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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.