1973-4970rRESOLUTION NO. ~197t~
RESOLUTION SUPPORTING CERTAIN CHANGES IN THE Pa E. R.Ao LA~,~T
WHEREAS, the City of Richfield feels that it has become increasingly evident
that current benefits under P. E. R.A. are grossly inadequate to provide for dedicated
public servants after their retirement, or for protection of their survivors,
NOW, THEREFORE, BE IT RESOLVED that the I973 Minnesota Legislature be
respectfully requested to improve the P, E. R.A. law by making the following changes:
1 . Change the interest assumption which the actuary is required to use from
3 1/2%° to a figure which will appropriately reflect current potential earn-
ings of the fund, for ~.xample ® 5%.
2. Charge the definition of average salary from the current °'career average"
concept to an average of the five highest years .
3. Remove the limitation on survivor benefits on the basic plan to reflect
the fact that members now pay contributions based on total salaryg
4. Allow a reasonable payment of interest for the use of the member°s money
when a member receives a refund of his or her contributions du.e to terminm
anon of service prior to retirement.
BE IT FURTHER RESOLVED That copies of this resolution be sent to the Hennepin
County Legislators.
Passed by the City Council of the City of Richfield this 23~°d' day of April, 1973.
Loren Lo Law ` l Mayor
ATTEST:
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Thomas J. Mown City Clerk
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