HomeMy WebLinkAbout1993-03-10 93-189 ORDERDate 03-10'93y V Item No. 93-189
oath][, Autlptiairg City Masnget W irtaqueat the Madre StaW
Item/Subject:��®Iee2 Systan W 10M2oran an ial Study
Regarding Military Seryire Cxedit.
H2 tive
Responsible Department:
Commentary:
Tse � Oc[br wind anon tte City W xaeive an acplar Study fxoan tFe
State Rai + SymLa a at an estilmi tl cx a of $5o0. The study world pcwlde
tfe City and affaeCtad mplo}e(s with thea ccerts aseociated with actually adoptity
this e)WIded Militaxy Service bsylawk p guars. m evd om wsly em the
City W fvndir the study, a separate actirnt by Wurc11 mould be .requfxal W
adopt L n.W;tixmal allitary cxedit provision.
the yfsmnce CaMILUea reviexsd this 11an at thew rnestirnl on, March 3, 1993 ead
tmk w fonoal positimt m the xe3ueed. it fs forwarded W LM full (bunch with
W C®mittee+�:�,
DefvmamrHmd
Manager's Comments: ad
On.r., i"ha p�u��4vx�aw G., wu<Y ruWui..A
tF tett� a 4uro %n gAa u p w
p mo%Au0 w�ztQ47a� 4
can Wf 10 �fo^ps "�-`iA°�^"ll�Aaye'�����o a
+k.
U nVh�npa 6 Ciy Mvmgn
Associated Information:
Cr , Backgrronand N®n[azebs®, Copy of Btate Lear.
Budget Approval:
Emmet Ltmrta,
Legal Approval:
cysaur;,ar
Introduced For
passage
First Reading pep—of
Referral
93-189
Aeeig edh ConnedOr ..nine, March 10, 1993
CITY OF BANGOR
(TITLE.)(Drber.............a,uncizinst City lit-m.>m�t. ste.r e_srate...
tetiraoant Systm to Pazfom an ACCaar Study Rggard5 x itaey service Qedlt
By W cut cameo of pN of Ra .
THAT 1tn City Manager S authorized to requmt. the Maine state
syatmu to perfom an Actuarial study regarding the euq>vrled Military
service aedit provisim; and
ffi TT kVl®�R WmElff9�
THAT The mat of the Actuarial St dy, estinwtal at ON, shall 1»
apportiomd to the vatime Oeparhrents with elQloyms wtn ete eligible to
participate.
93-189
ORDER
IN CITY COUNCIL
March 10. 1993 Title.
Vote to Indefinitely Postpone
failed to pass by the following Authorizing the City Manager to Request
yea and no votes. Councilors the Maine State Retirement System to Perform an
voting yes: Bragg and Cohen. actuarial Study Regarding Military Service Credit
Councilors voting n0: Blanchette.. ���...... ..
Frankel, Soucy and Sullivan.
Councilors absent: Sail and Shubert.
Vote for Passage, passedby the to
following'yes and no votes.
J.. Councilors es: Blanchette, _-
voting y
Councilors
Soucy and Sullivan. ..... .. .. .......lmen
and Stone. voting n Bragg. Cohen Councilmen
and Stone. Councilors absent:
' Sax�nd SM1ubex0. '
CITYR�
3M
Tot F� comuttee I is
Fmn: IbbeYG W. Farmc, Dix T@ of PduLlSatmtimt
Far - Update - M to cnaiit P20Vi8JCn, Ma]]m atate �t System
Date: Fabry 26, 1993
AS xegoestad by the Finanoe ComSttee mre time ago, the CitY has rccelved
from the Maize State sys an estimate to peiYnxm an actuarial
study regarag e%j aUng Ban J 's CnIIQR mllitaxy ¢grit pmvrslon Uadec
F3tS. 9a estimated fee is $500.
1fie attached meat, Will pmvdde t,.-w.T... nd � on this issue. she
Finance Coamittee previously directed that City staff obtain the estimate
F the mere system and hien xetzm to the Cmmitoaa for further
naviaw and dis Eq n.
Based upon the MSF$ estLmata, ny � is that we authorize MSPS
to wtlertato3 the actuarial Study. 1'te-coot of the Study can be paid fr®
the Petirmeat System apprv,siat:.... in the tares deparoments With the
Ll.�st len of interest - Police, Pubdlc Wad® and Fixe.
dams action weld an1Y obligate the City to Spain approxtmately $500. a
seccacl deo e= weld have to be made by tae City wdetlter to actually adopt
the provision, ace the actuarial Study was prepared and the coats to the
City and tM interested eaployees wane idgRffied. T are approximately
32 eapdcyees wit, haaee Sed imexestsd in this expanded haefit.
$Mold there by any gmestfnna in the ueanrima, plmsa feel free to cortsct
me duectly.
n w.zm arxusrru
w• jGmmmn
IYiIIM
MAINE STATE RETIREMENT SYSTEM H.
e.emo W111 �
O°"e."ru`�°"
y�ux��sow o..® amY
moi.
�z"- jANIQI 1993
January 15, 1993v.
Robert W. Farrar
Director of Administration _
City of Bangor '
73 Harlow Street
Bangor, WE 04401
Dear Mr. Farrar:
In response to your correspondence of December 15, the
actuary has provided an estimated fee of $500.00 for a
study to determine the coat impact should the City of
Bangor elect to adopt the military credits provision as
provided by 5 MRSA Section 18360 Subsection E. We must be
provided with written authorization should you wish for us
to proceed with this study.
Please note that this information was forwarded to you
under cover of correspondence dated February J, 1992, a
copy of which is enclosed. This fee has been estimated
based on the assumption that the personnel data which was
previously provided is still accurate. If this is not the
case, then you should submit revised information for our
review.
If you have any questions or require additional
information, please advise.
51 cere
D^II1/IOI�jII1r/n
e t ee nefi
it s specialist
pox l mm.wMW W: amu7-1032
2-0470(2)
Sec. 3. 5 MRSA §18360, sub -§2, ¶E, as enacted by
PL 1985, C.
801,
§55 and 7, is amended to read:
_
E. A member who served in the armed forces
ax-aeY-�'-me-4-ram
Aa ab --47 - iy--7� -3�+'3 durina
any f .)
v ll
gu
recognized _ __od ofonflirf. d�,fined
3n Title
37-B.
-a
se^tjan 501.aub==kl n 9. - avh A-1.
eubna[aa[anh
(a),
isentitled to service credit under this
subsection
6e@bna-aembersg3@-Befeee-danaaeY-1+-'1988.
,
2-0470(2)
93-189- .. --
APPROVED CHAPTER
APR 9 '91 23
STATE OF MAINE ey 80VERNOR PUBLIC Lift
IN THE YEAR OF OUR LORD
NINETEEN HUNDRED AND NINETY-ONE
- S.P. 24 - L.D. 34
An Act to Amend the Retirement Laws
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 5 MRSA §18311, sub-§$ 9A, as amended by PL 1989, C. 710,
§17, is further amended to read:
A. If the member qualifies under section 18360, subsection
2, gaeagssph-9-, contributions shell -be are calculated at the
percentage rate required of active members during the period
of time covered by the service in the armed forces applied
to the member's earnable compensation duringthe first year
as an employee subsequent to service in the armed forces
under the following terms and conditions:
(1) If 2 or more percentage rates were in effect
during the period of service in the armed forces, the
highest percentage rate shat; -be a used;
(2) The minimum rate s§all-be is 5%; and
(3) Interest at a rate set by the board not to exceed
regular interest by 2 or more percentage points s4a}?
9e itt paid on the unpaid balance beginning January 1,
1976, or the date of attaining 15 years of creditable
service, if later, to the date payment is made.
Sec. L 5 MRSA §18311, sub -§2, ¶B, as enacted by PL 1985, c. 801,
§§5 and 7, is repealed.
1-0470(2)
-2 -
discussions with officials at the Retfrment System, this cost is estimavai
to is in the ra R of perhaps $500 to $1,000 depending on the muted of -
employees eligible and ctl factors. flrz[F , if adopted, t will be
oaatain natching coMxibations megnizs3 of the employer for tense employees
who choose to bay back their military tive•
Seccni, given that this item is of an xvmtdc nature, an ang mmt could
le rade that the City should bargain with the Unions representing City
mploysas. In essetce, if this new pmvieion was adopted by the City, it
would provi de an additlaaal hmefit that is not now availa]ale. 1'his cement
is taiperad, lw.sver, by the fact that the adoption of this provision is
an
all or xothing prop,sftion. it is my understanding that the City cannot
adopt this provishon for Certain grwYs of e,ploysss. Rather, it mist either
be adopted for all mployeas or for on ore.
van: ' retail that the Courcii and staff have bon cs:midaz:� the issue
of possible witldrawl from the Baine State Retirarant System, primarily clue
to its high cost. Ube pctent+ adoption of this Envision would cost tlse
City additional sonny, altleugh at. this Point we do not lona h such.
Given the store discussion, I would ravmand the following course Of
action:
1. TT t City staff receive ap riate authorization to request that the
Nate state ReGirarant Syatas perf000 the nuosasary actuarial study.
as a suggeatien, perhaps the N ons should ho mquestad to Participate
in this cost along with tlo City.
2. If authorization is receival, City staff will immediately begin to
collect the naalsi mployou itnfomation to forasrd to tha Retizemant
System for the study. _
3. Once the actuarial study is crnpletai and foxwardai to the City, a
Council Order agenda item would be prepared for Council comottee
and/or full Council mi and action. -
I holieve that this roiuse of action will provide the parties involved
ami interested with the necessary infon ation with which ie make an
appropriate decision. I am aware that there'. hoen a muest sada for this
item to appear on the fttWer ], 1991 Finance Csnmittee agenda, and topsfully
this infosation will be of assistance.
Should there by any other information needed, please ne ma know as stun
as possible.
rase/ldr
cc: Finance Diaxtnr
l4mren Resourn s hangar
93-189
MFlS�IMUll'i _
'N: Eduard A. Barrett, City M�
PR; Fnlwyt W. Farrar, Di=tar of P[bdro'stratfon
SS: Mllitary Qsiit Provision -Maine State Retixarent System
6A: (kXntBi'3, 1991
share has been rami int¢est again cweex,ting the possible adoption
by the City of a new I isfen crorcexiwg credit for military tuns "oder ills
Mahe State nar:.ow,m sysren. As reguestedl Please find below a brief
swdassy of Lure City,s presart status regarding military credits and option
that are available.
As you a aware, the City. in 1983 adopted a provision to cxalit Al
eligible euyloyees for military service ansdits as provided in 5 M.R. S.A. 4
1094(13). Essantielly, this shoed eligible oupl� to pncclase up to 4
years of active duty tyre as bra of the I red Fns<zs provided they I SS
years of creditable Service index the systan with some of that service prior
to January 1, 1976.
In September, 1985 an additioml military c t provision was srecTsi
by the legislature which would allow p rticipstug districts Such as ssngor
W further a ud the silftary c t Provision. 1 benefit would apply to
sabers wim serval full tore duty as menbers of the Arned Forces t sen
August 5, 1964 and May 9, 1975 P ided that they have 15 years of creditable
service under the systan with sans of that cre i table service prior to
Jawary 1, 1988. Thin Provision is garerally bum: as the Vietnam era
provision as it would L sically serve to cover those involvai in that
conflict. ne City, to date, hue not adopted this Provision.
Again in April, 1991, the State legislature mresai the Rotirarent laws
with t to military "credits. T most rsent ansnirent states that "a
unbar win serval in the a forces during any falerally recog asodl perind
of conflict is entitled to service cralit uxuex this subsection". ibis
provision still req" 15 years of creditable service but elS Toes the
various eligibility dates prevfcusly required. T Provision has not yet
baen adopted.
In sy discussions with those Who are in favor of the City ad g7uU the
nrst recent exla military service credit provision, they sobs tore Point
that the City should rot discriminate against those who have serval in
r t conflicts by not adopting tha April, 1991 option. They ce.,tom that
as the City aoptad the initial provision covering certain a Icyees, it
should also adopt the frost recent provision that would weer all otter
eployees. Fre, a basic fairness standpoint, r do not disagea.
Fbueumr, frau an eoa nnic standpoint, there are certain mrcans that
should be noted. First, items will be costs involved to the City. An
actuarial study will lave to be per'fomsi by Tire Reddens t Systein to
tlefmnios the coats for the mPloyer and eligible eiployess. Fran