City of Alexandria, Virginia
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MEMORANDUM
DATE: OCTOBER 22, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Resolution to Amend the City of Alexandria Firefighters and Police Officers Pension Plan. [ROLL-CALL VOTE]
BODY
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ISSUE: Consideration of proposed changes to the Firefighters and Police Officers Pension Plan in lieu of the proposed two percent employee contribution rates increase beginning in Fiscal Year (FY) 2014.
RECOMMENDATION:
That City Council adopt the attached resolution (Attachment 1) which amends the City of Alexandria Firefighters and Police Officers Pension Plan and restates the Plan Document to combine the 2009 Plan Document Restatement and all the post-adoption amendments into one document.
That City Council accepts the combination of:
1) Benefit changes,
2) Modifications to the definitions, administration, and design of disability component of the retirement plan,
3) A Memorandum of Agreement, and
4) Employer/employee cost sharing of increases in pension and disability costs
as a non-cash substitute for the two percent increase in employee contribution rates proposed and adopted in the City's Fiscal Year 2014 budget.
BACKGROUND: In 2011 the City Council, in response to the rising cost of the City's retirement plans, appointed an advisory board to review options to address the increases. The Ad Hoc Retirement Benefit Advisory Group recommended keeping the defined benefit plan structure if an adjustment mechanism was put in place. City Council accepted the recommendation of the Ad Hoc Retirement Benefit Advisory Group and asked representatives from the Firefighters and Police Officers Pension Board to meet to recommend to Council an appropriate adjustment mechanism. A subcommittee met in the summer of 2012 and considered several...
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