2006-10-09 Regular Meeting and Workshop Meeting of La Porte City Council

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City Council Regular and Workshop Meeting —October 9, 2006 Page 6 Robert Swanagan responded no *. Councilmember Griffiths noted he was calculating fund subsidy of $39.18 and wanted clarification that retirees did not benefit from the subsidy. He asked Mr. Swanagan if that was correct. Robert Swanagan advised that was correct. Councilmember Griffiths noted he figured the amount to be $39.18 difference instead of $8.00 something different. Robert Swanagan noted what they did with the calculations was go back and use the formula. That would be 15% it was $88.00 and something. When you got to 10/1/06 it changed the formula by 10%. This is where the change comes in. *. Councilmember Griffiths noted he was still confused and wanted to know how he came up with the $8.71. He asked if anyone else understood or could explain. Robert Swanagan made comments *. Councilmember Griffiths inquired if the calculation is on 10% would it be X times 10% _ 50%? Robert Swanagan made comments * Councilmember Griffiths clarified staff was saying it is based on the active rate. It is not saying you are going to pay the same amount but it is just based on that figure. He noted he now understood the calculations. He noted he wanted to go over it one more time. He noted if you go to the very last column, total premiums with contributions and subsidy's. He inquired if this was correct. Robert Swanagan indicated that was correct. Councilmember Griffiths noted if he takes $589.41 total premium contribution and multiply by 10% that would equal $58.94 but the cost of employee contribution is $50.23. That is the first part, you then subtract the $8.71. Robert Swanagan made comments *. Councilmember Griffiths noted that if you have 27 years of service, you would multiply by the $589.41 X 25%. The 25% comes from the scale. He noted he understood the calculation. Robert Swanagan noted he would attempt to answer Barry Beasley's question outlined in the letter he provided to Council for discussion this evening. *. Robert Swanagan noted the next item came through the Chapter 172 Board regarding retirement incentives and discussed examples provided in handout included in the Council packet. *. Robert Swanagan discussed 5 year vesting *