Title
An Ordinance to Amend Sections 1:553, 1:555, and 1:605 of Chapter 18, Employees Retirement System, Title I of the Code of the City of Ann Arbor, to Limit Participation by Certain Part-Time Employees, to Implement Changes Required by Federal Law Related to Military Service and to Correct a Scrivener’s Error (Ordinance No. ORD-17-15)
Memorandum
Attached is the proposed ordinance revision to Chapter 18, Employees Retire System. The proposed amendments implement the following specific changes to the ordinance:
(a) changes the previous exclusion of employees from participation in the pension plan from individuals who were paid less than $400.00 per year for 3 consecutive years, to part time employees who work less than 80 hours per calendar month. Currently, the City has a small number of part-time employees who work only a few hours per month. Under the current pension language, they are required to contribute 6% of their pay to the pension, although they will not be eligible for a retirement pension in the future. Their contributions are later returned to them. This change allows those part time employees to be exempted from the contributions.
(b) changes the language relating to employees who serve in the military to comply with federal law (USERRA) regarding the repayment of pension contributions after return from service.
(c) Corrects a scrivener’s error related to the City’s contribution to the new Dual Pension Plan for certain new hires. The amount of the City’s contribution is 5.2%, not the previously noted 6%.
The proposed amendments have been reviewed by Counsel for the Employee Retirement System Board of Trustees.
Approval of the amendments to the Ordinance is recommended.
Staff
Prepared by: Nancy L. Niemela, Senior Assistant City Attorney
Reviewed by: Robyn Wilkerson, HR and Labor Relations
Tom Crawford, CFO/.Finance and Administrative Services Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
ORDINANCE NO. ORD-1...
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