City of Milwaukee - File #: R13427

• File #: R13427
• Version: 0
• Type: Housing Authority Resolution
• Status: Dead
• File created: 10/9/2023
• In control: HOUSING AUTHORITY
• On agenda: 10/9/2023
• Final action: 11/8/2023
• Title: Resolution authorizing the Housing Authority of the City of Milwaukee (HACM) to opt in to the Wisconsin Retirement System for all employees hired as of January 1, 2024
• Sponsors: THE CHAIR

Date	Ver.	Action By	Action	Result	Tally
11/8/2023	0	HOUSING AUTHORITY	ADOPTED; Minutes note: Patricia Dee, HACM’s Administrative Services Supervisor, explained that Fernando Aniban, HACM’s Assistant Secretary, and Julie Wilson, Assistant City Attorney, would present items R13424 and R13427 which are mutually-exclusive resolutions related to Wisconsin Act 12 and retirement contributions for HACM employees and that Commissioners would then most likely vote for one, but would not vote for both of the resolutions. Staff provided a brief background summary and answered the Commissioner’s questions about the documents provided with the agenda.	Fail	0:4
11/2/2023	0	HOUSING AUTHORITY	HELD IN COMMISSION; Minutes note: Staff provided a brief background summary and answered the Commissioner's questions about the documents provided with the agenda. Julie Wilson, Assistant City Attorney noted that the title of resolution R13424 mistakenly stated to opt out of the City’s pension plan rather than the State’s pension plan. As the discussion continued, it was noted that resolutions R13424 and R13427 were not included in correspondence to the Commissioners before the meeting. Due to the error in the resolution title and the Commissioners requesting additional time to review the resolution language, it was decided that the resolutions would be Held in Commission until the regularly scheduled November HACM Board meeting for further discussion.	Pass	4:0
10/11/2023	0	HOUSING AUTHORITY	HELD IN COMMISSION; Minutes note: Patricia Dee explained that Fernando Aniban, HACM’s Assistant Secretary, Crystal Reed-Hardy, Chief Human Resources Officer, and Julie Wilson, Assistant City Attorney would present an informative summary regarding the next two mutually-exclusive resolutions related to Wisconsin Act 12 and retirement contributions for HACM employees and that Commissioners would then most likely vote for one, but could not vote for both of the following resolutions. Attorney Wilson stated that the legislation will affect new HACM hires on and after January 1, 2024. She explained that one of the requirements in Act 12 stated that if the City of Milwaukee voted to pass the 2% city sales tax, that one of the conditions would be that the City’s pension system would close to new employees at the end of the same year the tax was passed and that going forward new City employees would be enrolled in the State’s Wisconsin Retirement System (WRS). For entities like HACM, separate from the City, but currently enrolled in the City’s pension plan, they may elect to join WRS, or they may elect to provide some other retirement plan, but the entity must choose one or the other option, as the City’s pension fund will be closing to new employees. If WRS would be selected, there is work staff must do before a November 15th WRS deadline. Fernando Aniban stated that staff recommends adoption of the 401(k) retirement benefits option for all new HACM employees hired on or after January 1, 2024. He explained that the WRS employee contribution would be 6.9%, whereas the employee contribution for the plan currently offered for employees of HACM’s subsidiary organizations, Travaux and Crucible, would be 5%. The Commissioners asked questions about the options. They requested more information comparing the total costs of the options, the number of new employees added in 2024, and the next three to five years, differences in employee’s rights to opt in or opt out, and what penalties and fees exist.	Pass	4:0

Number
13427

Version
Original
Reference
R13427 originally introduced at the October 11, 2023 HACM Board meeting, however held over for special meeting on November 2, 2023

Sponsor
The Chair

Title
Resolution authorizing the Housing Authority of the City of Milwaukee (HACM) to opt in to the Wisconsin Retirement System for all employees hired as of January 1, 2024
Analysis

Body
WHEREAS, 2023 Wisconsin Act 12 was enacted on June 20, 2023; and

Whereas, 2023 Wisconsin Act 12 requires any city of the 1st class that imposes a sales and use tax under s. 77.701(1), Wis. Stats., to join the Wisconsin Retirement System for all new employees; and

Whereas, Common Council File Number 230357 imposed a sales and use tax under s. 77.701(1), Wis. Stats.;

Whereas, 2023 Wisconsin Act 12 does not require, but provides to HACM the option, of joining the Wisconsin Retirement System;

Whereas, The Wisconsin Retirement System requires the governing body of each participating employer to file with the Department of Employee Trust Funds a written designation authorizing an employer agent or agents to act on its behalf in all matters pertaining to the Wisconsin Retirement System and the Department of Employee Trust Funds; now, therefore, be it

Further Resolved, that HACM elects to join the Wisconsin Retirement System for all new employees in accordance with the provisions of 2023 Act 12, and the appropriate HACM staff are directed to complete the Resolution of Inclusion Under the Wisconsin Retirement System attached to this file pursuant to 2023 Act 12;

Further resolved, that HACM’s Secretary Executive Director is hereby designated to serve as the HACM’s employer agent, and is authorized to act on HACM’s behalf in all matters pertaining to the Wisconsin Retirement System and the Department of Employee Trust Funds; and, be it

Further Resolved, that HACM’s Chief Human Resources Officer is hereby designated to serve as HACM’s alternate employer agent, and is authorized t...