11-26-1984 Council Packet - Laserfiche WebLink

Home Browse Search

THE LEGISLATURE SHOULD AMEND THE PRESENT PROVISION ON DISBURSEMENT OF THE TWO PERCENT TrkY ON AUTOMOBILE CASUALTY INSURANCE TO ALLOW EXPENDITURES BY THE RECIPIENT POLITICAL SUBDIVISION OF ANY EXCESS OVER THE cMpi.OYER'S SHARE OF POLICE RETIREMENT COSTS FOR ANY POLICE DEPARTMENT PURPOSE INSTEAD OF REQUIRING PAYMENT TO THE PERA POLICE AND FIRE FUND. SINCE THE PERA POLICE AND FIRE FUND HAS NCGW ESSENTIALLY ACHIEVED FULL FUNDING, EMPLOYER' AND EMPLOYF.F.S' CON —'-RT'TTONS SHOULD BE REDUCED TO AN AMOUNT SUFFICIENT TO PAY NORMAL COSTS C'; AN EQUAL SHARE BASIS. ,10 CONTRIBUTION SAVING-3 ANY DECREASE IN CONTRIBUTIONS BY LOCAL UNITS DUE TO DEFICIT REDUCTIONS OR PROGRAM CHANGES SHOULD ACCRUE TO THE LOCAL UNIT. T-11 STATE TAXATION OF PERA CONTRIBUTIONS :recently, the Internal Rcvcnue Service ruled that employee contributions to PERA and similar public pension systems are not subject to federal income tax contribution during the year in which they are contributed to the system, but rather are taxable in the year in which the employee actually receives the benefit. .his ruling is consistent with the manner in which municipal emplcyer contributions are taxed. Since the employee does not '%ave use of the contribution in the year it is made and the Federal government has deferred taxation until the benefits are received, THE AMM REQUESTS THE LEGISLATURE TO DEFER STATE TAXATION OF EMPLOYEE PERA CONTRIBUTIONS UNTIL BENEFITS ARE RECEIVED AND TO EXCLUDE 71;- PERA AMOUNT FROM THE EMPLOYEES GROSS INCOME. T-12 PEhk BOARD AND DIRECTOR SELECTION PROCESS THE SELECTION PROCESS FOR THE PERA BOARD SHOULD BE .•.AUISED TO PREVENT DOMINATION BY A SINGLE WELL FINANCED INDIVIDUAL OR ORGANIZATION. SELECTION OF A SUCCESSOR TO TiiE EXECUTIVE DIRECTOR SHOULD OCCUR ONLY AFTER AN OPEN SEI.ECTIOy PROCESS TO CHOOSE THE BEST QUALIFIED INDIVIDUAL IS COMPLETED. FURTHER, THE. STATUTES SHOULD SPECIFICALLY PROVIDE CRITERIA AND QUALIFICATIONS FOR INDIVIDUALS TO SERVE AS BOARD MEMBERS AND EXECUTIVE DIRECTOR. T-13 MERGING OF LOCAL POLICE AND FIRE INTO PERA POLICE AND FIRE. ASSOCIATIONS SHOULD BE MERGED INTO THE PERA POLICE AND FIRE FUNDS ONLY IF A NEW DIRECTOR IS SELECTED ON A FAIR,OPEN BASIS, AND ONLY IF THE CITIES AND ASSOCIATIONS SEEK/ NG EACH MERGER PROVIDES THE PE JLICE AND FIRE FUND WITH CASE OR PAYMENT PLANS INCLUDING RE:A111_,, iC INTEREST TO COVER THE F'JL:.