#272 02-21-67 Support PERA and OASDIM
Resolution No. 272
February 21, 1967
Member Stockman introduced the following resolution and MOVED its adoption:
RESOLUTION SUPPORTING THE COORDINATION OF P.E.R.A.
AND O.A.S.D.I., AND OPPOSING CERTAIN LEGISLATION
AMENDING PROVISIONS OF THE P.E.R.A. LAW
WHEREAS, the Public Employees Retirement Association pension fund is
actuarially unsound, and the acturial deficit of this fund is increasing
each year; and
WHEREAS, as presently constituted, the retirement program administered
by the Public Employees Retirement Association provides inadequate retire-
ment, and disability and death benefits, while being unduly expensive to
the employer and employee when costs are related to anticipated benefits; and
WHEREAS, the present P.E.R.A. retirement program fails to acknowledge
and provide for mobility in employment, which mobility is a major characterO
istic of contemporary society, and therefore, the retirement program operates
against the recuitment of qualified personnel into the field of local govern-
ment in the State of Minnesota; and
WHEREAS, the coordination of P.E.R.A. with the Social Security program
would permit mobility in employment without the loss of retirement credits
earned while in municipal employ, and further provide adequate death and
disability provisions to protect the family of the municipal employee; and
WHEREAS, since the benefit payments under the Social Security program
are not fully funded by employee and employer contributions, and this deficit
is made up through general taxation, the municipal employee is forced to con-
tribute to the maintenance of a program from which he derives no benefit; and
WHEREAS, experience with other retirement funds with excessive deficits
indicates that, when such funds were coordinated with O.A.S.D.I., the deficits
were substantially reduced over time; and
WHEREAS, both the League of Minnesota Municipalities and the Hennepin
County League of Municipalities have adopted resolutions calling for the
cordination of P.E.R.A. with O.A.S.D.I., and
WHEREAS, the inclusion of an option feature in such legislation which
would permit current employees to select the retirement program most bene-
ficial to the individual would meet the dictates of equity constantly sought
by government;
NOW, THEREFORE, BE IT RESOLVED by the Village Council of the Village of
Golden Valley as follows:
1. The Village Council endorses and supports the proposal for
coordination of P.E.R.A. and O.AS.D.I. embodied in Senate
File 127 and House File '263, and hereby urges the representatives
of the 30A and 31B Districts to work for the adoption of this
legislation.
Resolution No. 272
February 21, 1967
2. For the reasons set out above, the Village Council opposes
any legislation which would perpetuate the present philosophy
and program of the Public Employees Retirement Association,
especially the proposal embodied in House File 187 which
would remove the limitation on individual salary deductions,
and the representatives of the citizens of Golden Valley are
urged to oppose and work for the defeat of such proposals.
3. The Clerk is herewith instructed to distribute copies of this
resolution to the Governor of the State of Minnesota, represen-
tatives of the 30A and 31B District and members of the legis-
lative committees concerned with the subject legislation.
Resolution adopted February 21, 1967.
Mayor
Attest:
Village Clerk
The motion for the adoption of the foregoing resolution was duly seconded by
Member Bies, and upon vote being taken thereon, the following members voted
in favor thereof: Bies, Garis, Nadasdy, Stockman and Teresi; and the follow-
ing voted against the same: None, whereupon said resolut16n was declared
duly passed and adopted, signed by the Mayor arra his signature attested by
the Village Clerk.
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