HomeMy WebLinkAbout20091102 - VI-06
MEMO
To: Mayor and City Council members
From: Julie Flaten, Assistant Finance Director
Re: PERA Periodic Repetitive Leave
Date: November 2, 2009
City Council Action Requested
Create a periodic repetitive leave option for PERA eligible employees.
Background Information
In June of 2009 City Council took action that approved budget reduction measures to address the
shortfall in the City’s general fund. One of those measures was the implementation of a voluntary
furlough program of up to 80 hours per employee.
Recent legislative changes to PERA allow for an employer and employee to agree to a reduction of
unpaid service up to 208 hours in a year while maintaining full salary for pension purposes. This is
accomplished through a payment of the PERA employee and employer contributions, plus interest,
based on the salary that would have been paid to the member had the reduction in hours not
occurred. Once the employee makes payment to PERA of the employee contribution the City of
Hastings would contribute the employer contributions.
The financial impact to the City of Hastings will be minimal and will be covered by salary savings.
If you have any questions regarding this item, please let me know.
CITY OF HASTINGS
Dakota County, Minnesota
RESOLUTION 11-__-09
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HASTINGS
CREATING A PERIODIC REPETITIVE LEAVE OPTION
FOR PERA ELIGIBLE EMPLOYEES
WHEREAS,
recent legislative changes allow local governments to offer a
Periodic Repetitive Leave Option to employees who participate in the City’s voluntary
furlough program; and
WHEREAS,
to offer this option, local governments must adopt a resolution
indicating a desire to provide such an option to all employees.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF HASTINGS AS FOLLOWS;
That the City of Hastings hereby offers a Periodic Repetitive Leave Option to
employees covered by PERA who have participated in the voluntary furlough program.
ND
ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA, THIS 2
DAY OF NOVEMBER, 2009.
Ayes:
Nays:
Absent:
____________________________
Paul J. Hicks, Mayor
ATTEST:
_______________________________
Melanie Mesko Lee, City Clerk
(SEAL)