HomeMy WebLinkAboutPension General_Documentation_Tab 04_11/05/2007EXCERPT FROM MINUTES OF REGULAR TEQUESTA VILLAGE COUNCIL
. MEETING OF 10/11/07:
5. Cost Presentation by Steve Palmquist regarding paying interest
on employee contributions per Gabriel, Roeder & Smith Company
calculations proposal.
Mr. Palmquist noted he had previously reviewed this proposal to allow interest on
member contributions, which almost all other pension plans did, with the Village
Council. Right now, a General Employee who left the Village only received back
the amount of money they had put into the plan, without any interest. The
proposal was to apply 3% interest on any such refund. Mr. Palmquist advised
this was one of the most modest changes in benefits that one could imagine; the
cost associated with this would only add something like $100-$200 per year cost
to the Village. Vice Mayor Watkins verified with Mr. Palmquist this contribution
was mandatory for employees. Mayor Humpage commented he could see a
couple of ways, but he would like to do this during negotiations. Council Member
Amero commented he had given his opinion he would not be voting for this, and
had given his reasons, one of which was the six-year vesting here, and he
wanted to give the bonuses to the people who stayed six years; also, he believed
this was not done in government or in private businesses and he saw no reason
to start it here. Mr. Palmquist advised in the great majority of contributory
• pension plans interest was paid on contributions. Council Member Amero asked
if that was for voluntary contributions; Mr. Palmquist stated, no, that was for
mandatory contributions; this was mandatory. Council Member Amero
commented he had misunderstood that, and verified with Mr. Palmquist that
municipalities in general government paid interest on mandatory contributions.
Mr. Palmquist responded it was not mandatory that they do so, but the vast
majority of plans did. Council Member Amero commented he had understood it
was the opposite way. Mayor Humpage commented it was the employees'
money, it cost the Village nothing, and he would like to negotiate this. Council
Member Amero stated he agreed. Mayor Humpage thanked Mr. Palmquist for
his presentation.
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