| | | | | | | | City of Marquette, MI
300 West Baraga Avenue
Marquette, MI 49855
|
| | | | | | | | Agenda Date: 10/15/2019
Consent Agenda- Roll Call Vote
New MERS Defined Contribution Division for Peter White Public Library Employees |
| | | | | | | | | BACKGROUND: | | The Board of Trustees of the Peter White Public Library and the Library's AFSCME bargaining unit have requested the City close the City's Municipal Employees' Retirement System (MERS) Defined Benefit Plan for divisions 12 and 70 and create a new Defined Contribution division for all full-time library employees hired after October 1, 2019. The new pension division would require employees to contribute 5% of their earnings and the Library would contribute 12%. The new division has a three-year vesting period. |
|
| | | | | | | | | FISCAL EFFECT: | | Based on the projection study the Library requested from MERS, the projected required annual contributions are expected to remain roughly the same and the funded status of both divisions are projected to reach 100% by 2040. |
|
| | | | | | | | | RECOMMENDATION: | | Approve the closing of the Peter White Public Library's MERS defined benefit plans (division 12 and division 70) to new hires and authorize the Director of Administrative Services to sign the attached Defined Contribution Plan Adoption Agreement creating a new defined contribution plan for all new full-time employees hired after October 1, 2019. |
|
| | | | | | | | | ALTERNATIVES: | | As determined by the Commission. |
|
|