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CITY OF COLTON <br />AGENDA REPORT <br />For Council Meeting of July 16, 1991 <br />TO: Honorable Mayor and City Council <br />FROM: GORDON R. JOHNSON, PERSONNEL DIRECTO�� <br />RICHARD E. ACEVEDO, FINANCE DIRECTO�� Dat 07-09-91 <br />SUBJECT: RETIREMENT SYSTEM MEMBERSHIP FOR PART-TIME EMP OYEES <br />BACKGROUND: The Omnibus Budget Reconciliation Act of 1990 was signed <br />into law by President Bush on November 5, 1990. It requires that <br />nearly all part-time City employees be covered by Social Security or <br />a comparable retirement plan starting July 2, 1991. <br />STATEMENT OF THE PROBLEM: <br />The federal regulations implementing this new law allow the City <br />until December 31, 1991, to implement a retirement plan for its part- <br />time employees, however, that plan must take effect no later than <br />July 2, 1991. This agenda item describes the alternatives for <br />compliance with the new law and asks Council to direct staff to <br />pursue one of those alternatives. <br />ALTERNATIVES: <br />1. Enroll all part-time employees in Social Security. <br />2. Enroll part-time employees working over 1,000 hours per <br />calendar year in PERS and those working fewer hours in <br />Social Security. <br />3. Enroll all part-time employees in a retirement system that <br />is comparable to the benefit provided under the Old -Age <br />portion of the Old -Age, Survivor and Disability Insurance <br />program of Social Security. Options include deferred <br />compensation plans under section 457 of the Internal Revenue <br />Code (IRC) and private plans using IRC 401(A) money -purchase <br />plan. The minimum contribution to such a plan is 6.2% of <br />base salary. <br />ENVIRONMENTAL IMPACT: NONE <br />Attachments: <br />Page 1 of___2 Item No. :�- <br />FILE NO -5.01.1.................q - <br />