HomeMy WebLinkAbout1991-09-11 91-347 ORDERW11111,
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Date ll/91 ,1 Item No. 91-347
Item/Subject: Mandatory membership of part time, Seasonal and temporary
Responsible Department: employees in Maine State Retirement System
Finance
Commentary:
The act0on before the City Council would elect not to enroll part time,
seasonal and temporary employees in Union State Retirement. This action either
electing to pit such persona in MSRS or into Sl al Security is required by
MSRS per their memo dated 8/20/91 (a[tachdd) 5 Pi 18200. Per the School
Business Manager. the School Board will follow the City Council lead and
would also elect not to place such personnel 1n MSRS.
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Legal Approval: J
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Intro�uceo For
Passage
❑ First Reading - Page _of_
❑Referral
91-347
Ae®fined to CouneJm "+Sawyer, September 11, 1991
CITY OF BANGOR
(TITLE) 002Ki....... Mans ory-memberahip pf Part-time) -seasonal -and -eeupnrary.. employees
in Maine State Retirement"syaeem
BY the City Couadt oftM City OfBanimr:
TEAT pursuant to 5 MM 18201, and Chapter 401. sec0ion3, paragraph c of
the Maine State Retire System rules, the City Council of the City of Bangor
r
elects not to enroll part time seasonal and temporary employees.in Maine State
Retiiem —ttrsvetem for Participating Local District (PLD) 820.
IN CITY COUNCIL
September 11, 1991
Passed
IT X CGLZRK
91-36]
ORDER
Tiu¢,
Neodatar MembernM of Pert -Time
Y.......... P..... ..
Seasonal and Temporary Employees in
Maine State Re C 1LemeaC Sy
) stem
40 a.
..........`IIIA....
CCunciLnan
'MAINE STATE RETIREMENT SYSTEM
MEMORANDUM
DATE: August 20. 1991
91-347
TO: Parti Olpat Ing LOC41 District Payroll Cle ke/
FROM: JOSOPh A. Donegan. Deputy Director
SUBJECT: Opton for Participating Local Dlst cl Regarding Mandatory
Membership In Maine State Retirement System
This Is a f011ew UP On my memorandum dated June 1B, 1991. Since that
memorandum was written, the Internal Revenue Service has Issued Its regulation
rating to the new Federal Social security law mentioned In the memorandum of
June 18. The final version of the IRS regulation did not Include Some changes
which we had expected to be Inlcluded and Which Would have alleviated some
problems for states and political Subdivisions. In addition, we have received
feedback from a number Of participating local districts, SOMA of which Would
prefer t0 cover their part-time. Seasonal and temporary employees under Social
Security Or a defined contribution plan.
Based upon this Information, the Board Of Trustees of the Maine state
Retirement System, at Its regularly monthly meetlhg on August S. 1091, amended
Chapter 401 of the MSRS false to provide that each participating local district
may choose whether or not t0 require that all ell subject t0 certain
exceptions. becomes members of the Retirement System. (See the fourth paragraph
Of my mdMranous of June 18. 1991, for the list Of exceptions.) Item 4 In the
list of excepll00S should be amended t0 read:
-4. Membership Is Optional for elected officials, Officials appointed for
a fixed term and a chief administrative officer of a part101pating
local district."
For those participating [coal districts Which d0 not elect Mandatory membership
for all employees, the rule which has been In effect since January of 198]
shall continue t0 be applicable: I.e.. an employee whose job description does
not require more than 15 hours Work per week and an accumulation of at least
720 hours In 12 ooneecutive months shall not became a member of the System
until the employee's job description Is changed to require Much number of hours
of Work or until the amp l oyes actual 11y WOr its more than 15 hours a week and
accum4latee 720 hours In a period O1 12 consecutive months. This provision Is
found In Chapter 401 of the MSRS rules, section 3, paragraph B.
Any participating local district may adopt the mandatory Membership
requirements by filing with the Retirement System a duly certified copy 01 the
vote of the body which would be entitled to approve participation under 5 MRSA,
918201. The act Ion Of the body should make reference t0 Chapter 401 of the
Maine State Retirement System rules, section 3, paragraph C. The election must
be received by September 15, 1991.
Should this date present a problem due to the scheduling of meetings to adopt
the amendment, please contact Mr. Ierb Colson at 289-3506 Or In -State WATTS
line 1-500-451-9800 Immediately.
Failure t0 adopt the amendment may result In part-time. seasonal and temporary
employees having Mandated soclal Security coverage effective July 2, 1991.