayor for Su is 'on to Coun , BY — BY �.`I�S��� �L1 g� �` =�;,�n . , . �`�,'"•': �;.,� ;,,"�� ta�� ti�_�, -� � 4. Amortization If all new employees will become PERA members, then a forty year (or less) amortization plan will be required in order to pay off existing deficits. If the "second tier" plan is adopted, then the present Guidelines Act funding schedule shall be followed. 5. Benefit Increase All existing employees shall receive a benefit increase of 1/2 of 1$ of pay for each year of service over 25 years. This increase will not be escalated. This change in benefits shall become effective as of the date of enactment. � ! � � eor La imer, Mayor om Gel man, President City f Saint Paul Saint Paul Fire Department Relief Association oanne Showalter, President ` S ' t Paul City Council Henry z er resident Saint aul Pol Relief Asso ' ation Ron Maddox, Chai an Legislative Committee, Saint Paul City Council Dated: December 18, 1979 + 4�1 . ' " , , �% '"�'t� �'�`�-� � � - MEMORANDUM OF AGREEMENT � Between the City of Saint Paul, the Saint Paul Police Relief Association and the Saint Paul Fire Department Relief Association The following items have been jointly agreed upon by the City _ of Saint Paul, the Saint Paul Police Relief Association, and the Saint Paul Fire Department Relief Association. All three parties have agreed to support the state legislation necessary to accomplish the changes outlined in this agreement. 1. Contribution Rate The employee contribution rate for all members shall be increased from 6� to 7� as of January 1, 198I, and from 7� to 8o as of January 1, 1982 . 2. New Employees All new employees as of January 1, 1981 shall become members of the statewide PERA police and fire system. �::. Support for this position is contingent on state financial assistance to amortize the unfunded liability of both funds. The amount of the state financial assistance shall be sufficient to ensure that the benefits of all existing members of the two existing local pension plans will be . secure. It shall also be sufficient to ensure that the City will not be required to raise property taxes for the required amortization. If sufficient state financial assistance is not available, then it will be the position of both the City and the Police and Fire Relief Associations to place all new hires in a second tier of the existing Iocal plans. This second tier will have a 4� capped escalator and a minimum retirement age of 55 e � 3 . State Ai.d If al1 new employees will become PERA members, then state . financial assistance to pay for amortization will be required . as outlined in #2 above. If the "second tier" plan is adopted, state assistance wil.l be sought to reduce the level of property taxes required to support the two local pension programs.