HomeMy WebLinkAboutA001 - Council Action Form dated September 12, 1995 ITEM # 113
DATE September 12, 1995
COUNCIL ACTION FORM
SUBJECT: UTILITY RETIREMENT - REVISION TO SECTION 28.437, AMES
MUNICIPAL CODE
BACKGROUND:
The Utility Retirement Board contracted with David Elias of Deloitte & Touche accounting
firm for assistance in obtaining pre-tax qualification for employee contributions. He has
reviewed all sections of the ordinance governing the plan and prepared the necessary
documentation to request a letter ruling from IRS that would enable employee
contributions to be made on a pre-tax basis. As a result of the review, Elias suggested
a change to clarify the language in Section 28.437 of the Municipal Code. As it currently
reads, it could be interpreted that any member terminating would receive a refund of
contributions. The language should be changed to specify that members terminating with
less than five years of service will receive a refund of contributions. Vested members
(more than five years) will continue to have the option of a lifetime benefit or the
withdrawal of contributions as referenced in Section 28.410.
John Klaus prepared the revised ordinance language as attached. The Utility Retirement
Board approved the changes and voted at their meeting August 21 , 1995, to present the
revised ordinance to the City Council.
ALTERNATIVES:
1 . Adopt on first reading the ordinance changes as proposed for Section 28.437 of the
Municipal Code.
2. Deny the request for revision of Section 28.437.
3. Request further information from the Utility Retirement Board.
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that the City Council adopt Alternative #1 ,
adopting on first reading the ordinance changes as proposed for Section 28.437 of the
Municipal Code.
COUNCIL ACTION: