Title
Retiree Bonus Authorization (ACT 2014-429)
Summary
DESCRIPTION OF TOPIC: (who, what, when, where, why, and how much)
Act 2014-429 of the Regular Session of the Alabama Legislature provides our agency with the opportunity to grant a one-time lump sum payment to retired members and beneficiaries of deceased retirees who retired prior to October 1, 2013. If granted, these retirees would then be entitled to receive a monthly retirement benefit from RSA on September 30, 2014. The Act provides for the retiree to receive a one-time lump sum payment of $2.00 per month for each year of service credited to the retiree's account or $300.00, whichever is greater. If the City of Foley elects to grant the 2014 one-time lump sum payment, the estimated cost is $15,103.00 which will require 0.14% to be added to the employer contribution rate effective for the one year period from October 1, 2015 - September 30, 2016.
SOURCE OF FUNDING:
Please provide the amount requested: additional 0.14% to the City's employer contribution rate
Is this a budgeted item? No
Please provide the budgeted amount: n/a
If budgeted, is this a capital purchase, capital project, or special fund? n/a
Was this item included in the Fiscal Year Capital Projects Plan? n/a
If yes, please provide the amount included in Capital Projects Plan: n/a
Body
RESOLUTION ACT 2014-429
(Local Unit Retirees and Beneficiaries of Deceased Retirees)
Be it resolved that the City of Foley, through its governing authority, elects to come under the provisions of Section 2 of Act 429 of the Regular Session of the 2014 Legislature.
The City of Foley agrees to provide all funds necessary to the Employees' Retirement System to cover the cost of the one-time lump sum payment as provided for by this Act for those eligible retirees and beneficiaries of deceased retirees of the City of Foley with the aforementioned lump sum payment being paid in October 2014.