2009-01-05 Council Study Session Session

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MINUTES OF UNIVERSITY CITY COUNCIL STUDY SESSION JANUARY 05, 2009 The Council Study Session, held in the Chambers of the City Hall, on Monday, January 05, 2009, was called to order by Mayor Adams at 5:30 p.m. In addition to Mayor Adams, the following members of the Council were present: Mr. Arthur Sharpe, Jr. Mr. Terry Crow Mr. Michael Glickert Mr. Robert Wagner Ms. Lynn Ricci Mr. Byron Price Also present were the City Manager Julie Feier, Deputy City Manager Janet Watson, and the City Attorney John Mulligan. The Study Session was to discuss the City’s non-uniform pension plan and if the City should consider converting to defined benefit versus defined contribution pension plan. The first option discussed was changing from a defined benefit plan to a defined contribution plan, with a City match for all new employees. The second option was changing all new employees and non-vested employees to a defined contribution plan with a City match from defined benefit plan. The third option would be to convert all employees to defined contribution plan with a City match. The final option was to make no change. The questions that arose was what would be the cost to the City immediately and in the future for any of the options. Ms. Watson mentioned that a consultant could be hired to evaluate these options at the cost of approximately $5,000. Ms. Watson mentioned that the liability of the defined benefit plan will be in effect for many years but will decrease with years. Points covered  Non-vested employees should have an option of continuing in the existing plan or changing  Consideration should be looking at the cost in the long term not the immediate effect.  University City’s pension fund was eighty-seven percent funded  Council was concerned with having only one investor for the pension fund