Title
An Ordinance to Amend Sections 1:552.1, 1:561, 1:562, 1:565, 1:566, 1.567, 1:568, 1:572 and 1:592 of Chapter 18, Employees Retirement System, Title I of the Code of the City of Ann Arbor to Implement a “Pick-Up” Provision Allowed by Internal Revenue Code 414(h) for Members represented by the IAFF, Local 693 and the Command Officers Association, and Increase the Contribution Level for Members Represented by the Command Officers Association, and to Implement a HELPS provision for Eligible Retired Public Safety Officers, and to Implement an Other Qualified Adult Pop-Up Provision for Members represented by the Ann Arbor Police Officers Association, the Command Officers Association and AFSCME, and to Implement Other Collectively Bargained Changes for Members Represented by the IAFF, Local 693 (Ordinance No. ORD-12-10)
Memorandum
Attached are a series of amendments to the City’s pension ordinance. These amendments are the result of negotiations with several of our unions and include the following negotiated changes:
· Increasing the pension contribution of COAM members to 6% from 5%;
· Implementing a pick up feature as permitted by the Internal Revenue Code for the pension contributions of Fire and COAM, converting their 6% pre-tax contribution to a 6% post-tax contribution;
· Increasing the vesting and FAC requirements for new hires in the Fire Department as of July 1, 2012;
· Implementing a federal provision which allows eligible retired public safety officers to pay qualified health insurance premiums directly from their pensions;
· Implementing a “pop-up” provision for certain AFSCME, AAPOA and COAM retirees.
Staff
Prepared by: Nancy Niemela, Senior Assistant City Attorney
Reviewed by: Tom Crawford, CFO/Finance and Administrative Services Administrator; Robyn Wilkerson, Director of Human Resources and Labor Relations
Approved by: Steven D. Powers, City Administrator
Body
ORDINANCE NO. ORD-12-10
First Reading: April 2, 2012 Published: April 18, ...
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