AGENDA CAPTION:
Title
Consider approval of Resolution 2015-67R, adopting the Public Agency Retirement System Trust ("PARS"), including the PARS section 457(b) Alternative Retirement Plan; approving an agreement for administrative services with phase II systems, doing business as Public Agency Retirement Services; appointing the City Manager, or his/her successor or his/her designee as the City's Plan Administrator for the PARS section 457(b) Alternative Retirement Plan/Trust; authorizing the City's Plan Administrator to implement the plan(s), execute the PARS legal and administrative documents on behalf of the City and to take whatever additional actions are necessary to maintain the City's participation in PARS and to maintain PARS compliance of any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the City's PARS; authorizing the City Manager or his designee to execute the Administrative Services Agreement on behalf of the City; and declaring an effective date.
Body
Meeting date: June 16, 2015
Department: Human Resources
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CITY COUNCIL GOAL:
BACKGROUND:
In 1990, Congress adopted the Omnibus Budget Reconciliation Act (OBRA). OBRA allows cities to establish an alternate retirement program for their part-time, temporary and seasonal employees. Public Agency Retirement Services (PARS) offers an alternate retirement program which meets the OBRA requirements and administers such program to over 300 agencies.
The PARS program benefits both the employee and the City. Currently, the City is required to contribute an amount equal to 6.2% of each part-time, temporary and seasonal, employee's salary to Social Security and the employee is required to contribute a similar amount for a total contribution of 12.4%. The OBRA legislation requires a minimum contribution to the alternat...
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