ADOPTED - MAY 10, 2005

Agenda Item No. 6

Introduced by the County Services Committee of the:

INGHAM COUNTY BOARD OF COMMISSIONERS

RESOLUTION TO RESCIND AND CANCEL RESOLUTION APPROVING GENERIC SERVICE CREDIT PURCHASE FOR COUNTY EMPLOYEE DAVID B. ROE

RESOLUTION #05-123

WHEREAS, pursuant to standing County Resolution #02-101 dated April 9, 2002, for each of the County’s MERS divisions with a “F” benefit in effect, then either Part 1 or Part 2 of the Resolution provides:

· Part 1.  “Where purchase occurs before attaining applicable minimum credited service for “F” benefits, such service is not creditable for MERS retirement benefits until the minimum years of credited service for “F” benefits is reached. If service does not become creditable, then the employee payment portion may be refunded to the member, or applied to the purchase of any generic services [sic, “service”] that may be credited  to the employee … at an actuarial cost based upon immediate separation from County service.”

· Part 2.  “Where purchase occurs after attaining minimum credited service for “F” benefits, such service is immediately creditable;” and

WHEREAS, the Resolution further provides that the cost for generic service “must be totally borne by the employee;” and

WHEREAS, under the County’s MERS plan covering Mr. Roe, a 3.2% benefit multiplier is in effect, along with benefit F25 years-and-out, and F55 (15) [full benefit at age 55 with 15 years service] is in effect; and

WHEREAS, by County approval on December 18, 2002 under the standing Resolution, and by member payment of $64,674 to MERS completed on February 12, 2003, Mr. Roe purchased 4 years 6 months generic service; and

WHEREAS, based on Mr. Roe’s birth date and county service, and the “F” benefits in effect, Part 1 of Resolution #02-101 requires that the purchased service may not used to meet either the:

• 25 years service requirement for F benefit [without any service purchase, 25 years service will not be attained until March 1, 2013 if he continues in full time employment until then, when under the 3.2% multiplier, his total benefit is capped at 80% of his final average compensation]; nor

• 15 years credited service requirement under F55/15 [Mr. Roe will not turn age 55 until September 12, 2020, yet his full benefit of 80% of final average compensation under the 3.2% multiplier will be attained on March 1, 2013 if he continues in full time employment until then]; and 

WHEREAS, for these reasons, Mr. Roe has requested that MERS cancel the service purchase and refund his payment to him, which MERS will agree to do upon the County Board of Commissioners agreeing, at Mr. Roe’s request, to rescind and cancel his generic service purchase of 4 years 6 months credited service under the standing Resolution.

ADOPTED - MAY 10, 2005

Agenda Item No. 6

RESOLUTION #05-123

THEREFORE BE IT RESOLVED, that upon the request of County employee David B. Roe, the Board of Commissioners hereby rescinds and cancels the approved purchase of 4 years 6 months generic service under County Resolution #02-101.

BE IT FURTHER RESOLVED, that a certified copy of this Resolution shall be filed with MERS, and upon Mr. Roe’s application for refund, that his payment for the cancelled service purchase be refunded to him.

COUNTY SERVICES:  Yeas:  Celentino, Copedge, De Leon, Schor, Severino, Vickers

Nays:  None                        Absent:  None         Approved 5/3/05