HomeMy WebLinkAbout1967-027 CCR r
Member Gordon Erickson introduced the following resolution and
moved its adoption:
RESOLUTION NO. 67 -27
RESOLUTION SUPPORTING THE COORDINATION OF P.E.R. A.
AND O.A. S. D. I., AND OPPOSING CERTAIN LEGISLATION
AMENDING PROVISIONS OF THE P.E. R.A. LAW
WHEREAS, the Public Employees Retirement Association pension fund
is actuarially unsound, and the actuarial deficit of this fund is increasing
each year; and
WHEREAS, as presently constituted, the retirement program administered
by the Public Employees Retirement Association provides inadequate retirement,
disability and death benefits, while being unduly expensive to the employer
and employee when costs are related to anticipated benefits; and
WHEREAS, the present P.E.R.A. retirement program fails to acknowledge
and provide for mobility in employment, which mobility is a major characteristic
of contemporary society, and therefore, the retirement program operates against
the recruitment of qualified personnel into the field of local government in the
State of Minnesota; and
WHEREAS, the coordination of P. E R. A. with the Social Security program
would permit mobility in employment without the loss of retirement credits earned
while in municipal employ, and further provide adequate death and disability
provisions to protect the family of the municipal employee; and
WHEREAS, since the benefit payments under the Social Security program
are not fully funded by employee and employer contributions, and this deficit
is made up through general taxation, the municipal employee is forced to con-
tribute to the maintenance of a program from which he derives no benefit; and
WHEREAS, experience with other retirement funds with excessive deficits
indicates that, when such funds were coordinated with O.A. S.D. I. the deficits
were substantially reduced over time; and
WHEREAS, both the League of Minnesota Municipalities and the Hennepin
County League of Municipalities have adopted resolutions calling for the coordi-
nation of P. E. R.A. with O.A. S. D. I.; and
WHEREAS, the inclusion of an option feature in such legislation which
would permit current employees to select the retirement program most beneficial
to the individual would meet the dictates of equity constantly sought by govern-
ment:
i
I
Resolution No. 67 -27
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Brooklyn Center as follows:
1. The City Council endorses and supports the proposal for
coordination of P. E. R. A. and 0. A. S. D. I. embodied in
Senate File 127 and House File 263, and hereby urges the
representatives of the 32nd District to work for the adoption
of this legislation.
2. For the reasons set out above, the City Council opposes any
legislation which would perpetuate the present philosophy
and program of the Public Employees Retirement Association,
especially the proposal embodied in House File 187 which
would remove the limitation on individual salary deductions,
and the representatives of the citizens of Brooklyn Center
are urged to oppose and work for the defeat of such proposals.
3. The Clerk is herewith instructed to distribute copies of this
resolution to the Governor of the State of Minnesota, represen-
tatives of the 32nd District and members of the legislative
committees concerned with the subject legislation.
February 6, 1967 G
Date Mayor
ATTEST:
Clerk
The motion for the adoption of the foregoing resolution was duly seconded
by member john Leary and upon vote being taken thereon,
the following voted in favor thereof: Philip Cohen, john Leary, Gordon
Erickson,and Theodore Willard,
and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted.