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HomeMy WebLinkAbout~Master - Policy update on definition of retirement age for Utility Retirement Plan RESOLUTION NO. 12-020 RESOLUTION APPROVING POLICY REVISIONS TO PERSONNEL POLICIES AND PROCEDURES MANUAL FOR THE CITY OF AMES,IOWA WHEREAS,the Human Resources Department has identified the following sections of the City's Personnel Policies and Procedures Manual that need to be revised: Chapter 15.1, Section 2 (Retirement) and Chapter 18.3 (Retirement); and, WHEREAS, currently, a limited pay-out for unused sick lease is established by personnel policies and union contracts as "at retirement,"and, in addition, the Code of Iowa requires that the City give retiring employees the option to continue on the City's health insurance "at retirement;" and, WHEREAS,for many years,the City's utility retirement system operated as a defined benefit system and specified a retirement eligibility age of 55,however,that provision was eliminated when the system was converted to a defined contribution plan; and, WHEREAS,under the current plan,while a retiree's age impacts the taxable status of his/her withdrawals, the retiree's age plays no role in his/her eligibility to retire or draw down retirement benefits; and, WHEREAS, by contrast, employees under the state's IPERS and the Fire and Police Retirement Systems have specified ages for retirement eligibility; and, WHEREAS, the intent of this action is to establish a retirement age for employees covered under the City's Utility Retirement System,and the proposed revision would set this age at 55 years (which is the earliest possible retirement age under IRS Code) and eight years of service with the City; and, WHEREAS, a covered employee leaving the City's service will need to meet these criteria in order to be eligible to receive a sick leave payout and continue under the City's health insurance plan as a retiree. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the aforementioned revisions to the Personnel Policies and Procedures Manual effective as of this date are hereby approved. ADOPTED THIS 24t'' day of January, 2012. c--,A-G(��4L� A. c. ca.-AAav Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Davis Seconded by: Goodman Voting aye: Davis, Goodman, Larson, Orazem, Szopinski Voting nay: None Absent: Wacha Resolution declared adopted and signed by the Mayor this 24t'day of January, 2012.