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HomeMy WebLinkAbout1981-12-17 Council Packet - Special MeetingKenai City Council Special Council Meeting December 17, 1981 Social Security Withdrawal, Alternative Benefits and Related Issues AGENDA f OPLOC1Ab NOBT1361 DFX. 171 1901r 7000 PM I ,s A. ROLL CALL H. OrdinanProvt4oc3City iHmplov000$ for to Match ContributtiA a for Benefits in Liou of the Podoral Social Security System 1. Amendment N1 2. Amendment #2 C. Resolution 01-120 - R®scinding Notice of With®rawal from the P©deral Social Security Sygtam D. Renolution 91-129 • Elouting to socame a Participating Empl®y®r in the Employee Benefits Program Under Alaska Statutes E. Resolution 91-130 - Request Tormination Data of Participation in flocial Aacurity i0iExtended for Ono Year P. Resolution 01-233, - Provide for work Sessions to Study Possible Alternative Benefit Plano on Withdrawal from Social Security _ a. Ordinance 743-01 - Repealing KMC to Mak© City * Ordinances Consiotont with withdrawal of City From �. social Security System H. Related loauce ADJOURUMENT 1 lit COUNCIL MEETING OF ��� � / 7 — b'"1 ,9; , 11 1 -� - COUNCIL MEETING OF 1 l it CITY OF KENAI I.O. IOx 110 K1NA1, ALA1KA "611 MEPHON1 213 • 7130 AMENDED NOTICE OF SPECIAL MEETING There will be a special meeting for public hearing on Dec. 17, 1901 at 7:00 PM at the City Administration Building. Subject will be: Social Security Withdrawal, alternative benefits and related issues. et Whelan, City Clerk Dated Dec. 10, 1981 Y% Y � a CITY OF KENAI " Oil ea ww 0 j gia"a F. O. /OX $80 NOW. ALASKA 99611 TELEINON! 203 • 1535 MEMORANDUM TOt HONORABLE MAYOR & MEMBERS OF CITY rC�O�UNCIL FROM: BEN T. DELAHAY, CITY ATTORNEY AZV RE: CORRELATION OF ORDINANCE NO. 737-81 WITH AS 39,33.150 DATE: DECEMBER 9, 1981 Ordinance No. 737-81 was amended on introduction on December 2, 1981, so that it is presently in violation of the State law expressed in AS 39.30.150. which states, in parts "In place of contributions to'the federal social security system which would have been required on behalf of an employee had the participating employer belonged to the social security system, the participating employer shall contribute 12.26 per cent of the wages of the employee ua to the taxably gage base then in effect in the social security cvc*em,n This is the State law that MUJ be accepted by the City if the City wishes to participate in the supplemental employee benefits under the State system on withdrawal from Social Security, if the City does = wish to participate in that program. then the amendment to the ordinance made on introduction would be proper. but there should be another amendment to strike all of the wording of KMC 23.40.100 in Section 1 of said ordinance after the word "benefits" in the seventh line since it would be useless for the City to file requests for participation when the City did not accept the provisions of the State Statute. If the City does not wish to participate in the State program, but wishes to match any funds the employees would like to place in benefits, then the amendment to set the wage base could be left as it now is or it could be further amended by reduction or increase, and the percentage of deduction from wages could also be varied to suit the will of the Council as to the amount to be contributed to supplemental benefits. Ordinance No. 737-81 was originally drawn to provide for participation in the State 1 't TI .R,�I;��-- - •-=mac supplemental benefit program. but it was carefully drawn to simplify amendment in the event the Council wished to set up the City's own benefit package -- all it would take is deletion of the last clause of the section (after the word "benefits") and to make whatever changes in base and deduction percentage the Council would desire. Neither the wording of the title or any "Whereas" clause would have to be changed since these were placed in very general language in the event the ordinance was amended. BTD/md 2 M NO CITY OF KENAI ORDINANCE NO. 737-81 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REPEALING AND RE-ENACTING KMC 23.40.100 TO PROVIDE FOR THE CITY TO MATCH EMPLOYEES' CONTRIBUTIONS FOR BENEFITS IN LIEU OF THE FEDERAL SOCIAL SECURITY PLAN. WHEREAS, the City of Kenai has previously given notice of intent to withdraw from the Social Security System whereby coverage under Social Security for employees of the City of Kenai will terminate on December 31, 1981, and WHEREAS, if such notice is not withdrawn, it is necessary to repeal KMC 23.40.100 which provides for the City to match employees' contributions in Social Security, and WHEREAS, it appears to be desirable for the City to match contributions of employees to provide for other benefits in lieu of Social Security coverage, NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as followss Section Is KMC 23.40.100 is hereby repealed and re-enacted to read as followss "23,40.100 Contributions for Additional nangfitas In order to provide additional benefits for employees on withdrawal from the Social Security System, 6.130 of the wages of each employee, up to the taxable wage base of $29,700.00, shall be deducted from said wages and shall be matched by the City to provide supplemental employee benefits, and the City will file the necessary requests with the Commissioner of the Department of Administration, State of Alaska, to participate in the State of Alaska supplemental employee benefit program as provided under AS 39.30.150-180." Sec. Lion ?s In order that the benefits to be secured by Section 1 above shall be effective immediately after withdrawal 1 F � from the Social Security System, the payroll deductions provided for in Section 1 shall be made from wages of employees due on the last working day of January, 1982. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December, 1981. VINCENT O'REILLY, MAYOR ATTESTS Janet Whelan, City Clerk First Readings December 2, 1981 Second Readings December 17, 1981 Effective Dates January 17, 2982 2 i lE First Proposed Amsadment to Ordinance No. 737-91 Efove tb amend KNC 23.40,100 as set out in Section 1 of Ordinance No. 737-81 by deleting the wording starting with "deducted" in the fifth line and ending with the word "matched" in the sixth line substituting for those words the word "paid" and deleting the portion of the section following the word "benefits" in the seventh line. Y. osed_Amendment to 0 Move to amend KFIC 23.40.100 as set out in Section 1 of Ordinance No. 737-81 by inserting after the word "employee" in the fourth f line (and before the comma) the words "electing to take additional benefits" and deleting the portion of the section following the word "benefits" in the seventh line. I ,,I " d ' C ' o I' r• i - MIL XCORGR d amendment to or i nancg No 72 7-81 ove to amend KMC 23.40.100 as set out in Section 1 of Ordinance be 737-81 by deleting the wording starting with "deducted" in he fifth line and ending with the word "matched" in the sixth ine substituting for those words the word "paid" and deleting he portion of the section following the word "benefits" in the eventh line. NZINT c__F_8a4MIT his amendment removes from the ordinance the provision for eduction from wages and would change the ordinance from placing he City under the State Supplemental Benefit Program so that the it yy would pay 6.13% of employee wages up to a maximum wage base f 529,700.0O to provide supplemental employee benefits. f a (r ]f s L R I Second Proposed Amendment to Ordinance -No. 737-9 Move to amend RMC 23.40.100 as set out in Section 1 of Ordinance No. 737-81 by inserting after the word "employee" in the fourth line (and before the comma) the words "electing to take additional benefits" and deleting the portion of the section following the word "benefits" in the seventh line. i INTENT OF AMENDMLNT This amendment changes the ordinance from placing the City under the State Supplemental Benefit Program to have the City provide for additional benefits with wage deductions and City matching funds, but would provide that wage deductions should be made AGj,y with respect to those individual employees who elect to accept the benefits. I' C CITY OF KENAI RESOLUTION NO. 81- 128 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, RESCINDING NOTICE OF WITHDRAWAL FROM THE FEDERAL SOCIAL SECURITY SYSTEM. WHEREAS, the City of Kenai has previously given notice of withdrawal from the Federal Social Security System by passage of Resolution No. 79-109 on August 1, 1979, and subsequent notices and requests made pursuant thereto, under which termination of coverage of City of Kenai employees will cease on December 31, 1981, and WHEREAS, the Council has studied the effects of withdrawal from Social Security System on future hiring of City employees as well as effects on current employees and has heard comments of all employees caring to express themselves on this subject, and WHEREAS. it is the opinion of the Council that the notice to withdraw from the Federal Social Security System should be rescinded before it takes effect. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the City of Kenai withdraws and rescinds the notice of intent to withdraw from the Social Security System previously filed pursuant to Resolution No. 79-109, AND IT IS FURTHER RESOLVED that a certified copy of this resolution be forwarded to Hr. William R. Hudson, Commissioner of the Department of Administration of the State of Alaska, Pouch Cr Juneau, Alaska 99811, so that he, and the Social Security Administration through him, can be advised of this withdrawal. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December, 1981. ATTEST: Janet Whelan, City Clerk VINCENT O'REILLY, MAYOR tl .t . I CITY OF KENAI RESOLUTION NO, 81- 129 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ELECTING TO BECOME A PARTICIPATING EMPLOYER IN THE EMPLOYEE BENEFITS PROGRAM UNDER AS 39.30.150 -- 39.30.180. WHEREAS, the City of Kenai participates as an employer in the Public Employees# Retirement System of the State of Alaska pursuant to AS 39.35, and WHEREAS, the City of Kenai is withdrawing from the Federal Social Security System effective January 31, 1982P and WHEREAS, the City of Kenai desires to become a participating employer in the employee benefits program under AS 39.30.150 -- 39.30.180. N0111 THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the Mayor of the City of Kenai is authorized, and is hereby directed, to request the Commissioner of the Department of Administration of the State of Alaska to approve the request of the City of Kenai for participation in said program to be effective on January 1, 1982. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December, 1981. ATTESTS Janet Whelan, City Clerk VINCENT O'REILLYj MAYOR CITY OF KENAI RESOLUTION NO. 81-130 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, TO REQUEST THAT THE TERMINATION DATE OF ITS PARTICIPATION IN THE FEDERAL SOCIAL SECURITY SYSTE14 BE EXTENDED FOR ONE YEAR TO 1 DECEMBER 31, 1982. WHEREAS, the City of Kenai has previously given notice of withdrawal from the Federal Social Security System by passage of Resolution No. 79-109 on August 1, 1979, and subsequent notices and requests made pursuant thereto, under which termination of . f coverage of City of Kenai employees will cease on December 31, i 1981, and WHEREAS. Council has studied the effects of withdrawal from the Social Security System on future hiring of City employees as well I as effects on current employees and has heard comments of all employees caring to express themselves on this subject, and WHEREAS, the Social Security System appears at this time to be subject to modifications and the outcome of the viability of the system remains in doubt but may well be determined within the next calendar year. and a WHEREAS. it is the opinion of the Council that it would be wise to delay the determination of its participation in the Social Security System for another year in order to ascertain what Congress will do to make the system more viable and the effects that withdrawal might have upon the City and its employees. NOW, THEREPORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the City of Kenai requests an extension of the termination date of its participation in the Pederal Social Security System for one year until December 31, 1982, AND IT IS FURTHER RESOLVED, that a certified copy of this Resolution be forwarded to Mr, William R. Hudson, Commissioner of the Department of Administration of the State of Alaska, Pouch Cr Juneau, Alaska, 99821. so that he, and the Social Security Administration through him, can be advised of this request for extension. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December. 1981. ATTESTS Janet Whelan,. City Clerk 0 Sm V INCENT O' REI LLY, MAYOR ._.'.1-�. �. _, ice... ♦ �.. F CITY OF KENAI RESOLUTION NO. 81-131 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, TO PROVIDE FOR WORK SESSIONS TO STUDY POSSIBLE ALTERNATIVE BENEFIT PLANS ON WITHDRAWAL FROM THE SOCIAL SECURITY SYSTEM. WHEREAS, the City has previously given notice of withdrawal from the Federal Social Security System on December 31, 1981, and WHEREAS, the City employees have voted by a large preponderance to allow that decision to become effective so that they will not be under social security, and WHEREAS, there are a number of options of use of funds previously deducted from employees' wages and of funds from the City to match those deductions to provide alternative benefit plans to social security or to provide cash payments to employees, and WHEREAS, the employees appear to be divided as to possible alternatives of payment of provision of benefits and this is an important decision that should not be made in haste. NO4l, THEREFORE,.BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that one or more Council work sessions will be set for the specific purpose of studying possible alternative benefit plans to the social security system, and that it is a goal of Council to reach a decision in this matter in time for action at the regular Council meeting of January 20, 1982. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December, 1981. VINCENT O'REILLY, MAYOR ATTESTS Janet Whelan, City Clerk CITY OF KENAI ORDINANCE NO, 743-81 AN ORDINANCE OF THE COUNCIL OF THE CITY'OF KENAI, ALASKA, REPEALING KMC 1.60.030 AND KNC 23.40.100 TO MAKE THE CITY ORDINANCES CONSISTENT WITH THE WITHDRAWAL OF THE CITY FROM THE FEDERAL SOCIAL SECURITY SYSTEM, WHEREAS, City of Kenai has previously given notice of intent to withdraw from the Social Security System whereby coverage under Social Security for employees of the City of Kenai will terminate on December 31, 1981, and WHEREAS, KMC 1.60.030 provides that eligible officers and employees of the City shall continue to be covered by Federal Old -Age and Survivors Insurance, and WHEREAS, KMC 23.40.100 provides for the City to match employees, contributions in Social Security, and WHEREAS, on withdrawal from the system, these two references in the City ordinances should be repealed. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as followss Bea ion is RMC 1.60.030 and KMC 23.40.100 are hereby repealed. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December, 1981, ATTESTs Janet Whelan, City Clerk VINCENT O'REILLY, MAYOR First Readings December 16, 1981 Second Readings December 17, 1981 Effective Dates January 270 1982 TALLY SHEET - SOCIAL SECURITY WITHDRAWAL 1. yes - NO 2. City Keep Their Share City Contribute Share y U Total votes 7 (v Signeds Date: ,:4 All�1 - �� �, +Coo G� F L, CITY OF KENAI BALLOT - SOCIAL SECURITY INSTRUCTIONS TO EMPLOYEESs IT IS IMPORTANT THAT YOU VOTE ON BOTH ISSUES PRESENTED. ON ISSUE NUMBER #2, - PLEASE CHECK ONLY ONE BOX. DO NOT ADD ANY OTHER CHOICES. 1. DO YOU WANT TO WITHDRAW FROM THE SOCIAL SECURITY SYSTEH? cl YES �j NO . 2. IF THE CITY OF KENAI WERE TO WITHDRAW FROM THE SOCIAL SECURITY SYSTEM, WHICH OF THE FOLLOWING ALTERNATIVES DO YOU FAVOR. (CHECK ONLY ONE CHOICE) "i I PREFER TO HAVE MY FORMER CONTRIBUTION j_.IN NY PAYCHECK AND HAVE THE CITY KEEP ITS FORMER CONTRIBUTION. I AM NOT INTERESTED IN A SUPPLEMENTAL BENEFIT PLAN TO REPLACE SOME BENEFITS PROVIDED BY SOCIAL SECURITY. El I PREFER TO HAVE THE CITY LOOK INTO A SUPPLEMENTAL BENEFITS PACKAGE TO WHICH BOTH THE CITY AND I WOULD CONTRIBUTE. I WOULD LIKE TO SEE WORK SESSIONS AT WHICH SPECIFIC ALTERNATIVES AND PROPOSALS COULD BE DISCUSSED IN - DETAIL.