1987-11-23 Regular Meeting - Laserfiche WebLink

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e e TMRS Rate Analysis Memo Pg.2 Staff estimated a rate of 7.25% for FY 1987-88. The TMRS City contribution rate remains 7.05% for the last quarter of 1987 and actually changes to the new rates beginning in January 1988. The TMRS rates listed in the previous page are above the staff estimated rates thus causing the potential for shortages in TMRS funds in late 1988. , ~ In deciding which options to adopt for the corning calendar year, I am providing the projected shortages under each benefit option. These potential shortages should not be great cause of alarm since through the normal attrition process a surplus of salaries and corresponding TMRS funds is usually acheived thus balancing much of the shortages throughout the year. Projected Budgetary Shortages for TMRS funding if the City Options described in. the last page are adopted effective 1-1-88: 1. $ 7,447 2. $ 8,359 3. $21,126 4. $34,348 Given these facts and figures and the City's committment to offering a good public sector retirement benefit program, I recommend that City Council adopt Option 3 on the previous page and adopt ordinances approving the Basic Plan + the Updated Service Credit + Retiree Annuity Increases + the Provisions of S.B. 505 for the coming calendar year. This will be at a contribution rate of 7.78% and a potential budget shortage of $21,126 which may be recouped through attrition and/or contigency fund. This recommendation does not include the previous municipal service buyback ordinance which would allow approximately 25 employees with forfeited TMRS service in other cities to buyback their time and contributions. This option can and should be readdressed next calendar year when we can better budget for its eventuality.