Stories indexed with the term ‘retirement system’

A resolution that was defeated at its previous meeting on Sept. 3, 2013 has now been postponed in a re-vote taken by the Ann Arbor city council at its Sept. 16, 2013 meeting. The resolution calls on the city’s employee retirement system board to stop investing in fossil fuel companies. The retirement system board is not required to follow the council’s encouragement.

The council’s vote to postpone consideration of the resolution until Oct. 21 was unanimous. The rationale for postponement was based in part on a desire to allow the energy commission, which had recommended that the council pass the resolution, to take another look at the issue. Sally Petersen (Ward 2) was keen to explore the idea of investing in … [Full Story]

Only one of two resolutions sponsored by the city’s energy commission was given approval by the Ann Arbor city council at its Sept. 3, 2013 meeting. The first called on the city’s employee retirement system to divest from fossil fuel companies – but it failed on a 5-4 vote, with two councilmembers absent. The second directed city staff to work with DTE to create a community solar pilot project. That resolution was approved unanimously without discussion.

An energy commission resolution passed on July 9, 2013 recommended that the city council urge the city’s employee retirement system board to cease new investments in fossil fuel companies and to divest current investments in fossil fuel companies within five years. The resolution defined a “fossil … [Full Story]

Two energy-related items will appear on the Ann Arbor city council’s post-holiday agenda next week.

One of those items calls on the city’s employee retirement system to divest from the top 200 publicly traded fossil fuel companies.

The second resolution would direct the Ann Arbor city staff to work with DTE to develop a pilot program for a “community solar” project – an initiative that would allow a group of people or businesses to purchase shares in a solar energy system, not located at the site of their electric meter.

The items appear on the council’s tentative agenda for Sept. 3, 2013, which is shifted to Tuesday from its regular Monday slot due to the Labor Day holiday.

Both resolutions were sponsored by the city’s energy commission, a 13-member group with the responsibility of overseeing city policies and regulations on energy and to make recommendations to the city council. [Full Story]

At its Sept. 19, 2011 meeting, the Ann Arbor city council gave final approval to an ordinance revision that increases the city’s pension vesting period for non-union employees hired after July 1, 2011 – from five years to 10 years. It also changes the final average compensation computation so that it’s based on the the last five years of employment, not the last three years.

The ordinance change had been given initial approval at the council’s Sept. 6 meeting and came after a public hearing on Sept. 19, held before the vote.

The preparation of the ordinance change came at the direction of the city council, which passed a resolution at its June 6, 2011 meeting asking the city administrator to bring forward ordinance revisions that for non-union employees would change health care benefits and aspects of the city’s pension plan.

Specifically, the June 6 resolution pointed to ordinance revisions that would base the final average contribution (FAC) for the pension system on the last five years of service, instead of the last three. Further, employees would be vested in the pension plan after 10 years instead of five. Finally, all new non-union hires would be provided with an access-only style health care plan, with the opportunity to buy into whatever plan active employees enjoy.

At its Aug. 4, 2011 meeting, the council gave final approval to an ordinance change that addressed the health care provision from the June 6 resolution. That ordinance change distinguishes between “subsidized retirees” and “non-subsidized retirees.” A non-subsidized retiree is someone who is hired or re-employed into a non-union position with the city on or after July 1, 2011. In their retirement, non-subsidized retirees will have access to health care they can pay for themselves, but it will not be subsidized by the city.

The ordinance change that was given final approval at the council’s Sept. 6 meeting addresses the retirement plan portion of the June 6 resolution. All ordinance changes require approval by the council at two separate meetings, in addition to a public hearing on the change before the final vote.

The city expects that when it reaches a point when all non-union employees have been hired under the revised pension plan, the city’s costs will be $230,000 less than they would be under the current plan.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link] [Full Story]

At its Aug. 15, 2011 meeting, the Ann Arbor city council voted to place before voters on Nov. 8 a charter amendment to alter the composition of the board of trustees for the city’s retirement system.

The composition of the nine-member body as currently set forth in the charter is as follows: “(1) The City Administrator and the Controller to serve by virtue of their respective offices; (2) Three Trustees appointed by the Council and to serve at the pleasure of the Council; (3) Two Trustees elected by the general city members from their own number (general city members being members other than Policemen and Firemen members); and (4) Two Trustees elected by the Policemen and Firemen members from their own number.”

The proposed change would retain nine members but would distribute them differently: (1) the city controller; (2) five citizens; (3) one from the general city employees; and (4) one each from police and fire.

If the measure passes on Nov. 8, it will still need to be ratified by the city’s collective bargaining units in order to take effect.

In 2005, a “blue ribbon” commission – tasked to make recommendations about the city’s retirement board and the city’s pension plan – had called for a change in the board’s composition to be a majority of trustees who are not beneficiaries of the retirement plan and, in particular, to remove the city administrator’s position from the board.

In 2008, a member of the retirement system’s board of trustees, Robert N. Pollack, Jr., resigned from the board in part due to the city’s failure to enact recommendations of the blue ribbon panel. [.pdf of blue ribbon panel report] [.pdf of Pollack's resignation letter]

Under the terms of new city administrator Steve Powers’ contract, he will not be a beneficiary of the city’s retirement plan, but will instead have a 401(a) plan.

The city’s retirement program is supported in part by the levy of a retirement benefits millage [labeled CITY BENEFITS on tax bills], currently at a rate of 2.056 mills, which is the same rate as the city’s transit millage. A mill is equal to $1 for every $1,000 of taxable value of a property.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link] [Full Story]

Ann Arbor City Council meeting (Jan. 18, 2011): At its most recent meeting, scheduled a day after the Martin Luther King Jr. holiday, the council was due to consider, for a second time, a first-reading of a licensing scheme for medical marijuana businesses that has been put forward by city attorney Stephen Postema.

After amending the licensing proposal heavily at its Jan. 3, 2011 meeting, the council had decided to postpone the measure until Tuesday’s meeting. After a relatively brief attempt to undertake further amendments, the council decided to postpone consideration again – until its Feb. 7, 2011 meeting. They also voted to extend the moratorium on opening additional marijuana dispensaries and cultivation facilities through March 31, 2011.

Not relatively brief were Christopher Taylor’s (Ward 3) opening remarks about a resolution that would have authorized the Ann Arbor Downtown Development Authority to design a plan to develop city-owned downtown parking lots.

In the end, the council decided to postpone consideration of the DDA parcel-by-parcel proposal – on a 6-4 vote, with some of those voting against postponement looking to vote it down. The effect of the postponement was likely similar to what outright rejection would have been. The clear message was this: Substantial revision to the proposal would be required to gain the kind of overwhelming support the measure will likely need to persuade DDA board members that the council is in agreement with the proposal.

Another piece of major business, which passed quietly, was approval of an overhaul of the ordinance language defining the city’s retirement system. An additional tax abatement for Edwards Brothers received a lot of discussion, but was ultimately approved.

The city also accepted a grant from the Home Depot Foundation for sustainability work, that earned praise for the city’s environmental coordinator, Matt Naud. In other city environmental action, David Stead was reappointed to the city’s environmental commission, and Steve Bean’s decision was announced that he had not sought reappointment to that commission, after a long tenure.

Th site plan for Lake Trust Credit Union at the southeast corner of West Liberty and West Stadium Boulevard was approved. And two additional parcels were added to the land that is protected by the city’s greenbelt program.

As budget season looms, Stephen Rapundalo (Ward 2), who serves on both the city council’s budget committee and the labor and administration committee, gave a status update on the city’s negotiations with its unions. [Full Story]

At its Jan. 18, 2011 meeting, the Ann Arbor city council gave final approval to revisions in the city’s ordinance language that spells out how the retirement system works. The changes were administrative, aimed to ensure compliance of the plan with tax-qualification requirements of the Internal Revenue Code and to improve exactness and clarity of language. Other changes were made at the suggestion of the city retirement system’s board of trustees. [.pdf of ordinance as revised] [.pdf of changes and reasons].

The ordinance change does not change the city’s basic retirement plan from a defined benefit plan to a defined contribution plan. The language changes also do not change the composition of the retirement system’s board of trustees. In 2005, a “blue ribbon” commission – tasked to make recommendations about the city’s retirement board and the city’s pension plan – had called for a change in the board’s composition to be a majority of trustees who are not beneficiaries of the retirement plan and, in particular, to remove the city administrator’s position from the board.

In 2008, a member of the retirement system’s board of trustees, Robert N. Pollack, Jr., resigned from the board in part due to the city’s failure to enact recommendations of the blue ribbon panel. The change in composition of the pension board would require a city charter amendment, which the city council could decide to place before voters. [.pdf of blue ribbon panel report] [.pdf of Pollack's resignation letter]

The city’s retirement program is supported in part by the levy of a retirement benefits millage [labeled CITY BENEFITS on tax bills], currently at a rate of 2.056 mills, which is the same rate as the city’s transit millage. A mill is equal to $1 for every $1,000 of taxable value of a property.

This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link] [Full Story]