Number
091068
Version
SUBSTITUTE 2
Reference
Sponsor
THE CHAIR
Title
A substitute charter ordinance relating to retirement benefits for certain city employes.
Sections
36-04-1-c am
36-04-1-f am
36-05-1-h-5-b am
36-05-6-a rn
36-05-6-a-1-0 am
36-05-6-a-2 cr
36-08-7-a-2 am
36-08-7-m am
36-08-7-o cr
36-10-2 am
Analysis
The Common Council has approved labor contracts with various city unions which require new employes represented by those unions and beginning city employment on or after January 1, 2010, to contribute 5.5% of their earnable compensation as a contribution to the city retirement system; this requirement has also been imposed on nonrepresented/nonmanagement employes and management employes beginning city employment on or after January 1, 2010. In conjunction with this requirement, this charter ordinance provides for the implementation of section 414(h)(2) of the Internal Revenue Code to make city employe-paid member retirement contributions a pre-tax payroll contribution under that section, and permits members who separate from service prior to vesting to withdraw their member-paid contributions with interest.
This charter ordinance also changes retirement benefits for employes represented by SEIU Healthcare District 1199 Wisconsin/Staff Nurses Council, Local 195, IBEW, AFL-CIO, and Local 75, Journeyman Plumbers and Gasfitters Union, AFL-CIO as follows:
1. The sunset clause relating to creditable service for military service is eliminated.
2. A bonus year is added to the pension payment formulary thus qualifying an employe to retire earlier or add pension-eligible service time, or both. Employes who retire in 2010 are eligible.
3. Employes retiring in 2010 and 2011 shall receive an earlier cost-of-living increase of 2% effective the first anniversary of their retirement.
4. Employes hired on or after January 1, 2010, shall contribute 5.5% of their earnable compensation as a contribution to the retirement system.
Body
The Mayor ...
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