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SUBJECT: POLICE MASTER PLAN WITH COMPENSATION AND BENEFITS <br />DATE: MAY 9, 2017 <br />PAGE 8 OF 17 <br />Officers. This would not reduce or eliminate our required contribution to Social Security. <br />Joining PERA would require the City to contribute to Social Security (6.2%), Medicare <br />(1.45%) and PERA (13.70%) for a grand total of 21.35% of our TOTAL payroll. <br />If the City joins PERA, the City would also terminate participation in the ICMA-RC 401 <br />(a) Plan that is currently mandatory for all City employees, and discontinue the City's <br />contributions of 5.5% of the employee's base salary into the Plan. Employees would <br />also no longer be required to pay 5.0% into that plan. <br />Additional information can be provided regarding eligibility requirements, service credits, <br />purchasing service credits, disability information, retirement options including health <br />insurance through PERA, and portability of PERA, etc. can be found by accessing the <br />following links: <br />Retiree health insurance (PERACare): <br />https://www.copera.org/sites/default/files/documents/2-65-17.pdf <br />Health insurance through PERA for employers (Active PERACare): <br />https://www.copera.org/employers/peracare-employers <br />PERA Benefit Table and summary: <br />https://www.copera.orgt/sites/default/files/documents/5-5.pdf <br />Summary Financial Report: <br />https://www.copera.org/sites/default/files/documents/5-21-15.pdf <br />Should City Council be interested in further details regarding this option, PERA <br />information sessions can be scheduled with a PERA Field Education Representative. <br />Pros: <br />Cons: <br />This option would provide a defined benefit retirement option for all City <br />employees as well as other services offered by PERA. <br />It would allow those who are already covered by PERA employers, or those with <br />PERA service, to come to work for the City of Louisville and continue in the <br />PERA retirement program. <br />PERA retirees would also have a retiree health insurance option. <br />This may be a cost -prohibitive option for the City to fund. <br />Contribution rates are not set by the City and will increase based on the direction <br />from the Colorado General Assembly. <br />Cost: Estimated additional cost of $1.1 million annually. <br />CITY COUNCIL COMMUNICATION <br />