1982/06/23 Council Minutes - Laserfiche WebLink

258 June 23,1982 WORKSHOP-SOCIAL SECURITY WITHDRAWAL-(CB 826-285, Pe:ititts=7.4T1=4'e-MplZ:ensITIg=t11:1T11:tr=" • investigate withdrawal from the Social Security system. He asked Council how they felt on this issue. Councilman Michelson said he would be willing to listen to pees an. cons but definitely OPPemedwandrrng Mayor Moore explained this matter had been initiated Ink certain City employees and has been under discussion for several years. Withdrawal would be a two-year process,with two votes of the,City and it is also suggested that an employee vote be taken. He said all employees would have to withdraw as a unit,not just those who wished to do so. It was all or nothing. He felt a majority of employees would not set aside money for retirement. Also,there could be a possible loss of benefits,such as medicare. Councilman Langus spoke against withdrawing from the Social Security ,r system and suggested that a vote of employees be taken before discussing this matter any further. Bruce Jones,City Attorney,said Bob Ransom and Walt Sellers had been researching this and there would be an education program set up to inform employees of all the pros and cons. The experience of other cities that have withdrawn from the system mould also be presented as well as alternate plans available to employees. They were asking for Council's direction before proceeding. Councilman Aldcroft said he did not have adequate time to review the memo distributed this morning and was not prepared to make any decision , now He felt the Social Security system was having difficult and the'more money withdrawn would put it further in the red. Y n'thrld:ranagtstt:d'dlIattn:=4C!'ithdrZin:I:Irely:::. Councilmen Gipson asked if it could be possible that higher paid 1" employees who were able to invest more would receive more benefits than lower paid employees and Mr.Ransom said he had no breakdown information regarding this,but it was possihle theY might reDeive a higher rate of return on their investments. Councilman Aldcroft suggested making up a questionnaire based on the memo banded out this morning to be completed by employees to see what their desires were. Councilman Stephenson said he strongly believed that City employees should not withdraw from the system because benefits,such as medical care,would be difficult to match with an alternate program. Councilman Overstreet asked for a 9guestimaten of costs to poll employees to see now they felt and Mr.Ransom said the entire two- year process could cost as much as$50,000. Considerable time and money has already been spent on this matter. AU.