ADOPTED -JULY 22, 2008
Agenda Item No. 14
Introduced by the County Services and Finance Committees of the:
INGHAM COUNTY BOARD OF COMMISSIONERS
RESOLUTION TO AUTHORIZE THE TRANSFER OF MERS RETIREMENT FUNDS FOR ZOO TEAMSTER AND ZOO UNITED AUTO WORKERS STAFF – RECIPROCAL RETIREMENT ACT
RESOLUTION #08-191
WHEREAS, on or about May 1, 2007, the City of Lansing and Ingham County entered into an Agreement (hereinafter, the “Agreement”) for the Lease and Operation of Potter Park and Potter Park Zoo which transferred operational responsibility of the Potter Park Zoo to the County; and
WHEREAS, pursuant to the Agreement, it was envisioned that City employees who worked at the Potter Park Zoo would be provided the opportunity to continue employment as Ingham County employees, would be placed in no worse position regarding retirement benefits than if they had continued as City of Lansing employees, and would continue to receive eligibility for City of Lansing retiree health benefits; and
WHEREAS, section 6(1) of the Reciprocal Retirement Act, MCL 38.1106(1) authorizes an agreement to transfer the credited service towards retirement of a member from his or her preceding reciprocal unit (in this instance, the City of Lansing) to his or her succeeding reciprocal unit (in this instance, Ingham County); and
WHEREAS, the Agreement provided as follows:
The City shall transfer to the County designated plan and trust pension assets equal to the actuarial 100% fully funded present value of accrued pension liabilities, as of June 30, 2007, for those Former City Zoo Employees hired by the County. The City shall provide such further and/or additional information or resolutions as may be required by MERS or the County. The County will thereafter establish with MERS such pension plan or plans providing Former City Zoo Employees hired by the County prior to July 1, 2007 with pension benefits no worse than those provided under the City of Lansing Employees’ Retirement System and shall provide for prior service credit. Future Zoo Employees hired after July 1, 2007 shall be placed in such plan as is negotiated with the applicable union or as is established by the County; and
WHEREAS, the actuarial accrued liability (“AAL”) for each City employee that has elected to transfer to employment with the County has been calculated by Gabriel, Roeder, Smith and Company as of July 1, 2007, to be as set forth on the attached Appendix A, column 1; and
WHEREAS, the City of Lansing and its retirement system have agreed to pay, in the aggregate, the actuarial accrued liability as set forth on the attached Appendix A, column 1.
THEREFORE BE IT RESOLVED, that the Ingham County Board of Commissioners hereby authorizes the transfer of credited service (as referenced in Appendix A, column 4) and the funds designated for each transferred employee (as referenced in Appendix A, column 2) from the City of Lansing ERS to Ingham County for credit towards the transferred employee’s retirement in the Municipal Employees Retirement System (“MERS”) account established by Ingham County pursuant to the Agreement.
BE IT FURTHER RESOLVED that the County retirement system accepts the actuarial present value of the retirement allowances attributable to the credited service for each transferred employee as set forth in Appendix
ADOPTED -JULY 22, 2008
Agenda Item No. 14
RESOLUTION #08-191
A, and otherwise meeting the requirements of Section 6 of the Reciprocal Retirement Act, MCL 38.1106 and the Agreement;
BE IT FURTHER RESOLVED, that the provisions of this resolution apply to each of the transferred employees referenced on Appendix A individually and are not dependent upon application to all of the transferred employees.
BE IT FURTHER RESOLVED, that Dr. Matthew J. Myers, Controller\Administrator is authorized on behalf of the County’s retirement system to sign and execute all documents to effectuate and finalize this transaction, subject to prior approval as to form, by legal counsel.
Dated:_______________________
COUNTY SERVICES: Yeas: Nolan, De Leon, Copedge, Soule, Grebner, Severino
Nays: None Absent: None Approved 7/15/08
FINANCE: Yeas: Grebner, Hertel, Weatherwax-Grant, Celentino, Dougan
Nays: None Absent: Schor Approved 7/16/08
RECIPROCAL RETIREMENT ACT (EXCERPT)
Act 88 of 1961
38.1106 Transfer of credited service; agreement between preceding reciprocal unit and
succeeding reciprocal unit; resolution; financial consideration; actuarial present value of
retirement allowance; written policy.
Sec. 6. (1) A reciprocal unit, designated as the preceding reciprocal unit, may enter into an agreement with
a reciprocal unit, designated as the succeeding reciprocal unit, to transfer credited service of a member who
leaves the employ of the preceding reciprocal unit and enters the employ of the succeeding reciprocal unit.
The agreement shall be by resolution of the governing body of each reciprocal unit. The resolution shall
specify the amount of credited service being transferred from the preceding reciprocal unit to the member's
credit in the succeeding reciprocal unit and the amount of financial consideration being transferred from the
preceding reciprocal unit to the succeeding reciprocal unit. The financial consideration transferred under this
section shall not be greater than the larger of the following:
(a) The accumulated contributions of the member whose credited service is being transferred.
(b) The actuarial present value of the retirement allowance payable by the preceding reciprocal unit under
section 4 if the preceding reciprocal unit does not transfer the member's credited service under this section.
(2) A succeeding reciprocal unit, before passing a resolution described in subsection (1), shall determine
the actuarial present value of the retirement allowance that will be payable to the member under the retirement
plan of the succeeding reciprocal unit attributable to the credited service to be transferred under subsection
(1).
(3) The actuarial present value of the retirement allowance payable by the preceding reciprocal unit under
subsection (1) and by the succeeding reciprocal unit under subsection (2) shall be calculated using the interest
rate and mortality tables specified by the Pension Benefit Guarantee Corporation for calculating the actuarial
present value of immediate and deferred pensions under a terminated pension plan as provided in part 2619 of
subchapter C of chapter XXVI of title 29 of the Code of Federal Regulations, 29 C.F.R. part 2619.
(4) Each reciprocal unit, by resolution of the governing body of the reciprocal unit, shall establish a written
policy to implement the provisions of this section in order to provide uniform application of this section to all
members of the reciprocal retirement system.
History: Add. 1990, Act 274, Imd. Eff. Dec. 3, 1990.
Rendered Thursday, May 01, 2008 Page 1 Michigan Compiled Laws Complete Through PA 105, plus 107
and 112, of 2008
Ó Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov
APPENDIX A
|
NAME |
ACCRUED ACTUARIAL LIABILITY |
ERS FUNDING 85.9% |
CITY FUNDING 14.1% |
CREDITED SERVICE |
|
Masseau, Teresa |
$52,408 |
$45,018 |
$7,390 |
5.27 |
|
Harrison, Tara |
27,606 |
23,714 |
3,892 |
3.88 |
|
Brady, Gerald |
320,014 |
274,892 |
45,122 |
18.17 |
|
Stults, Heather |
4 |
3 |
1 |
.58 |
|
Marquardt, Mark |
76,630 |
65,825 |
10,805 |
8.58 |
|
Foote, Sarah |
33,324 |
28,625 |
4,699 |
4.25 |
|
Hernandez, Kimberly |
20,840 |
17,902 |
2,938 |
3.17 |
|
Wager, Linda |
118,712 |
101,974 |
16,738 |
11.08 |
|
Tomlian, Janice |
98,899 |
84,954 |
13,945 |
10.5 |
|
Lincoln, Melissa |
22,841 |
19,620 |
3,221 |
4 |
|
Wagner, Cynthia |
32,683 |
28,075 |
4,608 |
4.17 |
|
Broder, Jacqueline |
59,169 |
50,826 |
8,343 |
7 |
|
|
$863,130 |
$741,428 |
$121,702 |
|