HomeMy WebLinkAboutA004 - Council Action Form dated August 26, 1997 ITEM # VIA0
DATE Aueust 26, 1997
COUNCIL ACTION FORM
SUBJECT: ORDINANCE AMENDMENT CONVERTING THE UTILITY RETIREMENT
SYSTEM FROM A DEFINED BENEFIT SYSTEM TO A DEFINED CONTRIBUTION
PLAN
BACKGROUND:
The Utility Retirement Board has approved the attached ordinance amendment and recommends
its passage to the City Council. The ordinance allows the Utility Retirement System to cease
to be a defined benefit system on September 30, 1997, and to become a defined contribution
plan on September 30, 1997. The specifics of the defined contribution plan will be in the Plan
Document which is being prepared and will be presented to the City Council for approval on
September 9, 1997.
The record keeping and investment management services for the defined contribution plan will
be contracted for with The Vanguard Group. The Utility Retirement Board will function in an
oversight capacity as a Participant Review Board. This ordinance amendment increases the size
of the Board to eleven members by adding a retiree representative and the City Treasurer as
voting members.
ALTERNATIVES:
1. Approve on first reading the ordinance amendment converting the Utility Retirement System
from a defined benefit system to a defined contribution plan.
2. Request further information from staff or from the Utility Retirement Board.
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that the City Council adopt Alternative #1,
approving on first reading the ordinance amendment converting the Utility Retirement System
from a defined benefit system to a defined contribution plan.
COUNCIL ACTION: