05-14-18 Personnel and Finance - Laserfiche WebLink

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�o�sptlTH U\ d \P CE x x 1865 OFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK PERSONNEL &FINANCE MAY 14, 2018 4:22 P.M. Committee Members Present: Karen White, Regina Williams-Preston, John Voorde Committee Members Absent: Gavin Ferlic Other Council Present: Dr. David Varner, Tim Scott, Oliver Davis, Sharon L. McBride (late) Other Council Absent: Jo M. Broden Others Present: Kareemah Fowler, Bianca Tirado, Graham Sparks, Bob Palmer Presenters: Kyra Clark Agenda: Bill No. 18-22-Resolution Electing to Participate in the Public Employee's Retirement Fund Committee Chair Karen White called to order the Personnel and Finance Committee at 4:22 p.m. She introduced members of the Committee and proceeded to give the floor to the presenters. Bill No. 18-22-Resolution Electing to Participate in the Public Employee's Retirement Fund Kyra Clark,Director of Human Resources for the City of South Bend with offices on the 12th floor of the County-City Building, stated, Before you is a resolution to approve an additional option for an employee benefit plan. Under the current program, all employees are required to participate in the PERF Hybrid Plan. Under this plan the employee becomes vested after ten(10) years. We are finding that when we talk to employees they don't see that as much of a benefit because of the long vesting schedule. So we have talked with PERF and they have a relatively new program that is called My Choice. It allows for a shorter vesting period and it looks like the vesting schedule of the typical 401k of a private organization at twenty percent (20%) per year with one hundred percent(100%)vestment after five (5)years. The goal is not to save money but to spend the same amount of money while allowing the employee to have that shorter vesting period because we think that is much more of a desirable benefit for folks. Committee Chair White asked, How many employees do we have currently that will be on track for the ten (10) year? Current employees won't be grandfathered? Ms. Clark replied,Anybody currently employed is stuck with the ten(10)year vesting period. But employees hired on or after July 1St, 2018 will qualify. Once employees who, after that date, are hired they have sixty (60) days to decide whether they would like to participate in the traditional INTEGRITY1 SERVICES ACCESSIBILITY JENNIFER M.COFFMAN BL4neA L TmADo JOSEPH R MOLNAR CHIEF DEPUTY/DmECTOR OF OPERATIONS DF.ruTy/DME=R OF POLICY ORDINANCE VIOLATION CLERK EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Blvd.I South Bend,Indiana 466011 p 574.235.92211 f 574.235.9173 1 www.southbendin.gov