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<br />1. PARS plans pAipants are fully vested in their i.e,idual accounts from <br />day one. This is the same as immediate ownership of the invested funds. <br />This compares to social security which requires contributions for a minimum <br />of 40 calendar quarters (10 years total) before the employee is eligible for <br />any social security retirement benefit. <br /> <br />2. In the event of the participant's separation from the City, the participant may <br />receive the contributed funds as follows: <br /> <br />(a) Distributed as a lump sum for the participant; or <br />(b) Rolled over to an IRA or other qualified plan that accepts rollovers. <br /> <br />3. PARS contributions are pre-tax dollars. Social Security contributions are <br />post-tax dollars (income tax). The result is additional take home pay for the <br />enrolled employees. <br /> <br />4. Contributions to the PARS plan increase account balances without limit. <br />With Social Security, once the limit is met, additional contributions do not <br />result in any higher benefits for the contributing participant. <br /> <br />Attached is a sample Resolution and Agreement for Administrative Services for <br />City Manager review. Representatives from PARS are available to attend the <br />Council Meetings for additional information, and will be happy to respond to <br />questions. <br /> <br />Staff recommends approval.. <br />