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SUBJECT: POLICE MASTER PLAN WITH COMPENSATION AND BENEFITS <br />DATE: MAY 9, 2017 <br />PAGE 5 OF 17 <br />Life and Accidental Death & dismemberment <br />Retirement Plans <br />Tuition Assistance <br />Legal Shield <br />Benefits that help employees maintain a work/life balance include: <br />Paid Leave Bank (PLB) <br />Family Medical Leave Bank (Formerly called Extended Illness Bank) <br />Family Bereavement Leave <br />Holidays <br />Employee Assistance Program (EAP) <br />Flexible Work schedules <br />For more details regarding these benefits, please see the attached, City of Louisville <br />2017 Benefits Guide. <br />As noted above, the City's current retirement plan consists of mandatory 401(a) Money <br />Purchase Plan where the City contributes 5.5% of the employees' base salary and the <br />employee contributes 5% of his/her base salary. This is considered a "defined <br />contribution plan". In conjunction with the 401(a) plan, the employee and employer both <br />contribute 6.2% to Social Security and 1.45% for Medicare totaling 7.65%. Employees <br />also have the option to voluntarily contribute to a 457 deferred compensation plan and a <br />Roth IRA plan. These retirement plans are currently provided by the International <br />City/County Management Association Retirement Corporation (ICMA-RC). For more <br />information, visit www.icmarc.org <br />The City also participates in Social Security and Medicare as traditional vehicles for <br />retirement. Many years ago the City signed a Section 218 Agreement which locks the <br />City into paying both Social Security and Medicare payments. A Section 218 <br />Agreement is a voluntary agreement between the State and the Social Security <br />Administration (SSA) to provide Social Security and Medicare Insurance for State and <br />local government employees. These agreements are called "Section 218" Agreements <br />because they are authorized by Section 218 of the Social Security Act. Section 218 <br />Agreements are irrevocable. <br />One of the concerns brought up routinely by the Sworn Police Officers is the City of <br />Louisville does not offer a "defined benefit" retirement plan. Many Officers would prefer <br />to have a defined benefit plan and see little value in the Social Security retirement <br />benefit that is offered. Many believe this plan will be unavailable or woefully <br />underfunded by the time they reach retirement age. <br />A table titled, Retirement Details — 2017, is attached that outlines the current labor <br />market cities and the retirement options each city offers to Sworn Police Officers. It lists <br />CITY COUNCIL COMMUNICATION <br />