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SUBJECT: POLICE MASTER PLAN WITH COMPENSATION AND BENEFITS <br />DATE: MAY 9, 2017 <br />PAGE 13 OF 17 <br />Pros: <br />Provides income replacement for the Sworn Officers is they become <br />disabled <br />Cons: <br />If the City picks up the entire 2.7% contribution rate, or splits the rate with <br />the member, this would increase costs. <br />Cost: <br />No cost if the City requires the employee to pay the entire 2.7% <br />contribution. If the City splits the contribution rate with the employee, the <br />estimated cost is about $35,000 annually. If the City pays the entire 2.7% <br />contribution rate, the cost would be about $70,000 annually. These <br />amounts would also increase annually as wages increase. <br />Recommendation for Implementation: <br />Hold informational meetings with FPPA representatives and Police Officers to <br />hear more details about this plan. <br />Option 6: Offer Sworn Officers an increase to the existing 401(a) plan with ICMA- <br />RC based on years of service to the City. <br />Currently, the City's 401(a) Plan is mandatory for all City employees. The City pays <br />5.5% of the employee's base salary into the Plan and the employee pays 5.0% into the <br />plan. An alternative would be to increase both the City's contribution and the <br />employee's contribution by some fixed amount, or by an amount that varies based on <br />years of service, which is similar to the way employees earn their Paid Leave Bank <br />(PLB). One scenario under this latter approach would be to increase contributions by a <br />half a percent based on a scale of years of service as shown in the table below. <br />CITY COUNCIL COMMUNICATION <br />