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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
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hybrid plan or the My Choice plan. If they do not choose, they will default into the My Choice
plan.
Councilmember Tim Scott asked,Are we using this in the recruitment going forward? I think that
would be a benefit. Is Mishawaka or is the County using this?
Ms. Clark replied, Frankly, it is not used by many entities. The City of Indianapolis has enacted it
but they have done it as a cost savings measure. The cost saving measure gets at the percentages
that have been talked about. There is a zero to four percent (0% - 4%) that you can add on top of
what the City already contributes just to fund the current participants. That zero to four percent
(0% - 4%) can fluctuate and our proposal is to do one percent (1%) less than what it would be for
the current ten (10) year vesting program. Right now it is a four percent (4%) contribution. My
Choice is three (3%)percent. It is a very slight savings. It is hard for us to know who is to go but
our average workforce length is about ten(10)years right now. I find that interesting as it suggests
to me that people really have their eye on that ten(10)year mark. We don't want that ten(10)year
mark the reason they are staying. We want people to stay because they feel it is a great fit and
because they want to.
Councilmember Scott asked, What is the average tenure for employees that currently are
employed?
Ms. Clark replied, Currently that is ten (10) years. That number is without members of public
safety, so,just civilian employees.
Councilmember Oliver Davis asked,Any time they move positions does that impact that?
Councilmember Sharon L. McBride arrived at the meeting at 4:28 p.m.
Ms. Clark replied, These are all PERF covered positions so this doesn't impact your years of
getting up to ten(10) years.
Councilmember Dr. David Varner asked, So if you go from a County job to a City job, will you
get the opportunity to go from a ten(10) year to this new five (5)year?
Ms. Clark replied, I actually don't know that. I would have to look into that a little bit more.
Committee Chair White then opened the floor to members of the public wishing to speak in favor
of or in opposition to the legislation. There were none. She then turned the floor back to the
Committee for further comment or main motion.
Committeemember John Voorde made a motion to send Bill No. 18-22 to the full Council with a
favorable recommendation. Committeemember Regina Williams-Preston seconded the motion
which carried by a voice vote of three (3) ayes.
With no further business,Committee Chair White adjourned the Personnel and Finance Committee
meeting at 4:22 p.m.
EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT
455 County-City Building 227 W.Jefferson BvidI South Bend,Indiana 466011p574.235.92211f574.235.9173 ITM574.235.5567lwww.southbendin.gov
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®CITY OF SOUTH BEND I OFFICE OF THE CLERK
,Respectfully Submitted,
Karen White, Committee Chair
EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION EMPOWERMENT
455 County-City Building 1227 W.JeffersonBvld South Bend,Indiana 466011p574.235.92211f574.235.9173 M574.235.5567 www.southbendin.gov
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