Number
110875
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. MURPHY
Title
Substitute resolution authorizing the hiring of outside counsel for the purpose of reviewing legal issues concerning pension benefits and appropriating funds for this purpose.
Analysis:
This resolution appropriates up to $25,000 within the City Attorney’s Outside Counsel/Expert Witness Special Purpose Account for the purpose of hiring outside counsel to review legal issues relating to the implementation of 2011 Wisconsin Act 10 as it affects employee contributions to the Employes’ Retirement System.
Body:
Whereas, 2011 Wisconsin Act 10 required employees of cities of the first class, with certain exceptions, to pay all required employee contributions for the funding of their pension benefits and further prohibits their employers from making these contributions; and
Whereas, Common Council File Number (CCFN) 110740, a substitute charter ordinance relating to member pension contributions for certain city employes, in its current version (substitute 1), would require all general city employees to contribute 5.5% of their earnable compensation for the funding of their pension benefits; and
Whereas, The office of the City Attorney, in an opinion dated February 28, 2011, opined that a provision like that included in CCFN 110740 would not be legal and enforceable; and
Whereas, In a separate opinion, issued on May 17, 2011, the law firm of White, Hirschboeck, Dudek, S.C., opined to the Annuity and Pension Board of the Employes’ Retirement System that the provisions of 2011 Act 10 that bear on the benefits of plan members should be interpreted in a manner consistent with the terms and conditions of the benefit contracts of these same members; and
Whereas, The potential liability to the taxpayers of the City of Milwaukee should CCFN 110740 be passed into law, challenged, and overturned might be substantial; and
Whereas, An independent opinion would assist in addressing the absence of ...
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