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96-701ORIGINAL Council File # ��� Green Sheet # J � ,� RESOLU710N SAINT PAUL, MiNNESOTA Presented By Referred To 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 t� Committee: Date WHEREAS, The Legislature of the State of Miimesota, passed enabling legislation (Laws 1996, Chapter 448, Article 2, Section 1) which provides that the service pension or retirement benefit payable from the St. Paul fire deparhnent consolidation account or from the St. Paul police consolidation account to a person who becomes newly entitled to that service pension or retirement benefit may not be an amount that is less than the service pension or retirement benefit then payable to a compazably situated pensioner or benefit recipient of that consolidation account effecfive December 31, 1993; and WHEREAS, The enabling legislation (Laws 1996, Chapter 448, Article 2, Section 5) requires municipal approval of this change; now therefore be it RESOLVED, That the Council of the City of Saint Paul, upon the recoxnmendation of the Mayor, does hereby approve the changes made by Laws 1996, Chapter 448, Article 2, Section 1, retroactive to December 31, 1993; and FURTHER RESOLVED, That the city clerk is hereby directed to file the appropriate certificate with the secretary of state evidencing the adoption of this resolution, and is directed to file a copy of this resolution with the director of the Public Employees Retirement Associarion. Requested by Department of: Adopted by Council: Date �(._�q�,� ����� Adoption Certified by Counci Secretary By: Z � Approved by Mayor: Date �'(/ {� By: ��..i�(\�� Finance and ManaQement Sexvices BY� � L�K!!'y� \rC�11VlA�d�v� Form Ap �ved by City ttorney B : Approved by Mayor for Submission to Council By: / °b � �� �� � 7n � Finance F and Management Services 06/11)96 GREEN SHEE N° 3 2410 CONTACT PEfl50N & PHONE MRIAUDATE MRIAUDATE �DEPAtiTMENTDIflECTOR �CITYCOUNCIL ASSIGN C17YATTORNEY CRVCLEFK Larson 266-8797 NUYBERFOH � ---�- MUST BE ON COUNCIL AGENDA BY (DATE) R��� � BUDGET �IRECfOR� � FIN. 8 MGT. SERVICES DIR. OPDER Q MAYOR (OR ASSISTANTj � TOTAL # OF SIGNATURE PAGES (CLIP ALl LOCATIONS FOR SIGNATURE) ACTION RE�UESTED: Resolution gives local approval to special legislation which provides benefits to pensioners' recipients who became eligible after 12/31/93, as those who began receiving benefits prior t that date from the Saint Paul Police and Fire Consolidation Accounts at PERA FECAMMENDA7IONS: Approve (A) or qeject (p) pEqSONAL SENVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS: _ PUWNING CAMMISSION _ CIVIL SERVICE COMM�SSION �� Hd5 tllis p2rSOnlfirtn ever workBtl untler a CAnVaCt fOr this departmen[? _ CIB COMMffTEE YES NO _ SiaPP 2. Has this person/firm ever been a ciry employee? — YES NO _ DISTFiICT COURT � 3. Does this person�rm possess a skill not nortnally possessed by any curtent city employee? SUPPORTSWHICHCWNCIl08JECTfVE7 YES NO Ezplain all yes answers on separate sheat and ettach to green sheet INITIATING PPOBIEM, ISSUE, OPP�qTUNI'fY (Wlw, What, WM1en, Where, Why): Due to an adjustment in the calculation of average salaries, upon which pensioners' benefits are based, pensioners who began drawing their benefits after 12/31/93 receive a smaller amount than comparable pensioners received prior to 12/31/93. AOVANTAGESIFAPPPOVED: (See attached memo from Martha Larson and Joe Reid, dated June 11, 1996.) `^ '' . �:'' a � {� - � ";�y;"!J'�h'A i� � - - -^�' Y:s.''v �s CaURCd �aSS��ctt Ce�1F�f .... vi�iL 6 `� I�Mc c��� �. � 1���1 , . _ . �. ,..����;^, w ; �, r � , � � . ' ' v � DISAWANTAGES IF APPRWED: (See attached memo from Martha Larso�i"�xxd-3cre�eid�.«da�ed...�asne 11, 1996.) DISADVANTACaES IF NOTAPPROVED: (See attached memo from Martha Larson and Joe Reid, dated June 11, 1996.) TOTAL AMOUNT OF TRANSACTION E COST/HEVENUE BUDGE7ED (CIRCLE ONE) YES NO FUNDING SOURCE ACTIVITV NUMBER FINANCIAL INFORMATION: (EXPLAIN) DEPARTMENT OF FINANCE AND Mf1NAGEMENT SERVICES Mayor Norm Coleman CTI`Y OF SAINT PAUL Norm Coleman, Mayor TO: FROM: RE: DATE: Joe Reid Maztha Larson �l�n}y�- Martlea G. LarsorS D'veuor 290 Ciry Hall Telephone: 612-266b797 ZS W. Kellogg Boulev�d Facsiirrile: 612-266.8919 Saint Paul, Miisitu'ota 55102 Police and Fire "Widows" Pension Plan Change June 13, 1996 This memo addresses our evaluation of the financial and other implications of the proposed Police and Fire "widows" pension plan change (Laws 1996, Chapter 448). The financial impact of approving the proposed plan change (the increase in the City's annual pension contribution) is not substantial (it is approximately $25,000 per year), based on the actuarial estimates for the 1994 and 1995 widows' group. We also appreciate the significant interest in this issue by the Police and Fire plan members, and understand their desire to ensure that this particular group of surviving spouses receives the level of benefit that they had ea�pected to receive but did not. (This was due to the change in inclusion of the health benefit amounts in the 1994 and 1995 in the average salaries that were used to set the pension benefit amounts for the surviving spouses.) We also appreciate the desire for timely correction of this situation. We have met with representatives of the active and retired Police and Fire plan participants and haue confirmed and agreed that the intent of this legislation is to rectify the dispazity in monthly pension benefits being drawn by those surviving spouses who became eligible in 1994 and 1995. With this mutual understanding of the intent of this legislation, we aze recommending approval of the proposed plan change. c: City Councilmembers e�uurs�aam�n�pe�s�oozwa Sh7VT BY: 5-30-96 ; S=00PM : ���� �� CO,M1LM f SS f U,'VS-� 612 298 5619: # 3/ 5 �!'H'C1.C�.wl4.�'-- � mrr.r.i�x & xos�xTSQN, i�.c. r�,�i� & ��n�ss ttts�r'+rntinnrtFt}' WCX7DROW MIi.[.3MAR� Suite940, ISPW Biuetnouud Ruad, Broo�sW� Wiscomm� 5300S5p59 Tcirp6onc43A/789-2250 Fai:4i�8i-4116 �n 2�, is�6 r� ; : ; � � , .r Mr. Lawrence A. tv3artin Executive Director It4innesota Legislatibe Commisszon on Fensians and Retit�.m�ent 55 State 4ffic� Building St. Paul, M'innesota 55155-I2(}i RR: Actuarial Calculatiass on Behatf nf St_ Faul Dear Lazry: `t �-'lo i As requcstcd we have c�mpletetl an auatysis of ihe financiat consequence of ttie proposed legislation which would impact a select group of benc�ciaries undet thc SL Pauf Police and St Paul Fue accounts within t�e PERA Police and Fire Consolidariqn Pian, O�u resufts are sammarizcd by account on the eneTosed ai4ac:hments. This analysis has 6aeu completeci using the recommended mnztality assumptions (and 5.0°to interest), cunsiste� with aur recent experience study. If you or any other interested pazry has questio�is, please contaoi me at 4 1 417 64-22 5 0. Respectfiiliy submdiicd, MILLIMAN & RU�FRTSON, INC. 1 � ��� Thomas K. Custis, F.S.A. C`.onsulting Actuary TKCIt�h Enclosu:e cc: Shiriey Dav,s Mike Schwab Mary Vanek R9 AShanRAtlani4Hosma. C]ius�,�n, Da4a.. iknva. Har7(urd. F1fw#a4 ind'uoapolis,l[vina.lm Anp,eiee.Mihws+kee.Aiiiuxapo64 NexYorkD�ah� Ph:IaAdy6ia. Phoenu. Mrdand. MF,Yanknd,U7L Si. Lanis.SehLL'e C.ity, Can f�iegq S�o fxanrism, Searik.Tampa, Wsihiegrnn,qC.. Bertnude, Tok�o WOOPRpYi hRLIJM:iY Mrmleer linn. in Vrin.qul GliealwrldWidt LCP a i NjAR 2T'139£ SF?�T SY: 5-30-90 ; 5� OlPid t CObfM f SS f GNS-+ 612 298 Sfi19; � 4/ 5 96•�oi ST. PAUL FIRE CONSflLIDATION ACCQUNT A�jeclett Benef�iaries: 1� SurvivingSpouscs Ixcrease irc Totat ,Benej'rt LiaUitily: Retraactive Paymcats from Effecs.ive llzte 71u�ou�h lune 1996 Present Vatue of Fut�ue Iacressed SeneSts at 3u1y 1, 1396 TOTAL �eded Addition tu Afunicipal Cvntri'vutivn Requiseresent: {]5-ye� amnrtizatien of lisbility increase} � 13,133 � ��z�,�a� ��:��+ AfII1ZM.a.N & %IHEECIr.ON A*C. SENT BY: 5-30-95 : 3�O1Pm ; CO?�MISSfGNS� 612 298 Sfi19:# 5l 5 ST. PAUL PQLfCE CONSCSLiDATIUiY ACCfJUNT 9�^� 0 I A�ectea Be,reJic;a,ies: 31 Survivmg 5pouses 7 Deferred Vestd Palice Cf3icer lncrease irz Totat BenefitLirrDility: Retrorutiva Payments &nm EffectiveDate'Iliraugh3unei995 $ G,+579 Present Vaive of Future Increased Beriefits at luly 1,1996 75.713 T{1TAl. 582,392 �ected A��inn to 1Yl�ts2c�c+l Carntribua�nn Regrrzre�a�i: � (!5-yrur arnoni7atina oflia�sitity �ncrcasc) MIIyi.MAN & lt(�EFCfSdN, IIVC. 9G-�ot Ch. 446, Art. 3, § 4 79th LEGI5LATUItE fewer Sec. 5. EFFECTIVE DATE. and Presented to the goeemor Apri14, 1996. Appro��ed Aprii 11, 1996. EC01'OIVIIC DEVELOPMENT—POVERTY LEVEL R'AGES CHAPTER 447 G��`�G�:kYI (L¢ws 1996, cha.pfer 417, was vetoed 6y the governar April 11, 1996.J RETIREME?v'T—LOCAL PENSION PLANS—ITASCA COiJNTY MEDICAL CENTER, FIREFIGHTERS RELIEF ASSOCIATIONS CHAP7'ER 94S H.F. No. 2493 AN ACf relating to mtirement; modifying provisions of various local pension plans; malang miscetlaneovs benefit and administrative changes; including nonpm5t firefigfitmg corpora- tions as municipalities in certain circumstances; amending Minnesota Statutes 1994, aedions 3535.11, subdivisions 1 and 3; 353B.13; and 466.01, subdivisions 1 and 6; Laws 19G5, eliapter 519, section 1, as amended; I.awa 1992, chapter 563, section 5; Laws 1994, et�apter 990, section $ and Laws 1995, chapter 262, article 7, section 1. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA ARTICLE 1 ITASCA COUNTY MEDICAL CENTER; RETIREMENT Seetion 1. Laws 1995, ehapter 262, article 7, section 1, is amended to read: Section 1. TH..92�TSFERRED EMPLOYEES. This seetion applies if the Itasca county medical center is sold, leased, or transferred to a private entity or public corporation. Notwithstanding any provision of Minnesota Statutes, sections 35624 and 35625 to the contrary, to facilitate the orderly Lramsition of employees affected by the sale, lease, or transfer, the county may, in its discretion, make, from assets to be transferred to the private entity or nublic corporation, payments to a qualified pension plan established for the transferred employees by the private entity or publie corporation, to provide benefits substantially similar to those the employees would tiave been entitled to under the procisions of the public employees retirement association, Minnesota Statutes 1994, sections 353.01 to 353.46. Sec. 2. TREATMEI�^f OF TERMINATED, NONVESTED EMPLOYEES. Subdivision 1. ELTGIBILITP. (a) An eli�`ble individual is an individual who: 96g Additions are indicaied 6y underline deletions 6y strikesut 9 `-�o� 1996 REGL'LAR SESSIO�' Ct►. 448, �. 2, § 2 (1) is an emplovee of the Itasca countc medical center immediatelV Prior to the sale, lease, or transfer of that facilitv to a pricate entitv o* public corporation; (2) is terminated at the tune of the sale, le��e, or transfer; and (3) had less than three vears of sercice credit in the public emplocees retirement associaUon plan at the date of termn�aUOn. (b) For an eligible indicidual under pu•a¢raph (a) the counri mae make a member cont� equi��alent pat�nent under subdicision 2. Subd. 2. ME'.KBER COVTRIBU7`IO\ EQUI�:�I.E\T PAYME'�T. The member con- rrihutinn em,icalenr nacment. is an amount eoual to the total refund pro��ded be Minnesota or Sec. 3. EFFECTI�'E D�TE. Sections 1 and 2 are effecti�'e on the dav follonzn� apPro��al by the Itasca county boazd and compliance �i-ith Minnesota Statutes, section 645.021. ARTICLE 2 PUBLIC SAF'ETY EMPLOYEE RETIREMENT PROVISIONS Section 1. Laa 1992, chapter 563, section 5, is amended to read: Sec. 5. ST. PAtiL POLICE AND FIRE CONSOLIDATION ACCOU'.VTS; LI:IIITATION OV POSTRETIREMENT BENEFIT REDUCTIONS. (a) A monthly sen�ice pension or retirement benefit payment from the St. Paul fire department �2��assec-iakiea account or the St. 1'aul police �e!�=€-asseeiatiencon- solidation aecount may not be reduced in amount to an amount that is less than that reeeived by the person for the immediately pre��ious month. the �'^^ a f* ° n �h '^':^� zecutive du'eetAr of the pubhc emplot'ees retll'ement association to require proof of continuing eligibilit� far receipt of a disability benefit or a survivor benefit, or to require the reduction in amount or elimination of a disability benefit in the event of ehanged medical circumstances, or to require the reduction in amount or elimination of a sunrivor bene5t in the event of changes in eligibility. Sec. 2. La«�s 1994, chapter 490, section 2, is amended to read: See. 2. AUSTLV FIRE DEPART:VIE?�'T RELIEF ASSOCIATIO'V; SLR�'ICOR COV- EKAGE FOR CERTAIN SPOUSES OF CERT9I'� RETIRED FIREFIGHTERS. (a) Not�n-ithstanding any pro�lsion to the eontrary of the general or speciai lan-s governing the Austin fire depan relief association, the articles of incorporation of the relief association, or the bylaws of the relief zssociation, a person described in paragraph (b) is entitled to a survi�ing spouse benefit as pro�dded in paragraph (c). (b) A person entitled under paragraph (a) is a person �cho: (1) ��as the legatiy married spouse of a deceased reta-ed or disabled member of the Austin fire department relief assoeiation at the time of Lhe deceased member's death; Additians are indicated by underline; deletions by sfrikew+t 969 �his(c) The limitation in paragraph (a) or (b) may not be construed to limit the power of